"We believe that Singapore sellers have high potential in cross-border e-commerce industry, and we're committed to fuelling their success by providing the knowledge and online export expertise they need to thrive on a global scale." - Anand Palit, Head of Amazon Global Selling, Southeast Asia
Amazon has revolutionized the global e-commerce landscape, setting the benchmark for online retail through its vast product range, advanced technology, and customer-centric innovations. As a dominant force in digital commerce, Amazon continually shapes industry trends and consumer expectations worldwide.
In 2024, Singapore's e-commerce landscape continues to evolve, pushing businesses to adopt innovative approaches and gain a deep understanding of local markets. Adapting to changing consumer behaviours and emerging trends has become essential. This article explores the key trends shaping the future of e-commerce in Singapore, with a focus on shifts in consumer behaviour that are redefining how businesses operate in this dynamic market.
Key E-Commerce Trends for Singapore
Cross-Border Selling
Cross-border selling is revolutionizing how Singaporean businesses reach global markets, enabling them to connect directly with international customers. By utilizing platforms like Amazon Global Selling, businesses can expand their market presence and drive significant revenue growth.
Amazon Global Selling is an e-commerce initiative that enables businesses of all sizes to expand globally. The 2024 Amazon Global Selling Singapore Trend Report highlights that Singaporean sellers saw double-digit sales growth on Amazon's international platforms in 2023. These sellers provide a broad array of products, ranging from large machinery to small car mesh barriers.
Revenue from B2C e-commerce exports is expected to more than double from $1.7 billion in 2022 to $3.9 billion by 2027 with investments in cross-border e-commerce. With 44% of Singaporean MSMEs targeting opportunities in the United States and 36% in the United Kingdom, cross-border e-commerce allows sellers to bypass traditional B2B models and engage directly with a global customer base.
Mobile Commerce Growth
Mobile commerce is rapidly gaining traction in Singapore, driven by high smartphone penetration and advanced network speeds. With a growing number of consumers shopping via mobile devices, optimizing mobile shopping experiences is crucial for capitalizing on this trend.
Mobile e-commerce revenue in Singapore is projected to rise from $4 billion in 2021 to approximately $7 billion by 2025. A survey by YouGov Surveys, involving a nationally representative sample of 1,100 residents, reveals that A striking 83% of online shoppers in Singapore use their mobile phones for purchases, making it the dominant choice for consumers.
Most smartphone users who shop online do so at least once a month. This indicates a growing reliance on mobile devices for online shopping, making mobile commerce a highly promising avenue for businesses like Amazon, which has long been a pioneer in this space.
Sustainability Trends
The global e-commerce landscape is rapidly evolving, with sustainability no longer a niche concern but a rising demand among consumers. In Singapore, younger consumers, particularly millennials and Gen Z, are leading this shift, with 51% of Gen Z willing to spend more on sustainable products. As awareness of environmental impact grows, consumers are also becoming increasingly vigilant about greenwashing, where companies falsely promote their products as eco-friendly.
To genuinely stand out, businesses must adopt authentic green practices, such as reducing packaging waste, using renewable materials, and embracing sustainable shipping options like DHL’s GoGreen Plus. By integrating practices that support the circular economy, such as recycling programs and green logistics, and avoiding greenwashing, businesses can align with consumer values, build trust, and enhance brand loyalty in the competitive e-commerce market.
Consumer Behaviour Shifts in 2025
Expanding International Purchases
Singaporean consumers are increasingly exploring international websites for their e-commerce needs, driven by the desire to find better deals, access unique products, and discover new offerings. A significant 56% of shoppers are motivated by the potential for more competitive prices abroad, while 45% seek items not available locally and 37% are interested in discovering new and exciting products.
According to a PayPal report, 78% of Singaporean e-commerce users engage in international purchases, underscoring the growing importance of global online shopping.
The Power of Social Media
Social media has become a crucial tool for brands aiming to engage Singaporean consumers, with 79% of the population actively using these platforms. Effective social media strategies can lead to a substantial increase in consumer spending, potentially boosting sales by 20 to 40%.
By leveraging social media to connect with their audience, brands can enhance visibility, build stronger consumer relationships, and drive significant growth in a competitive market.
Future Outlook
Globally, over 60% of sales on Amazon come from independent sellers, predominantly small and medium-sized enterprises. Singaporean sellers, leveraging Amazon's global tools and resources, achieved record-breaking sales during Prime Day 2023 by connecting with international customers through Amazon’s worldwide platforms.
As businesses seek to expand their reach and tap into the growing e-commerce market, leveraging established global online selling platforms can offer significant advantages. Embracing effective strategies and utilizing the extensive resources available from these platforms will be crucial for thriving in a competitive environment. To achieve sustained growth and success in Singapore’s dynamic market, businesses should focus on enhancing brand visibility, adopting innovative practices, and seizing global opportunities.
