Growth and diversity in Singapore’s e-commerce market
Despite Singapore being the smallest e-commerce market in Southeast Asia, it is the most affluent. The size of the average e-commerce basket in Singapore amounted to more than twice that of the average Southeast Asian e-commerce basket. The majority of e-commerce users in Singapore shopped online frequently, purchasing items online at least several times a month. E-commerce users in Singapore are also diversifying their online shopping experience, browsing through and using more online shopping platforms to meet their needs, and increasing the number of product categories purchased online. Their online shopping experience is also not just limited to domestic e-commerce sites – Singapore is fast becoming a cross-border e-commerce hub in Southeast Asia.During the COVID-19 pandemic, Singapore's e-commerce gross merchandise volume more than doubled as people turned to digital services in the face of lockdowns. Consumers also reported shopping online more during the pandemic, as retail outlets were closed or limited the number of customers allowed on their premises. In 2022, Singapore lifted all pandemic-related restrictions, opening up physical stores and malls to shoppers once again. However, digital commerce is now embedded in the way Singaporeans shop.
Emerging trends in e-commerce
The e-commerce landscape has long evolved from traditional e-commerce websites and marketplaces, incorporating trends in digital content consumption and utilizing popular forms of online media for commerce. Social media sites such as Instagram and TikTok have been especially conducive for e-commerce, with influencers and brands endorsing and selling products directly on their channels. Live streaming has significantly increased in popularity during the pandemic, as it allows sellers and customers to engage directly with each other.Smartphones have long replaced laptops and desktop computers as the primary device used for e-commerce. This has given rise to mobile commerce, or m-commerce, making purchasing products and services faster, easier, and more convenient. It has also made it possible for consumers to incorporate online shopping with the offline, brick-and-mortar experience.
