So You Wanna Sell Across Asia? Here’s What’s Actually Moving the Needle.
Everyone is aware that the West’s marketplace is at capacity, and LinkedIn is more than happy to provide updates on this fact daily. However, when one shifts their perspective to the East, a completely different narrative takes shape. Digital wallets are rapidly gaining traction, roads are becoming more efficient, and most significantly. ASEAN trade integration has progressed beyond mere political discourse to actual operations at the customs level. Whereas an average Malaysian entrepreneur or freelancer attempting to do business selling keropok or software to Thailand or Singapore found the experience to be an arduous task. Confusion surrounding shipping requirements. Apprehension regarding credibility/reliability), there appears to be a marked contrast in 2026. The following outlines the five most impactful components currently facilitating Asia cross border commerce—without any frills attached.
Asia Trade Index
The DEFA Effect: Finally, A Rulebook for Digital Trade
For many years, selling via the Internet in Jakarta or Bangkok was like the Wild West. Each country has its own rules regarding data, including whether servers must be located within the respective country. As well as how many silly taxes might apply. But now, there’s a major shift underway with the ASEAN Digital Economy Framework Agreement (DEFA), which aims to conclude by 2026. This is essentially a free trade treaty for the Internet. Here’s why you should care about this development with respect to your wallet:
If you’re a small Shopify store owner today, the legal costs to determine what the rules are for eCommerce, digital payments, and cybersecurity in ten different Asian countries will completely decimate your margin. Because of DEFA, eCommerce businesses will have standardized rules for eCommerce, digital payments, and cybersecurity. According to the World Economic Forum, the region’s digital economy could double because of DEFA.
For countries like Malaysia, this is huge because we already have the benefits of being a middle ground with English language skills, good infrastructure. When these regulations are removed, Kuala Lumpur will become the default headquarters of regional trade. Thus, you do not need to have a legal background to sell online. Rather, you merely need to have a quality product and reliable international logistics partners throughout Asia.
The “Double Clearance” Boom
I want to discuss shipping which is boring but actually helps generate income. In regards to the increasing number of people and companies that are using Delivered Duty Paid (DDP) incoterms for shipping related services. There has been a new trend for shipping that is becoming popular as well called Double Clearance Door-to-Door shipping for most of Asia. This service means sellers take care of all aspects of the shipping process including Export taxes, Import Taxes and Last Mile Delivery.
Because of the new RCEP trade agreement that covers the majority of Asia/Pacific countries, Malaysia has developed itself into the main logistic centre for Southeast Asia. Port Klang has recently been busy and will continue to see lots of activity and business. As a product sold by e-commerce companies continue to shift towards heavier-weighted type products such as heavy machinery and heavy equipment.
Logistics Providers are providing fixed pricing for customers from China to Far East Asia. For Example you order a Heavy Equipment machine from Guangzhou or Shenzhen and when it arrives at customs in Malaysia then you can for example, move it to your business in PJ or JB. This new trend is creating a global marketplace that looks much smaller. Due to the removal of holding inventory by drop shipping. As a drop shipper you just need to find a good forwarder who provides a doorto-door guarantee.
Payments that we Skipped the Credit Card Era
This is something my friends in the US never understand. In Southeast Asia, growing up without a credit card was the norm, with payment methods moving from cash to QR code. EBANX has recently expanded significantly into Thailand, Indonesia, Malaysia, and Vietnam. As these countries represent significant e-commerce opportunities, although they have different payment habits.
In Thailand, for example, e-wallets make up approximately 65% of total e-commerce sales. Indonesia is at approximately 61%, and Malaysia is quickly approaching those two countries. Therefore, if you are building a site to sell across the border to Asia, simply adding a PayPal button will not suffice. You will need to incorporate local e-wallet methods for payment. Such as FPX (in Malaysia), PromptPay (in Thailand), and QRIS (in Indonesia).
Additionally, Generation Z in Asia accounts for the largest amount of money spent on the internet, with all of them purchasing products using their phones through GrabPay or ShopeePay. If your cross-border payment systems to Asia do not include these payment methods, the customer will ultimately leave and not use their credit card to complete the sale. They will look for other sellers who will accept the e-wallets they use.
Logistics is Getting “Un-Boring”
In the past, shipping constrained business operations more than it supported them. In Malaysia, however, the following developments have occurred: MASkargo, the cargo division of Malaysia Airlines’ parent company. Which has developed a new collaborative flight and logistics partnership with Teleport, the logistics branch of Capital A, the parent company of Air Asia. Under this new agreement, A321 cargo planes will be utilised to connect Kuala Lumpur with Phnom Penh and other outlying cities that much larger cargo aircraft cannot service.
Why is this so important? This agreement increases the operational efficiencies of transporting merchandise between countries and within the region. Teleport has developed a very flexible network, with a high volume of traffic providing both a point-to-point and direct shipping solution. What does this mean to your business? You will now be able to ship to Chiang Mai, rather than shipping only to Bangkok, and the markets of Penang, Ipoh, and Johor Bahru can now become viable destinations for you as an import/export business without the usual long and high-cost maritime delays.
Additionally, Ninja Van Malaysia has predicted that parcel shipping volume in their business for 2022 will increase by 5% to 10% . However, they also launching a new “Ninja Cold” delivery service. That will allow for the shipping of frozen foods and prepared meals in the normal parcel shipping environment. As a result, perishable goods can now be transported across borders. A bakery in Kuala Lumpur can now sell to a customer in Singapore and a fruit vendor in Vietnam can sell produce to a customer in China. Overall, the existing physical infrastructure for distribution services has finally evolved to a point that will allow companies to accomplish their planned operational activities.
Brand Power The Rise of the Regional Powerhouse
Finally, let’s discuss the concept of value. When it comes to Asia cross border commerce, value isn’t simply the transfer of physical goods (boxes). Value is transferred through trust. The Brand Finance Global 500 Rankings for 2026 provide a really interesting insight.
Of course, you have your traditional North American brands such as Apple and Microsoft. But when you move to the 6th–10th positions on this list and look at the strength of Asia-based regional brands, you see how well they have gained in value.
For example TikTok/Douyin was ranked number 6 in the world. Samsung was ranked number 8 in the world. However, if you want to get my attention with a good news story, Jollibee. Jollibee is the only Southeast Asian restaurant brand to rank in the top 5 of strongest restaurant brands worldwide, which saw their brand value increase to $3.3 billion (+32%). So why should this matter to you? Because it shows that consumers in the Asean markets do not exclusively want Western-made products; they want something made for them.
You do not need to pretend that you are based out of London or New York if you are building a brand for Asia. You can be proud of being based out of Kuala Lumpur, Manila or Jakarta. The level of trust between consumers in Asean is increasing. The mindset is changing from “import = better” to “regional = reliable.””
