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Ecommerce fulfillment Singapore: Challenges, solutions, models and effective strategies

Posted on January 9, 2023 by hello@scuti

When launching your ecommerce business in Singapore, one of the top concern you should focus on is ecommerce fulfillment. In this article, we will discuss challenges, solutions, effective models of Singapore fulfillment and state strategies to tackle the problems.

Definition of ecommerce fulfillment

The aspect of your online store where your products are delivered to clients is called ecommerce fulfillment. Your ecommerce fulfillment procedures consist of a number of steps, take place after a customer puts an order. In other words, the fulfillment model includes picking and packing orders, shipping, and delivering to customers.

Challenges and solutions for Singapore ecommerce fulfillment

Generally, Singapore’s ecommerce business has seen retail shopping become more and more competitive. We provides vital statistics that illustrate Singaporeans’ digital behaviors and states strategies to tackle the challenges as below.

1. The issues of last-mile delivery

The final and most important link in the ecommerce process chain is the complete process of the parcel leaving the courier service and arriving at the customer’s doorstep. According to a McKinsey & Company analysis, the last-mile delivery charges make up about 50% of the overall shipping costs.

The following are the main difficulties Singapore has currently encountered with the last-mile delivery:

- – High prices for delivery.

- – Deliveries of packages were either missing or delayed.

- – Ineffective method to deal with customers’ special request. There was no method for customers to ask questions. Ordering and waiting were the only choices.

- – Incomplete transparency and poor packaging

- – The size of the delivery worker fleet did not correspond to the capacity of the orders, which fluctuated.

- For the convenience of delivery routes and management, smart technologies like artificial intelligence and data analytics were not integrated.

Solution

Planned delivery route

To assist in optimizing their delivery routes, businesses have turned to last mile software.

By enabling businesses to respond to any last-minute changes in the plan, the software helps them prevent delivery delays and so increases productivity.

An efficient transport management system aids in optimizing the use of the fleets that are available in comparison to the orders that must be delivered, which reduces total expenses.

2. Exorbitant real estate prices

Singapore is renowned for having exorbitant real estate costs. It is exceedingly challenging for investors or even well-known Singaporeans to set up a sizable multipurpose warehouse. This business model is probably not going to benefit from the time and rate of ROI (return on investment).

The following drawbacks of centralizing warehouses in a location like Singapore are also presented.

High Outgoing Costs

Singapore offers remote access to shopping centers and stores. A product must travel more to reach shops in a centrally located setting. As a result, shipping and other outgoing expenses go up.

High Shipping Time

The longer it takes for a product to go from a central warehouse to a store and then to the client, the more expensive and time-consuming the entire process is.

As a result, the geography and consumer market of Singapore are best served by a decentralized warehouse planning model.

Solution

Distribute multiple small warehouses

Setting up multiple small warehouses across different areas of Singapore is a probable solution

3. Ineffective inventory and management in ecommerce fulfillment

Inventory distortion is a significant issue in the global ecommerce business as well as in Singapore. Only roughly 63% of accuracy is even accounted for by retail inventories. One example of the poor inventory and management is that Singapore experienced a terrible egg scarcity when the epidemic hit in 2020. The need for necessities surged suddenly. In order to fulfill the increased demand, shops had to place more and more egg orders. It was stated that once the demand was met, the distributors had to discard 250,000 eggs in June of the same year.

– The following are some of the main causes of poor management:

- – The centers frequently encountered stock-out or overstock problems

- – The registered data on manually updated sheets did not match the actual inventory.

- – The management and warehouse workers had trouble adding and removing items from the inventory.

- – The processes and return-orders associated with it were not adequately integrated.

Solution

Smart inventory management

Inventory management helps prevent business from selling out-of-stock items and alert when business need to place an order or produce more of goods. If you build your ecommerce website on Shopify, you may set up inventory tracking, monitor your inventory, and modify your inventory levels in Shopify’s Inventory section. For products and variants whose inventory is being tracked by Shopify, you may also check the history of inventory modifications.

