Sep 14 2020
Table of Contents
- Part I – The Growth Of E-commerce In Singapore
- Part II – E-commerce Marketing Trends In Singapore This 2020
- Part III – A Brief Guide To E-commerce Marketing
Singapore’s e-commerce industry is shaping up to be a world-class online trade, not just in Southeast Asia but around the world. With high-speed Internet connections and a young generation paving the way for the future of digital marketing, it is not surprising that the e-commerce industry in Singapore is prosperous and dominating Southeast Asia.
Even though COVID-19 is affecting all types of marketplaces, the e-commerce industry in Singapore remains to be almost unscathed. After all, with young to middle-aged adults dominating the population and access to ultra-fast Internet, no doubt that online commerce and search engine optimisation (SEO) is helping Singapore become one of the wealthiest countries worldwide.
The Current State of E-commerce In Singapore this 2020
Due to the pandemic, Singapore’s e-commerce market has changed in many positive ways. For instance, there are around 3.9 million online shoppers in Singapore. However, ever since the circuit breaker measures took place in Singapore, more consumers have been purchasing products via online shopping.
The increasing number of online shoppers in Singapore comes as no surprise. COVID-19 urged people to stay at home for a few months before the circuit breaker measures ended in June 2020. As a result, Singaporeans had to resort to online shopping since it is safer and more convenient than shopping in person.
Besides the convenience of online shopping, what else is the reason for the sudden rise of e-commerce in Singapore during the COVID-19 pandemic? Consider the importance of stocking up on healthcare essentials and leisurely products. People have been buying more supplies for their homes, such as medicine, foods, beverages, and even gadgets or toys.
Check the graph below to examine the revenue growth of e-commerce in Singapore:
Furthermore, expect the number of online shoppers in Singapore to increase, since young and middle-aged adults (who purchase their goods off the Internet) are a large portion of the Singaporean population.
Access to digital technology has also played a significant role in the e-commerce industry. All you need is a smartphone and Internet access, and you can purchase anything online with just one click or swipe.
In short, the ease of use and convenient Internet access are the main reasons why e-commerce is at its most profitable state this 2020. Not to mention, with more Singaporeans using mobile devices these days, the number of mobile online shoppers is expected to rise.
Part I – The Growth of E-commerce in Singapore
Online shopping is one of the reasons why the digital marketing industry is growing in Singapore. The two go hand in hand like partners in crime. E-commerce gives digital marketing and SEO more room to expand, while digital marketing helps online stores promote their products and services.
However, apart from the benefits of digital marketing and SEO for e-commerce, many other factors affect the growth of online shopping in Singapore. Let us take a look at some of the reasons why e-commerce is the future of Singapore.
5 Factors that Affect the Growth of E-commerce in Singapore
1. Clothing And Fashion Brands
Did you know that compared to other Southeast Asian countries, the average Singapore woman is willing to spend money on premium fashion brands? In Singapore, a woman’s average income is around S$61,653, a lot higher than what most women from other countries earn monthly. As a result, women in Singapore are more likely to purchase high-end fashion products online.
Also, local brands are making a name for themselves by expanding their online presence with the help of SEO and digital marketing. Online stores like OneOrchard are shining a light on local fashion brands to get more exposure and present more opportunities for sustenance in the online marketplace.
Lastly, another contributing factor is the importance of cleanliness and hygiene when it comes to shopping for clothes in person. Nowadays, you cannot just fit into a new pair of pants at your favourite clothing store due to health-related issues. Touching clothes also is not advisable, which is why it is better to purchase your clothes online instead.
2. Food, Beverage, And Healthcare
As mentioned earlier, food, beverage, and healthcare essentials are becoming a must-buy for online shoppers. If you check Google’s latest SEO rankings, keywords related to food, drinks, and medicine are high up on the list. That means online stores that sell such products are in for a treat!
For business owners that sell food, beverages, and household goods, consider marketing your merchandise on a wide-scale level by implementing SEO and other digital marketing strategies to boost your online presence and web visibility.
3. Digital Technology
Singapore is the country that mobile companies choose as their destination for product demonstrations. The latest smartphones from top-tier companies attract millions of people in Singapore. After all, more than 90% of the population are smartphone users, which shows how rich and thriving the country is when it comes to digital technology.
The stable economy in Singapore is the reason why most people in the country can use modern digital technology. From smartphones and computers, down to artificial intelligence (AI) and software, the e-commerce industry in Singapore is benefitting from millions of people with access to such technology. Coupled with the growth of digital marketing, you can expect e-commerce to rise in the foreseeable future.
4. Cashless Payments
The privilege of having multiple bank accounts and credit cards make it quicker and easier to purchase your products off the Internet. While the safety and security concerns regarding online transactions are still debatable, no doubt that cashless payment methods are much more convenient compared to paying in cash.
