As the world continues to increasingly rely on digital technology, e-commerce has become an integral part of our daily lives.
When Jeff Bezos unveiled Amazon to the world back in 1994, people doubted the business. Why would anyone want to purchase something online if they could go to a shop a block away? Why would anyone wait days for a product to arrive, when they could buy it within 15 minutes? This new idea of eCommerce and online shopping seemed far-fetched, but those doubters are the ones shaking their heads now.
30 years later, eCommerce is at the forefront of business strategy. In 2023 alone, eCommerce platforms accounted for an estimated US$5.8 trillion in global sales revenue, and this number is expected to keep rising over the years.
The Asia-Pacific e-commerce market is the largest in the world, generating substantial revenue due to its vast consumer base and increasing online shopping penetration. In 2025, the market is expected to generate trillions of dollars in sales, driven by factors such as rising disposable incomes, technological advancements, and the convenience of online shopping. The region's e-commerce growth is supported by a robust digital infrastructure, and the market is projected to continue its upward trajectory with a strong CAGR.
How has e-commerce changed the way businesses and service providers operate?
eCommerce has become a technological revolution that has changed the way businesses operate. It is not just the convenience of buying goods online, but the online infrastructure that has advanced over the years. With rising disposable incomes and reduced costs of phones and the internet, accessing eCommerce stores has never been easier. The use of mobile wallets like GrabPay and Apple Pay has also made paying for goods online a breeze.
As if the growth of e-commerce brought about by the regular digitization of businesses isn’t enough, the pandemic resulted in a paradigm shift in the way we live our lives that sped up this process.
Lockdowns meant that people could no longer go grocery shopping, work out at the gym, or eat out at restaurants. As such, people turned to online shopping. Growth in E-commerce and delivery businesses accelerated to meet consumer expectations and demands.
Equity Analyst and Managing Director at Morgan Stanley Bryan Nowak stated that the “Covid-driven bump will not flatten future e-commerce growth”. In fact, the financial services firm believes that the e-commerce industry could grow from $3.3 trillion to $5.4 trillion in 2026.
1. Many retail businesses have their own online stores
The exponential rise of online sales can largely be attributed to the coronavirus pandemic.
With prolonged lockdowns and people staying at home, online buying came through as a safe and convenient way for people to buy what they need. This has paved the way for a structural shift in demand and drastic transformation of consumer business models. From being an occasional activity, online shopping has now become second nature to many people.
However, it isn’t just Amazon or eBay that have eCommerce sites now.
Many retail stores have jumped onto the bandwagon, and created their own e-commerce stores for the accepting of online orders.
Setting up an e-commerce store has never been easier, with a wide range of online store builders available. For example, GoDaddy E-Store helps businesses set up a professional, modern-looking online store and securely accept payment online.
If you're new to setting up your own website or online store, let GoDaddy Airo, our AI-fueled customizable experience help you get your store up and running in a few steps.
2. Increased availability of next-day and same-day delivery
Another reason why people have been shifting to online shopping is the convenience that it offers. Customers can browse through a variety of products and then buy what they need, all from the comfort of their home.
Apart from convenience, customers also demand speed. Next-day or even same-day delivery are now common shipping options. After all, people are impatient and aren’t willing to wait weeks for their order to arrive. Instead, they want their items as soon as possible.
As a result, businesses have had to invest in reliable supply chain logistics to deliver orders safely, punctually and quickly. But in the grander scheme of things, it’s all worth it when satisfied customers make repeat purchases.
3. Increased demand for freelance services
Besides retailers, e-commerce has created new opportunities for freelancers and service providers as well.
Skills like web design, graphic design and digital marketing are essential in the e-commerce space. To carry out digital commerce, businesses are looking into:
- Building robust websites with attractive user interfaces and user experiences
- Making engaging content that act as lead magnets and bring customers to their store
- Setting up ads to gain some initial traffic to their website.
However, a small business may not have the resources to employ full-time staff for each of these tasks. This is where freelancers come into the picture, and help businesses build their e-commerce website.
While there are many intermediary websites like Fiverr and Upwork that connect freelancers to small businesses, freelancers and service providers are skipping the middleman and productising their services and have taken the route of building their own websites to market their services. This has allowed them to work with clients without giving a commission to third-party platforms.