Learn more about Singpost delivery time and shipping here.

4. Order management across omnichannel

Only when clients had numerous touchpoints to place their orders did order management become difficult. As of right now, a warehouse or fulfillment facility receives orders from physical stores, social media sites, e-commerce platforms, or other online marketplaces.

The following are the main order management difficulties the Singaporean ecommerce market confronts:

- It was challenging to prioritize and keep track of the orders coming from various sources.

- It was a laborious chore for workers at various same- and different-centers to manage multiple spread-sheets for order records. It was prone to numerous entering and synchronizing mistakes.

- The center’s procedures, starting with order receipt, picking and packing, batch sorting, and order delivery, could not be tracked using an aligned system.

Solution

Automating the process with an Automated Order Management Software is the best way to ensure that an omnichannel order management runs smoothly. With Shopify Plus, business can integrate point-of-sale and ecommerce systems, which helps achieve business’ ultimate goal of being an omnichannel retailer and treating every consumer the same, regardless of where they purchase.

Learn more about omnichannel and multichannel here.

Ecommerce fulfillment models in Singapore and effective strategies

1. Direct order fulfillment

Direct fulfillment refers to delivering an order to the customer directly. It occurs when your ecommerce business completes D2C (direct to consumer) sales and sends orders to clients.

Benefits of direct order fulfillment

- – Lower cost

- – Customization of packaging and branding

Drawbacks of direct order fulfillment

- – Hard to scale

- – Waste of time

- – Human errors can occur

This type of ecommerce fulfillment is best suitable for small online store who has lower than 100 orders per month.

2. Third party logistic

An associate or service known as a 3PL (Third-Party Logistics) supports online retailers in managing their supply chain. The management of warehouses and inventories, order fulfillment, shipping arrangements, retail distribution, exchanges, and returns are typical 3PL services.

Benefits of 3PL

- – Simple integration and time-saving technology

- – Easy to scale and quick to install

- – Viewing sales data to gain useful insights

- – Access a vast supplier network and more affordable delivery prices

Drawbacks of 3PL

- – Loss of control

- – Loss of customization

- – Fixed storage fee

Startups having a shortage of resources and are seeking to grow or concentrate their efforts on product development and marketing should choose this type of ecommerce fulfillment.

3. Dropshipping

Dropshipping is an order fulfillment strategy where a company doesn’t hold inventory of the goods it sells. Instead, to fulfill orders, the seller buys inventory as required from a third party – typically a wholesaler or manufacturer.

Benefits of dropshipping

- – Easy to start

- – Low overhead costs

- – Easy to scale up the business

Drawback of dropshipping

- – Limited margin of profit

- – Customer service not under your control

- – No volume discounts and quicker lead times

- – Hard for customization and branding

This type of ecommerce fulfillment is a great choice for firms that are just getting started, serving as an additional side business with no full-time obligations or risk.

Learn more about dropshipping in Singapore here.

Conclusion

Reasearching about ecommerce fulfillment in Singapore and choosing the best model for your business is one of a must strategy you should have to help your business grow. If you are considering building an ecommerce website on Shopify, this platform obviously offer the best way to tackle challenges related to ecommerce fulfillment.

Want to hire Singapore’s web developers to build your ecommerce website, click here to learn more.

The detailed guide to hire an ecommerce agency in Singapore effectively

Posted on January 9, 2023 by hello@scuti

Hiring an ecommerce agency in Singapore is a big decision for every business. Due to its complex process and overwhelmed number of agencies, you might find it daunting in finding the right company to help your business. Therefore, in this article, we will provide you a detailed guide to effectively hire an ecommerce agency in Singapore.

Why should you work with an ecommerce agency in Singapore?

