If you’re running a business in Southeast Asia—whether you’re selling skincare, homeware, or something in between—the choice between launching on a marketplace like Shopee (a leading e commerce site in the region) or building your own ecommerce site (that is, your own website for full control and branding) is a big one. It’s tempting to go where the traffic already is, but is that always the best long-term move?
In a region as diverse and fast-growing as Southeast Asia, which is part of the broader Asia Pacific e-commerce boom, one-size-fits-all doesn’t apply. Every business model, customer base, and digital habit differs between countries and between industries. That’s why understanding the real differences between marketplaces and ecommerce websites isn’t just helpful, it’s essential.
At Digital Sage, we’ve worked with businesses on both ends of the spectrum: from Bruneian platforms like Maribali testing online waters with marketplaces, to homegrown brands who built full-fledged websites for regional growth. This article breaks down what works, what doesn’t, and how to build an ecommerce setup that fits your brand, your goals, and your market.
Key Takeaways
Marketplaces like Shopee, Lazada, and Maribali are some of the best online marketplaces and top online marketplaces in the region, driving online sales for businesses with their broad reach and speed, but come with trade-offs in brand control and fees.
Owning your own ecommerce website gives you full control over design, customer experience, and long-term growth; but takes more effort upfront.
The hybrid approach is often best for businesses in Southeast Asia: drive awareness through marketplaces, build loyalty on your own platform, and support global selling for Southeast Asian brands.
Southeast Asia’s diversity matters: platforms and payment preferences vary from Brunei to Indonesia to Vietnam. Localisation isn’t optional.
It’s not just about traffic, it’s about strategy. Understand your customers, your tech capacity, and your goals before choosing your platform.
Introduction to E-commerce in Southeast Asia
E-commerce in Southeast Asia is experiencing explosive growth, transforming the way people shop and do business across the region. Driven by increasing internet penetration, the widespread adoption of mobile commerce, and a rapidly expanding middle class, the e-commerce market in Southeast Asia is projected to reach an impressive $150 billion by 2025. Countries like Indonesia, Malaysia, and the Philippines are leading the charge, with millions of consumers turning to online shopping for everything from daily essentials to luxury goods. As more people gain access to smartphones and reliable internet connections, the region’s e-commerce landscape is becoming more dynamic and competitive than ever before.
What is E-commerce?
E-commerce, or electronic commerce, is the process of buying and selling goods and services over the internet. This digital marketplace includes a wide range of transactions, from businesses selling directly to consumers to individuals trading with each other. E-commerce platforms—such as online marketplaces and individual online stores—make these transactions possible by offering essential services like payment processing, logistics, and customer support. Whether you’re browsing a popular online marketplace or shopping from a brand’s dedicated online store, e-commerce platforms are the backbone of today’s digital shopping experience.
Traditional vs Modern E-commerce Platforms
The e-commerce space has evolved rapidly in Southeast Asia. Traditional e-commerce platforms typically feature a single business selling its own products through an online store, giving brands full control over their digital presence. However, the rise of modern e-commerce platforms—especially online marketplaces—has changed the game. These online marketplaces allow multiple third-party sellers to list and sell their products on a single platform, creating a diverse and competitive environment for both buyers and sellers. In Southeast Asia, leading e-commerce platforms like Lazada and Shopee have become household names, offering consumers a vast selection of products and giving businesses instant access to a massive audience. This shift from traditional e-commerce platforms to online marketplaces has made it easier for brands of all sizes to start selling online and reach new markets.
Understanding E-commerce Business Models
Southeast Asia’s e-commerce market is shaped by a variety of business models, each catering to different needs and audiences. The most common is the business-to-consumer (B2C) model, where businesses sell products directly to consumers through online marketplaces or their own e-commerce websites. Business-to-business (B2B) models focus on transactions between companies, while consumer-to-consumer (C2C) models—often facilitated by online marketplaces—allow individuals to buy and sell products to each other.
The region’s e-commerce market is incredibly diverse, with popular product categories ranging from consumer electronics and fashion to home goods and beauty products. Chinese consumers are a key target for many Southeast Asian e-commerce businesses, and platforms like Alibaba’s Lazada and Shopee offer tailored product selections to attract this audience. Payment preferences also vary widely, with cash on delivery payments remaining popular in countries where credit card usage is low.
