More than 50 per cent of Singapore’s internet users shop online – and the ratio of online purchases to total retail sales is the highest of any market in Southeast Asia.
A report Singapore B2C E-Commerce Market 2015 just listed by Research and Markets says the Singapore online shopping market is well advanced by regional standards, thanks largely to it having the most advanced infrastructure in Southeast Asia, well developed transport and payment systems, high internet penetration and an overall business environment considered one of the best in the world.
Due to these factors and the fact that consumers in Singapore are lured by convenience of online shopping, Singapore ranks highest in Southeast Asia in B2C eCommerce sales, despite the comparatively small population of only 5.5 million.
While more vastly populated neighbors only start to develop B2C eCommerce capabilities and thus are likely to see rapid growth rates in the next few years, Singapore is projected to lose its leading position in B2C eCommerce sales volume to other countries in Southeast Asia, such as Indonesia.
Cross-border online shopping and the evolution of omnichannel retail are the two strongest trends in the market, the report says.
Around two thirds of online shoppers in Singapore made cross-border purchases at least once per year, as of early 2015. Foreign merchants such as Amazon.com, eBay.com and Alibaba Group’s marketplaces are among the most visited eCommerce websites in Singapore. Omnichannel retail is also gaining importance, as consumers increasingly use mobile devices to shop, research products online and buy them instore or do it the other way around.
Other prominent players include Giosis, which operates online marketplace Qoo10, the most popular online shopping destination in Singapore, as of July 2015. Giosis raised a multi-million dollar investment in the summer of 2015 and so did online grocery retailer RedMart. Meanwhile, Singapore Post received investment from Alibaba Group and continued to expand its eCommerce capabilities.