Tough climb for niche marketplaces in SEA

In focus

• Niche marketplaces eye room to grow amid ecommerce’s rising fees
• Ula co-founder shares what the startup’s final days were like
• OpenAI to open an office in Seoul next month

Hello reader,

It’s been a while since I shopped on niche marketplaces like Zalora or Carousell. But the last time I used Zalora – to purchase a pair of sneakers – the service was impressive, delivery was quick, and the product was genuine.

Still, I tend to shop on the larger, general marketplaces, probably because they have almost everything.

This might also explain why there aren’t as many repeat purchases on niche platforms.

Lately, though, I’ve seen many sellers complaining about rising fees on Shopee, Tokopedia, and TikTok Shop. It’s not just higher commission rates; platforms have also started imposing flat fees on every transaction.

This has sparked discussions on whether niche marketplaces could become a real alternative. In today’s Big Story, I explore the outlook for these players over the next five years amid growing seller frustration.

Can they topple Shopee and the dominance of other giants, or will they carve out their own distinct space in the ecosystem?

Meanwhile, switching to B2B ecommerce, Ula co-founder and former CEO Nipun Mehra recently joined a Tech in Asia podcast hosted by our COO Maria Li. He spoke candidly about Ula’s final days and shared insights on his new AI venture.

All that, for you to explore next.

Jofie Yordan, journalist

The Big Story

Niche players chasing Shopee may find survival is enough

Image credit: Timmy Loen

Many sellers are voicing frustrations with Shopee’s rising fees, which continue to eat into their margins.

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