Singapore Ecommerce Market to Reach $24.8b by 2028
It is driven by the city state's advanced tech infrastructure and consumer readiness.
The e-commerce market in Singapore is anticipated to reach $24.8b ($33.3b) by 2028, growing at an 8.9% compound annual growth rate (CAGR) between 2024 and 2028, according to GlobalData.
The report said that the market grew at a rapid 25.3% CAGR from 2020 to 2023, hitting $15.8b in 2023. This momentum is expected to continue, with e-commerce sales anticipated to increase by 11.7% in 2024.
Shivani Gupta, senior analyst at GlobalData, attributed this growth to Singapore’s advanced tech infrastructure, consumer readiness, and major online shopping events like Black Friday.
Credit and debit cards remain the dominant payment methods due to benefits like cashback and rewards, but alternative payments (Apple Pay, PayPal, Google Pay) are also on the rise. Buy now, pay later (BNPL) options, such as those from Hoolah and Atome, are also gaining traction.
In May 2023, Atome partnered with Amazon to provide a pay-in-three option for Singaporean customers.
Source: RetailAsia
Strategies to Tap into Singapore's E-commerce Growth
With Singapore's e-commerce market poised to reach $24.8 billion by 2028, businesses must position themselves strategically to capitalize on this expansion. Here are some key approaches:
Invest in Advanced Technology As Singapore’s e-commerce growth is heavily supported by its advanced tech infrastructure, businesses should prioritize adopting scalable platforms, integrating AI for personalized shopping experiences, and ensuring mobile-first optimization to meet consumer expectations.
Enhance Payment Options Offering diverse payment methods is crucial, as consumers increasingly use alternatives like Apple Pay, Google Pay, and BNPL services. Tailoring these options to align with preferences, such as Atome’s pay-in-three model, can enhance customer satisfaction and retention.
Leverage Key Shopping Events Major events like Black Friday and 11.11 continue to drive consumer spending. Retailers can boost visibility and conversions by crafting targeted campaigns, offering exclusive deals, and improving logistics to handle peak demand.
Focus on Customer Experience A seamless shopping experience—from intuitive navigation to fast delivery—remains a competitive differentiator. Retailers must also focus on sustainable packaging and ethical practices to attract environmentally conscious shoppers.
Singapore’s e-commerce potential presents a fertile ground for growth, provided businesses innovate and align with shifting consumer behaviors. By adapting to the trends, retailers can stay ahead in this dynamic landscape.
Source: Kemana Technology
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