You’ll save a lot of time to see the results

Obviously, compared to hiring new personnel, using an agency is much faster and more effective. First of all, agencies are adept at getting things done right away, whereas you need to teach a new employee. Second, it’s because an agency has a strategic team prepared to assist you in expanding your company. Plus, agencies have experience and expertise knowledge, therefore they can even suggest different methods and applications to enhance your strategy. As a result, you’ll save a bunch of time to observe the outcome of your work.

Let’s take the scenario when your ecommerce website encounters a challenging technical problem. Your staff members most likely lack the expertise necessary to handle complex technical issues. In this case, employing an ecommerce firm with web developers who can identify the issue and address the problem in less than a day’s work is an ideal solution.

Another reason could be an ecommerce website needs a lot of integration and security to function well and help you sell your products. Outsourcing an agency will help you to save your time and work on this technical work.

You gain access to fresh viewpoints

Hiring an agency can provide your business a new outlook if you are out of ideas. This is because they have diverse experience in dealing with various cases and working with such a wide range of clients.

It can be challenging to recognize chances outside of what you’ve already been doing when you’re running your own firm. Employing an agency provides you with a crucial outside perspective that might expose you to novel strategies and ideas.

You can cut unnecessary costs

Admittedly, outsourcing is not cheap. However, hiring an agency to help your ecommerce business is more affordable than hiring a team or an individual on a full-time basis. You can hire the necessary skills and experience through an agency without incurring the expense or time commitment of a full-time employee.

Additionally, you would need to employ more than one individual in order to establish a staff that is totally specialized to help you solve your company’s problems. And the sum can swiftly increase. Not to mention benefits, vacation pay, corporate bonuses, monthly payments for your new team, and other expenses. In addition, when outsourcing, you will be supported with 360 degree assistance. Therefore, it is definitely reasonable to hire an out-contracted team to help with your business.

When should you hire an ecommerce agency in Singapore?

You’re lacking necessary in-house talents

You may find your company lacks employees to design your own website, set up an online store, produce content for social media, and other things. Here is where an ecommerce agency will step in. When your business has grown sufficiently to generate regular cash, investing in an ecommerce agency can increase your sales and, over time, put more money in your pocket.

You don’t have much time left to tackle things on your own

Running an online business requires a lot of time.You and your team have a ton of additional responsibilities as the business owner, from order fulfillment and updating product listings to accounting and customer service. In this case, hiring a Singapore ecommerce agency to help you with work should be an approachable solution.

You notice a drop in sales

You may want to seek outside assistance if you’ve been successfully expanding your company on your own and seeing increasing revenues, but all of a sudden you’re beginning to see a drop or stagnation.

For a problem like this, you might want to work with a full-service e-commerce agency that can audit your website to check for user experience problems or give consultants in sales tactics.

What are essential steps to choose the right Singapore ecommerce agency?

Determine your goals

Specify your goals and your needs. It’s necessary to specify your budget, schedule, and intended outcomes. The better, the more specific.

Next, you can seek information about ecommerce agencies who can help you. Do research about them, do their experience and knowledge align with your business’s strategy.

With this knowledge, you may eliminate any organizations that fall outside of your budget, have a waiting list, or can’t demonstrate results that are comparable to what you want.

Think about your budget

The majority of your business decisions are dictated by your budget. Your account is crucial in determining your suppliers or, in this case, the agency you’ll be working with.

Search for and contact an ecommerce agency that can either provide service within your budget or whose packages you can afford. Look around and find the best team that can give you the services you require within your price range.

Evaluate an ecommerce agency in Singapore

It is expected of agencies to have websites and social media profiles that showcase their prior work. Review and examine the agency’s portfolio to see if any of the items fit within your sector or industry.

Your compatibility with their methodology and workflow can also be seen in their portfolio. Whether or not their team is flexible is something else to consider. This is a fantastic quality, especially if building your ecommerce website requires a lot of input.

Work with an agency that has experience working with many brands in various industries without hesitation. This implies that they may collaborate with you to identify the best approach to meeting your website and digital marketing requirements.