Still not convinced? According to Worldpay, the number one preferred payment method in Singapore is through credit cards, alongside ePayments and bank transfers. Surprisingly, last on the list is cash on delivery.
Cashless payments are helping online stores by presenting more options for consumers. Nonetheless, even though most customers prefer cashless payments, it doesn’t hurt to offer a cash on delivery service as well. Catering to all types of customers will increase your chances of success, so give your customers a variety of payment methods and boost your SEO to expand your reach.
5. Discounts And Cheaper Prices
The best part about online shopping is that you can find a boatload of good deals and affordable prices. Not that there are not any sales or discounts in physical establishments, but most online stores offer cheaper products more frequently.
Also, online shopping is much more affordable compared to shopping in person, since you don’t have to pay for transportation, parking fees, value-added tax, and many more. With online shopping, you only need to pay for the product itself and shipping fees.
5 Benefits of E-commerce
1. Improve Your SEO
E-commerce in Singapore is dominating the Southeast Asian region. As the number of online shoppers continues to rise, you could take advantage of the situation by improving your SEO.
How can e-commerce help improve your SEO rankings? You could start an online business and establish your presence on various digital channels, including social media marketing platforms.
For example, besides running an e-commerce website, you can sell your merchandise on social media sites such as Facebook and Instagram. Facebook marketing is an effective strategy that you may want to consider to attract more customers and boost your SEO.
Managing an e-commerce business will benefit your SEO, although not directly. Nonetheless, if your online store website is appearing on more search engine results pages (SERPs), expect your SEO rankings to increase as a result of your digital marketing efforts.
2. Save Money
One of the best benefits of e-commerce is the lower cost of marketing and selling. Since there is no need to pay for physical space, you can operate an online store, free of charge! Plus, you can implement digital marketing strategies such as SEO, search engine marketing (SEM), and pay-per-click (PPC) advertising, which are all cost-effective in the long run.
However, it may be possible to handle e-commerce with a low budget, but doing so is not advisable. You will lack the tools necessary for promoting your merchandise and designing a website. Also, using high-end can be expensive, which is why you need to create a budget plan before running an online business.
Nonetheless, compared to operating a brick and mortar store, e-commerce offers more money-saving opportunities. With cost-effective digital marketing strategies such as SEO and SEM, you can maximise a small budget, grow a loyal customer base, and establish a credible online presence.
3. Engage With Customers 24/7
Unlike physical stores, websites are open 24/7. Customers can waltz in your online store anytime, which means you can engage with them all the time as well. Feel free to respond to your customers’ concerns and feedback whenever necessary.
Also, with the help of a chatbot, you can gain valuable customer information while you are away. Consider utilising digital marketing AI software like chatbots to let your customers leave a message anytime, so you can attend to their needs once you are available.
Use the opportunity of e-commerce to increase your level of customer engagement and gain valuable feedback. In doing so, you can determine the next best course of action for your products and services to make a better impression of your business.
4. Reach A Broader Audience
Why stick to a specific audience when you can go beyond that? In the e-commerce market, you possess the opportunity to expand your business and reach all kinds of customers. Take advantage of this opportunity to target the right people and reach a broader audience. With an effective SEO strategy, your online store can attract users on search engines to help your website earn clicks and convert prospects.
Managing an e-commerce business is not limited to running a website. To strengthen your marketing efforts, consider launching a social media marketing campaign. By promoting your online store on Facebook, Instagram, LinkedIn, or other networking sites, you can attract more potential customers and promote your products to the right people.
5. Offer Convenience
Most importantly, e-commerce offers convenience to your customers. It is also the very reason why more people are interested in online shopping. In just one click, you can finalise a purchase without even having to pay in cash.
Consider launching an online store if you want to make a positive first impression of your business. Utilise digital marketing tactics like SEO so your website can appear on more SERPs and help users reach your online store with ease.
Part II – E-commerce Marketing Trends In Singapore This 2020
Like digital marketing, SEO, and any other industry in Singapore, the e-commerce market is susceptible to changes, for better or worse. Although the economy has been struggling for the past few months, the e-commerce industry in Singapore is looking more optimistic.
Take a look at some of these e-commerce marketing trends that you should consider for your business!
6 E-commerce Marketing Trends this 2020
1. Mobile Shopping
More mobile users in Singapore means chances for the e-commerce marketplace to grow and flourish. Online shopping is even more convenient when using a smartphone, so it only makes sense for the e-commerce industry to grow if there are more mobile users in the country. In that case, you should optimise your e-commerce website for mobile SEO.
Mobile SEO refers to the act of creating an optimal website for search engines on mobile devices. Optimising your site for mobile SEO is an excellent way to rank higher on search engines. Not to mention, it also provides mobile users with a more user-friendly experience whenever they are visiting your website.
Consider optimising your website for mobile SEO, whether or not you are operating an online store. Mobile SEO is a must, not just for e-commerce but for other types of businesses as well.
