, Southeast Asia
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Southeast Asia e-commerce revenue up 28% YoY to $28b in 2023

The sector was also supported by the rapid growth of new entrants.

The e-commerce sector in Southeast Asia continues to grow with a 22% year-on-year revenue growth to $28b, and gross merchandise value (GMV) increase of 6% to $139b in 2023 as markets continue to monetise amidst high customer engagement and driven by new entrants.

In a joint study by Google, Temasek, and Bain & Company, the region's GMV is expected to further increase by 16% to reach $186b by 2025.

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"Revenue has grown faster than GMV as players increase take rates and expand to adjacent revenue streams (e.g. logistics, advertising, etc.). This trend is expected to continue into the medium term," the report read.

Offering additional revenue streams has become the common way to increase revenue per order and overall revenue growth.

Brand awareness and drive orders could also be increased through advertising, particularly seller-funded in-app ads, and this is poised to be the core of future monetisations.

The report added that new entrants in the market have accelerated their growth and boosted the overall market growth as they turn the informal and unorganised e-commerce forms into organised platforms.

Aside from these, artificial intelligence-led recommendations can also help in increasing customer basket size and "drive improved unit economics and economies of scale."

"Players need to look beyond the high-value segment and increase both the size and purchase frequency of their customer base to drive long-term growth and profitability," the report added.

 

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