- The Digital X
- Sep 9
- 14 min read
Updated: Sep 11
E-commerce in Southeast Asia has rapidly grown in recent years, making it one of the most closely watched markets today.
With rising interest in Japanese services and brands, many businesses are now considering expanding into cross-border e-commerce in the region.
In this article, The Digital X, with over 18 years of proven experience, will address the following key questions:
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Table of Contents
Why Southeast Asia Cross-Border E-Commerce Is Gaining Attention in 2025
[Country Breakdown] Southeast Asia Cross-Border E-Commerce Market Size
[Top 3] Most Popular Cross-Border E-Commerce Platforms in Southeast Asia
Winning Strategies for Cross-Border E-Commerce in Southeast Asia
Key Considerations for Cross-Border E-Commerce in Southeast Asia
Frequently Asked Questions (FAQ) about Southeast Asia Cross-Border E-Commerce
Why Southeast Asia Cross-Border E-Commerce Is Gaining Attention in 2025
Currently, cross-border e-commerce in Southeast Asia is attracting strong attention for three main reasons:
Rapidly Growing Economies and Rising Prices
Increased E-Commerce Demand Driven by IT Adoption
High Social Media Usage Rates
1. Rapidly Growing Economies and Rising Prices
Southeast Asia is now one of the most promising regions for cross-border e-commerce.
The region has been experiencing both rapid economic growth and rising prices. While Southeast Asia was once strongly associated with developing economies, the past few years have seen significant progress and transformation.
As of 2023, the overall GDP growth rate in Southeast Asia stood at 4.7% year-on-year, a figure comparable to Japan’s “high-growth era” in the late 1970s.
At the same time, inflation rates are also on the rise, with several countries reaching growth rates exceeding 5%. These indicators clearly show the strong momentum currently driving Southeast Asia’s economy.
2. Increased E-Commerce Demand Driven by IT Adoption
In recent years, Southeast Asian countries have experienced rapid digitalization, fueled by the rise of the middle class and the widespread adoption of smartphones. Internet penetration has increased dramatically, accelerating digital transformation across the region.
As a result, the shift from physical retail to online shopping has been progressing at a remarkable pace.
In the past, China, Japan, and South Korea were considered the dominant e-commerce markets in Asia. However, in recent years, Southeast Asia’s e-commerce sector has also been gaining strong momentum.
According to Statista data (2023), the e-commerce market in Southeast Asia reached approximately USD 139 billion, and it is projected to grow significantly by 2025.
Furthermore, data from JFC indicates that by fiscal year 2025, the market is expected to expand to roughly double its 2021 size.
High Social Media Usage Rates
Country | Internet Users (Penetration) | Social Media Users （Penetration） | Average Daily Usage |
|---|---|---|---|
Thailand | 63.21M (88%) | 49.10M (68.3%) | 2h 44m |
Malaysia | 33.59M (97.4%) | 30.70M (88.5%) | 2h 48m |
Singapore | 5.79M (96.0%) | 5.13M (85%) | 2h 14m |
Philippines | 86.98M (73.6%) | 86.75M (73.4%) | 3h 34m |
Indonesia | 185.3M (66.5%) | 139.0M (49.9%) | 3h 11m |
Vietnam | 78.44M (79.1%) | 72.70M (73.3%) | 2h 25m |
Japan | 104.4M (84.9%) | 96.0M (78.1%) | 53m |
Source: DataReportal
Southeast Asia has a deeply rooted social media culture, making it one of the most suitable markets for cross-border e-commerce marketing.
Since social media and e-commerce are highly complementary, combining strategies such as live commerce and influencer marketing can significantly expand reach to target consumers.
The region stands out for its high social media penetration rates and daily usage, with platforms serving as a major entry point to e-commerce sites. Interest in media-driven promotions, video content marketing, and social commerce is also increasing, solidifying social media’s role as a key driver of e-commerce growth.
