E-commerce market set to expand by 11.2% until 2021
The market revenue per user could reach $1,022 this year.
There is no stopping the boom in the e-commerce industry in Singapore as a study by online saving platform Flipit revealed that 3 in 5 Singaporeans are online shoppers.
The study said the e-commerce market is set to expand by 11.2% until 2021, making the city-state on par with Canada and Australia in terms of e-commerce penetration.
One of the reasons behind this is the huge number of people using the internet. Around 82% of Singapore's 5.74 million population access the internet on a daily basis. The lion city also has the highest internet speed in Southeast Asia region at around 18.2 mbps on average.
A proof of the current trend is the 60% of consumers in Singapore who get information on products on the internet first. And when people discover a product via advertising, 35% do so online, followed by 16% in magazines and 15% on TV.
Amongst the top 30 most visited website in Singapore are also online shopping sites like Qoo10, Amazon, and Lazada.
In an exclusive interview with Singapore Business Review, Flipit Singapore country manager Tania Miranda said this trend presents an opportunity for retailers both online and on brick-and-mortar shops.
"With the rise of the online shopping, retailers need to be prepared on all levels - from having a well designed and secure website to high quality customer care. They need to think about stock management and logistics, especially during large sale events or festivals," Miranda noted, adding that this could be useful during big shopping events like 11.11, Black Friday, and the Great Singapore Sale.
Miranda added that the online space gives retailers an avenue to build brand awareness and reach wider audience.
"The internet is actually closing the gap between businesses: smaller companies are now able to catch up with their bigger competitors by innovative means. Retailers can take advantage of current events and turn them into shopping opportunities," she said.
However, challenges still remain and the security of online transactions is one.
"There are still people who are reluctant to make payments online because they are concerned about security. Sellers need to make a variety of payment methods available, to attend to every type of customer," Miranda argued.