International businesses are increasingly leveraging Southeast Asia’s e-commerce market by partnering with leading marketplaces to tap into the region’s growing consumer base. The rise of mobile devices has made mobile commerce a crucial channel, as more shoppers use their smartphones to browse and buy online. However, the region still faces challenges, particularly in logistics infrastructure—especially in rural areas. To stay competitive and ensure customer satisfaction, many e-commerce businesses are investing in their own logistics services, such as same-day delivery, and navigating a complex landscape of marketplace fees, including commissions, payment processing, and shipping costs.
Overall, Southeast Asia’s e-commerce market offers tremendous opportunities for brands looking to expand their online presence. With a growing middle class, increasing internet access, and a wide range of product categories, the region is a hotbed for e-commerce innovation. Success, however, requires a deep understanding of local consumer behavior, competitive pricing strategies, and the ability to adapt to the unique challenges of the Southeast Asian e-commerce market.
Understanding The Marketplace Landscape In Southeast Asia
Southeast Asia’s e-commerce scene is booming, and it’s important to get a handle on the key players and trends before diving in. It’s a diverse region, and what works in one country might not work in another. Understanding the nuances of each market is key to success. As a major segment within the asian markets, Southeast Asia plays a pivotal role in the global e commerce sector, serving as a gateway for international sellers and contributing to the region’s growing influence.
The region presents a unique blend of opportunities and challenges for businesses looking to expand their online presence, especially those aiming to enter international markets and compete in the global market.
Key Players In The Market
When it comes to Southeast Asia online selling, a few names dominate the marketplace landscape. Shopee and Lazada are among the largest online marketplaces in Southeast Asia, with Shopee being the largest online marketplace in several countries in the region. Lazada, which is part of the Alibaba Group, also stands out as the largest online marketplace in some Southeast Asian markets, benefiting from Alibaba Group’s significant influence and investment in the region.
Other marketplaces, such as Tokopedia (primarily in Indonesia), Bukalapak, and Qoo10, offer unique features and cater to specific audiences. Each platform has its own strengths and caters to slightly different audiences. It’s worth researching which platforms are most popular in your target markets.
Consumer Preferences
Consumer preferences vary significantly across Southeast Asia, with platforms reaching a diverse audience that spans various age groups, regions, and cultural backgrounds. For example, mobile shopping is incredibly popular, so having a mobile-friendly presence is a must. Payment preferences also differ; while credit cards are common in some areas, e-wallets and cash on delivery are more prevalent in others. Leading platforms address these differences by offering multiple payment methods, such as digital payments, escrow services, and cash-on-delivery, to accommodate different consumer needs. Social commerce is also on the rise, with many consumers discovering and buying products through social media platforms. Understanding these nuances is vital for tailoring your approach, as online marketplaces cater to the specific requirements of Southeast Asian consumers by providing diverse product selections and secure payment options.
Market Trends And Insights
The e-commerce market in Southeast Asia is constantly evolving. Some key trends to watch include the increasing adoption of cross-border e-commerce, where international sellers and international brands are leveraging Southeast Asian ecommerce marketplaces to expand their reach and access new customer bases. The growth of niche marketplaces is also notable, as ecommerce brands are finding new opportunities in the growing e commerce industry of the region. Additionally, the rise of sustainable and ethical brands continues to shape consumer preferences. Keeping an eye on these trends will help you stay ahead of the curve and adapt your strategy accordingly. Choosing the best ecommerce platform Southeast Asia has to offer is a big decision.
The e-commerce market in Southeast Asia is experiencing rapid growth, driven by increasing internet penetration, a young and tech-savvy population, and rising disposable incomes. This presents a significant opportunity for businesses looking to expand their reach and tap into new markets.
