Is this another evolutionary step for ecommerce in Southeast Asia?

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Hello readers,

Having worked in ecommerce before, one of the strongest impressions I got of the industry was the “arms race” nature of it all. It was always a case of more campaigns, more sellers, more partners, and – of course – more sales. Every new idea or approach was explored in the pursuit of getting ahead.

And now, we have the emergence of the ecommerce aggregators – companies that consolidate third-party brands that sell on platforms like Amazon Marketplace in order to help them scale further. It could be the next step in ecommerce evolution in Southeast Asia, especially given the fragmented nature of the region.

Today we look at,

• The advent of ecommerce enablers
• Funding for an Australian fintech firm
• Other newsy highlights such as hacked camera footage of Tesla and a temporary halt for LinkedIn in China

PREMIUM SUMMARY

A new aspect of ecommerce is emerging

I always expected consolidation to happen in the ecommerce space, but I didn’t expect it to happen this way – it’s an interesting concept to consolidate brands within a single ecommerce platform. Companies like Branded Group, Thrasio, and dozens of others acquire and consolidate the digital-native third-party brands on Amazon Marketplace in an effort to scale them.

• “… and I form the head!”: The combination of resources means better economies of scale and more bargaining power with suppliers and even Amazon eventually.
• About to happen in Southeast Asia? While the trend of rolling up brands on ecommerce marketplaces has not taken off in Southeast Asia yet, it’s already happening on a much smaller scale. The fragmented nature of the region may nudge brands with regional ambitions to work with ecommerce enablers and eventually join forces with them.
• But still a long way to go: Ecommerce penetration in Southeast Asia is still less than 5% for all major markets, while fulfillment and logistics systems and networks still have lots of room for improvement.

Read more: Why Southeast Asia should pay attention to the ex-Lazada CEO’s hot new startup

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