YouTube and Shopee Partner to Boost eCommerce in Southeast Asia

YouTube and Shopee Partnership: Key Insights 

• Promising Collaboration: YouTube has joined forces with Shopee to launch an online shopping service in Indonesia, aiming to tap into the region’s rapidly growing eCommerce sector and heighten competition with TikTok.

• Rivalry with TikTok: This partnership marks YouTube’s latest expansion into Southeast Asian eCommerce, where it will challenge TikTok, which generated over US$16 billion in GMV through its TikTok Shop in 2023.

• Shopee’s Strong Position: With a GMV of US$70 billion in 2023, of which nearly 27% came from Indonesia, Shopee’s partnership with YouTube is poised to further solidify its lead against competitors.

YouTube and Shopee have announced a strategic partnership to launch an online shopping service in Indonesia, with plans to expand into Thailand and Vietnam. 

Through the collaboration, users will be able to purchase products featured in YouTube videos via direct links to Shopee, Southeast Asia's leading eCommerce platform. This move intensifies competition with TikTok, which has been ramping up its eCommerce efforts in the region. 

Southeast Asia as a Growing Market 

Indonesia, Southeast Asia’s largest economy, was chosen for the launch due to its strong momentum in online shopping. YouTube Asia-Pacific Director Ajay Vidyasagar emphasized the platform's "energy and velocity" in the region, highlighting Indonesia’s growing eCommerce market as a key factor for the tie-up.

This partnership with Shopee marks YouTube’s latest venture into eCommerce in Southeast Asia, following similar initiatives in South Korea and the United States. The collaboration comes as TikTok continues to build its eCommerce presence in the region, having made significant gains through its control of Indonesia's largest eCommerce platform, Tokopedia.

TikTok Shop generated US$16.3 billion in gross merchandise value (GMV) in Southeast Asia in 2023, nearly quadrupling from the previous year, according to consultancy Momentum Works.

Shopee's Dominance in the Region 

Shopee has seen tremendous growth in the region, with its gross merchandise volume (GMV) reaching US$70 billion in 2023 and projected to climb to US$88.4 billion by 2024. Indonesia, Shopee's largest market, contributed nearly 27% of its GMV in 2023.

With YouTube’s vast user base and Shopee’s regional leadership, this partnership is set to strengthen Shopee's position against competitors like TikTok Shop. As Shopee continues to dominate key markets like Indonesia and Vietnam, the collaboration with YouTube could further boost its reach, helping it capture a larger share of Southeast Asia’s fast-growing eCommerce market.

Sources: Reuters, ECDB