Asia E-commerce Landscape: Top 5 Cities for Drop Shipping

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Asia E-commerce Landscape

The Asia e-commerce landscape continues to grow rapidly. It is estimated that in 2018, the region’s e-commerce industry is worth USD 2.86 billion. By 2022, the number is projected to grow even further to USD 6 trillion.

Asia E-commerce Landscape in Brief

While it is true that the e-commerce industry continues to enjoy amazing growth, the growth rate of the industry is not the same from one country to another. If anything, it varies differently. There are many factors involved in this.

As an example, the e-commerce industry grows rapidly in Southeast Asian countries. Yet, it grows slowly in Japan, which is the world’s third-largest economy. 

Asian countries do have lots of major cities that are attractive to e-commerce businesses, including drop shipping. According to YCP Solidiance’s White Paper, we listed the top Asia E-Commerce of the most attractive ones below.

Top Asia E-commerce Cities

Top Asia E-commerce Cities


  • Shanghai


Shanghai is not only China’s largest port but it is also a center of finance, trade, and culture. The city is home to some industrial zones. Shanghai’s population is 24.1 million. 

Its retail market size is USD 148.9 billion. With a 74% internet penetration rate, 73% digital banking penetration rate, and 65% of digital banking penetration rate, the city is a fertile ground for e-commerce business. 


  • Osaka


Osaka is among the least populous cities on the list, having around a population of 2.7 million. The city is estimated to have an 83% internet penetration rate, 62% smartphone penetration rate, and 83% digital banking penetration rate. 

Osaka also has a large retail market size, estimated to be in the USD 170 billion range. Japan’s e-commerce market is forecasted to grow larger in the next several years, estimated to reach USD 113 billion by 2022. 


  • Seoul


Seoul is a metropolitan city with a population of 25 million. The city’s retail market size is the highest compared to the other cities on the list, worth about USD 300 billion. The city also has the highest rates of internet (87%), smartphone (93%), and digital banking (99%) penetration.

What’s more, the government is eager to develop e-commerce even further by providing necessary policies and incentives.


  • Jakarta


Jakarta is a populous city. It has a population of 31.6 million. While its internet, smartphone, and digital banking penetration rates (estimated to be 72%, 68%, and 49%, respectively) are not as high as other cities, the sheer number of its population more than makeup for it.

Jakarta’s retail market size is estimated to be USD 129.7 billion. The city’s e-commerce continues to grow rapidly now and in the foreseeable future. 

  • Kuala Lumpur

Kuala Lumpur may not be as populous as other cities. Yet, its rates of internet, smartphone, and digital banking are among the highest, numbering 86%, 96%, and 85%, respectively. 

With USD 11.4 billion retail market size, Kuala Lumpur offers opportunities for e-commerce businesses. The largest sectors of e-commerce are travel, followed by consumer electronics, entertainment media, and fashion. 

That is how the Asia e-commerce landscape is brief. The cities we listed above should give you an idea of how the e-commerce landscape is in the region. One can see while the region continues to witness such rapid growth, the growth rate varies from one country to another.

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