Asian Online Marketplace Review: Asian eCommerce in 2024

We heard you enjoyed our peek into the Top 10 European Marketplaces – so we’re following it up with a look at the Asian Online Marketplace.

Asia is becoming one of the most dynamic regions in the global online marketplaces, a growth that was fueled by COVID19 and stay-at-home restrictions. Although Amazon has established presence in Singapore, Japan, and India, it faces stiff competition from local e-commerce platforms. The Southeast Asian e-commerce market is not only robust and keyed into the wants and needs of its customers, it also offers a highly localized approach, resonating closely with customers in Thailand, the Philippines, Hong Kong, Malaysia, Indonesia, and more – and appealing to customers even outside of Southeast Asia, as far away as Korea and Japan.

If you’re planning to penetrate Southeast Asian eCommerce, you might find that selling only on Amazon’s local arm will be insufficient to capture the hearts of Southeast Asian customers. It’s worth looking at other platforms in Southeast Asia, and Chinese eCommerce as well, to see how you can establish a firm foothold in the region.

Let’s explore why and how an international seller such as yourself should consider other marketplaces in Asia to better understand and meet regional market demands.

While we’re on the topic of Asian eCommerce, have you read our blog on Temu vs. SHEIN  yet?

1. The Current Asian Online Marketplace Landscape

Let’s take a quick look at the top ecommerce platforms in Asia.

Marketplace	Annual Revenue in 2023
JD . Com	$152,800,000,000.00
Pinduoduo	$34,870,000,000.00
Coupang	$24,400,000,000.00
Rakuten	$14,580,000,000.00
Flipkart	$6,690,135,200.00
Tokopedia	$560,000,000.00
Alibaba	$122,656,085.21
Shopee	$67,300,000.00
Zalora	$39,400,000.00
Lazada	$34,400,000.00

Meanwhile, the TMO Group discovered that Shopee and Lazada have the highest traffic count, particularly in Thailand, Vietnam, Malaysia, and the Philippines. Indonesian eCommerce, spearheaded by TikTok-owned Tokopedia, is starting to grow exponentially, with over 100 million monthly visits. It looks like the Asian online marketplace industry is starting to improve in performance pretty quickly.

This report by the Economic Research Institute for ASEAN and East Asia predicts that Asia will soon account for nearly 40% of global cross-border e-commerce revenues by 2025. The rapid growth in online shopping is driven by the increasing number of internet users and high online shopping penetration rates, particularly in countries like China, Singapore, and Malaysia. The growth is further fueled by Asia’s large population, which represents 30% of the world’s GDP and 40% of global trade. The continent’s digital economy is projected to expand significantly over the next few years.

In other words, we’re looking at a sleeping giant in the eCommerce world. Currently, China dominates the charge with platforms like Alibaba and JD.com, while India’s Flipkart and Indonesia’s Tokopedia show incredible growth. Internet penetration, a rising middle class, and strong digital infrastructure push this growth.

One of the defining features of online marketplaces in Asia is the mobile-first approach. Consumer-to-consumer e-commerce companies like Lazada (owned by Alibaba) and Shopee (owned by Sea Group Ltd.) thrive in Southeast Asia because of the region’s high mobile adoption rates. Shoppers purchase heavily on mobile devices, many surpassing desktop shopping altogether. This habit has formed how businesses operate, creating seamless app experiences to implementing mobile payment systems and fun mobile games to boost engagement and garner discounts and points.

It looks like the Asia market is on a swift projectile for growth. Statista published these figures:

• The eCommerce market is projected to generate $1,972 billion in revenue in 2024.
• Annual growth (CAGR 2024-2029) is expected to be 9.8%, reaching $3,147 billion by 2029.
• China will lead with a projected market volume of $1,469 billion in 2024.
• The number of eCommerce users is expected to reach 2.182 billion by 2029.
• User penetration will be 38.6% in 2024, rising to 50.0% by 2029.
• The average revenue per user (ARPU) is projected to be $1,321.

What does all of this mean? In short, the e-commerce market in Southeast Asia and the Pacific is growing really quickly. The Asian online marketplace is becoming one of the most promising marketplaces in the world, and definitely worth a look for online retailers hoping to expand their footprint on a global scale.

Does all of this intrigue you? Read about How and Why to Sell on TikTok Shop in 2024; it’s a good way to ease into Asian e-Commerce.

2. Asian Online Marketplaces Giving Amazon a Run for its Money

Let’s take a look at Amazon. The online platform is present in India, Japan, and Singapore. Take a look at these earnings from 2023:

	Japan	India	Singapore
2023 Revenue	US$26,000,000,000	US$2,653,210,800	US$222,900,000

If we look at Amazon’s progress vs. other players in each country, it’s not doing badly at all.

Check out its performance vs. other Asian online marketplaces. In Japan, Amazon is the top eCommerce site, followed by Rakuten. In India, Brightbrain reports that Amazon saw an 89% audience reach, with 322.54 million monthly visitors since its inception in 2010; Flipkart trails behind with only 100 million monthly visitors. It’s not doing as well in Singapore, where according to Statista Shopee and Lazada lead the charge, with 13.2 million and 6 million visitors respectively, with 5 million for Amazon. Hopefully these numbers will improve, given that Singapore is a key hub for Amazon’s Southeast Asian operations, where the company has introduced its Prime Now service for fast delivery of groceries and essentials.

So, what gives? Why isn’t Amazon doing better in Asia? While it’s not doing badly at all, its performance is perhaps not as astronomical as in other countries across the globe.