Top e-commerce trends to watch in Asia for 2025
The e-commerce landscape in Asia is rapidly evolving, driven by technological advancements, changing consumer behaviors, and the expansion of digital infrastructure. Whether you’re a business selling goods or a freelancer who provides services, eCommerce has changed the game completely.
As we look toward 2025, several key trends and challenges are shaping the future of online shopping in this vibrant and diverse region. Let’s take a look at the biggest e-commerce trends that you should take advantage of to propel your business growth!
1. Omnichannel customer experience
Nowadays, customers have more than one touchpoint while shopping with brands, and they expect consistency and convenience at all stages.
An omnichannel experience is a seamless and integrated approach to customer engagement across multiple channels and touchpoints.
Therefore, businesses should ensure that customers have a consistent and cohesive experience, whether they are:
- shopping online through a website on their desktop or mobile app,
- in a physical store, or
- shopping via social media and customer service channels
- Ordering online and then collecting their items at the store etc.
The goal of an omnichannel strategy is to provide a unified customer journey that enhances convenience, satisfaction, and loyalty. Therefore, omnichannel retailing, which integrates online and offline shopping experiences, while not entirely new, continues to gain traction as a crucial e-commerce trend.
Consumers in Asia expect seamless transitions between various shopping channels, such as mobile apps, websites, and physical stores. By 2025, omnichannel strategies will be essential for retailers aiming to provide a cohesive and convenient shopping experience, enhancing customer satisfaction and loyalty.
Integrating online and offline channels
Retailers are investing in technologies that bridge the gap between online and offline channels. This includes features like click-and-collect services, where customers purchase online and pick up in-store, and the use of augmented reality (AR) to visualize products in real-world settings. These innovations enhance customer engagement and drive sales, contributing to the growth of the e-commerce market.
2. Mobile-first marketing and the rise of mobile commerce
Mobile commerce, or m-commerce, continues to be a major driver of e-commerce growth in Asia. With the proliferation of smartphones and increased internet accessibility, consumers are turning to mobile devices for their online shopping needs. Retailers are optimizing their e-commerce websites for mobile devices, ensuring a seamless user experience. The checkout process is becoming more streamlined with mobile wallets and payment options such as credit cards, enhancing customer satisfaction and conversion rates.
With many consumers now surfing the Web and shopping from their mobile phones, mobile-first marketing has become a must.
This means optimising your marketing efforts for mobile devices, which have much smaller screens than computers. For example, your website should have a responsive design that looks good on all screen sizes (including mobile). You may also want to have larger buttons for easier tapping.
Additionally, your business should establish its social media presences. After all, scrolling social media is how many people while away the time on their phones. Business owners that double down on social media marketing efforts, taking extra effort to pick the right social media platform, will see brand recognition and returns for their business.
You may even want to take things one step further and custom-build a mobile eCommerce app. Your app could also include push notification functionality for informing customers of order updates and special promotions.
By doing so, you keep your business top of mind. Engaging with customers regularly is the recipe for building customer loyalty, and netting more orders.
3. Shift from traditional retail to direct-to-consumer (DTC) sales
The growth of e-commerce has allowed businesses to sell directly to consumers instead of selling through intermediaries like wholesalers and retailers.
Well-established businesses, such as Nike and Adidas, don’t need to rely on third-party platforms, such as Amazon, to sell to customers. Instead, they can—and have—set up websites for customers to buy from them directly.
Even smaller businesses can get into the DTC game.
With the help of an e-commerce website and social media accounts, businesses can reach hundreds and even thousands of users through their mobile phones. These businesses can then market their wares to potential new customers, while eliminating the middleman entirely.
4. The rise of social commerce
Social media platforms are becoming powerful e-commerce drivers, with social commerce emerging as a key trend. Businesses are actively using social media to promote products to consumers. Apart from facilitating organic reach, social media platforms have built user-friendly advertising systems. This has helped businesses to use social media ads to reach new audiences.
On top of that, platforms like TikTok, Instagram, and WeChat are integrating shopping features, allowing users to purchase products directly through social media. This trend is fueled by the influence of social media on consumer behavior and the desire for an interactive shopping experience.
Social commerce is particularly popular in Southeast Asia, where platforms like Shopee and Lazada are leveraging social media to engage potential customers.
