SME  /  E-COMMERCE

By Kawal Preet | First published: July 14, 2020    Updated: June 29, 2026

As cross-border e-commerce grows across Asia Pacific (APAC), SMEs need infrastructure that connects both the physical and digital aspects of trade.

From roads, air networks, and sorting facilities to shipping platforms, data, and near-real-time tracking, stronger SME infrastructure helps regional businesses deliver faster and scale with greater confidence.

• As APAC’s e-commerce market accelerates, SMEs require resilient infrastructure to meet growing expectations for same-day delivery and seamless customer experiences.
• Both physical and digital infrastructure are essential for business expansion across borders, from roads, airports, and logistics facilities to shipping platforms, customs tools, and near-real-time tracking.
• FedEx helps APAC SMEs tap into reliable logistics networks and digital tools, so they can support cross-border e-commerce without having to build every capability themselves.

When SMEs think about growth, infrastructure might not be the first thing that comes to mind. Often, their focus lies on launching new products, running larger marketing campaigns, or even expanding overseas. Yet, behind every successful order checkout and delivery is a layer of infrastructure that made it all possible.

Some of it is physical – think of the roads, airports, gateways, vehicles, and facilities that bring products closer to customers. However, a large part of it is also the digital infrastructure we can’t see – think shipping platforms, data, customs tools, tracking, and AI-powered visibility. Together, these infrastructures provide SMEs with the foundation to expand beyond their home markets.

This foundation is more important than ever for SMEs across Asia Pacific (APAC). The region’s e-commerce demand continues to grow, estimated at USD 4.86 trillion in 2026 and projected to reach USD 7.47 trillion by 2031. With this growth comes rising customer expectations for same-day delivery, near-real-time shipment updates, and flexible returns. APAC’s same-day delivery market alone was valued at USD 45.24 billion in 2025 and is estimated to reach USD 70.46 billion by 2031, underscoring how speed has become a deciding factor in online purchases.

For the region’s small businesses, robust physical and digital infrastructure will determine how quickly they can gain momentum in cross-border e-commerce and meet customer expectations.

Investing in the SME infrastructure that APAC needs

As urbanization, supply chain disruption, and AI-driven digitalization continue to accelerate, the global economy will need to invest nearly 3.5% of GDP each year over the next decade – equivalent to USD 4.2 trillion – to future-proof the social, transport, energy, and digital infrastructure businesses depend on.

The good news is that infrastructure investment is on the upswing. Private participation in infrastructure (PPI) investment in low- and middle-income countries reached USD 100.7 billion in 2024, a 16% increase from 2023. A significant share of this investment activity came from East Asia and the Pacific, especially China, Malaysia, and the Philippines.

In 2026, the Asian Development Bank (ADB) also announced plans to invest USD 70 billion in new energy and digital infrastructure initiatives by 2035, including efforts to connect power grids, expand cross-border electricity trade, and improve broadband access across APAC. This will help close the energy and digital infrastructure gap in the region, enabling more businesses to benefit from AI-driven growth.

For APAC SMEs, the real value of these investments lies in what they make possible: faster connectivity, broader digital access, seamless cross-border e-commerce, and more reliable logistics networks. With enhanced infrastructure, SMEs can plan smarter, move faster, and compete more confidently across borders.

Building the infrastructure backbone for cross-border e-commerce

APAC is set to become the world’s largest engine of consumer demand, with 62.6% of global e-commerce demand originating from the region. For SMEs, e-commerce is a chance to reach customers across the region without building a large physical presence in every market.

And many regional businesses are ready to expand overseas. Close to 80% of APAC SMEs say that they’re interested in regional or global growth. Companies want to reduce dependence on single markets and are looking to intra-Asia trade to hedge against geopolitical and macroeconomic risk.

But much of this regional and global growth relies on robust infrastructure that connects trade systems and logistics networks. This is where physical and digital infrastructure converge to deliver a seamless cross-border e-commerce experience.

Better roads and air networks improve connectivity across markets, while digital shipping tools help businesses manage orders and prepare shipment information. The more resilient the infrastructure backbone, the easier it will be for APAC SMEs to move from local ambition to regional and global reach.

Enhancing our network connectivity to support APAC SMEs

For most SMEs, building their own infrastructure is a tall order. They might not have the resources to construct regional warehouses, assemble customs teams, deploy advanced tracking systems, or gain access to major air and road networks. However, they can always tap into the physical and digital infrastructure of a logistics provider that already connects markets, routes, facilities, and online tools.

At FedEx, we continue to enhance our network connectivity to help businesses reach more customers and respond better to changing market demand. In 2025, we added five weekly flights connecting APAC to our European hub at Paris Charles de Gaulle Airport, giving regional businesses access to European markets.

Within Asia, we launched our first direct flight between Taiwan and South Korea, enhancing service and capacity between the two markets. To strengthen sorting capabilities and logistics support for Taiwan’s high-tech and e-commerce sectors, we also expanded our Transshipment Center at Taoyuan International Airport in 2026. Looking ahead, our ongoing Clark gateway facility expansion in the Philippines will enhance shipment flow reliability and enable more efficient cross-border trade.

For APAC SMEs, these network enhancements keep cross-border e-commerce within reach. Stronger air connectivity propels faster stock replenishment and fulfillment, while expanded facilities and sorting capabilities help businesses handle growing order volumes, especially during peak shopping seasons.

Our digital tools also help businesses manage shipping with less manual effort. FedEx Ship Manager, for example, is an online tool that connects seamlessly to e-commerce platforms for bulk shipment label creation and automated tracking updates.

The tool also features AI-powered logistics support such as Customs AI, which prompts customers to provide specific item descriptions for US-bound shipments. Meanwhile, FedEx Global Trade Manager helps businesses to streamline customs documentation and estimate applicable duties and taxes.

By tapping into FedEx’s physical and digital infrastructure, SMEs can concentrate on doing what they do best – serving customers and scaling their business.

Integrating the physical and the digital for stronger SME infrastructure in APAC

Cross-border e-commerce may give small businesses more ways to reach new customers, but continued growth will ultimately depend on a resilient foundation of physical and digital infrastructure. FedEx aims to support this growth by bringing together enhanced network connectivity, digital shipping tools, and logistics expertise across APAC and beyond.

As such infrastructure becomes more integrated, SMEs can focus less on building every capability themselves and more on expanding across borders with confidence.