Singapore E-Commerce Grows 21% to US$5.9 Billion as Shopee Leads and TikTok Shop Gains Ground

Shopee Leads a Growing Singapore Market

Singapore's e-commerce platform market grew 21 per cent in 2025 to US$5.9 billion (S$7.5 billion), with Shopee accounting for 52 per cent of sales, according to consultancy Momentum Works. Lazada held 36 per cent, while Amazon and TikTok Shop each accounted for 6 per cent.

The figures put Singapore within a much larger regional expansion. Across Southeast Asia, platform gross merchandise value, or GMV, increased 22.8 per cent from the previous year to US$157.6 billion. GMV measures the value of goods sold through a marketplace. A platform keeps only part of that money through charges such as seller fees and advertising payments.

Southeast Asia's total e-commerce GMV reached US$185.5 billion when company websites, retailers selling multiple brands and social commerce were included. Those channels sit alongside the large marketplaces and give shoppers other ways to buy online.

Singapore contributed about 3.7 per cent of regional platform GMV, based on its US$5.9 billion market and the Southeast Asian total of US$157.6 billion. Its contribution comes despite its smaller population base, while high spending per shopper makes the city-state an attractive market for premium retail strategies before expansion elsewhere in the region.

As of April 16, 2026, the picture is of an industry growing while changing how it competes. Shopee remains Singapore's clear leader, Lazada has a substantial second position, and TikTok Shop is expanding rapidly across the region. Video shopping, loyalty subscriptions and artificial intelligence are becoming more central as platforms seek both higher sales and stronger profits.

Consumers continue to benefit from vouchers, discounts and delivery incentives. Behind those prices, platforms are working to control the cost of attracting customers, handling orders and delivering parcels.

Singapore's Rankings Differ From the Regional Contest

Shopee's 52 per cent share gives it more than half of Singapore's platform market. Lazada's 36 per cent places it 16 percentage points behind, while the two companies together account for 88 per cent. Amazon and TikTok Shop divide the remaining 12 per cent equally.

Southeast Asia has a different competitive structure. Shopee, Lazada and TikTok Shop, including Tokopedia, collectively control 98.8 per cent of regional platform e-commerce. Shopee generated US$83.2 billion in Southeast Asian GMV in 2025, maintaining its regional leadership.

Smaller marketplaces face the financial and operational strength of those three groups. Large platforms can spread spending on technology, delivery systems and customer acquisition across many more transactions. Single-country platforms and startups are increasingly moving away from running marketplaces and becoming retailers or service providers instead.

Lazada has pursued a more focused position under chief executive James Dong, concentrating on higher quality product selections and premium sellers. The strategy moves it away from competing directly with Shopee primarily on value, while giving it a place in more expensive goods.

Thailand and Malaysia Outpace Singapore

Thailand and Malaysia recorded the fastest growth among the markets highlighted in the regional figures. Thailand's platform GMV rose 51.8 per cent to US$35.5 billion in 2025, from US$23.4 billion in 2024. Malaysia grew 47.6 per cent to US$17 billion, from US$11.5 billion.

Singapore's 21 per cent increase therefore came well below those two markets' growth rates, although it outpaced many developed markets. Vietnam and the Philippines also expanded by more than 20 per cent, putting them alongside Singapore in recording strong growth.

Indonesia remained Southeast Asia's largest platform market, with US$57.7 billion in GMV and a 37 per cent share of the regional total. Its growth slowed to 2.2 per cent following Bukalapak's exit from physical goods and the restructuring of Tokopedia after its acquisition by TikTok Shop.

Thailand added US$12.1 billion in annual platform GMV, calculated from its US$35.5 billion total and the previous year's US$23.4 billion. Malaysia added US$5.5 billion. Those increases show how regional expansion can accelerate even while its largest market grows much more slowly.

TikTok Shop Turns Video Into Sales

TikTok Shop's regional GMV more than doubled to US$45.6 billion in 2025, from US$22.6 billion in 2024. Including Tokopedia, its GMV reached 65.7 per cent of Shopee's, bringing the challenger closer to the regional leader.

TikTok Shop combines entertainment with purchasing, a model described as "shoppertainment". A shopper can watch a video or live broadcast showing a product, then buy it through the same platform. The approach can turn attention into an immediate purchase without requiring a separate search on another marketplace.

