Picture yourself navigating through the lively and colourful digital bazaars of Singapore, where tomorrow’s shopping experiences are waiting for you to simply tap and swipe.
By the year 2027, anticipate your go-to online shopping haunts to bedazzle you further, as ecommerce sales are projected to explode, reaching a staggering $14 billion.
All credit to the tech-forward citizens of Singapore, opting for the serene joy of shopping from anywhere over the hustle of packed malls, the digital vistas of the Lion City are thriving in ways we’ve never seen before.
This surge isn’t fleeting; it’s a shining opportunity for local ventures to broaden their reach and scoop up profits in this booming digital era. If you’re at the helm of a budding start-up or steering an established brand, the present moment couldn’t be riper for you to capitalize on the bubbling ecommerce wave.
The State of Ecommerce Trends in Singapore in 2024
Like a swift current, the ecommerce wave in Singapore continues to surge forward, mirroring global trends of rapid digital transformation.
Projected revenues in the Singaporean ecommerce sector were poised to hit $6.59 billion in 2023, with expectations to swell to a formidable $10.45 billion by 2027.
In this swiftly evolving landscape, keeping pace with the latest technological advancements and ecommerce dynamics in Singapore is not just advisable; it’s essential for securing your business’s edge in a fiercely competitive market.
Singapore Ecommerce Trends Market Overview
In Singapore, the ecommerce market’s competition has intensified in 2024 due to customers’ growing adoption of online sales channels. The market remains moderately competitive.
Rising internet penetration has significantly contributed to this growth. Additionally, brands like Lazada, Shopee, and others are expanding their presence by offering customer-centric services that further improve customers’ online shopping experience.
Singapore Ecommerce Market Leaders By Traffic
- Lazada
- Shopee
- EZbuy
- com Inc
- Sephora
Source: https://www.mordorintelligence.com/industry-reports/singapore-ecommerce-market
Singapore Ecommerce Trends Market Leaders By Traffic (2022 Data)
The Ecommerce Trends Market Analysis
Singapore’s ecommerce Market, valued at USD 5.21 billion in the previous year, anticipates a Compound Annual Growth Rate (CAGR) of 11.00%, aiming to hit USD 9.58 billion within the next five years.
In the realm of ecommerce, live streaming emerges as a dynamic method to promote and sell goods and services directly over the internet. Platforms such as Shopee and Lazada have harnessed the power of live streaming to transcend barriers in movement and group gatherings, enabling marketers and businesses to connect effectively with their audience.
Contrary to the exorbitant costs tied to traditional TV shopping, live streaming delivers a cost-effective alternative, allowing retailers to captivate potential customers without the hefty investment in TV ads or airtime.
- Most citizens in Singapore access high-speed broadband connections, earning the country one of the world’s highest internet penetration rates as of 2024. This widespread internet connectivity plays a critical role in driving the adoption of ecommerce among various demographics.
- Singapore’s strategic geographic location and role as a regional logistics centre have spurred the growth of cross-border ecommerce. Singaporeans actively engage in cross-border internet shopping, using global platforms and marketplaces to purchase low-cost goods.
- Many local online retailers have adapted to and are primed for growth through this channel in 2024. Prominent Singaporean ecommerce firms now prioritize a mobile-first approach. Originally a mobile-only platform, Carousell, the eminent Singaporean ecommerce site, has expanded to support desktop users as well.
- Ecommerce enables users to swiftly sell products by snapping photos with their smartphones and directly engaging with potential buyers through instant messaging.
- The inherent nature of using cards as payment methods puts users at a heightened risk of fraud, as malicious actors only need a few pieces of information from the customer’s card—typically the card number, CVV code, and expiry date—to conduct an online transaction.
- Skilled fraudsters may convince users to divulge their one-time password (OTP), allowing them to bypass the two-step authentication processes that most banks have in place for online transactions.
- The post-COVID-19 era fundamentally transformed the Singapore ecommerce market. The pandemic swiftly changed consumer behaviours, boosted digital usage, and intensified competition. An omnichannel strategy, social commerce, and improved logistics and delivery services are shaping the expanding ecommerce landscape.
- Government support will play a crucial role in the future development of Singapore’s ecommerce sector.