For further insights, see also:
[Country Breakdown] Southeast Asia Cross-Border E-Commerce Market Size
Let’s now take a closer look at the e-commerce markets of the following Southeast Asian countries:
Malaysia
Singapore
Philippines
Thailand
Indonesia
Vietnam
Each of these markets is expanding at a pace faster than Japan’s growth rate (9.23%), making them highly attractive for cross-border e-commerce.
In particular, Singapore, Malaysia, and the Philippines are recommended as entry points, since these countries provide relatively favorable conditions for expanding cross-border e-commerce.
Malaysia
According to Statista, Malaysia’s e-commerce market is expected to reach USD 7.88 billion in 2024, with an impressive annual growth rate of 11.25%. Much of this revenue is generated through trade with China.
DataReportal shows that out of Malaysia’s 34.49 million population, 97% are internet users, highlighting the strong digital foundation of the market.
Malaysia’s most popular e-commerce platforms are Shopee and Shein, particularly in the mall-style marketplace category.
For further details, see:
Singapore
Statista projects Singapore’s e-commerce market to reach USD 5.04 billion in 2024, with an annual growth rate of 10.76%. By 2029, the number of e-commerce users is expected to reach 4.9 million.
According to DataReportal, 96.0% of Singapore’s 6.03 million population are internet users, making it a highly mature digital market.
Top platforms in Singapore include Shopee (market leader), followed by Lazada and Amazon.
For further reading:
Philippines
Statista estimates that the Philippines’ e-commerce revenue will reach USD 14.66 billion in 2024, with an annual growth rate of 11.27%. By 2029, the number of users is projected to reach 31.6 million.
DataReportal reports an internet penetration rate of 73.6% among the country’s 118.2 million population.
Geographically close to Japan and known as a pro-Japan country, the Philippines provides a favorable cultural and market environment for Japanese cross-border e-commerce.
Thailand
According to Statista, Thailand’s e-commerce revenue is forecasted to reach USD 19.28 billion in 2024, with an annual growth rate of 10.89%. By 2029, the number of users is expected to grow to 22.4 million.
DataReportal shows that out of a population of 71.85 million, 88% are internet users. Thailand also has one of the highest rates of weekly e-commerce use in Asia.
Lazada is the leading platform, with more than 13.27 million downloads as of 2022.
Indonesia
According to Statista, Indonesia’s e-commerce revenue will reach USD 50.22 billion in 2024, with an annual growth rate of 9.57%. By 2029, the number of users is forecasted to hit 99.1 million.
DataReportal data shows a population of 278.7 million, with an internet penetration rate of 66.5%. Despite relatively lower penetration, Indonesia’s massive population makes it one of the most promising markets in Southeast Asia.
Bukalapak, a platform specializing in electronics and mobile products, is particularly popular. Since its launch in 2010, it has maintained steady growth, with over 70 million monthly active users as of 2019.
For further insights:
Vietnam
According to Statista, Vietnam’s e-commerce revenue is forecasted to reach USD 13.9 billion in 2024, with an annual growth rate of 11.21%. By 2029, the market is expected to grow to USD 23.65 billion.
DataReportal reports a population of 99.19 million, with an internet penetration rate of 79.1%.
Vietnam’s most popular e-commerce platforms include Shopee, Lazada, Tiki, and Sendo.
For further reading:
Target Languages by Country
In cross-border e-commerce, it is essential to localize your content and provide language support tailored to each target country. Below is a summary of the key languages required for Southeast Asian markets:
Country | Language to Target |
|---|---|
Thailand | Thai |
Malaysia | Primarily English |
Vietnam | Vietnamese |
Indonesia | Indonesian |
Philippines | Primarily English |
Singapore | Primarily English |
Localization in the right language helps build trust with consumers and improves both conversion rates and brand recognition.
▼ On-the-Ground Insights (From The Digital X)Within Southeast Asia, there are countries where English is widely understood and others where it is not. For Malaysia, the Philippines, and Singapore, targeting English alone is sufficient. However, when expanding into Thailand, Vietnam, and Indonesia, it is essential to provide support and localization in the local languages to effectively reach consumers. |
Key Characteristics of Southeast Asian E-Commerce Consumers
The purchasing behavior of e-commerce users in Southeast Asia can be summarized by three major traits:
Strong trust in Japanese products and services
High demand for fashion, beauty, and food categories
Social media usage strongly influencing purchasing behavior
Based on both market data and our team’s direct experience in the region, here’s what businesses should know when shaping their marketing strategies.
