Singapore retailers enter Thailand, Malaysia via Shopee, Lazada

Selling on these platforms is significantly cheaper than setting up physical stores.

More Singaporean retailers are turning to Shopee and Lazada to tap the Thai and Malaysian markets, using the e-commerce platforms’ large customer base, integrated logistics and various marketing tools to boost sales and visibility.

Selling through these platforms lets retailers cut marketing and customer acquisition costs, Nick Morris, founder of cultural insight agency Canvas8, told Retail Asia in a video interview.

“Whilst there are costs associated with selling on these platforms, the benefits often outweigh the expenses, especially for smaller retailers that lack the resources to establish a standalone presence in a new market,” he said. “These platforms act as a springboard for Singaporean retailers to enter and grow in new markets.”

Shopee is used by 88% of Thai and 94% of Malaysian shoppers, whilst Lazada follows closely with 85% and 79%, respectively, Morris said, citing an October 2024 report by DHL E-commerce.

Shopee’s International Platform allows Singapore-based sellers to ship goods domestically to Shopee’s warehouse, with Customs clearance and last-mile delivery managed by the platform. Lazada offers a similar Fulfilment by Lazada service.

Thailand’s e-commerce market was valued at $38.5b in 2024 and is projected to grow 52% to $58.5b by 2027, according to Payments and Commerce Market Intelligence. In Malaysia, the market is estimated at $12.26b in 2025 and is expected to almost double to $23.93b by 2030, according to market intelligence and advisory firm Mordor Intelligence.

Kel Jin Chua, director at Shopee Singapore, said e-commerce remains a cost-effective expansion strategy for Singapore brands entering Malaysia and Thailand.

“Many Singapore retailers come to us looking to expand into Malaysia and Thailand, as they see strong consumer demand and a growing market,” he said in a separate video interview.

Morris said selling on Shopee and Lazada is significantly cheaper than setting up physical stores, letting retailers test demand in new markets before committing to larger investments.

Ashutosh Awasthi, director at market research firm Kadence International Singapore, said these e-commerce platforms allow retailers to reach younger consumers. “The growing purchasing power of Gen Z shoppers makes platforms like Shopee and Lazada critical for Singaporean retailers expanding into these markets,” he told Retail Asia in an emailed reply to questions.

Partnering with established e-commerce players or multi-brand chains is also an efficient way to lower entry costs, he said.

Fashion label Love, Bonito, which started as a blogshop, rebranded in 2010 and rapidly expanded, and it now has stores in both countries. Gaming chair maker Secretlab also entered Malaysia in 2015 and now sells in more than 50 markets without a physical store.

Awasthi said BreadTalk, Charles & Keith, and Razer have also built a strong presence in Malaysia using both e-commerce and omnichannel strategies.

However, intense competition from both local and international players is tough for some retailers. Whilst digital engagement is high in Thailand, adoption varies by region, often requiring an omnichannel approach to reach customers outside major cities. “This can increase operational costs,” Awasthi said. 

Malaysian consumers are also more price-conscious. “The key challenge for Singapore retailers is balancing affordable pricing whilst maintaining product quality.”

“Tech adoption in Thailand and Malaysia is slower, particularly outside major cities,” Awasthi said. “This limits market penetration and forces retailers to adopt omnichannel strategies rather than relying solely on e-commerce.”

Morris said retailers entering Thailand and Malaysia should tailor their approach. Thai shoppers are very active in social commerce, making influencer partnerships and livestream selling effective tools. Malaysian consumers are more price-driven, with 56% actively seeking promotions, compared with 37% of Thai shoppers.

“Retailers need to test and adjust pricing strategies in both markets to find an acceptable balance,” he added.