Sometimes, when we’re focused on a single point, it feels like we’re making progress, even when we’re only seeing part of the picture. But from time to time, it’s important to zoom out and see the wider landscape, to spot the green pastures on the horizon that we may have overlooked.

Emerging markets are exactly that—they’re the new gold rush in global e-commerce. These are regions where economic growth is outpacing developed nations, and digital adoption is rapidly transforming industries. 

But what makes these markets so compelling? 

They’re becoming crucial drivers of e-commerce growth. As they continue to develop, these regions are quickly becoming significant players in the online retail space. 

So, if you’re not looking at these markets now, there’s plenty of reasons to change your mind.

Why 2025 is a Critical Year for Cross-Border Ecommerce

If you rewind just a bit, you’ll notice that COVID-19 pushed more consumers online than ever before, and now, these markets are experiencing the kind of growth the US, Canada and Europe saw years ago. 

Add to that the rise of regional platforms like Shopee in Southeast Asia and MercadoLibre in Latin America, and you’ve got a recipe for massive e-commerce shifts.

Top Emerging Markets for 2025

With rapid growth, increasing internet penetration, and a rising middle class, Southeast Asia, Latin America, and Africa are among the top regions to watch. 

Southeast Asia

• Countries: Indonesia, Vietnam, Thailand
• Trends:
  
  • Social Commerce Boom: Southeast Asia is seeing a rapid rise in social commerce, particularly through platforms like Shopee, Lazada, and TikTok Shop. 

In fact, Shopee, which dominates Southeast Asia, reported a 41% increase in revenue in Q3 2024. This growth is part of a broader trend, where social media and messaging platforms are becoming key marketplaces in this region. Social commerce is projected to account for 20% of all e-commerce transactions by 2025 in Southeast Asia.

• Mobile-First Consumers: Southeast Asia is overwhelmingly mobile-first, with 90% of e-commerce transactions taking place on smartphones. This has driven a surge in mobile payment solutions, mobile-friendly platforms, and location-based services. 
• Platform Dominance: Platforms like Shopee, Tokopedia (now merged with Gojek), and Lazada have rapidly scaled in Southeast Asia, reaching millions of customers across Indonesia, Vietnam, and Thailand, with Shopee becoming the top e-commerce app in the region, surpassing Amazon in several countries. 

E-commerce in Southeast Asia is projected to grow by 20% annually, reaching $234 billion by 2025. With internet users growing by 12% annually, these figures highlight the region’s immense potential. 

Latin America (LATAM)

• Countries: Brazil, Mexico, Argentina
• Trends:
  
  • Rising Middle Class: Latin America’s middle class is expanding rapidly, driven by a growing number of consumers who have increased purchasing power. In 2020, Brazil saw 34.76% growth in e-commerce sales, and it has been steady ever since.
  • Popularity of Local Payment Systems: Boleto Bancário has historically been a key payment method in Brazil, but its usage has significantly declined in recent years. Meanwhile, credit card penetration in Brazil is around 70%, with varying rates across Latin America, indicating a shift toward digital payment solutions in the region.
  • E-commerce Expansion & Cross-Border Shopping: Amazon’s expansion into Brazil and Mexico, including fulfillment centers and Amazon Prime, has made the region an attractive target for global brands.

LATAM e-commerce sales are expected to grow 25% annually, with the region’s total e-commerce value predicted to reach $146 billion by 2025.

MENA and Africa

• Countries: UAE, Saudi Arabia, Nigeria, South Africa

Trends:

• Rising Internet Penetration: Africa's internet users reached 646 million in 2023, up from 181 million in 2014. MENA regions like UAE and Saudi Arabia have high-speed broadband, driving online consumer growth.
• Demand for International Brands: MENA's online sales are set to grow 30% by 2025, with consumers seeking international products, particularly in fashion, beauty, and electronics. Nigeria currently leads the pack in this region.
• E-commerce Infrastructure Development: Companies like Jumia and Noon are expanding fulfillment networks to tackle logistical challenges, including last-mile delivery. Local partnerships are essential for improving delivery speed and service. 

Africa’s online sales are expected to increase 30% by 2025, making it one of the fastest-growing e-commerce regions globally. 

3. Why Are These Emerging Markets Thriving?

Internet and Smartphone Penetration

• In regions like Southeast Asia, MENA, and Africa, consumers are leaping into the digital world. Africa alone is set to hit 600 million internet users by 2025, and mobile commerce is the beating heart of this growth. These markets are mobile-first, with consumers using their smartphones not just for communication but as a gateway to shopping, banking, and entertainment.

Purchasing Power

• A rising tide of opportunity. As the middle class in markets like LATAM and Africa grows, so does their purchasing power, unlocking an entire world of consumer demand. What does that mean? It means access to the conveniences of e-commerce that weren’t always available. Brazilian, Mexican, and Nigerian shoppers are now empowered with the financial freedom to shop online for the products. 