2. Quick Payments
One excellent way to discourage people from buying your products is by initiating long loading times and lengthy payment methods. People are buying off the Internet for many reasons, and one of them is convenience.
Provide your customers with convenience by offering quick cashless payment methods. Not only will it benefit your business, but customers will find it more convenient to purchase from your store if transactions are fast and smooth.
3. Quality Customer Service
Online shopping is all the rage, especially since it is still advisable to stay at home and avoid engaging with people in person. With that said, that makes it all the more reason to inspect products more carefully. To do so, customers can get in touch with an online store’s customer service.
Quality customer services are always a vital element of e-commerce. Fortunately, you can incorporate digital marketing AI software into your website to improve your customer service.
For example, you can install a chatbot that will respond to messages and feedback. Your chatbot will act as a temporary customer service representative while you are away. Once you or someone else will access the chatbot, you can view the inbox and reply to the customers’ messages.
4. Influencer Marketing
Nowadays, many people’s eyes are glued to their phones, exploring social media sites like Facebook and Instagram in search of entertainment and news. Some of these people are fond of watching the latest videos from their influencers. Fortunately, you can take advantage of the situation by letting an influencer promote your business.
Influencers are not just limited to social media marketing promos and ads, but also e-commerce. Get in touch with an influencer who can promote your products to attract potential customers.
5. Top E-commerce Websites In Singapore
The problem with e-commerce is that the competition is tough. You have to get ahead of your rivals and make a name for your business if you want to keep up. Depending on your line of work, your online store may have trouble competing against popular e-commerce websites, such as Lazada, Qoo10, and Carousell.
Know More: The Best E-Commerce Sites In Singapore
You can analyse these top-performing online stores to discover why they are successful. After all, imitation is the sincerest form of flattery, so why not learn something from your rivals and create an original strategy out of it for your business?
6. Content Marketing
One of the most effective digital marketing strategies is content marketing, and it can help your e-commerce business succeed. Although high-quality images and videos are excellent forms of marketing, most consumers know the importance of written content. You need to write creative and detailed explanations of your products, so customers will know what they are buying.
However, remember that content marketing is not just about writing and creating content. A vital part of the digital marketing process is sharing your content on other digital channels, including social media. Consider promoting your products on social media sites like Facebook and Instagram to enhance your content marketing campaign and reach a broader audience.
Part III – A Brief Guide to E-commerce Marketing
Managing an e-commerce business requires patience and determination. At first, you may not find enough customers to justify your reasons for starting an online business. But as time goes and you progress, you will discover that the experience of e-commerce is rewarding and fruitful!
Combining your e-commerce business with efficient marketing strategies like SEO and SEM is a gateway to success. Considering how digital marketing and technology are the way of the future, it seems that e-commerce is here to last forever.
Based on the mentioned e-commerce marketing trends, what does it take to manage an online business?
How to Market your E-commerce Business?
1. Integrate Social Media Marketing
Let your presence get noticed across various digital channels, including social media. Come up with a social media marketing plan to promote your business on popular networking sites like Facebook, Instagram, Twitter, and many more.
With a social media page, you can even manage two online stores at the same time! For example, Facebook will let you manage an online store, complete with item catalogues, product descriptions, and many more. Consider making a Facebook marketing campaign to manage not two online stores to expand your reach.
2. Grow An Email List
Email marketing is a suitable strategy that works well for online stores. Since customers can sign up and create an account for your online store, you could stay in touch with them by giving the latest news and updates related to your business.
Know More: 5 Effective Ways To Build An Email List
Your email list will serve as a connection between you and your customers/subscribers. Grow an email list to engage with your customers and earn their trust. Soon, you will be surprised to see how much your email list has grown if you continue to build loyalty via emails!
3. Launch A Content Marketing Campaign
Social media, emails, and content—these are the three vital elements of digital marketing for e-commerce. Since we tackled the importance of social media and email marketing already, let’s move on to creating quality content.
Content marketing is the process of creating content to attract customers. Unlike traditional marketing, the purpose of content marketing is not to promote your business. Instead, the goal is to stimulate interest in your products and services.
You can create a variety of content, such as videos, infographics, and blog posts, to target a specific audience. Not only does it help in boosting your SEO, but a successful content marketing campaign can establish your credibility.
Engage with your customers with content marketing! Let SEO drive the way while content marketing keeps your online presence up and running. Putting these two digital marketing strategies together is a recipe for success, especially for e-commerce businesses!
E-commerce is a tricky business, but the rewards are more than worth grabbing. Keep note of the mentioned e-commerce marketing trends so you can stay updated on the ins and outs of digital marketing. Such is the way that will lead you to success!
Get in touch with a digital marketing agency to help your business grow and succeed! Contact our SEO company in Singapore at 6391-0930.