Cross-border e-commerce – which involves selling products from Japan to overseas customers – is gaining momentum and generating high expectations alongside the rise of inbound tourism demand in Japan. In particular, Japanese products are highly regarded in Southeast Asia.

Some Southeast Asian visitors to Japan purchase items discovered during their travels through cross-border e-commerce after returning home. Against this backdrop, cross-border e-commerce targeting Southeast Asia is attracting attention from many businesses, and future business opportunities are expected to expand.

This article explains important information Japanese businesses need to know when engaging in cross-border ecommerce targeting Southeast Asia. This includes the size of the Southeast Asian ecommerce market, major ecommerce malls and payment methods worth implementing.

What's in this article?

• Characteristics of the Southeast Asian market
  
• Market size of e-commerce in Southeast Asia
  
• Comparison of e-commerce markets in Southeast Asia and China
  
• Major e-commerce malls and platforms in Southeast Asia
  
• How to start cross-border e-commerce in the Southeast Asian market
  
• Payment methods commonly used in Southeast Asian countries
  
• Key points for cross-border e-commerce to Southeast Asia
  
• Understanding customer needs in each country for successful cross-border e-commerce
  
• How Stripe Checkout can help
  

Characteristics of the Southeast Asian market

Currently, cross-border e-commerce to China and cross-border e-commerce to the US are the main markets. Below, we explain why the Southeast Asian e-commerce market is now attracting more attention. The following characteristics of Southeast Asian markets are driving cross-border e-commerce:

Growth of Southeast Asian economies

According to the Japan External Trade Organization (JETRO), the gross domestic product (GDP) growth of Southeast Asia in 2025 is expected to average 4.7%, exceeding China's 4.5%. Among the Southeast Asian economies, Vietnam, the Philippines, and Cambodia are expected to grow by more than 6%. This overall market revitalisation in Southeast Asia is expected to boost customer spending.

Furthermore, considering the vast commercial areas and total population of Association of Southeast Asian Nations (ASEAN) member countries (i.e. Indonesia, Cambodia, Singapore, Thailand, the Philippines, Brunei, Vietnam, Malaysia, Myanmar, and Laos), the potential for cross-border e-commerce in Southeast Asia is expected to continue expanding in the future.

COVID-19 and online shopping

In 2020, during the COVID-19 pandemic, many countries restricted movement, and people avoided leaving their homes, even for shopping. This led to a further embrace of the internet, the rise of e-commerce malls replacing brick-and-mortar stores, the normalisation of online shopping, and the rapid growth of the e-commerce market in Southeast Asia.

Popularity of social media

With the spread of the internet, social media has become deeply ingrained in the lives of people in Southeast Asia. Widely used by many, social media contributes to the growth of Southeast Asia's e-commerce market. According to the Digital 2024: Global Overview Report, the usage rate of social media is 85% in Singapore and 83.1% in Malaysia, which is higher than Japan's rate of 78.1%.

Live commerce in particular is popular among younger generations, and marketing activities using live commerce via apps and social media are frequently conducted by many e-commerce businesses. It is widely used in cross-border e-commerce in China and South Korea and allows streamers and viewers to communicate directly with each other in real time and share detailed information about products. Live commerce is popular with a wide range of customers because it is highly trustworthy. In addition, there are promotion campaigns that offer discounts exclusively for live viewers, which give customers a sense of premium value compared with regular sales, further stimulating their desire to purchase.

Market size of e-commerce in Southeast Asia

As the internet has spread and social media use has increased, the e-commerce market in Southeast Asia has expanded. According to the Japan Finance Corporation's "The State of Cross-border Ecommerce in Various Countries," the market size in Southeast Asia is expected to double by 2025 compared with 2021.

Below, we provide information about the market size of each of the six major countries in Southeast Asia:

Singapore

According to the Japan Finance Corporation, Singapore had the highest e-commerce market growth rate in the world in 2022. Singapore has a high per capita income. Therefore, many people have credit cards, and online shopping is common. Although the population is small compared to other Southeast Asian countries, their e-commerce market is expanding.

Thailand

According to Research and Markets, the annual growth rate of the e-commerce market in Thailand is expected to exceed 10% annually from 2024–2028, reaching $53.8 billion USD by 2028.

