The past years were indeed great years for retailers, especially with the rise of e-commerce in Singapore. The world has witnessed the birth of e-commerce websites, e-commerce platforms, and social media marketplaces.
But the projection for the industry remains positive in the next coming years. Find out the vital e-commerce numbers and statistics brands and digital marketers must keep an eye on this 2023.
The Impacts Of E-commerce On The Retail Sector: A Look Back
E-commerce has been around for many years, but it was the COVID-19 pandemic that catapulted its growth. While many businesses temporarily closed their physical shops to follow localised lockdowns and restrictions, many saw it as leeway to operate online through e-commerce. In fact, according to McKinsey & Company, 20% to 30% have shifted their business online during the height of the pandemic.
From US$3.35 trillion in global sales in 2019, the year before the COVID-19 pandemic, the global e-commerce retail industry reached a whopping US$5.21 trillion in sales.
In 2022, China had the biggest e-commerce market in the world, securing nearly 50% of all retail e-commerce sales worldwide. China is followed by the United Kingdom and South Korea.
The fashion industry was the leading segment in the e-commerce market in 2022, but electronic products were trailing behind. If you are planning to establish your own e-commerce website this 2023, a digital marketing company specialising in website design and development and e-commerce SEO services in Singapore can help you.
Global E-commerce Statistics 2023
According to the forecast by Statista, retail e-commerce sales worldwide are expected to reach US$8.1 trillion by 2026. Meanwhile, Nasdaq predicts in a report that in 2040, 95% of global purchases will take place online.
Although China had the biggest e-commerce retail market in 2022, its growth seems to slow down to 15% by 2025. It is believed that China has passed its e-commerce peak. Nevertheless, Asian countries still have the fastest e-commerce market based on sales. These are Indonesia, Singapore, India, and the Philippines, with 25% to 35% growth. Other contenders by region are Europe, the Middle East, and Latin America. Brands and businesses in the said countries must amplify their digital marketing strategies with the help of an e-commerce SEO agency.
Approximately 190 million people will shop online using their smartphones in 2024, as 59% of people agree that the ability to shop using smartphones is a factor when deciding which brand to purchase from. This only means that having a mobile-friendly e-commerce website in Singapore is crucial.
eMarketer predicts that global retail mobile commerce sales will reach nearly US$4.5 trillion by 2024, accounting for 69.9% of global e-commerce sales.
One of the driving factors for the rise of mobile commerce is the increasing number of people having access to mobile phones. According to Oberlo, 7 billion people will have access to smartphones by 2024. That is nearly 89% of the entire population. With these numbers, e-commerce SEO and mobile-first websites have never been more needed than today.
Cashless payment methods, such as credit cards, debit cards, and digital wallets, remain the primary payment options for online shoppers.
- 59% use debit cards
- 51% use credit cards
- 33% use digital wallets
However, 49% of consumers still think it is easier to pay in cash. The key is to offer multiple payment methods to capture consumers.
Consumers are more likely to patronise subscription services. In 2022, subscription-based services in beauty and personal care, food and beverage, and health and wellness industries experienced growth. But in the coming years, the streaming services and gaming industry will experience a spur.
Social media e-commerce platforms will capture Gen Z. Product discovery approach in social media is the number one reason Gen Zs make purchases online. It is also a reason why social media networks like Facebook, Instagram, and TikTok now incorporate e-commerce features on their platforms. You can utilise e-commerce SEO strategies into your social media marketing efforts.
Gender-Specific E-commerce Statistics 2023
Online shoppers are predominantly male. 85% of the male population purchase goods online, while 77% of the female population makes a transaction.
However, on average, females buy seven times online in a year, while males are at five.
Women tend to buy on impulse online at 30%, while men tend to do product research at 70%. Women buy fashion products online, while men purchase electronics. If your business belongs to any of these industries, you need a digital marketing company in Singapore to ramp up your marketing efforts.
Age-Specific E-commerce Statistics 2023
Millennials and Gen X spend six hours shopping online, which is nearly 50% more than their older counterparts.
67% of Millennials and 56% of Gen X prefer online shopping to brick-and-mortar businesses.
Meanwhile, 58% of online shoppers between the ages of 26 and 41 made purchases directly on social media platforms. While online shoppers between 18-25 trail behind.
Location-Specific E-commerce Statistics 2023
While remaining the largest e-commerce market in the world, China is expected to grow only by 15% in the industry by 2025. Nevertheless, the Asia-Pacific countries are projected to contribute to the growth the most due to rapid development.
E-commerce Statistics In Singapore 2023
The e-commerce market revenue in Singapore is expected to reach US$8.23 billion by 2023. With an internet penetration rate of 98%, while nearly 98% of Singaporeans have smartphones, it is expected that 58% of the population will purchase goods online in the following years.
Singaporeans between 25-34 years old account for 46% of online shoppers. 22% of online shoppers are between 35-44, while ages between 18-24 make up the 17% 45 years old shoppers and above account for the 15%. 51% of online shoppers in Singapore are male, while 49% are female.
Shopee, Lazada, and Amazon are the top three e-commerce platforms in Singapore. According to Statista, the top products Singaporeans buy online are food and groceries, clothing, household cleaning, cosmetics and beauty, and electronics and tech products.
LEARN MORE: Which E-Commerce Platforms To Choose?
E-wallets, credit cards, debit cards, and online banking will remain the preferred method of payment for online purchases in Singapore.
The future of the e-commerce industry globally and locally, looks promising. Brands must take advantage of these numbers by ramping up their digital marketing strategies.
The mobile-first approach accounts for a large chunk of the e-commerce growth globally. Hence, brands must embrace mobile-friendly e-commerce website designs in Singapore.
A digital marketing agency focusing on e-commerce SEO and website design and development can help you dominate the e-commerce industry.
OOm is a leading digital marketing agency in Singapore that provides e-commerce SEO and website design and development solutions. Contact OOm for more information.