Strong Trust in Japanese Products and Services
Southeast Asian consumers show a clear preference and trust toward Japanese products and services.
Japan and Southeast Asia have long maintained strong business ties, with the region accounting for around 15% of Japan’s total trade volume.
High-quality Japanese imports remain extremely popular, and in many cases, Japanese companies have even shifted to local production to meet growing demand.
Categories that attract particular consumer attention include:
Luxury goods
Cosmetics
Food products
Stationery
Precision electronics (such as cameras)
Fashion, Beauty, and Food as Popular Categories
The most popular e-commerce categories in Southeast Asia are fashion, beauty (personal care), and food.
According to Statista, more than 50% of consumers in the region purchase fashion and beauty products online, while nearly half of all users also buy groceries.
This highlights the strong demand for everyday products and lifestyle essentials through online channels.
Social Media Usage Closely Linked to Purchasing Behavior
Data from Statista shows that Southeast Asia is the region where social media influencers have the strongest impact on consumer purchasing decisions.
Consumers use social commerce extensively for:
Discovering new products
Comparing and evaluating brands
Checking prices and reviews
The data also reveals that Southeast Asia e-commerce consumers actively use social commerce to discover new products, compare and evaluate brands, and research prices and customer reviews before making a purchase.
[Top 3] Most Popular Cross-Border E-Commerce Platforms in Southeast Asia
Below is a ranking of online marketplaces in Southeast Asia based on monthly website visits.
Ranking of the Most Popular Cross-Border E-Commerce Platforms in Southeast Asia
Rank | Platform | Monthly Visits in Southeast Asia |
1 | Shopee | 343 million |
2 | Tokopedia | 137 million |
3 | Lazada | 128 million |
From here, we will introduce the Top 3 most popular platforms that are best suited for cross-border e-commerce in Southeast Asia.
For more details on country-specific e-commerce rankings in Southeast Asia, please also see the following article:
Shopee
Operated out of Singapore, Shopee is the largest cross-border e-commerce platform in Southeast Asia.
It allows sellers to list products across multiple Asian countries simultaneously, with a system where store owners can respond directly to customer inquiries.
Since its founding in 2015, Shopee has enjoyed rapid growth, achieving a gross merchandise value (GMV) of nearly JPY 4 trillion by 2020.
For Japanese businesses, one of the key advantages is that there are no fees for sales or listings, making it a low-cost entry point into the Southeast Asian market.
For more details, see:
Tokopedia
Founded in 2009 in Indonesia, Tokopedia is a rapidly growing C2C marketplace that has received investment from China’s Alibaba Group.
Originally launched with the goal of improving logistics across Indonesia’s 17,000 islands, the platform has since grown to include over 12 million merchants.
Today, Tokopedia has become one of Indonesia’s most prominent online services, attracting approximately 157 million monthly visitors.
One of its main advantages is that fees are waived from the start until the first 100 transactions, making it a low-cost and accessible platform for new sellers. In addition, Tokopedia partners with 13 logistics providers, enabling same-day delivery in many areas.
Sellers can also benefit from promotional support through Tokopedia’s advertising platform, making it an attractive entry point for businesses new to e-commerce.
Lazada
Alongside Shopee, Lazada is one of the most popular cross-border e-commerce platforms in Southeast Asia.
A key advantage of Lazada is that sellers can simultaneously list products across six countries: Singapore, Thailand, Malaysia, Vietnam, Indonesia, and the Philippines.
The platform covers a wide variety of categories, with its main product lines including electronics, daily necessities, and apparel.
As of 2020, Lazada recorded a gross merchandise value (GMV) of JPY 476.2 billion, with more than 3,000 merchants per country operating on the platform.
Today, Lazada also benefits Japanese sellers by maintaining logistics warehouses in Japan. This allows businesses to simply ship products to the warehouse, which then handles delivery directly to consumers overseas—streamlining the cross-border process.