Internet Plays a Noteworthy Role in Ecommerce Trends Market Growth
- According to Ookla’s data, at the start of 2023, internet users in Singapore experienced average connection speeds of 63.41 Mbps for mobile internet via cellular networks and 184.65 Mbps for fixed internet connections. Ookla’s data also shows that Singapore’s median mobile internet connection speed increased by 8.38 Mbps, or 15.2%, in the year leading up to the start of 2023.
- Several ASEAN unicorns power Singapore’s ecommerce industry, choosing to establish their regional headquarters there, capitalizing on its strategic location, advanced digital economy, and highly developed internet market. In 2024, Singapore leads with the highest number of unicorns, boasting 15. Notable examples include Grab, Carousell, Lazada, Ninja Van, and Shopee, each valued at over USD 1 billion.
- In 2024, Singapore must transform its digital infrastructure to better recover from the pandemic and achieve lasting resilience. Recent government actions reflect this commitment by boosting Singapore’s resilience post-pandemic.
These efforts focus on propelling digital transformation and innovation, broadening the use of technology-enabled solutions, and enhancing research and development. The Singapore Green Plan 2030 aims to utilize technology-driven solutions to create a green, liveable, and sustainable home for future generations of Singaporeans, highlighting the importance of sustainability.
- Telecom operators continue to expand their 5G offerings across several countries. Early in the previous year, Philippines-based Globe Telecom declared its plans to hasten the rollout of 5G Roaming in countries throughout the Middle East and Asia.
- Globe is gearing up to provide its 5G services to Singtel’s visiting customers from Singapore. These expansions in 5G connectivity are set to propel the market forward.
- The region now experiences significant growth in internet usage, driven by rising broadband speeds, an uptick in online payments, and advancements in 5G technology. Utilizing higher spectrum waves (mmWaves), 5G technology boosts capacity in densely populated regions, ensures greater scalability, enhances user mobility for services in moving vehicles, and provides improved connectivity across all areas.
The widespread implementation of 5G enhanced mobile broadband brings the advantages of 5G to a broad audience, delivering high-quality internet service access even in areas where conditions were previously challenging or prohibitive.
Food and Groceries is the Most Popular Product Category in Ecommerce Trends
A survey on ecommerce conducted by Rakuten Insight reveals that 52% of Singaporean respondents bought food and groceries online in the past three months. Following closely, clothing, apparel, and fashion accessories rank as the second-most purchased items online, with 50% of respondents making these purchases.
Statista reports that the Grocery Delivery segment’s revenue hit US$845.30 million in 2023. The COVID-19 pandemic skyrocketed demand for online grocery delivery, making same-day and scheduled delivery services highly popular.
Most People Prefer Cashless Payments
The convenience of online shopping in Singapore outshines in-person purchases significantly. Although physical stores offer cashless payment options like digital wallets, credit cards, or debit cards, buyers increasingly choose online shopping for its benefit of direct delivery to their chosen location.
Online payments eliminate the need for cash, streamlining the shopping process. Furthermore, in the context of the ongoing pandemic as of 2024, opting for contactless payment reduces health risks, making it a safer choice for consumers.
Digital wallets have become the preferred payment method, overtaking credit cards in popularity.
The Straits Times reports that the ecommerce boom has greatly contributed to this shift, with forecasts showing 27% of Singapore’s market using digital wallets by 2024. This surge in contactless payment options is expected to fuel further growth in Singapore’s ecommerce industry.
Increase Of Mobile Online Shoppers
Given their lightweight and portability compared to laptops, mobile devices predictably saw a rise in internet users, jumping from 5.39 million in 2022 to an anticipated 5.68 million by 2025. This surge directly fuels the mobile ecommerce revenue in Singapore, which, according to Statista’s research, will reach over 6 billion USD by the end of the year, 2024.
This growth means more shoppers now prefer purchasing goods through mobile phones and devices. To cater to this shift, optimizing your ecommerce website for responsiveness remains crucial.
10 Ecommerce Trends That Will Influence Online Shopping in Singapore in 2024
Artificial Intelligence to Boost Efficiency
Artificial intelligence will continue to boost efficiency in 2024, undeniably transforming the ecommerce landscape. Commerce teams will leverage the technology to further automate and personalize product recommendations, chatbot interactions, and beyond.
The advent of generative and predictive AI, trained on large language models (LLM), will open new avenues for enhancing efficiency and personalization at scale. Far from being just an ecommerce trend, AI will significantly enhance team productivity and customer satisfaction.