In addition, Thai customers generally have little resistance to purchasing and consuming products from outside the country. According to a survey by Asian Bridge, 76% of respondents have experience with cross-border e-commerce, indicating a high demand.

Indonesia

According to a report by Mordor Intelligence, the e-commerce market size in Indonesia is expected to reach $168.1 billion USD by 2029. This shows that Indonesia has one of the highest e-commerce market growth rates in Southeast Asia. This can be attributed to the increase in the rate of internet adoption. The same report also shows that Indonesia's internet adoption rate rose from 78.1% in 2023 to 79.5% in 2024.

Live commerce is also popular in Indonesia. This sales method is driving the spread of online shopping, especially among young people.

Vietnam

Vietnam's e-commerce market has also grown rapidly because of the widespread adoption of the internet. Mordor Intelligence reports that the e-commerce market size in Vietnam is projected to reach $23.77 billion USD by 2029. The report also states that Vietnam has an e-commerce growth rate that is in the top 10 in the world, and Vietnam's e-commerce market is expected to continue growing in the future.

When looking at Vietnam's population by age group, those in their 30s constitute the largest demographic. This is thought to be a contributing factor to the growth of e-commerce.

Philippines

Mordor Intelligence also states that the e-commerce market in the Philippines is projected to reach $29.57 billion USD by 2029. Here, as in other countries, the growth of the e-commerce market is driven by the increasing adoption of the internet. In addition, during the COVID-19 pandemic, the demand for e-commerce surged as people began purchasing food, medicine, and other items online. This pushed the e-commerce market to grow even further.

Malaysia

In Malaysia – where social media is widely used – the e-commerce market is growing steadily. According to a survey of the size of the e-commerce market in Malaysia performed by Mordor Intelligence, the Malaysian e-commerce market is projected to reach $20.93 billion USD by 2029. This report also highlighted that, in 2023, nearly all individuals in the country had access to the internet through mobile phones. This is expected to have a continued impact on the growth of the e-commerce market, showing that e-commerce companies can benefit from entering this market.

Comparison of e-commerce markets in Southeast Asia and China

There are several differences between the e-commerce markets in Southeast Asia and China. Southeast Asia has great potential as an e-commerce market, and cross-border e-commerce there offers various advantages.

Because there are many people of Chinese descent living in Southeast Asia, some businesses could consider the situation to be almost identical to that of cross-border e-commerce in China. However, when comparing cross-border e-commerce in Southeast Asia and China, it is important to understand the following differences:

• Geographical differences
  China is closer to Japan. Since Southeast Asia is further away, it is important to secure the most suitable delivery services and logistics routes for each country when conducting cross-border e-commerce there.

• Differences in market size
  Although Southeast Asia is experiencing remarkable economic growth, the size of the cross-border e-commerce market is significantly smaller than that of China. However, the Southeast Asian market has great potential and is expected to grow even further in the future. Cross-border e-commerce in Southeast Asia requires a business development approach that focuses on the growth potential and possibilities of the region as a whole.

Major e-commerce malls and platforms in Southeast Asia

There are three significant e-commerce malls and platforms that are widely used in the six major Southeast Asian countries:

Shopee

Shopee – with its corporate headquarters in Singapore – is a major e-commerce marketplace that has gained a great deal of attention in Southeast Asia. It is relatively easy for Japanese businesses to open a store on this marketplace because it supports cross-border e-commerce business from Japan to Southeast Asia. Shopee frequently holds large-scale sales and promotional campaigns featuring celebrities as a way to attract new customers and retain repeat customers.

One of the advantages of Shopee is that it has a dedicated page for shop owners. This allows shop owners to use various functions related to shop operations, such as registering product information, managing orders, and communicating with customers. In addition, the Shopee Education Hub provides a wide range of useful information on cross-border e-commerce, including online seminars for shop owners.

Furthermore, Shopee is an e-commerce mall that has gained overwhelming support outside of Southeast Asia with local customers in Taiwan's cross-border e-commerce market.

LAZADA

Lazada is also a leading e-commerce platform in Southeast Asia. Similar to Shopee, it is well-loved by many shoppers. Lazada is often called the "Amazon of Southeast Asia" due to its similarity in structure to Amazon and is considered one of the largest e-commerce platforms in the region.