Benefits Of Selling On An Online Marketplace
Marketplaces in Southeast Asia offer a compelling proposition for businesses looking to expand their reach and boost sales. A marketplace is an online platform and ecommerce marketplace where business sellers can list their products and reach new customers. These platforms provide access to a ready-made customer base and simplified operations, making them an attractive option, especially for smaller businesses or those new to the region. By leveraging these marketplaces, sellers can contribute to the significant growth in retail sales and retail ecommerce sales across Southeast Asia. Let’s explore the key advantages.
Access To A Larger Audience
One of the most significant benefits of selling on marketplaces is the instant access to a vast and diverse customer base. Platforms like Shopee and Lazada already have millions of active users, and most ecommerce marketplaces in Southeast Asia are attracting global sellers who are eager to tap into this reach and growth potential. This means you don’t have to build an audience from scratch. This is a huge advantage compared to setting up your own e-commerce website, where attracting traffic can be a slow and costly process. These marketplaces have already invested heavily in marketing and brand awareness, so you can benefit from their existing reach.
Simplified Logistics
Marketplaces often provide integrated logistics solutions, which can significantly simplify the process of fulfilling orders. To improve delivery efficiency and customer satisfaction, many marketplaces invest in logistics service and even develop their own logistics service, establishing dedicated networks for order fulfillment, storage, and shipping. This logistics infrastructure play is a critical factor that supports efficient order fulfillment and drives e-commerce growth in the region. This can include warehousing, packaging, and shipping services, allowing you to focus on other aspects of your business, such as product development and marketing. Many marketplaces offer features like quick shipping, including next-day delivery, which is a big draw for customers. This streamlined approach can save you time and money, especially if you’re just starting out.
Lower Initial Investment
Setting up shop on a marketplace typically requires a much lower initial investment compared to building your own e-commerce website. You don’t need to worry about the costs associated with website design, development, and maintenance. While some marketplaces may charge membership fees, many operate on a commission basis, meaning you only pay when you make a sale. This can be a particularly attractive option if you’re on a tight budget or want to test the market before committing to a larger investment.
The best ecommerce marketplaces, such as Amazon, eBay, and AliExpress, attract sellers by offering competitive prices and low barriers to entry, making it easier for new businesses to start selling online. Selling on marketplaces can be a great way to get your products in front of a large audience quickly and easily. However, it’s important to be aware of the potential drawbacks, such as increased competition and reduced brand control. Weighing the pros and cons carefully will help you decide if this approach is right for your business.
Advantages Of Having Your Own E Commerce Platform
While marketplaces offer undeniable reach, building your own eCommerce website presents a unique set of advantages, particularly when aiming for long-term brand growth and customer loyalty in Southeast Asia. It’s like comparing renting a flat to owning a house: both provide shelter, but ownership offers far greater freedom and potential. Having established storefronts on your own site can significantly enhance your brand’s credibility and visibility, attracting more visitors and building trust. Additionally, running your own site supports a sustainable ecommerce business model, allowing for better profit margins and long-term growth.
Brand Control And Customisation
Having complete control over your website’s design and functionality allows you to craft a unique brand experience. You’re not confined by the marketplace’s template; instead, you can tailor every aspect to reflect your brand’s identity. This includes everything from the colour scheme and logo placement to the product descriptions and overall tone of voice. This level of customisation is essential for building brand recognition and differentiating yourself from competitors. Greater control over your site can also drive higher e commerce revenue over time, as seen with major Asian platforms like Shopee, which have leveraged customisation to boost their market performance. Think of it as creating your own unique shopfront in a busy street, designed to attract and resonate with your target audience. You can fully customise your web design strategy.
Direct Customer Relationships
One of the biggest drawbacks of selling solely on marketplaces is the limited access to customer data. When you have your own eCommerce website, you own the customer relationship. You can collect valuable data on customer behaviour, preferences, and purchase history. This data can then be used to:
Personalise marketing campaigns.
Improve product offerings.
Provide exceptional customer service.
Build long-term loyalty.
Additionally, by offering internet services such as e-commerce solutions and digital platforms through your own site, you can diversify your business and increase customer engagement.
By interacting directly with your customers, you can build a community around your brand, fostering trust and encouraging repeat purchases. This direct line of communication is invaluable for understanding your customers’ needs and adapting your business accordingly.