Businesses to Prioritize Data Management and Harmonization
In 2024, data will continue to be your most valuable business asset, essential for understanding customers, making informed decisions, and measuring success. Ensuring your data is organized will be crucial.
The main challenge will be managing the vast amounts of data businesses accumulate without always knowing how to handle it efficiently.
Data management and harmonization will address this by integrating data from various sources, such as your customer relationship management (CRM) and order management systems.
This integration will offer a comprehensive view of all your business operations.
With harmonized data, businesses will be able to quickly gain insights and act on them to improve customer satisfaction and boost revenue. Additionally, harmonized data will enable the implementation of AI (including generative AI), automation, and machine learning, streamlining marketing, customer service, and sales processes.
Chatbot Conversation Becoming More Human
Conversational commerce is becoming increasingly lifelike. Gone are the days of stiff and unnatural chatbot interactions. Advances in generative AI and Large Language Models (LLMs) are revolutionizing how we communicate with chatbots, making conversations feel more authentic and tailored.
These enhancements allow for more human-like interactions in service inquiries and product discussions through messaging apps and websites, mirroring face-to-face customer service quality online.
The Advancement of Headless Commerce
The momentum behind headless commerce is steadily increasing. Its modular approach allows ecommerce teams to quickly adapt and roll out new interfaces without being bottlenecked by back-end system modifications. Through the use of APIs, experienced managers, and intuitive tools, teams can readily update digital storefronts.
Feedback from business leaders and ecommerce teams utilizing headless commerce underscores its effectiveness:
- 76% appreciate its enhanced flexibility and customization capabilities.
- 72% find it boosts agility, enabling quicker storefront modifications.
- 66% note better integration across systems.
Resale Boom Among Brands
The consumer attitude towards second-hand goods has remarkably transformed in recent years. Items previously associated with a negative stigma have become symbols of status. Astonishingly, 52% of consumers admitted to buying second-hand items in the past year, with predictions stating the resale market could soar to $70 billion by 2027. This trend signifies a monumental opportunity for businesses.
With the rise of the circular economy, many brands are launching resale outlets and motivating customers to recycle everything from worn-out denim to high-end purses and kitchen gadgets. To successfully carve out a niche in this expanding market, businesses must adopt a strategic approach that includes advanced inventory and order management systems offering instant visibility and efficient reverse logistics.
Social Undergoing Rapid Transformation
Social commerce is undergoing rapid transformation, with nearly 5 billion people actively engaging on platforms such as Instagram, Facebook, Snapchat, and TikTok each month. This year, over two-thirds (67%) of shoppers worldwide have completed purchases via social media, highlighting the powerful role these platforms play in the consumer purchasing process.
The significance of social commerce lies in its ability to directly link businesses with a vast, global audience, thereby enhancing product visibility, penetrating new markets, and fostering genuine relationships with consumers. However, merely existing on social platforms isn’t sufficient. Businesses must actively engage and craft authentic, compelling experiences for their audience.
Dynamic Video content is Elevating Sales
Dynamic video content is elevating sales. In an era where consumers have grown to expect the engaging and dynamic video content, they see on social media platforms, it’s become crucial for your brand’s ecommerce presence to deliver similarly captivating video experiences.
This form of content allows customers to gain a more comprehensive understanding of your products, showcasing usage scenarios and various perspectives.
Beyond merely serving as an advertising tool or aiding in product discovery, video content has proven highly effective throughout all phases of the customer journey, including pre-purchase consultations, detailed product descriptions, and even post-purchase communications.
An overwhelming 89% of consumers have reported that viewing a video has persuaded them to proceed with a purchase.
Source: Oberlo
The Trend Toward Personalized Loyalty Programs
Attracting new customers is essential, yet retaining current ones is equally vital for sustaining business growth.
This emphasizes the necessity for strategies that not only boost loyalty but also deepen brand affection. Increasingly, consumers are gravitating towards loyalty programs that offer more than just transactions; they seek impactful rewards and experiences tailored to their preferences.
The essence of an effective loyalty program lies in personalization. Today’s customers expect more than a generic, cumbersome system for point redemption.
They desire simple, exclusive proposals, thoughtfully curated experiences, and rewards that resonate with their interests. Statistics reveal that 60% of consumers prefer receiving discounts as an incentive for loyalty program participation, while approximately one-third value exclusive or early access to products.
