Shopee reigns supreme in Southeast Asia e-commerce, with TikTok Shop growing fourfold to overtake Lazada

A recently released report on the Southeast Asia e-commerce market shows that Shopee remains the largest e-commerce platform in 2023, with a 48% market share and a gross merchandise value (GMV) of US$55.1 billion; TikTok Shop’s rapid growth has seen it overtake Lazada for second place!

Momentum Works’ Ecommerce in Southeast Asia 2024 report shows that the e-commerce market in Southeast Asia has doubled from US$54.2 billion in 2020 to US$114.6 billion in 2023. The report assessed the performance of nine e-commerce platforms: Shopee, Lazada, Tokopedia, TikTok Shop, Bukalapak, Tiki, Blibli, Amazon Singapore and Temu.

TikTok Shop’s market value in Southeast Asia quadrupled to $16.3 billion in 2023, further boosted by its merger with Indonesian e-commerce platform Tokopedia in late 2023. This will see TikTok Shop’s market value in Southeast Asia double in 2024.

TikTok Store Powered by Gen Z

TikTok Shop’s rise can be attributed to its innovative marketing strategy. LA Magazine describes it as “selling a lifestyle” to Gen Z users, and its affiliate program turns any TikTok content creator into an affiliate marketer. A viewer can purchase a product by simply pressing an orange button on a video they’re watching, and the influencer receives a commission on the sale.

Shopee continues to be the e-commerce leader, with a 48% market share in Southeast Asia. At the same time, Lazada’s recent reorganizations caused it to lose about $1 billion in GMV per year, falling from $21.0 billion in 2021 to $18.8 billion in 2023.

Indonesia remains the largest market in the region, with e-commerce sales valued at $53.8 billion in 2023, while Thailand and Vietnam were the fastest-growing markets.

Featured Image: Hans Edinger @ Pixabay