Also, you need to assess cultural and personal fit: Are they carefully listening to your needs? Does their way of working fit with yours? Have they ever worked with cases like yours?

Contact with the ecommerce agency and review their proposals

You should contact your chosen agency and arrange a meeting with them. During the meeting, try to find out whether their experience, knowledge and work process fit with your needs. When they send out the proposals, you should check it carefully to make sure it matches with your needs.

Keep in mind that an agency is there to help and support you at every turn. Find the best agency for your company, then ask them to assist you in achieving your online objectives.

If you are finding an ecommerce agency in Singapore to help grow your business, consider Scuti.

About Scuti

Established in 2015, Scuti with 7+ years has developed into a dynamic, flexible, and quick-moving business that specializes in delivering web development for the ecommerce industry. We’ve created a global presence and work with clients in many different industry sectors. We place a strong emphasis on scope discovery to accurately identify client goals and objectives. We assist our clients in reducing operational complexity and putting innovative ecommerce solutions for businesses of all sizes, from startups, SMEs to large enterprises. Our main areas of specialty include Shopify, Adobe Commerce (also known as Magento), and ecommerce tools.

Top best ecommerce platforms in Singapore 2023 and how to choose the right one for your business

Posted on January 5, 2023 by hello@scuti

Undoubtedly, ecommerce is thriving in Singapore, which opens numerous opportunities for online business. However, opting for a right online platform for your business to sell products in Singapore would be a daunting task. Bear that in mind, in this article, we would discuss the top best ecommerce platforms in Singapore 2023 and guide you to select the right one to grow your business.

Definition of ecommerce platforms

In general, an ecommerce platform is defined as a software program that enables businesses and consumers to conduct trade. In specific, some tasks such as web hosting, inventory control, payment processing, marketing, order fulfillment, etc, can all be handled by e-commerce platforms.

A true ecommerce platform is much more than what the majority of people believe it to be – they believe that it is simply a tool that allows them to display their products and take payments online. You can manage everything from inventory to marketing on this platform. Therefore, considering choosing the best ecommerce platform to grow your business in Singapore should play an important role in your strategic plan.

Top best platforms in Singapore 2023

The top 5 platforms for ecommerce businesses in Singapore are shown below.

- – Open-source ecommerce

- – SaaS

- – Website builders with ecommerce-building elements

- – Marketplaces (Commission-based)

– Free marketplaces

1. Open-source ecommerce

Open-source ecommerce is ecommerce softwares that enables users complete access to its original source code, enabling them to alter and configure the ecommerce platform to match their demands, and giving them control over the display and functionality of online business.

Woocommerce and Prestashop are two popular examples of open-source ecommerce platforms in Singapore.

Woocommerce is a free e-commerce solution made specifically for use with WordPress websites. 29% of all online stores operate with its help, making it a preferred choice with ecommerce business.

A standing feature of this platform is offering your consumers a wide range of payment choices. It accepts a variety of handy payment methods, including bank transfers, major credit cards, PayPal, Amazon Pay, and Apple Pay. Furthermore, ecommerce businesses may take advantage of convenient and effective management thanks to Woocommerce’s automatic tax computations, live shipping rates, and mobile app for iOS/Android.

Although web development knowledge is not necessary for the integration of WooCommerce with the WordPress content management system, you should be proficient in the PHP programming language for adaptations.

Prestashop is an open-source e-commerce business offering more than 600 features, ranging from shipping and internet marketing to store administration. PrestaShop is simple to use and available for free download, but installation requires a maintenance cost and hosting. To completely personalize it, you will also require coding experience; otherwise, you can employ a Singaporean web developer

2. SaaS ecommerce

SaaS (software as a service) is a type of cloud-based software delivery that enables online access to subscription-licensed applications. It implies that you don’t need to install any software on your own website. To utilize their platform to sell your products, you must pay a monthly charge. This amount of charge covers use of the service, hosting, technical support, etc.

Shopify and BigCommerce are two examples of SaaS ecommerce platforms in Singapore.

