28. E-commerce in Southeast Asia: trends and statistics

E-commerce is on the rise in Southeast Asia, driven by increasing internet penetration and smartphone adoption. According to a report by Google and Temasek, the market size of internet economy in Southeast Asia reached US$100 billion in 2019 and is expected to grow to US$300 billion by 2025, with e-commerce accounting for a significant portion of the growth.

In 2020, the COVID-19 pandemic further accelerated the growth of e-commerce as consumers turned to online shopping due to lockdowns and social distancing measures. Lazada, the leading e-commerce platform in Southeast Asia, reported a 91% increase in items sold during their annual 11.11 shopping festival in 2020, compared to the previous year.

Mobile shopping is also gaining popularity in Southeast Asia, with 90% of internet users in the region using their smartphones to make purchases online. Shopee, another major e-commerce platform in Southeast Asia, reported that over 70% of their orders in 2020 were made through their mobile app.

Cross-border e-commerce is also becoming more common in the region, with consumers purchasing products from overseas e-commerce platforms. According to a report by iPrice Group, cross-border e-commerce increased by over 50% in Southeast Asia in 2020. Chinese e-commerce giant Alibaba’s Southeast Asia subsidiary, Lazada, has been particularly successful in cross-border e-commerce, with its cross-border sales increasing by 70% in the first nine months of 2020.

However, e-commerce in Southeast Asia also faces challenges such as logistical difficulties and low credit card penetration. To overcome these challenges, e-commerce platforms are investing in logistics infrastructure and developing alternative payment methods such as e-wallets.

As the e-commerce market in Southeast Asia continues to grow, it presents opportunities for businesses to expand their reach and tap into the region’s potential.