What an incredible way to close 2024! All platforms have ended the year on a high note, hitting record-breaking revenue figures for December.
Lazada Leads the Way with Bold Moves
Lazada surprised everyone by taking the lead for once. They launched a “Guarantee Seller” program, requiring sellers to maintain high fulfillment rates and low cancellation rates, or face penalties. It’s a steep move, especially given that Lazada has traditionally been the follower in the e-commerce race. However, this time they’ve emerged as the first mover, and I expect both Shopee and TikTok Shop to follow suit in 2025.
Shopee’s Strong Year-End Surge
Shopee’s sales, as anticipated, saw growth in December compared to November—continuing the trend we’ve observed in previous years. This surge is fueled by year-end sales and is expected to persist into the Chinese New Year (CNY) period. However, 2025 presents a unique challenge as both CNY and Raya fall earlier in the year. This shift may result in a slight dip in January sales and a sharper drop in February before rebounding in March for the Raya season.
Interestingly, Shopee Choice Global took a notable dip, while Shopee Choice Local saw only a slight drop. This could indicate that buyers are becoming more discerning, recognizing the value of local products and choosing them over imported alternatives.
TikTok’s Smart December Play
TikTok Shop made a strategic decision to focus on December instead of competing directly in the highly saturated Double 11 sales period dominated by Shopee and Lazada. This shift paid off, as TikTok saw a significant sales spike in December, proving that timing and focus are key. All in all, they managed to grow the Malaysia Market by 104% YoY.
Traffic Trends: A Surprising Twist
While Shopee and TikTok enjoyed increased sales in December, their visitor traffic numbers actually declined, as did Lazada’s. The possible reason for this trend could be the final rush to make purchases before the anticipated tax increases in 2025. With upcoming changes in tax policies, consumers may have opted to stock up or make big-ticket purchases in December to avoid paying higher prices in the new year. This sense of urgency, combined with year-end promotions, likely drove serious buyers to focus on completing their purchases quickly, even if overall visitor traffic to the platforms declined.
Looking Ahead to 2025
With 2024 in the books, it’s clear that 2025 will be an eventful year as the e-commerce marketplace approaches its peak. With evolving buyer behavior, earlier festive seasons, and competitive strategies shaping the landscape, it’ll be fascinating to see how platforms adapt and innovate.
Wishing everyone a happy and prosperous 2025. See you all next year!
This report is powered by robust data analytics from two industry leaders: Mobduos for Shopee and Kalodata for TikTok. But before we dive into the exciting findings, a word of caution: while our data provides valuable insights, always remember that there may be slight variations from real-time statistics. Get a free trial to Shopee and Tiktok Bigdata and let us know if you would like a promo code to purchase when you find them essential .