Source: Statista
The Impact of Influencer Endorsements
Influencer marketing has been a prominent trend in Singapore for years now, maintaining its critical role in shaping market dynamics. Its significance has only intensified, particularly with the rising popularity of brief video content across platforms such as Facebook, Instagram, and TikTok.
Whereas previously, influencers boasting millions of followers were deemed ideal for collaborations, the focus in 2024 has shifted towards leveraging the influence of micro and nano influencers.
Micro-influencers typically have a follower count ranging from 1,000 to 1,000,000, and nano-influencers have between 100 to 10,000 followers or subscribers, offering a more targeted approach to marketing initiatives.
The State of Influencer Marketing 2022 report seems to suggest that micro and nano influencers often achieve steady if not superior, conversion rates compared to their more prominent counterparts.
This effectiveness is attributed to their close, personal connections with a tightly-knit community, granting them a stronger influence and persuasive capability.
Source: Influencer Marketing Hub
New Payment Options in Ecommerce Trends
Over the past five years, Singapore’s ecommerce scene has largely moved away from cash, favouring options like credit/debit cards, online banking, and e-wallets including PayPal. Major online marketplaces often have their own payment methods, such as Shopee Pay.
Shopee’s SPayLater Example
Shopee offers a Buy-Now-Pay-Later option through SPayLater, allowing customers to purchase items now and pay for them later.
Emerging Payment Methods in 2024
Looking ahead to 2024, we’ll see the introduction of new ways to pay. Apart from the Buy-Now-Pay-Later model, consumers can expect options like splitting their purchases into several smaller, manageable instalments over time. Additionally, cryptocurrency is starting to become a more common way to pay in online shopping.
Livestream Shopping
Video marketing transformed the landscape of market trends in Singapore, and the year 2023 is expected to elevate this transformation with the advent of livestream shopping. This innovative approach involves real-time video broadcasts by brands directly to their audience on popular social media platforms such as Facebook, Instagram, and TikTok.
Livestream shopping not only allows brands to showcase their products and field questions from consumers in real-time but also enables immediate sales closures. Contrary to expectations, livestream shopping has found a surprisingly enthusiastic audience among older generations.
A Klarna report indicates that 28% of Baby Boomers and 27% of Generation X individuals have engaged in livestream shopping events, surpassing the engagement rates of Millennials and Generation Z, which stand at 23% and 20%, respectively.
Source: Klarna
The Impact of User-Generated Content on Ecommerce Sales
User-generated content (UGC) is revolutionizing the way brands connect with their audiences, significantly enhancing credibility and adding a layer of authenticity that translates to increased sales and customer loyalty. Studies reveal that engagement with UGC leads to an impressive conversion uplift of over 100%.
Potential buyers place a high value on seeing genuine feedback and reviews before making a purchase decision. UGC offers an invaluable glimpse into the real-life applications and satisfaction levels of existing customers.
It moves beyond standard product descriptions and professional photos, demonstrating practical uses and versatility, such as different ways to wear an item of clothing or its adaptability to various body types. User-generated videos further enrich this landscape, showcasing in-depth functionalities and benefits of complex items, ranging from tech gadgets to vehicles.
Subscriptions Continue to Reshape Industry Landscapes
The subscription business model remains a powerful force across various sectors, from digital entertainment to food, apparel, and pet supplies. By 2024, subscriptions have propelled over $40 billion in revenue, reflecting a sustained growth trend over the past five years.
This model benefits both consumers and businesses alike by offering customers flexibility and choice while providing companies with a steady income flow.
For instance, KIND Snacks has expanded its business strategy to include a subscription service alongside its traditional B2B sales.
This approach not only offers exclusive deals and flavours directly to consumers but also fosters deeper brand loyalty. Additionally, the subscription model enables KIND to gather valuable first-party data, aiding in product development and trend identification.
It’s a Wrap
In wrapping up, these insights only scratch the surface of the evolving shopping paradigms poised to redefine ecommerce and bolster your SEO efforts in Singapore. Looking to elevate your online storefront with cutting-edge SEO strategies? Consider partnering with a seasoned ecommerce SEO agency for tailor-made solutions.
For a deep dive into Singapore’s ecommerce landscape, including trends, statistics, and actionable tips, reach out to MediaOne on the phone at (65) 6965 7008, or drop us a note through our website or email address contact@mediaone.co.
