Online shopping continues to be a widespread phenomenon in Singapore as more people prefer to purchase their products on the Internet rather than in person. While that does not mean brick-and-mortar stores are going away anytime soon, the increasing number of online shoppers will lead to a brighter future for the e-commerce industry in Singapore.
Singapore is considered by most countries a global hub for innovation when it comes to digital marketing, e-commerce, and online shopping, and it will continue to remain so in 2023. If you do not have your e-commerce website, it is not yet too late to get your PSG e-commerce website development grant and claim up to 50% grant support. But before we dive into the future, let us take a look at the state of the Singapore e-commerce industry from the beginning to the end of the year 2022.
A YEAR IN REVIEW: ECOMMERCE MARKETING IN 2022
Over the past two years, the pandemic changed Singapore in many ways. For instance, it is not surprising that the number of online shoppers continues to rise as the e-commerce industry transitions from 2021 to 2022 and now to 2023. What does the rising number of online shoppers mean for e-commerce businesses, anyway?
There are around 3.5 million online shoppers in Singapore, and those numbers will continue to rise up to 3.9 million as we get closer to the year 2023. Due to the pandemic, more people in the country have been purchasing their products online. According to JP Morgan’s Global e-commerce trends report, 68% of Singapore’s population made an online purchase in 2021. Online businesses can benefit from this growing trend of online shopping by investing more in digital marketing including SEO Services.
By integrating SEO with your e-commerce website, you can take advantage of the rising number of online shoppers and gain more customers. Not to mention, utilising SEO strategies is the perfect way to increase your search engine rankings and improve your web visibility organically.
When it comes to e-commerce marketing and promoting your online business, you can capitalise on a few significant trends in 2022. Some of these e-commerce marketing trends in 2022 include:
- Mobile shopping
- Quick payments
- Quality customer service
- Influencer marketing
- The best e-commerce websites
- Content marketing
2022 is about to end, and we are nearing the start of 2023 in just a few weeks. What does the new year have in store for the e-commerce industry, and what can you do about it to gain more customers and profits?
23 TOP E-COMMERCE MARKETING TRENDS IN SINGAPORE FOR 2023
1. OMNICHANNEL MARKETING
Omnichannel is an approach where companies let consumers access their products and services using multiple platforms, devices, and channels to encourage lead generation and user engagement.
Omnichannel marketing has been a fundamental part of e-commerce trends in 2022, but it will remain significant at least until 2030, according to McKinsey & Company.
Consumers and prospects discover your company through multiple paths, including social media, search engines, or marketplaces. And this can be challenging for marketers, especially in rolling out an e-commerce marketing campaign and gathering consumer data.
Switching to omnichannel will make it easier for an e-commerce SEO agency to roll out unified and cohesive marketing campaigns across all paths and channels, devices, and platforms. Moreover, companies can collect personal data across all channels.
2. DATA AND FRAUD PROTECTION
With the rise of online shopping trends and online payments, it is not surprising that many people now seek assurance that their data is protected. Data and fraud protection is a crucial part of the e-commerce future. With this, you can stop problems such as retracted payments and purchases with stolen credit cards before they even happen.
As e-commerce gains strength in Singapore, fraud is gaining momentum as well. Through AI, the company can protect consumers’ data. Companies can create more secured and detailed data protection policies in order to protect sensitive information.
For example, with the help of AI, financial institutions can create purchase profiles of their clients based on customer behaviour through their financial and non-financial transactions. When a transaction does not fit the pattern, the transaction could be flagged as dubious.
Many companies are victims of fraud as well. E-commerce retailers deal with around 206,000 web attacks monthly, and these numbers could increase without stringent online security and protection. With the most advanced technologies and AI, companies can filter out fraudulent orders with falsified information and mitigate cyberattacks.
The online shopping trends in 2023 are leaning towards marketplaces, especially among Gen Zs. Marketplaces, such as Amazon, eBay, Alibaba, and Shopee, are perfecting their platforms to enhance user experience not only for the consumer but also for small to medium-sized businesses shifting to the channel.
According to a study, 32% of Gen Zs are expected to make an online purchase on holidays. Businesses should take advantage of this by taking several marketplace approaches, such as personalisation and customisation of product orders, omnichannel strategy, and cross-border trade.
