2024 was yet another year full of exciting developments, twists, and turns in the dynamic world of e-commerce in Southeast Asia. As 2025 begins, we look back on the key highlights in the industry in 2024, and share our predictions for some of the key themes that might shape e-commerce in the region in 2025:
2024 wrap-up: The top 5 developments in Southeast Asia e-commerce
1. TikTok Shop’s transition from Challenger to Incumbent
TikTok Shop surpassed Lazada to become the #2 e-commerce platform in the region, likely ending the year with 25-30bn USD in GMV. Its social-first approach pushed competitors like Shopee and Lazada to adopt video and live-streaming features in their own platforms to remain competitive.
2. Profitability unlocked for Shopee
For almost the entire lifetime of e-commerce in Southeast Asia, the question that has hung in the air is whether it can be profitable. Shopee answered that question decisively in 2024, achieving positive EBITDA in Q3, and setting the bar for other platforms to follow.
3. Temu’s Mixed Ride in Southeast Asia
Temu expanded to Thailand, Vietnam, and Brunei (after launching quietly in Malaysia and the Philippines in 2023) but faced significant challenges, including regulatory hurdles in Indonesia and Vietnam. Initial consumer excitement faded as localization, quality concerns, and lack of differentiation hindered sustained success.
4. Fee Hikes Across Platforms
Shopee, Lazada, and TikTok Shop raised commission and transaction fees multiple times in 2024. Shopee’s take-rates reached up to 14.5% in key markets, bolstering profitability while maintaining seller retention through competitive fee structures and reinvestment in traffic and GMV growth.
For more information about Shopee’s take-rate, please see our Shopee Take-Rate Tracker here.
5. The Rise of Platform Partnerships
Shopee’s collaboration with YouTube introduced a ‘basket’ feature for seamless integrated shopping, while TikTok partnered with Agoda to explore in-app hotel booking. These moves highlight the increasing importance of cross-segment partnerships in expanding reach and engagement.
Looking ahead: Key predictions for 2025
1. Slower e-commerce growth
Southeast Asia e-commerce grew by nearly 15% in 2024, an uptick after a more muted 2023. Even at 15% though, the growth rates are markedly slower than a few years ago, and will gradually slow down further as the sector starts to become more mature.
2. Continued Fee Increases
Shopee is expected to implement 1-2 additional fee increases in its core markets, although the rate of increase may not be as high as in 2024. TikTok Shop and others will likely follow suit.
3. Seller Retention Amid Higher Fees
Shopee and TikTok Shop’s rising fees are unlikely to drive significant seller attrition. Sellers continue to prioritize them as key sales channels, recognizing their ability to deliver consistent volume, and on the back of marketing support that both platforms continue to offer.
4. SeaMoney Expansion
As e-commerce growth slows down, Shopee parent Sea will look to invest in its next growth engine – SeaMoney, by offering higher credit limits, exclusive discounts, and 0% interest short-term installments.
The platform is likely to also enter new markets, notably Shopee’s fast growing markets in South America.
5. U-turn by Lazada?
2024 was a mixed year for Lazada – big declines in the topline (per our outside-in estimates, as the platform does not report any numbers), but a profitable business model at last. The platform appears to have shown encouraging numbers in some of its markets in Q4, and could be poised for a rebound next year.
Keen to stay updated on the latest e-commerce industry news? Join our newsletter in the form just below this article, and you’ll be the first to hear when we release new research and analyses.
