The Evolution of eCommerce Enablers in Southeast Asia
Southeast Asian e-commerce has grown rapidly during the pandemic.
E-commerce has grown rapidly in Southeast Asia. E-commerce enablers are the solution to help businesses meet the challenges of selling in such a dynamic landscape.
Southeast Asian e-commerce has grown rapidly during the pandemic. In 2020, as many as 40 million people across the region came online for the first time, which pushed the total number of internet users to 400 million in Southeast Asia. The average value of an order throughout the region rose by 23% year-on-year to US$28.50. Singapore-originated Shopee, which is popular throughout the region, saw a 92% rise in the number of users garnering close to an additional 5 million visitors on average in the second quarter of 2020 alone.
E-commerce platforms in Southeast Asia also saw a rise in entrepreneurs coming onboard their platforms. Shopee saw a 60% year-on-year growth of new sellers, while Lazada’s Laz-Mall has tripled to more than 18,000 international and local names across the region.
As a result of growth in Southeast Asia, e-commerce enablers have also evolved alongside e-commerce platforms in the region. A report from research and advisory firm Forrester noted an increase in e-commerce enablers targeting the Southeast Asian market, of which there are now about 16
E-commerce challenges in Southeast Asia.
E-commerce enablers have become essential to the region because of a number of challenges plaguing businesses looking to sell online.
Despite the rise in buyers and sellers, internet penetration remains low in the region with some countries like Timor-Leste having a population where only 38% of people have access to the internet. Similarly, credit card penetration was also low in the region with credit card penetration remaining at just 10% or less in Thailand, Indonesia, and Vietnam.
The region’s e-commerce platforms also realized they had to create ways to access the region’s 73% unbanked population. Online shopping was made more accessible payment options such as cash on delivery, which remains the most popular form of payment in the Philippines at 67%.
Finally, a study done by iPrice Group and App Annie revealed that the region’s e-commerce ecosystem is highly fragmented. Based on data from mobile app monthly active users, each major e-commerce Southeast Asian country has its own set of the top online marketplace.
Why e-commerce enablers are needed?.
Many in-house e-commerce teams aren’t sure how to structure themselves when faced with the challenges in Southeast Asia. Over 65% of global marketers feel teams are “somewhat integrated” or “broken out by channel”. E-commerce platforms are also becoming more robust but also more complex with data analytics, seller tools, and KPIs that need to be utilized and met.
This is where the e-commerce enabler comes in. E-commerce enablers work with brands and e-commerce partners (marketplaces, 3PL, payment gateways, etc) to increase revenue by optimizing online sale channels and bringing them closer to their target audience. This is done by executing digital strategies, inventory management, and fulfillment, and negotiating with marketplaces for better visibility for their clients.
It’s a one-stop solution that covers everything from product marketing to platform optimization, all the way to delivering an order right to a customer’s doorstep. They are the brand’s go-to for expert advice when it comes to front-end and back-end e-commerce. With e-commerce in Southeast Asia growing and competition increasing, e-commerce enablers help a business stand out.
Etaily Is Your End-to-End e-commerce Enabler.
We combine the capabilities of digital consultancies, e-commerce enablers, and design professionals in one team. We’ve worked with SMEs, fashion conglomerates, and Fortune 500 companies to launch and run their e-commerce businesses at start-up speed.
Etaily focuses on creating powerful content for your brand, setting up and managing your marketplace store, managing your inventory and fulfillment, coordinating with marketplace channels, and much more. With Etaily, guesswork is taken out of a brand’s e-commerce journey while making sure they stay ahead of their competition.