Shopify is a SaaS ecommerce platform that provides a great, user-friendly platform for online businesses, especially suitable for starters who has little to no knowledge of how ecommerce field operates. It’s the biggest platform to build an ecommerce website in the world, which had more than 13,320 live Shopify stores in Singapore as at March 2022.

If you use Shopify, you will greatly profit from strong features that help with finding customers, sales growth, and work management. Additionally, you will be utilizing a platform that is all-inclusive and provides all the e-commerce and point-of-sale functionality. It’s a Saas, so you need to pay a fee monthly to use it.

Learn more about detail review of Shopify in Singapore here.

BigCommerce is a commerce solution provider, which enables entrepreneurs to set up an online store, customize it as desired, and then sell an infinite amount of digital, tangible, or even service-based goods. You can create and maintain your store from anywhere if you have access to a web browser and the Internet. Similar to Shopify, you need to pay monthly to use it.

3. Website builders with ecommerce-building elements

A platform called a website builder enables you to easily and rapidly design your own website with little to no coding required. As a result of how simple it is to create a website on your own, many of these are sometimes referred to as “drag and drop” builders.

Popular website builders like Wix and Squarespace have recently included ecommerce features. These website builders can now be used to sell goods online.

The restricted customization of website builders is their main drawback. You might not be able to monetize your website or add custom features without using add-ons from third parties. Additionally, compared to the first two platforms, these website builders are renowned for being less SEO friendly.

Wix is a web builder platform, where you can totally design your own website from scratch. And if your business expands, you can upgrade your e-commerce platform with new features.

With Squarespace, you can create your own website easily. With user-friendly tools, this platform helps you to build your ecommerce website with only 4 steps. All you have to do is create a website that reflects your individual taste and vision for the site utilizing industry-leading themes, color schemes, and designer fonts.

4. Online marketplaces (Commission-based)

You can sell your products on this ecommerce platform, but you need to pay a commission fee for each sale. On this ecommerce platform, you can establish a “store front” instead of building a full website. The plus of these platforms is that they are easy for new users to utilize because there are no monthly fees and there is no cost to sign up.

However, it would be a challenge to promote your brand as products of your competitors are typically displayed as similar products on your product sites.

Shopee, Lazada, Qoo10, and Amazon are popular ecommerce platforms in Singapore for you to sell your products.

Learn more about top online selling platforms in Singapore 2023 here.

5. Free marketplaces

If you want to start selling your products online, these platforms should be on your top list. However, there are also drawbacks to consider. Free marketplaces are highly competitive, since everyone can start selling products for free. Moreover, it is also challenging to reach your target customers, and manage logistics. Carousell and Facebook are two popular free marketplace platforms in Singapore.

How to choose the right ecommerce platform in Singapore for your own online business

Deciding what is the best ecommerce platform for your company can be challenging. You need to consider the things you want to offer, your target market, how much marketing control you want, and whether or not you intend to scale up quickly.

If you are a small business and want to sell your products for free, free marketplaces would be the right option for you.

If you want to build a brand and scale up your business, you should take SaaS platforms into consideration. Even though you need to pay a monthly charge, you can be supported with security (customer data), maintenance site, SEO, sales growth, and work management. In all industries, SaaS can serve B2C, B2B, and hybrid organizations, even those with specialized business requirements requiring some customisation.

If you are considering hiring an ecommerce agency to help you build an online store, Scuti is here to help.

Established in 2015, Scuti with 7+ years has developed into a dynamic, flexible, and quick-moving business that specializes in ecommerce website development services & solutions. We’ve worked with clients in many different industry sectors, and nations such as Singapore, Thailand, Malaysia, etc. We assist our clients in reducing operational complexity and putting innovative ecommerce solutions for businesses of all sizes, from startups, SMEs to large enterprises. Our main areas of specialty include Shopify, Adobe Commerce (also known as Magento), and ecommerce tools.

