expected to
grow steadily in the upcoming years. Statista3 is expecting Singapore’s eCommerce market
value to hit US$ 3.9 billion in 2024. This is a 9.1% CAGR from 2020’s expected value of
US$ 2.7 billion.
The majority of Singaporeans are already connected to the internet. The number of internet users in Singapore has reached 4.9 million in 2019 out of a 5.8 million population. That’s an internet penetration rate of 84%. Of the 4.9 million users, 3.5 million of them - that’s 73% - have bought items online, which means a sizeable number of them are digitally savvy enough to navigate the realms of eCommerce.
Singaporeans also tend to spend more when shopping online, compared to its other
Southeast Asian neighbours. The average revenue per online shopper in Singapore stands
at US$675.715, which is higher than Malaysia and Indonesia’s combined.
Additionally, retail shops that have dotted Orchard Road are seeing fierce competition by not only new malls appearing in suburban Singapore, but also online stores. This signals changing times for traditional brick-and-mortar retail models.
To top it off, Singapore is home to popular eCommerce platforms that are dominating
the Southeast Asian region, such as Carousell and Shopee.
These factors definitely signal the rise of eCommerce in Singapore.
Some major factors driving Singapore’s surge in eCommerce activity include:
1. Better bargains and convenience for consumers
2. Popularity of cashless payment methods
3. Low barriers to entry
WHAT COULD HINDER SINGAPOREANS FROM BUYING ONLINE?
Even with eCommerce booming on the island, Singaporeans don’t always choose to buy online. Some reasons include:
1. Accessibility to nearby malls and grocery shops
2. Scepticism
This provides a snapshot of the Singapore eCommerce market, for more details please get in touch and thanks to JANIO for supplying us with much of this information.