Higher Profit Margins
While marketplaces offer a convenient platform for selling, they come with fees and commissions that can eat into your profit margins. With your own eCommerce website, you avoid these fees, allowing you to retain a larger portion of each sale. Managing your own e commerce site also gives you better control over expenses and profits, as you can directly oversee costs like hosting, maintenance, and marketing, which are often predictable and can be managed effectively. Over time, the savings on commissions can significantly boost your profitability. Think of it as cutting out the middleman and keeping more of the pie for yourself. This can be a game-changer, especially for businesses selling high-value or niche products. You can use built-in payment systems to manage transactions.
Challenges Of Marketplaces Vs ECommerce Websites
Competition And Pricing Pressure
Marketplaces in Southeast Asia are incredibly competitive. You’re not just up against other small businesses; you’re often competing with established brands and sellers who can afford to slash prices. This can lead to a race to the bottom, squeezing your profit margins. International businesses leverage partnerships with local online marketplaces to gain a competitive edge and expand their reach, making the competition even tougher. It’s a constant battle to stand out and attract customers when they’re bombarded with similar products. You’ll need to really step up your digital marketing efforts to rank higher and attract more customers.
Limited Brand Identity
One of the biggest drawbacks of selling on a marketplace is the limited control you have over your brand. Your products are listed alongside countless others, often with the marketplace’s branding taking precedence. It can be difficult to build brand recognition and loyalty when you’re essentially a small fish in a very big pond, especially since global brands often dominate marketplace visibility, making it even harder for smaller sellers to stand out. You’re at the mercy of the marketplace’s design and layout, which might not align with your brand’s aesthetic or values.
Fees And Commissions
Marketplaces charge fees and commissions on sales, which can eat into your profits. These fees can vary depending on the platform and the product category, but they’re a constant cost that you need to factor into your pricing strategy. In particular, sellers should pay close attention to transaction fees and marketplace fees, as these are key considerations that can significantly impact your overall costs. While marketplaces handle the marketing, selling, and fulfilment process, you still have to share your profits with the marketplace owners. It’s important to understand the complex fee structures, including commission rates, listing fees, transaction fees, and marketplace fees, to ensure profitability.
The Hybrid Approach: Combining Marketplaces And Your Own Store
Okay, so you’re torn between the reach of a marketplace and the control of your own eCommerce site? Why not both? Seriously, a hybrid approach can be a smart move, especially in a diverse market like Southeast Asia. By leveraging both ecommerce marketplaces and your own site, you can sell online through multiple channels, maximizing your online sales potential. It’s about playing to the strengths of each platform and covering your bases.
Maximising Reach And Sales
Marketplaces are great for getting your products in front of a huge audience quickly. Think of it as casting a wide net. But your own site lets you nurture those customers and build a lasting brand. By combining both approaches, businesses can access international markets and compete in the global market, expanding their reach far beyond local boundaries. You can use the marketplace to drive initial sales and then encourage customers to visit your site for exclusive deals or a more personalised experience. It’s like having two sales teams working for you, each with a different focus.
Balancing Brand Presence
One of the biggest drawbacks of marketplaces is the lack of brand control. You’re essentially a small fish in a big pond. With your own site, you dictate the entire experience, from the design to the messaging. The trick is to create a consistent brand experience across both platforms. Use similar branding, messaging, and product photography to ensure customers recognise you, no matter where they find you. Successful ecommerce business and ecommerce brands maintain a unified presence across all platforms to build trust and recognition with their audience.
Leveraging Data And Insights
Both marketplaces and your own site generate valuable data about your customers and their buying habits. Marketplaces often provide insights into popular products, search terms, and customer demographics. Your own site gives you even more granular data, such as browsing behaviour, cart abandonment rates, and customer lifetime value. By analysing this data, you can optimise your product offerings, marketing campaigns, and overall customer experience. Using an online platform with integrated internet services can further enhance your ability to collect, analyze, and act on customer insights, giving you a more comprehensive view of your business. It’s like having two sets of eyes, each giving you a different perspective on your business.
Think of your marketplace presence as a lead generation tool and your own site as the conversion engine. Use the marketplace to attract new customers and your site to build loyalty and drive repeat sales. It’s a win-win situation.