Vietnam shows the strength of that model. TikTok Shop's market share rose from 24 per cent in 2023 to more than 40 per cent. Shopee and TikTok Shop now account for almost the entire market between them, leaving Lazada and local platform Tiki with a combined 3 per cent.

The assessment of the regional competition describes Vietnam as a particularly close contest:

The gap between the two players is narrowing, particularly in Vietnam, where TikTok Shop now commands more than 40% of the market.

TikTok Shop's average parcel value remains below Shopee's. That means the platforms differ in the value and mix of products sold, which affects how much money they can earn from each order after costs.

Shopee retains advantages in expensive categories such as consumer electronics and home appliances, where reliability and warranty support matter. TikTok Shop's strength in live streaming is particularly suited to impulse purchases, helping explain why its rapid regional advance has taken a different shape from its 6 per cent share in Singapore.

Video Shopping and Loyalty Become Central

Content commerce generated an estimated US$49.7 billion in Southeast Asian GMV in 2025, accounting for 32 per cent of platform volume. The category includes sales driven by live streaming, video clips and affiliate links, through which promoters can receive payment for purchases they help generate.

Shopee has responded by expanding Shopee Live, increasing seller incentives and partnering with outside content platforms. These moves bring entertainment and product discovery into a marketplace that also serves shoppers arriving with a specific item in mind.

ShopeeVIP, its loyalty programme with different membership levels, had surpassed seven million subscribers by the end of 2025. Members receive daily vouchers, priority customer service and increased cashback.

Those benefits give customers reasons to keep returning. Comparing prices across apps is easy, but moving to another platform can mean giving up membership benefits. For Shopee, subscriptions help build repeat purchasing in a market where a competing discount can otherwise draw shoppers away.

Artificial Intelligence Enters the Competition

Shopee has partnered with Google on artificial intelligence capabilities, while Lazada draws on technology developed within its parent company, Alibaba. Platforms are looking to AI as competition shifts from rapid expansion toward greater control over customer demand, delivery operations and profit margins.

AI tools are expected to change content creation and the process of attracting purchases. Algorithms can produce video content quickly and improve recommendations, helping platforms decide which products to show individual shoppers.

Momentum Works founder Li Jianggan says success will depend on how strongly platforms make AI part of their operations. The competitive value lies in putting the technology to work across the business, including generating demand and improving logistics.

Platforms already have to balance several connected costs: attracting a shopper, encouraging a purchase and getting the parcel delivered. Better recommendations and more efficient operations could help them increase sales while controlling those costs. AI's role is expected to grow as businesses pursue that balance.

Singapore Shoppers Spend More and Expect Speed

Singapore had the highest online spending per person in Southeast Asia, with average revenue per user exceeding US$1,400 in 2024. Its high purchasing power and developed digital infrastructure support a market in which mobile shopping is dominant: more than 63 per cent of purchases are completed on smartphones.

The average online order in Singapore is worth approximately US$137. Nearly 60 per cent of internet users shop online at least once a week, making digital retail a frequent habit rather than an occasional activity.

Product preferences vary across platforms. Home and living products are Shopee's largest category by GMV, followed by health and beauty. TikTok Shop has the reverse order, with health and beauty leading, reflecting the appeal of products that can be demonstrated visually and bought on impulse.

Consumer electronics and telecom equipment account for 47 per cent of online sales, while furniture and home appliances account for 30 per cent. Together, those categories make up 77 per cent, showing the importance of equipment and household purchases alongside the products promoted through video.

Free shipping is the strongest purchase driver, cited by 57 per cent of consumers. Delivery the next day is also becoming a standard expectation rather than a premium service. Meeting those expectations requires substantial investment in logistics, even as platforms seek better returns from each order.

Sea's Profits Rise as Shopee Changes Its Approach

Sea Limited, Shopee's parent company, reported net profit of US$410.9 million for the fourth quarter of 2025, an increase of 72.9 per cent from a year earlier. Its annual net profit rose to US$1.6 billion from US$447.8 million in 2024.

Shopee's progress reflects a shift from an early business dependent on subsidies toward one generating profit. It has moved away from aggressive price wars and toward disciplined execution and unit economics, meaning closer attention to what each order earns and costs.

In the third quarter of 2025, Shopee recorded US$32.2 billion in GMV, up 28.4 per cent from the same period a year earlier. At that stage, Sea expected Shopee's GMV growth for the full year to exceed 25 per cent.

