E-commerce share of total retail APAC 2022, by country or territory

China appeared to be the most enthusiastic Asia-Pacific country in terms of e-commerce adoption, with 33 percent of its total retail sales owing to e-commerce in 2022. Contrastingly, e-commerce accounted for just one percent of the total retail sales in the Malaysia during the same year.

 The rise of e-commerce

With the Asia Pacific region increasingly becoming a digitalized region, it is certainly believable that its commercial sector also follows this trend. The high levels of active e-commerce penetration among internet users demonstrated the eager adoption consumers have toward digital spending. The region appears to be heading in the direction of a cashless society with cash on delivery being one of the least used e-commerce payment methods. Furthermore, e-wallet usage for e-commerce payments was by far higher than card and cash payments combined in 2019. Unsurprisingly, e-wallet usage was forecasted to increase by 2023, which would further tighten e-commerce’s grip on the Asia Pacific retail sector.

 The impact of COVID-19 

    The global outbreak of the coronavirus in December 2019 had a monumental impact on e-commerce throughout the region. Although many industries were affected negatively by the pandemic, e-commerce thrived due to the closure of many physical stores, thus making online shopping the only alternative for consumers. Additionally, the health implications of being around other people were enough to make consumers opt for online shopping rather than risk in-person shopping.