Choosing The Right Platform For Your Business
Okay, so you’re at the point where you need to decide where you’re going to sell your stuff. Big decision! It’s not just about picking the shiniest option; it’s about what actually fits your business like a glove. For example, you might choose to set up your own website or an e commerce site for greater control over branding and customer experience, or you might opt for an ecommerce marketplace to quickly reach a broad audience with less setup. Let’s break down how to make the right call.
Evaluating Your Business Model
First things first, what exactly are you selling, and how do you want to sell it? Are you all about crafting unique, handmade items, or are you dealing with bulk-bought goods? This makes a huge difference. For example, if you’re focused on building a strong brand around your products, having your own e-commerce platform in Singapore might be the way to go. If you’re more about shifting volume quickly, marketplaces could be your best bet.
Business sellers should also consider their product category when choosing a platform, as different marketplaces have specific requirements, support systems, and promotional services tailored to various product types.
Think about things like:
Product type: Is it niche, mass-market, or something in between?
Sales volume: Are you aiming for high turnover or more exclusive sales?
Profit margins: How much wiggle room do you have for fees and commissions?
Understanding Your Target Audience
Who are you trying to reach? Where do they hang out online? If your target audience is already actively shopping on a specific marketplace, it makes sense to meet them there. But if you’re trying to cultivate a loyal customer base who appreciate a unique brand experience, you might want to build your own online space.
Consider:
Demographics: Age, location, income, etc. In Asian markets, platforms often attract a diverse audience spanning various age groups, regions, and cultural backgrounds. Reaching this diverse audience in Asian markets like Indonesia and Vietnam requires tailored marketing strategies to effectively engage different consumer segments.
Online behaviour: Where do they shop, what social media do they use?
Customer journey: How do they discover and purchase products like yours?
Assessing Technical Requirements
How tech-savvy are you? How much time and money are you willing to invest in setting up and maintaining your online store? Some platforms are super easy to use, while others require a bit more technical know-how.
Think about:
Ease of use: How comfortable are you with website design and management?
Integration: Does the platform play nicely with other tools you use (e.g., accounting software, email marketing)? Choosing an online platform with robust internet services can make integration smoother and support your business growth by providing access to e-commerce solutions and digital tools.
Scalability: Can the platform grow with your business as you expand?
Choosing the right platform is a balancing act. It’s about weighing the pros and cons of each option and figuring out what aligns best with your business goals, target audience, and technical capabilities. Don’t be afraid to experiment and see what works best for you. You can always adjust your strategy as you go.
Best Practises For Success In Southeast Asia
Localisation Strategies
Okay, so you’re serious about cracking the Southeast Asian market? Great! First things first: ditch the one-size-fits-all approach. What works in Europe or the US definitely won’t automatically translate here. We’re talking about a region with a kaleidoscope of cultures, languages, and consumer behaviours.
Website Localisation: It’s not just about translating your website into Bahasa Indonesia or Thai. It’s about adapting the entire user experience. Think about local idioms, colour preferences, and even the way you present your products. Localisation strategies must be tailored for South Korea, where digital commerce is highly advanced, as well as for other countries in the Asia Pacific region, each with their own unique consumer expectations and trends.
Payment Preferences: Southeast Asia has a diverse range of payment preferences. Don’t just assume everyone uses credit cards. Digital wallets like GrabPay and GoPay are huge, and in some areas, cash-on-delivery is still king. Offer a variety of options to cater to everyone.
Customer Service: Make sure your customer service team can handle inquiries in local languages. A friendly, helpful voice in their own language can make all the difference.
Localisation is more than just translation; it’s about understanding and respecting the cultural nuances of each market.
Effective Marketing Techniques
Marketing in Southeast Asia is a whole different ball game. Forget generic ads, you need to get creative and think local. Here’s the lowdown:
Social Media is Key: Platforms like Facebook, Instagram, and TikTok are incredibly popular. Use them to run targeted ads, engage with your audience, and build a community around your brand. Facebook Marketplace is also an effective channel for driving online sales in Southeast Asia, offering a large user base, low fees, and direct communication with buyers.