According to Accenture, social commerce sales are estimated to reach $1.2 trillion by 2025.
Influencer marketing has also been on the rise, where businesses sponsor social media influencers to promote products to their followers. By partnering with influencers whose audiences are likely to be interested in the business’ offerings, businesses stand to significantly convert new fans and boost sales.
If you’ve been putting it off, start creating social media profiles for your business. After that, strive to consistently post engaging content. By doing so, you can build a captive audience for you to market your products and services.
5. Growth of livestreaming / live shopping
Livestreaming is a fun trend that rised exponentially over the last 10 years. It started with gamers streaming their video game playthroughs on YouTube and Twitch.
In recent years, commerce has entered livestreaming to infuse entertainment into the shopping experience. Live shopping was initiated by Alibaba’s Taobao in 2016. Dubbed Taobao Live, the business’ live-stream service made it possible for eCommerce store partners to conduct product launches and stream sales in real time
Live shopping is gaining popularity in Southeast Asia, with platforms like Lazada and Shopee offering livestream shopping events. This trend combines entertainment and e-commerce, allowing consumers to interact with sellers and make purchases in real-time. Live shopping enhances the customer experience by providing a more engaging and interactive shopping environment.
These days, it’s possible to buy jewellery, fish and even luxury cars through a live-stream feed! What could your business sell using a simple live-stream setup?
6. Personalisation and AI-driven experiences
Customers like to be well-catered to and will value your business more if you provide them with a tailored experience. Hence, it is important to invest in technology that helps facilitate this personalised customer journey.
Use tools that allow you to send relevant offers and promotions based on your customers’ search and order histories. By suggesting products that customers are more likely to be interested in, you may entice them into opening their wallets.
Delivering a VIP, personalised experience may also foster goodwill that turns one-off shoppers into long-term customers.
Artificial Intelligence (AI) is also transforming the e-commerce industry by enabling personalized shopping experiences. AI algorithms analyze customer data to offer tailored product recommendations, improving customer satisfaction and increasing conversion rates.
By 2025, personalized experiences powered by AI will be a standard expectation among online shoppers, enhancing customer loyalty and retention.
7. The rise in sustainability and ethical shopping
Sustainability is becoming a critical consideration for consumers in Asia. Eco-conscious shoppers are seeking brands that prioritize sustainable practices and ethical sourcing. E-commerce businesses are responding by adopting sustainable packaging, reducing carbon footprints, and ensuring transparency in their supply chains. This trend is expected to gain momentum as consumers demand more responsible business practices from e-commerce companies.
8. Growth in cross-border e-commerce
Cross-border e-commerce is expanding rapidly as consumers seek access to a broader range of international products. Improved logistics and payment solutions are facilitating cross-border transactions, allowing businesses to tap into new markets. By 2025, cross-border e-commerce will play a significant role in the growth strategies of Asian retailers, offering new opportunities for e-commerce sales and market expansion.
9. Adoption of alternative payment methods
The adoption of alternative payment methods, such as "buy now, pay later" and digital wallets, is increasing in Southeast Asia. These payment options offer flexibility and convenience, catering to the preferences of a diverse customer base. By 2025, these methods are expected to become more prevalent, driving e-commerce growth and expanding the reach of online retailers.
Top e-commerce challenges in Asia
The growth of e-commerce has brought many benefits. However, it has also brought challenges for businesses looking to succeed in this increasingly competitive market. In this section, we will explore top e-commerce challenges in Asia that will make shopping cart abandonment and shipping costs seem like small issues.
1. Establishing an online presence
Southeast Asia’s top e-commerce platforms saw a 64% increase in web traffic between 2019 and 2022. It is expected that this number will grow even larger and faster in 2024. This makes establishing an online presence increasingly difficult and one of the biggest e-commerce challenges businesses have to face.
Which content management system (CMS) is best for e-commerce search engine optimization (SEO) and content marketing? How do you write search-optimized content to reach out to your target audience and grow your organic traffic? How do you even market a brand? Which social media platforms should you use for the marketing strategies you will execute to grow your online business? These are the many marketing questions e-commerce business owners will need to answer.
SEO and social media form the foundation of your digital marketing strategy to help bring in new customers. Don’t neglect it.