The answer to that is long and complex; it starts off with the diverse populations in the Asia Pacific region, with socioeconomic statuses varying from extremely rich to extremely poor. Secondly, Amazon faces significant regulatory, logistical, and cultural challenges in Asia; local regulations usually make expansion difficult. Furthermore, complex and diverse infrastructure make logistics complicated; it’s not easy to implement a sophisticated delivery and fulfillment network, unlike in the USA and Europe. Additionally, cultural preferences for local platforms and payment methods create hurdles for Amazon, as many consumers prefer familiar, homegrown platforms over global players.

In spite of promising numbers, Amazon still faces stiff competition from local Asian online marketplaces like Alibaba, JD.com, and Shopee. Then there are other, smaller players, with significant backing – TMall is a Chinese B2C marketplace that spun off from Taobao, and is operated in China by Alibaba. Carousell is a Singapore-based marketplace that offers both C2C and B2C selling. Coupang meanwhile is a marketplace in South Korea, and allows selling through a WooCommerce account – Amazon has not yet penetrated the lucrative Korean market. With a local eCommerce platform this healthy and robust, Amazon faces stiff competition, indeed.

3. Why Sellers Should Focus on Local Asian Online Marketplaces

So, here’s the bottom line. If you want to expand to eCommerce in Asia, it’s a good idea to explore top Asian online  marketplaces as well. Although Amazon’s performance looks like it’ll improve as the years go by, the Asian market is used to local players, that have a close understanding of, and relationship with, their Asian customers.

Local players offer features specifically tailored to local needs – such as cash on delivery options where credit card penetration is low. An e-Commerce marketplace may offer mobile wallet payment to further entice users to check out their wide range of products – all of which cater to the Asian flavor in terms of product selection and price.

Furthermore, the top online marketplaces excel in logistics, marketing, and trust. They regularly engage local celebrities to push their platforms, endearing them to their customers. This deep-rooted local marketing strategy helps these top marketplaces build strong relationships with both buyers and sellers alike. This has enabled them to dominate the e-commerce landscape in Asia, making them the go-to platforms for both consumers and businesses.

Many multinational brands have storefronts in these local players, so the product selection isn’t limited to smaller, non-branded products. This is improving online shopping in the region, as the quality of products online improves year on year, increasing trust and improving the market for e-commerce.

Let’s put it very simply. Your t-shirt line may sell like hotcakes in the US and Europe, but may not do as well in Asia, for a bunch of different reasons. Perhaps the logistics system isn’t robust enough to deliver products as quickly to customers, and the sizes are too big for the delicate Asian frame. What works in popular eCommerce sites in the West may not work in the East, which is why localization is absolutely crucial if you want to penetrate the Asian eCommerce market.

If you choose to sell exclusively on Amazon India, Japan, or Singapore, you won’t necessarily hurt your business, since these platforms are on the up-and-up, but it’s still a good idea to check out the local players, since they know a thing or two about selling in Southeast Asia and the Pacific. They understand their online shoppers, which is essential for successful expansion.

4. Steps to Start Selling on Asian Marketplaces

As with any type of expansion, due diligence is crucial before you begin. This time, however, you can’t just focus on research on Amazon; it’s a good idea to take a look at other players across Southeast Asia and the Pacific to find the best marketplace for you. Asia is a region filled with a melting pot of cultures, languages, and spending power, and understanding the market in the region you hope to sell in is important. Southeast Asia as a whole had approximately 673.02 million people in 2022; this covered Cambodia, Brunei, Laos, Indonesia, Malaysia, Myanmar, Singapore, the Philippines, Thailand, and Vietnam.

In fact, a recent report by Cushman & Wakefield observed that Southeast Asia is on course for notable economic growth in 2024, with an average projected GDP growth rate of 4.6%. Nevertheless, potential challenges exist; the region faces issues like geopolitical tensions, supply chain disruptions, and rising energy prices, which may impact overall growth. With a youthful population, a strategic role in global supply chains, and increasing investments in R&D, manufacturing, and innovation, Southeast Asia is an incredibly promising region, albeit not without challenges.

Don’t make the mistake of picking the largest e-commerce marketplace and call it a day; really explore product demand, competition from other sellers on the platform, and market entry requirements. Explore onboarding processes and fees for local platforms to supplement your Amazon store. And make sure you work with translation and localization experts – like YLT Translations – to adapt product listings, customer service, and marketing to local cultures.

Conclusion

Now that you understand the eCommerce landscape in Southeast Asia, you’ll agree that the region is one of the largest e-commerce markets worldwide. Amazon, while improving in performance, is still not the largest online marketplace in Asia, and faces stiff competition from local Asian competitors. Chinese e-commerce is a juggernaut, and many other players like Shopee and Lazada are strong competitors, as well.

It’s a good idea for any online seller to explore selling to Southeast Asian countries, but it must be done with thorough and careful due diligence. Asian tastes are particular, and rather different from Western tastes; it’s important to see if Amazon is the right marketplace for you, or if you should supplement your selling efforts through presence on local marketplaces as well. It’s also crucial to analyze the expectations, wants, and needs of Asian customers, who have very different attitudes towards products, due to various factors like spending power, work and lifestyle, cultural nuances, weather, and even the body shape and constitution of Asians.

Understand that Asia is a rising economic force that’s definitely worth your attention; its contribution to global e-commerce rises year on year. So it’s definitely a good idea to explore selling in South East Asia. But there’s quite a lot to learn, so make sure you study up on the market before jumping in.

Never forget, YLT Translations can help you localize your product listings for Amazon – and, yes, this includes translating your listings to Japanese. Contact us if you’re curious about the Japanese market; we can definitely help!

While we’re on the topic, here are the 5 most common mistakes Amazon sellers are making when selling on Amazon Japan. It’s worth reading, for sure!