Forrest Li, Sea's chairman and chief executive officer, told investors during an earnings call that the company had reached a stage where it could pursue growth opportunities while improving profitability.

Shopee's core marketplace revenue, consisting of transaction fees and advertising, rose 52.8 per cent to US$3.1 billion in the third quarter. Its adjusted EBITDA also turned positive and continued to improve. EBITDA is a measure of earnings before interest, tax, depreciation and amortisation, with the adjusted figure reflecting the company's chosen accounting adjustments.

Lazada recorded its first full year of profitability in 2024 under Dong. Both Lazada and Shopee have posted positive EBITDA, marking a change from the industry's earlier period of heavy spending to expand.

Discounts still play a large role in keeping prices low. Platforms, sellers and brands fund subsidies, vouchers and promotions, so much of the region's affordability continues to depend on that spending rather than lower underlying costs. Sustainable minimum prices have yet to settle, and further margin growth may require additional efficiency improvements or pricing changes.

Trade Rules, Business Support and Faster Delivery

Singapore's connections to more than 600 ports strengthen its position as a logistics hub and a base for regional e-commerce operations. Platforms selling across borders continue to make overseas supply chains easier to access and reduce obstacles to purchasing from abroad.

Singapore extended Goods and Services Tax to low value imports in January 2023, helping place foreign online sellers and local businesses on more equal terms. The GST rate rose from 7 per cent to 9 per cent by 2024 as part of efforts to support public finances in a growing digital economy.

Government support also helps small and medium enterprises establish online operations. The SMEs Go Digital programme provides digital plans with steps businesses can follow and grants for approved e-commerce solutions. The Productivity Solutions Grant shares the cost of adopting software and digital marketing tools. These programmes have helped tens of thousands of small businesses build an online presence.

Grab is expanding another route into digital retail through GrabMart. Its range has moved beyond groceries into beauty products, pharmacy items and alcohol. Rather than relying on the warehouse model used in traditional e-commerce, Grab uses its existing rider network to complete the final stage of delivery.

GrabMart targets frequent purchases driven by immediate needs, including purchases previously made offline. Its approach adds another form of competition alongside the large marketplaces, particularly for shoppers who value quick access to everyday goods.

How the Market Reached This Point

The changes unfolded across several years, from tax rules and TikTok Shop's advance in Vietnam to stronger company profits and regional sales in 2025.

• January 2023: Singapore began applying GST to low value imports.
• 2023: TikTok Shop held 24 per cent of Vietnam's platform market.
• 2024: Singapore's GST rate reached 9 per cent, Lazada recorded its first full year of profitability, and TikTok Shop generated US$22.6 billion in regional GMV.
• Third quarter of 2025: Shopee recorded US$32.2 billion in GMV and US$3.1 billion in core marketplace revenue.
• End of 2025: Singapore's platform market reached US$5.9 billion, TikTok Shop's regional GMV reached US$45.6 billion, and ShopeeVIP subscriptions surpassed seven million.
• Fourth quarter of 2025: Sea recorded US$410.9 million in net profit, taking its annual net profit to US$1.6 billion.

Singapore's growth sits within that wider change: digital shopping is expanding, the biggest marketplaces control nearly all regional platform sales, and the leading companies are paying closer attention to profits. Shoppers' expectations for discounts and fast delivery continue to shape how those businesses compete.

The Bottom Line

• Singapore's platform e-commerce market grew 21 per cent to US$5.9 billion in 2025.
• Shopee held 52 per cent of Singapore's market, followed by Lazada at 36 per cent, with Amazon and TikTok Shop at 6 per cent each.
• Southeast Asian platform GMV rose 22.8 per cent to US$157.6 billion; including other channels, total e-commerce GMV reached US$185.5 billion.
• Thailand and Malaysia grew 51.8 per cent and 47.6 per cent respectively, while Indonesia remained the largest market with US$57.7 billion.
• TikTok Shop's regional GMV more than doubled to US$45.6 billion, compared with Shopee's US$83.2 billion.
• Content commerce generated an estimated US$49.7 billion, or 32 per cent of regional platform GMV.
• Sea's annual net profit reached US$1.6 billion, while subsidies and discounts remained central to retail pricing.
• Mobile purchasing, free shipping and rapid delivery remain major features of Singapore's online shopping market.