Influencer Marketing: Partnering with local influencers can be a game-changer. They have the trust of their followers and can help you reach a wider audience. Just make sure you choose influencers who align with your brand values.
Mobile-First Approach: Southeast Asia is a mobile-first region. Make sure your website and marketing materials are optimised for mobile devices. If your site isn’t easy to use on a phone, you’re losing customers.
Customer Engagement And Retention
Getting customers is one thing, but keeping them coming back for more? That’s where the real magic happens. Here’s how to build lasting relationships with your Southeast Asian customers:
Personalised Experiences: Use data to understand your customers’ preferences and tailor your marketing messages accordingly. Send them personalised offers, recommend products they might like, and make them feel valued.
Loyalty Programmes: Reward your loyal customers with exclusive discounts, early access to new products, and other perks. A well-designed loyalty programme can keep customers coming back for years.
Excellent Customer Service: Go above and beyond to provide exceptional customer service. Respond to inquiries quickly, resolve issues efficiently, and always be polite and helpful. Offering multiple payment methods, including cash on delivery payments, can also improve customer satisfaction and retention by catering to different preferences. Word-of-mouth is powerful in Southeast Asia, and happy customers are your best advocates.
To succeed in Southeast Asia, it’s important to understand the local culture and market. Building strong relationships with customers and partners can make a big difference. Always be ready to adapt your strategies to fit the unique needs of each country. If you’re looking for expert help to grow your business in this region, visit our website for more information and a free consultation!
Final Thoughts: Marketplace or Your Own Store?
In the end, choosing between a marketplace and your own online store in Southeast Asia really depends on what you want to achieve. Southeast Asia is rapidly becoming one of the largest ecommerce market regions, with platforms like Shopee and Lazada standing out as some of the largest online marketplace options available. Marketplaces like Shopee and Lazada offer a ready-made audience and can help you get your products out there quickly. They’re great for reaching a lot of people without too much hassle. On the flip side, having your own store gives you more control over your brand and customer experience, which can be a big plus if you’re looking to build a loyal following. Many businesses find that a mix of both works best, allowing them to tap into the vast marketplace traffic while also nurturing their own brand identity. So, weigh your options carefully, consider your goals, and choose the path that feels right for you.
Frequently Asked Questions
What’s the difference between a marketplace and an ecommerce website?
A marketplace, or ecommerce marketplace, is a shared online platform where multiple sellers list their products, such as Amazon or eBay. An e commerce site refers to any website designed for online selling, which can include both marketplaces and individual stores. Your own website is a dedicated e commerce site that you fully control, allowing for customization, branding, and direct customer engagement.
Is it worth selling on marketplaces in Brunei?
Yes, especially for visibility and ease of entry. Local platforms like Maribali are gaining traction, making them a good starting point if you’re new to online selling. Just remember that brand control and margins may be limited.
When should I build my own ecommerce website?
Build your own site when you’re ready to take control of your customer experience, scale your brand, and collect valuable data. It’s ideal for businesses planning long-term growth beyond a marketplace.
Can I use both a marketplace and a website?
Absolutely. This hybrid approach is what we recommend for most Southeast Asian brands. Use the marketplace for volume and traffic, and your website for nurturing customer loyalty and higher profit margins.
Is ecommerce growth viable in Brunei?
Yes. Brunei has high internet penetration and digital payment adoption; and local buying habits are shifting fast. A clear digital presence is becoming just as important as a physical storefront.
Ready to Build the Right Ecommerce Setup?
At , we help businesses across Brunei and Southeast Asia start selling and begin selling online by launching ecommerce platforms that aren’t just pretty, they’re profitable.
Whether you’re deciding between marketplaces, building your own online store, or planning a hybrid strategy, we’ll help you:
✅ Choose the right platform for your market
✅ Build a store that reflects your brand
✅ Integrate payment, delivery, and automation tools
✅ Optimise for real results, not just traffic
🔧 Need help figuring out what’s right for you?
Start with a free consultation or platform fit breakdown.
Your ecommerce success shouldn’t be a guessing game. Let’s build it smart, from the start. We can help you choose the right ecommerce platform or online platform tailored to your business needs.