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Do You Know the Overview of e-commerce in Southeast Asia?

Views:391     Author:Site Editor     Publish Time: 2020-10-27      Origin:Site


Southeast Asia has the third largest population in the world. The Internet connection rate is relatively low, but it is still growing. In the vast expeditions of cross-border sellers, Southeast Asia has become a hotly contested area. Whether it is platform e-commerce, second-class e-commerce or e-commerce models sold in the form of COD, they can be found in Southeast Asia Figure. E-commerce in Southeast Asia has been regarded as the most powerful field in the next year. A Google study showed that the economic value of the Internet in Southeast Asia reached US$50 billion in 2017, far exceeding the expected 35%.

 


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ASEAN's e-commerce Market

The increasing population in the middle class indicates an increase in people's disposable income, which means people have more consumer spending. In addition, the growing youth population and Internet penetration rate in Southeast Asia are also the main driving forces for the soaring online shopping sales in this region. In this hot spot of investment, starting an online store with drop shipping and opening a dropship shopee has a great market prospect. It is necessary to study the most popular dropshipping items in this market.

 

In 2018, the e-commerce sector became one of the fastest growing industries in Southeast Asia. In 2017, the gross merchandise transactions (GMV) in Southeast Asia was close to 11 billion U.S. dollars, and in 2018, this figure even exceeded 23 billion U.S. dollars.


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The emergence of online shopping platforms is the basis for a large number of dropshipping websites for sale, and these platforms promote the economic growth of e-commerce in Southeast Asia. The existence of online shopping platforms such as Lazada, Shopee and Tokopedia is one of the driving forces for the rise of the e-commerce industry. Since 2015, the total scale of these three major e-commerce platforms has increased by more than 7 times, far surpassing other players in the industry.

 


Trends for e-commerce in Southeast Asia

As the Southeast Asian e-commerce market continues to reap profits, the industry has played a valuable role in the development of the digital economy in this region. A joint study by Google and Temasek pointed out that by 2025, the value of Southeast Asia’s Internet economy is expected to exceed US$240 billion. By then, the value of the e-commerce market in Southeast Asia is expected to reach US$102 billion, accounting for more than 40% of the total value of the Internet economy in the region.

 

Thanks to its demographic advantage, Indonesia's e-commerce market will grow larger than other Southeast Asian countries. The number of pet supplies dropshipping, fashion jewelry dropshipping and cell phones suppliers dropshipping has increased significantly in Southeast Asian countries.

 


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Challenges of ASEAN e-commerce

The fierce competition from global heavyweights such as Amazon, ASOS, Alibaba, and Rakuten poses an underestimated challenge to local e-commerce platforms. Local e-commerce platforms still have a long way to go, such as increasing broadband access, strengthening online security, promoting electronic payments, and improving logistics.

 

The local government should strengthen the construction of infrastructure to create conditions for convenient and fast logistics. E-commerce companies should know the advantages of other top sites dropshipping, such as Amazon dropshipping tools and drop shipping through ebay.

 

All in all, there are both opportunities and challenges in the Southeast Asian e-commerce market.


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