All Case Studies
Retail & E-commerce

Sea Group (Shopee)

How Shopee uses AI personalisation, fraud detection, and logistics optimisation to lead Southeast Asia's e-commerce market

AI Transformation ProgramAI Pilot ProgramTeam Training
$127.4B
Annual GMV (2025)
52%
SEA Market Share
$22.9B
Group Revenue (2025)
$1.6B
Net Income (2025)

The Challenge

Shopee, Southeast Asia's largest e-commerce platform — commanding 52% of regional GMV in 2024 — operates across nine markets including Singapore, Indonesia, Philippines, Thailand, Vietnam, Malaysia, Taiwan, Brazil, and Mexico. The platform must accommodate diverse languages, currencies, payment infrastructure, and shopping preferences across these heterogeneous markets. Fraud and counterfeit goods erode buyer trust in a marketplace hosting millions of merchants with highly variable seller quality. Sea Group's gamified shopping experience — incorporating flash sales, live-stream commerce contributing approximately 20% of regional GMV, and social-sharing mechanics — generates volatile demand patterns that strain traditional inventory and logistics planning. The fiercely competitive landscape, with well-funded rivals including Lazada and TikTok Shop, demands continuous innovation in personalisation and operational efficiency. Shopee must also navigate Southeast Asia's fragmented logistics landscape, where last-mile delivery infrastructure ranges from established postal services in Singapore to motorcycle-courier networks in Indonesian rural districts, while seasonal mega-sale events (9.9, 11.11, and 12.12 campaigns) compress annual revenue concentration into brief windows requiring extraordinary infrastructure elasticity.

The Approach

Shopee deploys AI across product recommendations, search ranking, fraud detection, seller tools, and logistics optimisation. Machine-learning models trained on billions of browsing and purchase interactions personalise product feeds for each user, accounting for local preferences, trending items, and contextual signals including time of day, device type, and local events. Natural-language-processing and multilingual embedding models handle search queries across multiple languages, mapping semantically equivalent listings into a shared vector space regardless of whether titles mix English brand names with Thai descriptions or Bahasa Indonesia colloquialisms. Visual-similarity matching supplements textual search, addressing the challenge of sparse or machine-translated seller metadata.

A computer-vision-powered listing-quality system uses over 80 brand-specific AI models to identify counterfeit product images, misleading descriptions, and policy-violating content, maintaining marketplace integrity at scale without proportional growth in human-moderation headcount. Intelligent logistics-routing algorithms optimise last-mile delivery by dynamically selecting fulfilment partners based on real-time capacity, geographic coverage, and historical performance metrics. Demand-forecasting models predict SKU-level order volumes at the warehouse-zone level before mega-sale events, enabling pre-positioning of inventory and pre-staging of courier capacity. Seller-quality scoring combines delivery-speed metrics, return-rate analysis, and buyer-review sentiment to surface trustworthy merchants in search rankings.

In 2026, Sea expanded its AI capabilities through partnerships with Google on agentic commerce prototypes and OpenAI's Operator for AI-assisted shopping, signalling the platform's continued investment in AI-driven customer experience.

Results

$127.4B
Annual GMV (2025)
Total gross merchandise value, up 26.8% year-on-year from $100.5B in 2024 (Sea Limited FY2025 results)
52%
SEA Market Share
Share of Southeast Asia's platform e-commerce GMV in 2024, up from 48% in 2023 (Momentum Works report)
$22.9B
Group Revenue (2025)
Total Sea Limited revenue, up 36.3% year-on-year from $16.8B in 2024 (Sea Limited FY2025 results)
$1.6B
Net Income (2025)
Sea Limited net income, up 3.6x from $447.8M in 2024 — third consecutive profitable year (Sea Limited FY2025 results)

This is an industry case study based on publicly available information. Sea Group (Shopee) is not a Pertama Partners client.

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