If you are not sure how to get started, GoDaddy Airo has you covered. From picking a domain to creating your first website, our AI-powered experience will help you establish your online presence and get your website up and running in no time. GoDaddy's website builder also comes with Digital Marketing tools, including basic SEO functions to help you optimise the content you upload to your web pages.
2. Tracking e-commerce activity
It comes as no surprise that marketers need to track the performance of all their activities. It helps to justify ad spend and hiring. Familiar with Google Tag Manager (GTM) and Google Analytics (GA)? Then you’re probably familiar with the pain that comes with getting complex tracking tags to work on your site. Tracking e-commerce-specific activity is known as enhanced e-commerce tracking.
Tracking provides you with the data you need to make informed business decisions. You need to get this right.
Not only are there more steps involved, but many CMS still do not completely support enhanced e-commerce tracking. At the time of this article’s publication, many major CMS require a unique code to be crafted to “push” data from the CMS to GA.
You’ll need to hire a web developer to set up the necessary tags to track all your conversion activities. This person will need to have experience in Google tag management.
3. Content duplication
While Google has made it clear that they do not remove your pages from its index unless you’re found to be engaging in spam practices, it can have other ramifications on SEO. For instance, Google may pick the non-target duplicate page as the canonical page and rank it instead. This means that all SEO effort put into optimizing the canonical page would be for naught.
As an SEO specialist myself, I would personally recommend roping the help of someone who has experience in e-commerce SEO to help audit and manage your site as it grows. The larger the number of pages becomes, the more likely content duplication will occur.
4. Website cybersecurity threats
While on the topic of e-commerce sites and online stores, one simply cannot ignore the topic of e-commerce cyber attack prevention. As e-commerce grows, so do concerns about cybersecurity. Protecting customer data and ensuring secure transactions are paramount.
In the third quarter of 2024, data breaches exposed more than 422 million records worldwide. Businesses must invest in robust cybersecurity measures to safeguard against data breaches, fraud, and online identity verification issues. Data security and privacy are critical to maintaining consumer trust and avoiding legal repercussions.
To assess your site’s vulnerability to cyber attacks, use sites like securityheaders.com to see if your site has all the required security headers to prevent such attacks. The type of web server your site runs on (e.g. Apache, NGINX) affects how your security headers are crafted.
For people using WordPress, I recommend using this security header plugin. It will automatically insert the headers for you. Alternatively, you can reach out to your hosting provider for assistance on this.
With the increase in cybersecurity theats, it is best for you not to use free web hosting. This is especially so if you are a beginner, as you may not get any help or customer support in the event of a cyber attack.
If you are new to website security, here are some materials to help you get started:
From SSL certificates to managed SSL services, GoDaddy has you covered. For further website security support, you can reach out to GoDaddy for its website security offerings.
5. Non-repudiation
Non-repudiation refers to the ability to ensure that a party cannot deny having performed a certain action or transaction.
This is a term used in computer science and cryptography. Non-repudiation is often achieved through the use of digital signatures. Such signatures allow a person or entity to sign a document or message in a way that cannot be forged, and through the use of secure cryptographic protocols that ensure the integrity of the signed message.
Non-repudiation is an important concept in many fields. In e-commerce, finance, and legal transactions, it is used to protect against fraud and disputes over the authenticity of transactions. To prevent disputes arising from non-repudiation, work closely with reputable delivery companies. Look out for the ones that enforce signatures as a form of acknowledgement when an item is delivered.
6. Customer identity authentication
Customer identity authentication is the process of verifying the identity of an individual attempting to make a purchase or conduct other types of transactions in an online environment.
This is typically done through the use of username and password combinations, as well as other methods such as security questions or one-time passcodes sent via email or text message.
Customer identity authentication aims to prevent unauthorized access or fraudulent activity. Businesses need to ensure that only the person authorized to make a transaction has access to the account or other sensitive information
Customer identity authentication is a challenge in e-commerce for several reasons. First, balancing transaction security with customers' convenience and ease of use can be difficult to achieve. Secure authentication methods may require customers to go through additional steps or provide more information. This can be frustrating or time-consuming.
Another constant e-commerce challenge is the presence of hackers and other malicious actors. These people are looking to exploit vulnerabilities in the authentication process to gain access to sensitive information or steal funds.