4. SUPPLY CHAIN SOLUTIONS
Since the e-commerce trends look promising in the coming years, it is inevitable for supply chain issues to arise with the growing demand. Investing in supply chain solutions is a way to prepare for the fast-paced market trends in Singapore
76% of consumers mention terrible delivery experiences impact their decision whether to order from the same company again. More than the revenue lost, it also creates a crack in brand trust.
Holidays, labour shortages, extreme and unprecedented weather, clogged ports and ballooning shipping costs are among the culprits behind the supply chain issues. Businesses must find ways to sort out these supply chain problems. Open communication, real-time shipment tracking, and streamlining retail operations can smoothen out the Singapore e-commerce supply chain issues.
5. ARTIFICIAL INTELLIGENCE (AI)
Artificial intelligence or AI has always been an ongoing trend for the past few years. However, expect 2023 to be the year when AI will become a significant game-changer for online businesses. How can AI benefit your online business, anyway?
One part of AI that you could use to manage your e-commerce business is machine learning.
You could also create custom search results based on the customers’ past purchases and their browser history. As such, any customer would not have a hard time finding what they want and something related to their interest.
Nevertheless, there are tons of ways to utilise AI for your e-commerce business. 2023 may be the perfect time to start using AI, so give it a shot and experience its benefits for your business once the new year arrives.
6. USER EXPERIENCE (UX)
User experience (UX), also known as user interface design or usability, refers to the process of creating a relevant and engaging web experience for users. In 20232, UX will remain to be a vital part of e-commerce marketing, so focus on providing your customers with a high-quality website experience.
UX has always been crucial for e-commerce, but 2023 is the year when it will become even more essential for online businesses. An excellent shopping experience is what all customers need, so make sure to focus on improving your UX to set a positive first impression of your business. Not to mention, most online shoppers leave a website if it lacks high-quality visuals and engaging content, which makes it more important to improve your UX.
ALSO READ: How Does User Experience (UX) Affect SEO?
7. SOCIAL MEDIA SHOPPING
Popular social media platforms have their very own e-commerce setups, such as Facebook Marketplace and Instagram Shopping. In that case, why not create a social media page for your business and establish a second e-commerce platform alongside your website?
One of the notable Singapore e-commerce statistics to keep an eye on is the growth of social commerce. In 2022, social commerce in the country is expected to grow by 77.5%. Social media shopping will become a huge part of e-commerce this 2023, and it might be a good time to ride along with the ongoing trend as it continues to grow. With so many people being active on social media apps, they become the perfect platform to promote products since sellers can upload their product catalogue with its pricing, so it is hassle-free. Plus, this kind of e-commerce marketing and advertising strategy encourages users to click on the CTA button where they find the product to view the thing as they visit the e-commerce website. And that’s how social media shopping helps drive more traffic and increase more customer base.
8. VOICE SEARCH
Over the past few years, smart speakers have entered the Singapore market trends and become more popular due to the growth of the smart home market. Many consumers find a smart speaker convenient since they only need to connect the device to their Wi-Fi connection, so its voice assistant will complete the daily tasks they ask them to do.
The Research And Markets forecast that the Global Smart Speakers Market to increase more up to $16.47 Billion by 2027. By then, they expect every household in North America, Europe, and the Asia Pacific will own a smart speaker to shop online, order food, and schedule important events.
With more involvement of voice-enabled solutions, e-commerce businesses would be able to promote their brand in terms of keywords and content. Their consumers would be able to find what they offer using voice search.
9. AUGMENTED REALITY
The key to great digital marketing is to grab the attention of customers. But sometimes, attention alone is not enough. To convince a customer to make a purchase, a brand needs to be creative in their digital marketing efforts to attract their target customers online and nudge them to take action.
Fortunately, there are more ways than one to grab customers’ attention. One of those is Augmented Reality or also known as AR. It is a type of technology that gives life to imagination.
Over the years, AR has been a complete game-changer for the e-commerce industry and become a part of the business trends in Singapore. With AR, your online shoppers would have the ability to see the item they are shopping for, which helps them weigh their options and make the right choice for their purchase.
Facts and Factors predicted that the AR market will reach $90.8 billion by 2028. Therefore, e-commerce business owners can expect AR to shake out the e-commerce industry in the years to come.
10. MORE PAYMENT METHODS
When it comes to payment methods, every customer has their individual preference. That means there is a possibility that a customer does not proceed with the purchase if their preferred payment method is not available on the e-commerce website.
