How to improve your ecommerce business online in Singapore!
Singapore is an open nation near the equator and ideal for cross-border eCommerce.
According to Forrester Research, cross-border sales account for approximately 60% of all eCommerce sales in the country. Compared to Japan’s 18%, South Korea’s 25%, and Malaysia’s 40%, this percentage almost doubles.
Based on the World Bank’s GDP per capita rankings, Singapore has a per capita GDP of approximately $296.97 billion, ranking 29th globally. The GDP per capita stands at $54,053 in the present; however, projections forecast that it will rise to $59,870 by 2021.
The number of Singapore eCommerce users stands at about 3.12 million, with the number expected to increase to around 998,000 by 2021. In four years, this group of online shoppers will spend on average $1,234 on purchases from e-stores.
A variety of reports show that Singapore is a favourable eCommerce landscape for online retailers, so it’s a great place to do business.
Furthermore, these reports reveal that the country’s e-commerce market is booming fast. The country’s e-commerce market volume is projected to reach $5,489 billion by 2022, with an annual growth rate of 10.1% between 2018 and 2022.
To effectively manage all these sales, most major online marketplaces set up regional operations centres throughout the country to effectively manage their sales.
Whatever shipping method you choose, you will grow your business by targeting the Singapore market.
Popular online marketplaces
Online shopping in Singapore has become so popular that multiple online marketplaces have sprouted up. Below are some of the popular online marketplaces:
- Qoo10 Singapore: At present, this is the most popular online marketplace in Singapore. According to estimates, in February 2018, it received 11 million visits per month. Primarily known for distributing Korean brands in its stores, it has gradually grown its footprint in Asia.
- Lazada Singapore: It gets an estimated 9 million unique visitors per month, making it the second most popular online shopping mall in Singapore but one hottest in Southeast Asia. Founded in 2011, this general online store and marketplace let traders sell their products in the Philippines, Malaysia, Vietnam, Indonesia, and Thailand.
- Carousell Singapore: Online marketplace Carousell began as a mobile platform and is now available on a desktop. They estimate over 4.4 million visitors each month for Carousell and allow users to sell and chat directly with buyers. Additionally, the company has a presence in the Philippines, Australia, Indonesia, Malaysia, Taiwan, Hong Kong, and other Asian countries.
- eBay Singapore: Since February 2018, eBay is experiencing a surge in traffic of over 2,000,000, even as it also offers all available products. Initially, eBay in Singapore was mostly for consumer-to-consumer (C2C) sales. Currently, it provides B2C sales and special deals.
In addition to EZbuy and Zalora, other popular online marketplaces in Singapore are FairPrice On, RedMart, Reebonz, Courts, HonestBee, Alibaba, and HipVan.
What Singaporeans like to buy online
Based on statistics, revenues from all product categories are estimated to total about $3 billion, growing to $5 billion by 2021.
In Singapore, eCommerce, electronics and media are the leading product categories. Toys, hobbies, and DIY follow them.
In 2021, projections show that electronics and media will continue to dominate the market, followed by fashion.
Best time of year to sell
There are known shopping seasons in Singapore, just like in other countries. Singapore’s best time of year for selling includes:
- Great Singapore Sale (June-August)
- Chinese New Year
- Black Friday
Retailers must consider running deals and offers between 10.00 pm and 2.00 am on Wednesdays and Sundays since Singaporeans tend to shop more during these times.
There is a wide range of restricted or prohibited items in Singapore, and so is the case in other countries around the world as well.
Here are a few items that are prohibited/restricted:
- Arms and explosives
- Equipment used in telecommunications, such as scanners, voice changing kit, and military communication gear.
- Cigarette lighters
- Gummies that are not marketed as restorative and oral dental care.
- Worked, unworked, or powdered rhinoceros horn
- Animals that are endangered or have products made of them
Shipping to Singapore
You must understand the import laws before you start shipping to Singapore.
Importers are advised to review Singapore Customs’ Quick Guide for Importers. Find out if GST will be charged on your product categories.
Cross-border eCommerce is growing in all of Singapore’s online marketplaces, so there’s no doubt Singapore is open to it. English is widely spoken in Singapore; couriers are reliable, residents are tech-savvy. They are unafraid of doing cross-border commerce, so it is an excellent place for expanding your market and increasing your sales.
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