Amazon is scaling back its retail business in Southeast Asia after finding that its e-commerce market share in the region is below 0.3%. It has ended its Fulfillment service and closed Amazon Fresh in Singapore, the region's economic hub. The main reason is the aggressive use of a centralized, one-size-fits-all model that does not fit ASEAN's fragmented and complex infrastructure. Meanwhile, local competitors such as Shopee, Lazada, and TikTok Shop use localization strategies and understand consumer behavior focused on value for money, local products, and entertainment experiences. As a result, Shopee has gross merchandise value in the tens of billions of US dollars, far ahead of Amazon, which achieved only about 400 million US dollars. However, Amazon is not withdrawing entirely. Instead, it is shifting ASEAN's role from a consumer market to a production and export base, especially in Vietnam, where it supports local entrepreneurs in exporting goods through its platform.
Amazon.com IncAmazon's e-commerce market share in ASEAN is below 0.3%, leading to scaling back retail operations and closing services in Singapore.
Sea LtdSea's Shopee holds tens of billions in GMV in ASEAN, far ahead of Amazon's ~$400M, as Amazon scales back its regional retail operations.