Lazada is a service under China's major e-commerce company, Alibaba. The expertise gained from Alibaba's B2C e-commerce platform Tmall is used on Lazada. This results in a user-friendly design for both buyers and sellers. Additionally, its strengths include convenient, artificial intelligence (AI)–powered automatic translation and robust logistics support. This is achieved through rigorous inventory and quality control across more than 30 warehouses.

TikTok Shop

TikTok – a vertical short video social media app – now has a shopping function called TikTok Shop. It has been gaining popularity as an e-commerce platform in Southeast Asia, where live commerce is active and thriving.

TikTok Shop allows viewers to proceed directly to checkout when they discover products they want within TikTok videos. This enables e-commerce businesses to offer viewers a unique shopping experience that combines entertainment – watching short videos or live streams – with purchasing. Furthermore, since payments are processed within the app, the journey from video viewing to purchase is simple.

According to TikTok's announcement, TikTok Shop launched its service in Japan on June 30, 2025. This is expected to further stimulate the e-commerce market in Japan in the future.

The above are the major e-commerce malls in Southeast Asia. However, some customers use only one of the three, while others switch between them, depending on their shopping goals. Therefore, when expanding cross-border e-commerce operations into Southeast Asia, it might be wise to consider opening stores on each e-commerce mall, rather than focusing on just one.

Additionally, while many e-commerce platforms cover multiple Southeast Asian countries, others are limited to a single market. For example, Bukalapak is prominent in Indonesia, while Tiki and Sendo are leading platforms in Vietnam.

How to start cross-border e-commerce in the Southeast Asian market

While there are a variety of ways to get started with cross-border e-commerce, below are the main methods you can consider when pursuing cross-border e-commerce in the Southeast Asian market from Japan:

Creating an in-house e-commerce site

When a business creates its own e-commerce site, it can pursue cross-border e-commerce with a great deal of freedom. For example, the functionality and design of the website can be freely and easily customised, which makes it possible to build a unique site that emphasises the company's branding.

From a long-term perspective, building an e-commerce site in-house has the potential to increase profitability because it avoids the fees charged by e-commerce malls. However, building an e-commerce site in-house requires a considerable amount of initial investment and a significant amount of time. It is important to pay close attention to cash flow and ensure there is sufficient time for the work.

For example, cross-border e-commerce for the Southeast Asian market requires translation into various languages, which can be very time-consuming. Beyond that, knowledge of marketing strategies and search engine optimisation (SEO) customised for each country is also important. When starting cross-border e-commerce in Southeast Asia, consider seeking advice from experts.

Opening a store on an e-commerce mall

Opening a store on a Southeast Asian e-commerce mall is a relatively easy way to start cross-border e-commerce. For example, Shopee and Lazada are already well-known and familiar to many customers, making it easy to attract new customers to your store.

In addition, these e-commerce malls already have established logistics routes and support popular local payment methods and languages. This can allow cross-border e-commerce businesses to focus on marketing activities and back-end operations work, such as inventory management.

However, in addition to incurring fees, your business must also comply with various rules and regulations set by the e-commerce mall. Before opening a store, it is important to check the details in advance to ensure that it is suitable for your business.

Payment methods commonly used in Southeast Asian countries

The payment methods to consider for cross-border e-commerce differ for each country. In Southeast Asian countries, payments are steadily being digitised, mainly in urban areas. The following payment methods have become common and mainstream:

• Singapore: Visa/Mastercard, PayPal, GrabPay, AliPay
  
• Thailand: Visa/Mastercard, PromptPay, TrueMoney, Rabbit LINE Pay, cash on delivery, bank transfer
  
• Indonesia: OVO, DANA, GoPay, LinkAja, DOKU, Konbini payments (e.g. Indomaret, Alfamart), cash on delivery, bank transfer
  
• Vietnam: MoMo, Zalopay, ViettelPay, Payoo, VNPAY, ShopeePay, Samsung Wallet, cash on delivery
  
• Philippines: GCash, Maya, cash on delivery, bank transfer
  
• Malaysia: Visa/Mastercard, Touch 'n Go eWallet, Boost, FPX
  

One of the notable payment method features in Southeast Asia is that credit cards are not widely used in many countries and regions. However, cash transactions – such as cash on delivery – are common. Therefore, when pursuing cross-border e-commerce from Japan to Southeast Asia, it is important to support the payment needs of local customers as much as possible.