Winning Strategies for Cross-Border E-Commerce in Southeast Asia
From here, we will explain the key strategies. —“winning moves” — for building success in cross-border e-commerce across Southeast Asia.
Leveraging TV and Video Advertising, as well as Search Ads
Implementing Marketing Strategies through Social Media
Optimizing for Mobile and Local Payment Methods
Using Offline Marketing to Differentiate from Competitors
Leveraging TV, Video, and Search Advertising
In Southeast Asia, TV and video advertising still hold a significant share of the market.
Although digital advertising has been catching up rapidly, the size of the TV and video ad market was USD 8.53 billion as of 2024, accounting for roughly one-third of the overall advertising market.
The next largest segment is search advertising, with a market size of USD 4.13 billion.
For businesses aiming to efficiently increase brand and product awareness, these two channels remain the most effective targets.
Reference: Statista
Implementing Marketing Strategies through Social Media
According to Statista, social media advertising spending in Southeast Asia reached a market size of USD 3.9 billion in 2024. With an annual growth rate of 9.62%, the market is projected to expand to USD 6.77 billion by 2030.
Social media and cross-border e-commerce are highly compatible. Through influencer marketing, KOLs (Key Opinion Leaders), and live commerce, businesses can significantly expand their reach.
In Southeast Asia, young consumers often use social media as a primary information source before making purchases, placing strong importance on reviews and word-of-mouth recommendations.
For this reason, social media is a powerful tool for boosting product and brand awareness and reaching potential customers.
The most influential social media platforms in Southeast Asia include:
Facebook
YouTube
Instagram
Zalo
For further insights, see:
Optimizing for Mobile and Local Payment Methods
To succeed in cross-border e-commerce, user-friendliness is key.
Since the majority of Southeast Asian consumers access online stores via smartphones, preventing drop-offs requires that e-commerce sites be fully mobile-optimized.
Equally important is tailoring payment methods to each target country. Unlike Japan, where bank transfers and credit cards are dominant, these are less common in many Southeast Asian markets.
Instead, businesses must ensure support for debit cards, mobile wallets, cash-on-delivery, and convenience store payments, depending on local consumer habits. Offering the right payment options is essential for building trust and maximizing conversions.
Differentiating with Offline Marketing
In Southeast Asia, offline marketing remains highly effective, with both physical stores and OOH (Out-of-Home) advertising still playing a critical role.
OOH refers to advertising placed outdoors or in public spaces, and local competitors often use these offline touchpoints to drive traffic toward their online channels.
According to Statista, the OOH advertising market in Southeast Asia was valued at USD 1.67 billion in 2024, continuing an upward trend since 2020.
As a form of subtle, everyday exposure, OOH can be a powerful medium for increasing brand awareness and visibility in Southeast Asian markets.
▼ On-the-Ground Insights (From The Digital X)In the context of Southeast Asia cross-border e-commerce marketing, consumer behavior shows that individuals with higher purchasing power tend not to use rail transportation. This makes transit and OOH (Out-of-Home) advertising highly effective for promoting products targeted at middle- and high-income audiences. With the exception of Singapore, most Southeast Asian countries are car-oriented societies, where consumers rely heavily on private vehicles. For this reason, businesses can maximize impact by adopting a cross-media marketing strategy that integrates OOH advertising (billboards, roadside ads, transit ads) with digital campaigns, creating a seamless online-to-offline consumer journey. |
For a deeper dive into cross-media strategies for Southeast Asia, please refer to the following article:
Key Considerations for Cross-Border E-Commerce in Southeast Asia
When expanding into Southeast Asia’s cross-border e-commerce market, businesses must carefully address the following points:
Targeting strategies tailored to each country’s market and culture
Awareness of tariffs, import restrictions, and prohibited items
Understand Each Country’s Market and Culture for Effective Targeting
Consumer behavior in Southeast Asia is shaped by cultural and socio-economic factors, which vary significantly by country. This means businesses cannot adopt a one-size-fits-all approach; instead, localized targeting strategies are essential.
