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When choosing new countries to expand your eCommerce store to, the size of their economies and their prospects for growth are going to play big roles in that choice. In this regard, China isn’t the only one with size on its side, and Southeast Asian economies are increasingly seen as rising stars.
Google and Temasek’s 2018 report1 predicts that the value of Southeast Asia’s growth is expected to exceed USD 240 billion by 2025, led by countries like Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. This more than a fourfold increase from its 2017 market size of USD 50 billion is primarily driven by growth in technology and mobile connectivity.
Also, according to World Bank Data2, the combined population of ASEAN countries makes it the third largest in the world behind India and China.
Southeast Asian economies have been seeing a rise in disposable income3 lately, and the rise in mobile connectivity4 has brought increasing numbers of people online for the first time.
This leads to a much larger population of online shoppers in this region, who are all eager to import products they perceive have high quality at reasonable prices. As such, many Australian products and brands are also seeing success in the region such as Quiksilver, Blackmores, and Shona Joy among others.
Data from Paypal and Ipsos’s research5 in 2018 shows that cross-border online purchases are still prevalent globally, with primary motivations being product availability in their country and the perception that product quality is higher from overseas. In this regard, Southeast Asian online shoppers aren’t too different.
Data from We Are Social and Hootsuite6, mentions that online purchases for most product categories have been increasing over the years, including from Southeast Asian countries:
What this tells us is that consumers in Southeast Asia are willing to purchase Australian brands which they perceive have good quality and are hard to find locally.
For many Australian brands looking to enter one of Southeast Asia’s eCommerce markets, it’s worth considering listing your products on relevant online marketplaces, such as Zalora and Zilingo for fashion products across multiple countries. Marketplaces are some of the most popular online shopping platforms7 among locals for their product variety and promotions,
To help your foray into Southeast Asian eCommerce, Janio has partnerships with key regional marketplaces in Southeast Asia. We can help you connect with them to accelerate your initial expansion and growth in the region.
Some of our key regional cross-border eCommerce marketplace partners include:
Also, if you’re aiming to sell primarily to Indonesia, you’ll want to be listed some of the most visited platforms8 in the country. In this regard, Janio is partners with the following key marketplaces:
Listing and marketing your products in Southeast Asia is the first step, but the matter of delivering those products into these countries still needs to be considered. Among the common pain points when it comes to shipping to Southeast Asia include:
To give Australian merchants in Melbourne a hand, Janio’s services are now available to merchants in Melbourne. Now, you’ll be able to drop off your products for shipment at our hub and our suite of delivery solutions will help take care of your Southeast Asian supply chain.
Our solutions include:
We’ll help you deliver your products from Melbourne to and throughout Southeast Asia, covering steps such as line haul, customs clearance and last mile delivery.
Janio keeps up with all the customs clearance developments in Southeast Asia. We’ll use our experience in clearing customs for shipments to the region to help take a huge administrative burden off your shoulders.
Using our transhipment hub in Singapore’s Free Trade Zone, we’ll help to distribute your shipments throughout Southeast Asia.
Transhipment is particularly good for merchants who are planning to kickstart their Southeast Asia presence for the first time and want to gauge the demand for the products in multiple markets at once.
Another benefit of using a transhipment hub in a Free Trade Zone, is that there’s less red tape and set up time, which means faster time to market for your B2C sales to Southeast Asia
Regional Distribution Centre
Once you’re more confident of your demand in Southeast Asia, you can choose to keep your inventory closer to your customers to decrease delivery lead time. This is where you can consider using Janio’s regional distribution center, also based in Singapore’s Free Trade Zone.
Cash on Delivery
Janio’s network allows us to collect cash on delivery payments for you, allowing you to offer one of the most preferred payment methods in the region.
We can help to connect your business with our network of marketplaces, accelerating your online sales’ growth in the region.
Southeast Asia is a rising star in terms of economic and eCommerce market growth with a populace that has strong demand for overseas products. Cross-border shipping to the region may seem daunting, but we’re here to help you simplify your cross-border shipments from Melbourne to and throughout Asia. To find out more, reach out to us at email@example.com!
Can sea freight compete in speed and price with air freight? In some cases for sea freight from Indonesia to Singapore, yes! Find out why here
Getting accurate data on the shipping label is crucial in the cross-border shipping process. Find out how you can ensure data integrity for a smooth eCommerce delivery.
With different import duty and tax rates for every country and every type of item, customs payments may appear daunting. Read on to find out how customs clearance can be made smoother with delivered-duties paid (DDP) so that you can expand into the Southeast Asian market with a peace of mind!