Localized Solutions

• It’s all about making things easier and more accessible. Whether it’s M-Pesa in Africa or Boleto Bancário in Brazil, these localized payment methods are helping millions of people bypass traditional banking systems to shop online, making e-commerce feel more personal and attainable. 

Expanding Logistics Networks

• Getting products into the hands of consumers faster. The road from order to delivery used to be long and uncertain in many parts of MENA and Africa, but companies like Jumia and Noon are breaking down barriers. They’re building regional fulfillment centers and partnering with local logistics providers to ensure that goods can get from the warehouse to the consumer’s door, even in remote areas. 

4. Challenges in Entering Emerging Markets

1. Regulatory and Compliance Hurdles

Each country has its own set of import/export laws, certifications, and duties, making it difficult to maintain a consistent process across regions. Additionally, these regulations can be complex, and failing to comply can result in delays, fines, or even bans.

For instance, in Brazil, the tax system is notoriously complicated, and high import taxes can add up to 60% to the cost of goods. This makes it particularly challenging for U.S. brands to price products competitively while staying compliant with local regulations. Without a strong local presence or a platform like OpenBorder to help manage regulatory processes, the risk of costly missteps increases.

2. Logistics and Infrastructure

In many regions, poor infrastructure and underdeveloped transportation networks create delays and higher costs, particularly in rural areas. This can make scaling your business to a broader audience more difficult.

A good example is Nigeria, where logistical challenges are exacerbated by bad roads, traffic congestion, and a lack of reliable local couriers. In cities, shipping can be more manageable, but reaching remote or rural areas requires navigating unpredictable road conditions. To mitigate this, businesses must collaborate with local delivery partners who understand the terrain and can optimize the delivery process. 

3. Cultural Nuances

Right from payment methods to shopping habits, cultural nuances play a significant role in whether a brand will succeed in a new market.

In Southeast Asia, for example, mobile payments are increasingly the preferred method for eCommerce transactions. In countries like Indonesia and Vietnam, mobile apps such as Gojek and GrabPay have become essential for consumers when making purchases online. Brands that fail to integrate these mobile-first payment solutions risk alienating a significant portion of the market. 

5. How E-commerce Brands Can Succeed in Emerging Markets

• Market Research: Know the market before you dive in. Tools like Jungle Scout and SEMrush give you the insights you need to make informed decisions. This way, you can understand what local competitors are doing and how you can outperform them rather than blindly jumping into new territory.
• Localization Strategies: Yes, this goes beyond just translating your website. It’s about adapting your product listings, messaging, and payment methods to fit local needs. 
• Building Local Partnerships: Much like the currently established ecommerce hotspots in the West, collaboration with local influencers, logistics providers, and payment processors who understand the market and can help guide your expansion. 
• Technology Adoption: You don’t need to build everything from scratch. Cross-border platforms like OpenBorder can handle compliance, logistics, and more, streamlining your expansion.

6. Case Studies of Success in Emerging Markets

L'Oréal (Beauty)
What They Did: Expanded e-commerce presence in Southeast Asia via Shopee, leveraging AI, AR, and strategic marketing.
How They Did It:

• Integrated AI-powered tools like BeautyCam for virtual try-ons and personalized skincare advice.
• Participated in major Shopee sales events (e.g., 10.10) to boost visibility and drive sales.
• Used marketing automation (Performance Max) to increase ad traffic and ROI.
• Focused on mobile-first strategies to cater to the region's high mobile usage.
  
  

L'Oréal's campaigns on Shopee resulted in a 40% increase in ad traffic and a fourfold return on ad spend during major sales events

‍

Shapermint (Shapewear and Lingerie)
What They Did: Expanded their e-commerce presence in Latin America by implementing AI-driven, localized marketing strategies.
How They Did It:

• AI-Powered Campaigns: Developed proprietary AI platforms, such as Antares and Altair, to automate ad budget allocation and create culturally relevant advertisements tailored to local markets.
• Localized Content: Utilized data analytics to craft ads that resonate with regional audiences, incorporating local slang and cultural nuances.
• Optimized Ad Strategies: Automated the optimization of over 500 campaigns and 10,000 ads annually, ensuring efficient resource allocation and enhanced performance.

Shapermint's data-driven approach led to over $800 million in revenue and 10 million customers since its 2018 launch, with three of its products ranking No. 1 in their respective categories

7. Unlock the Power of Emerging Markets

It’s clear from the trends that emerging markets need to not be viewed as the next frontier, but more like the present and immediate future of global e-commerce. With rapid digital adoption, growing consumer bases, and increasing access to mobile and online services, regions like Southeast Asia, LATAM, and Africa are evolving into key players in the global economy. 

To succeed in 2025 and beyond, businesses must adapt, localize, and act quickly.

Ready to tap into emerging markets in 2025? Contact us to streamline your entry and expand your reach across the globe.