Singapore retailers bypass stores to expand through Shopee and Lazada

Selling on these online platforms is significantly cheaper than setting up physical stores.

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More Singaporean retailers are turning to Shopee and Lazada to tap the Thai and Malaysian markets, using the e-commerce platforms' large customer base, integrated logistics and various marketing tools to boost sales and visibility.

Selling through these platforms lets retailers cut marketing and customer acquisition costs, Nick Morris, founder of cultural insight agency Canvas8, told Retail Asia in an exclusive interview.

“Whilst there are costs associated with selling on these platforms, the benefits often outweigh the expenses, especially for smaller retailers that lack the resources to establish a standalone presence in a new market,” he said. “These platforms act as a springboard for Singaporean retailers to enter and grow in new markets.”

Shopee is used by 88% of Thai and 94% of Malaysian shoppers, whilst Lazada follows closely with 85% and 79%, respectively, Morris said, citing a report by DHL E-Commerce published in October 2024.

Shopee’s International Platform allows Singapore-based sellers to ship goods domestically to Shopee’s warehouse, with Customs clearance and last-mile delivery managed by the platform. Lazada provides a comparable service through its Fulfillment by Lazada solution.