You should know that offering a wide variety of payment methods is one way to attract more customers. Implementing secure payment gateways to allow customers to save their payment information on your ecommerce website will enable fast purchases. With a convenient payment option, it will entice customers to repurchase other products from your website.
11. SUSTAINABILITY BECOMES MORE IMPORTANT
Given our current situation, COVID-19 pandemic, many people have become more aware of the environment. Because of this realisation, consumers are more conscious when making a purchase online. They would often do further research whether the products of an e-commerce shop harm the environment or have related effects.
According to statistics, 90% of Gen X consumers are willing to spend 10% more on an e-commerce shop that commits to sustainability. In other words, brands should be more eco-friendly in 2023. Besides going paperless, they should also use biodegradable packaging and recyclable supplies. Highlighting the environmentally friendly points of the brand in their digital marketing campaign would help attract more customers.
12. CUSTOMER AWARENESS
As the e-commerce industry continues to grow, the more new customers your e-commerce shop will have. To grow your customer base, you have to increase your brand awareness so that more people would know about your brand. That is something you should never miss in your digital marketing campaigns.
Brands should know that building an online presence is not just about posting content. They should also be trustworthy and transparent about what they offer since one-third of online shoppers tend to switch to others if they do not find these two qualities in a brand.
To prevent it from happening to your e-commerce business, you should market to your consumers about the products and services you offer, including its performance.
Here are some objectives on consumer awareness you should keep in mind when creating a digital marketing campaign.
- Understand the various types of customers, including their interest in products.
- Build an effective digital marketing plan that promotes something to a particular target audience.
- Help prospective customers find out more about the products and services.
- Convey the benefits of the products.
- Explain to customers how the products can solve their problems.
Brands must utilise user-generated content (UGC). UGC are pieces of content from the audience or users. Among the examples are unboxing videos and product reviews. Brands must also take advantage of different UGC mediums, including images, videos, podcasts, reviews, and testimonials.
13. CONVERSION RATE
Being able to attract customers to your e-commerce website is one thing, but getting them to make a purchase is a different story.
Since 2021, many e-commerce businesses are looking for ways to improve their conversation rates. Some improve their product pages, while others promote their products in multiple channels besides their website, such as Facebook advertising or shopping ads on Google.
Since more and more e-commerce businesses are competing with one another, you should be more creative with your digital marketing campaign to appeal to your customers right away. However, you have to be careful when preparing the design and message since not all customers have the same beliefs, which can sometimes cause misunderstanding.
That is why your digital marketing campaign should be understandable and engaging at first glance. Also, use those platforms intelligently so your brand would stand out and capture your customers and nudge them to make a purchase.
14. QR CODES
Once again, the QR code will gain its reign. In 2023, anyone with a smartphone can scan QR codes, which can help businesses boost e-commerce website traffic and customer engagements.
To effectively use QR codes in digital marketing, here are the things you need to do.
- Add QR codes on the product packaging to your online store.
- Add QR codes to offer discounts or coupons on particular products or services.
- Add QR codes to view your feedback page or lead customers to your social media.
You can also QR codes to track your marketing metrics. There are software and applications that allow brands to see how many times the QR code was scanned, from one-time scan to repeat scan. You can also sort these results by location, date, and operating systems. These data will give insight into your interaction with your audience.
15. VIDEO MARKETING
A video is e-commerce SEO heaven; you can expect more people to find your content online especially, if you tagged the video correctly. As such, it would reflect on search engine results when your customers search for something related to your brand.
You could also use video marketing on social media as a post or ads since more potential customers are most likely to watch your campaign there and on video streaming platforms, like YouTube. You should know that videos are more engaging than strategic image posts, and they can capture more attention. That is why you can implement video marketing across different platforms if you want to promote your business engagingly. An e-commerce SEO company in Singapore can help you with video marketing.
16. LIVE STREAMING COMMERCE
Live streaming commerce also changed the way people shop online. Like the traditional setting, the sales representative can promote their products and services as if the customers are right in front of them.
Over the past two years, this e-commerce marketing trend has grown a lot. As the pandemic persists and people are still afraid to shop in person, live streaming commerce is the perfect way to attract customers to make a purchase. Make sure to keep up with e-commerce trends in Singapore.
17. ON-SITE PERSONALISATION
Whether your buyers are from a B2C or B2B audience, all of them are looking for a personalised online shopping experience. As an e-commerce owner, you can make that happen with the data collected from your customers’ past visits and navigation on your e-commerce website., Through the use of AI technology, you can now generate custom product recommendations and detailed customer service.