This issue is exacerbated by the widespread use of mobile devices and other internet-connected technologies. These have introduced new challenges and potential vulnerabilities to the authentication process. Hence, it is crucial to ensure that the process of authenticating customers is secure and effective.
To address this, e-commerce site owners can implement the use of multiple authentication methods. Examples include requiring both a password and a one-time passcode sent via email or text message. This can be further bolstered by stronger encryption and other security measures to protect the information being transmitted during the authentication process.
7. Logistics and infrastructure hurdles
1. Order tracking
Tracking is the process of monitoring the status of an order. This is done from the time it is placed until it is delivered to the customer.
It involves tracking the order’s movement through the various stages of the fulfilment process. Typically, an order is tracked from warehouse pickup to the time it is shipped to the customer.
Order tracking provides important information to both the customer and the business. These information include estimated time of arrival, any potential delays or issues during the fulfilment process, and successful delivery confirmation. Many e-commerce websites and services offer tracking tools and information to help customers stay up to date on the status of their orders.
Tracking orders can be challenging due to multiple parties involved in the fulfilment process. This includes the e-commerce business, warehouse or fulfilment center, shipping company and the customer. Coordinating and tracking the movement of an order through this complex system can be difficult, especially if there are delays.
Additionally, with the large volume of orders placed and fulfilled in E-Commerce, it is difficult to keep track of individual orders and ensure that they are being handled efficiently. More complexity is added through the use of multiple tracking systems. It is challenging to integrate and manage the information, and to provide customers with a seamless and consistent tracking experience.
To address order tracking issues in e-commerce, businesses use a centralized tracking system that integrates information from all sources. This can help to ensure that everyone has access to the same and up-to-date information.
E-commerce businesses can also invest in technology and automation to improve the accuracy and efficiency of the tracking process. For example, using machine learning algorithms to predict delivery times or detect potential delays can help to improve the overall customer experience.
2. Returns management
This includes tasks such as issuing refunds, coordinating product returns to the seller or warehouse, and ensuring that the product is in good condition and can be resold. Managing e-commerce returns is an important part of e-commerce companies. Returns can represent a significant cost and impact the bottom line if not handled efficiently.
I myself can get pretty annoyed when I don’t get my refunds on time. So imagine what online retailers have to deal with if you multiply that by thousands. Poor customer experience will definitely affect a company’s earnings.
Managing e-commerce returns can be challenging. It can cost the business significantly if products are not returned in good condition and cannot be resold. The process itself can be logistically complex. And especially so if products have to be shipped back to the seller or a warehouse. This can require coordination with multiple parties and can be time-consuming and expensive.
To address some of these, e-commerce businesses can invest in technology and automation to streamline the process and make it more efficient. For example, using machine learning algorithms to predict which products are likely to be returned, or using automated systems to process refunds and coordinate the return of the product, can help to reduce the time and cost associated with managing returns.
Another approach is to provide clear and concise information to customers about the return process, including deadlines or restrictions. This can help reduce confusion and improve the overall experience. Additionally, working closely with logistics partners and other stakeholders in the fulfilment process can help to ensure that returns are handled efficiently and effectively.
3. Shipping errors
Shipping errors are frustrating for customers and lead to negative feedback and a loss of trust in the online retailer. Additionally, shipping errors can be costly for the retailer, who may have to bear the cost of resending the correct items or issuing refunds. This can impact the bottom line and may even lead to financial losses.
Shipping errors are caused by a variety of factors. Some common ones include incorrect or incomplete shipping addresses, errors in the fulfilment process, and problems with the packaging or labelling of the items. They can be caused by factors outside of the retailer's control, such as weather conditions or issues with the shipping company.
There are several steps that online retailers can take to address issues caused by shipping errors in e-commerce. First, it's important to have clear and accurate documents like a return policy, as well as instructions for handling shipping errors. This can include procedures for correcting incorrect or incomplete shipping addresses, as well as policies for resending or refunding orders that are not delivered correctly.
E-commerce business owners can also invest in technology and systems to help prevent shipping errors from occurring in the first place. This can include tools for tracking and managing orders, as well as systems for automating the fulfilment process.
Of course, how can we forget the need for excellent customer service? This addresses any issues that arise and to maintain customer experience and trust.
