Video Commerce Captures 20 per Cent of Southeast Asia E-Commerce GMV

Video commerce now accounts for roughly a fifth of Southeast Asian e-commerce gross merchandise value, forcing consumer brands across the region to overhaul their distribution models. Data compiled by Google, Temasek and Bain shows creator-led sales shifting from experimental promotional spending into core retail infrastructure across key markets including Indonesia, Thailand and Vietnam.

That expansion brings operational friction. Sellers running live broadcasts face steep drops between top-line gross merchandise value and realized revenue once cash-on-delivery refusals, return windows, creator fees and platform commissions clear. Promotional subsidies, including platform-funded vouchers and discounted freight, have masked true channel margins during market-share acquisition phases. When platforms pull back subsidies, merchant unit economics drop quickly.

Platform control and merchant margin pressure

Selling through creator streams leaves transaction infrastructure in third-party hands. Platforms control storefronts, checkout systems, payment rails, customer records, delivery terms and dispute resolution, leaving brands to supply inventory and absorb product returns.

Multi-market operators managing sales across Jakarta, Bangkok and Manila face diverging compliance environments. Content licensing, creator contracts, disclosure mandates and withholding taxes vary by jurisdiction, preventing companies from running uniform regional campaigns without local adaptation.

The pattern follows China’s live commerce cycle. Brands in that market initially concentrated volume through top independent hosts before margins deteriorated. Chinese consumer labels responded by building internal broadcast studios and running scheduled daily programming to retain customer data and protect gross margins.

Regulatory scrutiny reshapes regional operations

Governments across Southeast Asia have moved to regulate social commerce platforms as critical retail infrastructure rather than digital advertising channels. Indonesia enacted Ministry of Trade Regulation 31 in September 2023, banning direct e-commerce transactions inside social media applications. The rule halted TikTok Shop until parent company ByteDance completed a 1.5 billion dollar investment to secure a controlling stake in GoTo’s Tokopedia platform.

Vietnam enacted Decree 147 in late December 2024, enforcing strict account verification requirements before individuals can post or host livestreams. Merchant operators are now building direct customer channels, internal studio facilities and formal data-rights clauses into creator agreements across tier-two Vietnamese cities and eastern Indonesia, where production overhead remains competitive.

Retailers across the region now track net settlement data and return rates per stream as platforms adjust commercial take rates and enforcement rules throughout 2026.