When you implement personalisation in your e-commerce marketing and SEO strategy, your customers would feel more valued. That is why you can expect your revenue to increase up to 25%.
18. INFLUENCER COLLABORATION
With social media continuing to rise, influencer marketing will once again make its way in 2023. This e-commerce marketing trend will become more prominent since many customers trust brands that are partnering with influencers.
For example, Shopee packs a punch with Jackie Chan as the new face of their e-commerce marketing campaign 9.9 Super Shopping Day in 2021. And this partnership alone gains a lot of attention, especially to those people who idolise the actor.
According to a recent study from HubSpot, 30% of consumers consider recommendations from influencers to affect their purchasing decision. That is why if you want to use this e-commerce marketing trend for your campaign in 2023, you should start looking for the right influencer that fits your brand’s ideals. Doing so would make your influencer collaboration a lot more effective.
19. CONVERSATIONAL COMMERCE FOR CUSTOMER SERVICE
Since the nationwide lockdown in 2020, many Singaporeans are spending more time on message apps such as WhatsApp and Facebook Messenger. With this sudden increase, many brands implement conversational commerce. It is a new digital marketing approach that helps brands connect with their customers on a much personal level.
For example, by adding a WhatsApp or Facebook Messenger icon to your business page, your customers would have a chance to communicate with you directly and send their inquiries. If done right, you can create an excellent customer service experience.
That is why while the end of the pandemic has yet to come, e-commerce business owners like you should use this opportunity by incorporating conversational commerce into your customer services, such as the example below.
An example of conversational commerce on Facebook Messenger chat box.
20. LIVE CHAT SUPPORT
Even though you have frequently asked questions (FAQs) or product descriptions found on e-commerce websites, those are not enough to answer questions that customers have in mind. And if they send an email, it would take several hours before they can receive a response. The same goes if they decide to call your e-commerce shop, they might have to wait in the queue until their turn comes.
Source: H&M website
To prevent these kinds of inconveniences to your customers, you should add live chat support. With this, they can interact, connect, and communicate with real people and resolve their concerns in real-time.
The COVID-19 pandemic has forced people to be in their homes for a long period, but this predicament became a leeway for the growth of e-commerce marketing. Now that restrictions are slowly easing, people are excited to get out of their houses and rekindle in-store shopping.
But does the return to in-store shopping signal the end of e-commerce in Singapore? Not necessarily. People today identify the role of e-commerce and in-shopping. Consumers who want convenient, fast, and personalised shopping will use e-commerce platforms. Meanwhile, in-store shopping satisfies the consumer’s tactile purpose or the ability to touch and inspect products in showrooms, which brings a different kind of shopping experience.
22. SEARCHABLE CONTENT
It is not a secret that most parts of the world are facing inflation. Inflation directly impacts consumers by increasing the prices of goods while wages are left behind. Inflation also affects people’s spending habits and curve the online shopping trend.
For example, consumers will prioritise basic commodities, such as food and shelter, rather than products falling in the ‘wants’ categories. Consumers also become more mindful of the products they will be planning to spend on. They research the products that will bring value to their money and ignore the ones they think are not worth their cash.
E-commerce businesses in Singapore must capitalise on these by ensuring searchable content about their products, showcasing why they are worth every single penny.
The article mentions how consumers are affected by big influencers in their shopping decisions. But in 2023, e-commerce businesses in Singapore do not necessarily need to connect with influencers with millions of followers.
Micro-influencers are social media users with less than 100,000 followers or subscribers on social media platforms, such as TikTok. TikTok micro-influencers affect smaller yet tight-knit niche audiences who keep up with their content. Rather than popularity, micro-influencers build their audience on trust and friendship, especially since they are more highly engaged in the community.
Although their audience is smaller, their micro-influencers influence on them is strong, which e-commerce businesses in Singapore can take advantage of. They can do it by sending PR packages for review videos.
Despite the boom in the e-commerce industry in 2022, there are still improvements with our current e-commerce industry. And as 2022 comes to a close, you should get ready for the new year since 2023 is the time to be bold with your digital marketing campaign.
Try to capitalise on the upcoming trends that can benefit your e-commerce business this 2023. In doing so, you can get closer to your goals, earn more money, and gain tons of new customers along the way.
Get in touch with our digital marketing agency in Singapore today! Contact OOm at 6391-0930 for more information.