08 Oct The World of E-commerce in Southeast Asia
The demand for online purchasing has been burgeoning, and users from Southeast Asia are a substantial part of this massive movement. This is not surprising since 50% percent of the Southeast Asian population is online (Source: wearesocial). In 2017, internet economy revenues in Southeast Asia surpassed growth expectations by 35%, and e-commerce managed to garner US$10.9 billion, and is expected to reach US$88.1 billion by 2025 (Source: Google). Get a glimpse into Southeast Asia’s e-commerce industry below.
More Payment Options
Compared to western countries, Southeast Asia (other than Singapore) has low credit card penetration. For this reason, e-commerce in SEA offers a wide range of payment options other than credit card payment (e.g. Cash on delivery, bank transfer, offline points of sales and instalment). Consequently, payment trends in the countries of Southeast Asia vary, which some businesses find as a hurdle for expanding their reach for its inconsistency (Source: TheStartup).
In 2017, the total number of mobile internet users in the SEA was 302.3 million, and they spent an average of 3.6 hours online every single day. Whether these users use their time online on a social media or an e-commerce site, every online merchant must consider switching to a mobile-friendlier platform since the number of mobile users is perpetually increasing.
Higher Conversion Rates on Desktop
Though the use of mobile is continuously growing, e-commerce companies noticed that conversion rate is nonetheless still higher on desktop-use than on mobile (Source: TechWireAsia). Experts explain that while users use mobile devices for browsing through e-commerce websites to find out more about their purchase options, they still go to their desktop more often to carry out their actual purchases.
Southeast Asians Love to Spend Time Shopping Online
Users in Southeast Asia, are reportedly spending 140 minutes shopping online every month. That is twice as much as the amount of time spent by Americans. Southeast Asian users usually shop online on weekdays and spend their time browsing products on their phones during the weekends.
Take on all the e-commerce opportunities Southeast Asia has to offer! IH Digital is a digital marketing agency headquartered in Singapore and has a presence across multiple countries in the region and in Greater China. We can help you reach your e-commerce and digital marketing initiatives. Message us here.