8. Supply chain challenges and solutions
1. Visibility
Supply chain visibility poses a challenge to e-commerce businesses because the supply chain for e-commerce is typically more complex than for traditional brick-and-mortar businesses.
This is because e-commerce businesses often have to manage multiple channels (such as online and offline), as well as multiple fulfilment methods (such as shipping and in-store pickup). Additionally, e-commerce businesses often rely on a network of third-party partners, such as manufacturers, distributors, and carriers, to fulfil orders.
Furthermore, the high volume of orders that e-commerce businesses handle can make it difficult to track and manage each one individually. This can lead to errors and delays, which can be frustrating for customers and can impact the bottom line. This complexity can make it difficult for businesses to get a complete and accurate view of the supply chain.
To address these issues with supply chain visibility, e-commerce website owners need to leverage product tracking technology and systems like Nabcore that provide heatmaps of products along the supply chain.
Online retailers can also work closely with their partners and suppliers to ensure that they have the necessary information and support to fulfil orders accurately and on time.
2. Flexibility
Supply chain flexibility refers to the ability of a business to adapt and respond to changes in demand, supply, and other factors that can impact the supply chain. This can include the ability to adjust production levels, change suppliers, or alter the distribution network in response to changes in the market or in customer needs.
Flexible supply chains help businesses to be more responsive to changes in markets and to maintain a competitive advantage. It also helps to avoid disruptions or shortages. With that, businesses are able to deliver products and services to their customers in a timely and efficient manner.
And so therein lies the issue. Business hardly ever stays still. Change is the only constant.
As mentioned, the e-commerce supply chain is typically more complex due to the need to manage multiple channels and multiple fulfilment methods. The whole supply chain is then made even more complex by the reliance on a network of third-party stakeholders to fulfil orders. This makes it incredibly difficult for businesses to quickly and easily adapt to changes to factors that can impact the supply chain.
To build a more flexible supply chain, businesses should diversify the stakeholders they engage with, such as suppliers and distributors. This can prevent a disaster from happening if one of them decides to stop working with you.
Freight forwarding companies can help alleviate issues caused by disruptions to supply chain routes.
E-commerce businesses should also work with freight forwarding companies like Cogent Holdings to circumvent delays caused by unforeseen circumstances such as the COVID-19 pandemic. Many of these companies may already have favorable rates for alternative routes through their longstanding positive relationships with their partners. By partnering with these companies, businesses can take advantage of these existing contracts and relationships to improve their supply chain flexibility.
9. Intense competition and market saturation
The e-commerce market in Asia is highly competitive, with numerous players vying for consumer attention. Market saturation poses a challenge for new entrants and existing businesses alike. Differentiation through unique value propositions and exceptional customer service is essential for success.
How can businesses overcome common e-commerce challenges?
To overcome common e-commerce challenges, businesses should:
- Focus on Customer Experience: Prioritize customer satisfaction by offering personalized experiences and responsive support. Utilize chatbots and automation to enhance customer interactions and improve efficiency.
- Enhance Cybersecurity Measures: Invest in robust security solutions to protect consumer data and prevent cyber threats. Implement authentication processes and secure payment methods to build trust with customers.
- Adapt to Market Changes: Stay agile and adapt to changing consumer preferences and technological advancements. Continuously update product offerings and marketing strategies to stay relevant and competitive.
- Develop a Strong Brand Identity: Build a unique brand identity that resonates with consumers and differentiates your business from competitors. Engage with customers through social media platforms and digital marketing to strengthen brand loyalty.
Are you ready for the biggest e-commerce challenges in Asia?
The e-commerce landscape in Asia is set for significant changes by 2025, driven by trends such as mobile commerce, social commerce, AI-driven personalization, and sustainability. While the market presents vast opportunities, businesses must navigate challenges like cybersecurity threats, intense competition, and logistical hurdles.
By staying informed and adapting to these trends and challenges, e-commerce businesses in Asia can position themselves for sustained growth and success in the dynamic digital marketplace. Embracing new technologies, optimizing customer experiences, and building strong brand identities will be key to thriving in the evolving e-commerce ecosystem.
Editor's Note: This post was originally published on December 22, 2022, and was updated on April 8, 2024 and March 8, 2025. It also contains content written by Siew Ann Tan.