Before entering the market, companies should conduct in-depth market research and on-the-ground studies to identify:
Current consumer trends
Which Japanese products are gaining attention
Local cultural preferences influencing purchasing decisions
Proper localization ensures stronger customer trust and higher conversion rates in each market.
Pay Attention to Tariffs and Prohibited Items
Another critical factor in Southeast Asia cross-border e-commerce is compliance with tariffs and import/export restrictions.
Each country enforces different rules on prohibited items, so businesses must first confirm whether their products can be legally imported into the target market.
Failure to account for tariffs can lead to unexpected costs, which may erode profit margins. To avoid such risks, companies should thoroughly research local customs regulations and trade laws before launching operations.
Frequently Asked Questions about Southeast Asia Cross-Border E-Commerce
Below are answers to common questions about expanding cross-border e-commerce into Southeast Asia, with insights tailored to each market.
Which Southeast Asian Countries are recommended for Japanese companies?
The most recommended countries for Japanese companies entering Southeast Asia’s cross-border e-commerce market are:
Singapore
Malaysia
Philippines
These countries offer:
Strong economic growth rates
High internet and smartphone penetration
A pro-Japan cultural affinity
Together, these factors make market entry and brand acceptance relatively smoother.
How is Southeast Asia cross-border e-commerce different from China?
While China remains the world’s largest e-commerce market, Southeast Asia has been growing at a faster pace in recent years.
In 2023, Southeast Asia’s GDP growth reached 4.7%, surpassing China’s 4.3%.
Inflation in Southeast Asia was 4.5%, more than double China’s 2.3%, reflecting stronger upward momentum.
Although the region’s e-commerce market has not yet reached China’s scale, its growth trajectory suggests the potential to become a massive market in the near future.
However, one key difference is logistics. The geographic distance between Japan and Southeast Asia differs from that of Japan and China, requiring businesses to carefully select delivery solutions suitable for each market.
When targeting multiple countries in Southeast Asia, companies must determine cost-effective shipping services on a country-by-country basis to optimize operations.
Frequently Asked Questions by Country
Malaysia
What is the latest information on web marketing in Malaysia?
For insights into the current state of Malaysia’s web marketing, see:
What are the winning strategies for SEO in Malaysia?
For detailed strategies on SEO in Malaysia, see:
What are the success factors for expanding business into Malaysia?
For guidance on market entry and success strategies, see:
Singapore
What are the most popular search engines in Singapore?
For rankings and usage of Singapore’s top search engines, see:
What are the most popular social media platforms in Singapore and how can they be leveraged?
What are the current advertising trends in Singapore?
For insights into advertising market trends, see:
[2024 Update] Singapore Advertising Market: Key Points for Effective Marketing
[2024 Update] The State of Listing Ads in Singapore: Winning Strategies for Market Entry
Thailand
What are the most popular social media platforms in Thailand?
For details on platform trends and case studies, see:
What are the winning strategies for business expansion into Thailand?
For fundamental knowledge and success strategies, see:
Indonesia
What are the current advertising and promotion trends in Indonesia?
What are the most popular search engines in Indonesia?
For insights into usage and market share, see:
Vietnam
What are the most popular social media platforms in Vietnam?
For detailed rankings and strategies, see:
How many Instagram users are there in Vietnam?
For insights into Instagram usage and influencer advertising, see:
For Southeast Asia Cross-Border E-Commerce Expansion, Consult The Digital X
Southeast Asia is one of the world’s fastest-growing markets. To succeed, businesses must not only implement proper localization strategies, but also stay updated on the region’s rapidly changing trends and market dynamics.
Without careful preparation, important details can be overlooked—lowering the chances of success in cross-border e-commerce. That’s why thorough planning and execution are essential.
At The Digital X, we are professionals in digital marketing and cross-border e-commerce. Our team includes native marketers across Southeast Asia, with proven experience and know-how in managing large-scale e-commerce stores on leading platforms.
We provide tailored marketing strategies to optimize your cross-border e-commerce expansion into Southeast Asia. Contact us today to learn how we can help your business grow.