Key points for cross-border e-commerce to Southeast Asia

There are several key points to remember when conducting cross-border e-commerce in Southeast Asia:

• Provide the most suitable payment methods for local customers.
  
• Use the major e-commerce malls and platforms in the target country.
  
• Sell products that meet local needs.
  
• Tackle logistical challenges.
  
• Handle each country's customs duties, tariffs and regulations
  
• Below, we examine each of these points.
  

Suitable payment methods for local customers

Payment methods vary from country to country in Southeast Asia. In addition – outside urban areas – online shops might require cash payment, such as cash on delivery. Therefore, to encourage local customers to purchase Japanese products through cross-border e-commerce, it is very important to provide the most appropriate payment methods. These should focus on customer convenience.

Major e-commerce malls and platforms in the target country

It is also necessary to select e-commerce malls and platforms that are appropriate for the target country where your business will operate. Therefore, it is important to research in advance which services are most popular and used by a large number of potential customers. It is also important to confirm that the products being sold are compatible with the e-commerce mall or platform.

Products that meet local needs

Research the unique local demand in each Southeast Asian country to find out what products locals need. This can help you discover which products unique to Japan would be popular if your business expands into that market.

Some products that are popular in Japan are not in demand in Southeast Asia. For example, Japan has four seasons with distinctly different weather. However, the weather in Southeast Asia is warm year-round. This means selling winter clothing with excellent heat retention properties would not be effective in Southeast Asia.

In addition, there are cultural, religious, and lifestyle differences among Southeast Asian countries. Before starting cross-border e-commerce, it is important to conduct market research to understand local business practices and cultural and religious backgrounds.

Logistical challenges

Logistics is one of the issues that must be addressed when conducting cross-border e-commerce. There are various hurdles that must be overcome before a product can be safely delivered from Japan to another country. Issues such as shipping costs, delivery times, and customs procedures can vary greatly depending on the country and product. In addition, it is important to note that the quality and reliability of local logistics services varies greatly from country to country.

To overcome these logistical challenges, it is important to select reliable logistics services in each country. It is also important to establish a comprehensive logistics strategy – one that uses local warehouses when necessary and has flexible return and exchange policies. Another possible solution is outsourcing operations to experts familiar with the logistics in Southeast Asian countries.

Customs duties, tariffs, and regulations

When discussing cross-border e-commerce, it is important not to forget about customs duties and tariffs. Custom duties and tariffs cannot be generalised for Southeast Asia as a whole, but your business must comply with the customs system of each country. Therefore, when engaging in cross-border e-commerce, it is important to fully understand the customs systems and tariffs of each country.

In addition, depending on the type of product – such as pharmaceuticals and cosmetics – there can be strict regulations applied to imports. In some cases, filing for permission or a permit in advance might be required. For example, in Indonesia and Malaysia, some products can require halal certification in order to be sold. In Singapore, chewing gum is prohibited for domestic manufacture and sale, and its import is also banned. Therefore, it cannot be sold via cross-border e-commerce.

Understanding customer needs in each country for successful cross-border e-commerce

Together with the spread of the internet and digital payments, cross-border e-commerce in Southeast Asia is expected to continue to grow in the future. Success in cross-border e-commerce in Southeast Asia is founded on understanding the different cultural and religious backgrounds and business practices in each country and making efforts to provide products that meet the needs of local customers. Ensuring that payment methods are compatible with the major payment methods used in each country will be key to the success of cross-border e-commerce.

Stripe offers a wide range of functions to support the efficient operation of payment services, including the introduction of cashless payments (e.g., credit card payments), information processing and revenue management. For example, Stripe Checkout supports more than 30 languages and 135 currencies, enabling you to refine and simplify the payment page for cross-border ecommerce sites. This also makes it possible to provide customers with a smooth and pleasant payment experience, which, in turn, can lead to an increase in the purchase completion rate.

How Stripe Checkout can help

Stripe Checkout is a fully customisable prebuilt payment form that makes it easy for you to accept payments on your website or application.

Checkout can help you:

• Increase conversion: Checkout's mobile-optimised design and one-click checkout flow make it simple for customers to input and re-use their payment information.
  
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• Maintain control: Fully customise the checkout experience, including saving payment methods and setting up post-purchase actions.
  

Learn more about how Checkout can optimise your payment flow, or get started today.