E-commerce is making a global name for itself—and it isn’t surprising, with the way it is providing a faster and more convenient alternative to brick-and-mortar retail.
What shopping brands such as Amazon and eBay have pioneered on over more than 20 years ago has ballooned into a billion-dollar industry that’s patronised by consumers all over the world.
E-Commerce in Singapore: An Overview
In Singapore, e-commerce is regarded as a massive playground for businesses and entrepreneurs in Southeast Asia. Of its 5.83 million population, 4.92 million are active daily internet users, with a penetration rate of 84%. Approximately 90% of the number have searched online to shop for a product or service.
A study by DataReportal said that the average spend per e-commerce user in Singapore is at $1,000—compare that to the global average spend of $634. It means that Singaporeans spend almost twice as much as any other shoppers across the globe.
These figures also go to show that there is a massive base of potential customers businesses can reach out online. For the opportunist, this can only mean there’s a business to be made.
It’s January 20, 2020, and it’s not a coincidence that we’re talking about 2020 Vision—the future of the Singaporean e-commerce industry. In the article that follows, discover the key insights about the drastic growth of e-commerce in the city.
Key Insights About the Singapore E-Commerce Industry
- The e-commerce market in Singapore is predicted to grow by 48% by 2022. The global transition to mobile commerce and the adoption of frictionless payments such as eWallets is regarded for accelerating this push.
- With mobile commerce predicted to overtake desktop sales, it is predicted to account for more than half of all online sales in Singapore—representing a 13% compound annual growth rate (CAGR).
- Online retail is projected to account for 10.3% of total sales revenue by 2022—a significant increase from 5.3% in 2017. The market’s largest segment is electronics & media with an estimated $1.9 market volume in 2020.
E-Commerce is Here—Is Your Business Ready?
It is without a doubt that e-commerce is a treasure trove of opportunities for businesses, and if you’re like any other smart entrepreneurs, you wouldn’t miss the chance to capitalise on it.
Customer-Centric Shopping Experience
Singaporean consumers expect easy, seamless, and convenient shopping. If you wish to succeed in the e-commerce industry, your top priority should be providing them with a convenient and time-efficient experience.
These digital-savvy shoppers don’t merely shop for products. Their experience in shopping is just as important if you want to establish yourself as a brand that is relevant and meaningful to your target market.
Below are some of the key strategies on how you can provide a seamless shopping experience for your target market.
Having an online store allows you to provide services 24/7, which means your customers are not limited to regular business hours when making a purchase. But, that alone wouldn’t cut it. If anything, your website should be three things: user-friendly, has easy-to-use checkout, and equipped with multiple payment options.
In line with that, it also matters to provide easy and secure payment methods. As earlier said, the demand for frictionless payments will continue to soar, with the use of eWallets expected to account for 42% or two-thirds of the regional payment volume by 2022—up from the 27% in 2018.
One of the benefits of e-commerce is the ability to keep track of a consumer’s buying habits and behaviour. If you don’t use these insights to your marketing strategy, then you’re missing out on a wealth of opportunities to customise your offers according to their needs but more importantly to establish relationships and improve customer retention.
Third-Party Digital Marketer
No sugar-coating here. Establishing and optimising an e-commerce website is challenging, considering the hurdles such as limited resources, lack of experience, and the time that has to be dedicated for its success.
These concerns have made digital marketing agencies a valuable factor in the success of a business. As a trusted SEO company in Singapore, OOm has established a reputation for delivering e-commerce solutions by providing assistance in creating, marketing, and managing online shopping websites for our clients.
We take pride in helping SMEs manage and overcome the challenges in operating an e-commerce business so they can focus on their core business.
Interested? Learn more about our digital marketing services. Visit our website or get in touch with our digital marketing specialists.