Learn more about how to start a Shopify store in Singapore here.

If you have technical knowledge and want to build a website on your own with high customization, open-source platforms are the right one for you.

Conclusion

Obviously, opting the right platform to start selling your products is a big decision. As you can see, each platform has its own benefits and drawbacks. Talk to us now, so that we can advise you on the best choice for your business.

Top best ecommerce sites in Singapore 2023 and how they stand out from the crowd

Posted on January 4, 2023 by hello@scuti

With the rapid development of ecommerce recently, Singapore has been a preferred hub for online businesses. Therefore, it’s important for any businesses who want to enter this prospect market to research top Singapore ecommerce companies. In this article, we would look at the top best ecommerce sites in Singapore 2023, and analyze why they stand out from the crowd.

Top 10 ecommerce sites in Singapore 2023

1. Shopee: the top best ecommerce sites in Singapore

According to Statista, there are 14,986.7 million web visits in Shopee every month.

The success of Shopee, a well-known ecommerce platform, in Southeast Asia’s ecommerce market is not surprising. Although Shopee entered the ecommerce sector somewhat later than anticipated, it has swiftly caught up and is now the ecommerce unicorn of Asia.

Needless to say, Shopee’s inventive attitude to adopting technology and their courage to try out innovative tactics contributed to their success. Shopee came to prominence in Singapore because it consistently offered tempting discounts and free delivery for products. Another strategy of this ecommerce website has helped it conquer the market is providing ‘shoppertainment’, engaging customers in mobile games, live streaming, etc. This way has successfully attracted more customers and encouraged them to shop on the website. Furthermore, Shopee has paid close attention to customizing their offering to each nation in Southeast Asia. The way of differentiating the market based on area has helped Shopee reach their potential customers better.

2. Lazada: One of the Singapore's biggest ecommerce sites

As researched by Statista, Lazada receives 7,183.3 million web visits monthly.

Entering Singapore’s ecommerce space in 2011, Lazada’s strategy to lead the market is ‘earlier rather than later’. In particular, the pioneer shared four strategies to grow in the market: building trust, expanding the range, developing a global retail network, and investing in logistics.

This ecommerce platform based in Singapore carefully considers every part of the online purchasing experience. Every step, from order placement and payment through fulfillment and delivery, is carefully considered and optimized to produce enjoyable customer experiences that will encourage repeat purchase.

3. Amazon: Western ecommerce website in Singapore

Amazon remained its third position in the list of most visited ecommerce sites in Singapore, with the monthly web visit being 4,866.7 (Statista).

The success of Singapore Amazon can be attributed to the strategy of supporting local brands. In 2020, the first year of Singapore Amazon’s participation, about 12,000 small companies in Singapore were invited to participate in Prime Day, which is an annual discount event for Amazon Prime subscribers. Despite being a strategic move, the decision was well received by Singaporean customers.

4. Qoo10: one of the top Singapore ecommerce players

Qoo10 has 2,893.3 million monthly traffic (Statista)

Founded in 2010, Qoo10 is one of the oldest ecommerce sites in Singapore. The site offers a wide range of products for customers with lower prices than its rivals, ranging from home appliances to fashion and beauty products. In contrast to businesses that are only using the lion city as a strategic entry point for their Asian expansion, Qoo10’s highly localized offers reflect its extensive experience in the Singapore e-commerce sector. Although the strategy was proved to be successful in its heyday, Qoo10 has failed to maintain its dominance in the market in recent years.

5. Castlery: Singapore’s home furniture online shopping site

As stated by Statista, Castlery attracts 1,433.3 million web visits per month.

Borned in 2013, Singapore’s online shop for furniture provides a direct-to-consumer approach, which allows the business to offer affordable prices to customers by cutting out all middlemen and markup layers standing between it and the customers.When analyzing this specific situation and considering the e-commerce market as a whole, adopting a D2C model seems to be the way that retail companies will operate in the future.

6. Love, Bonito: online website for fashion shopping

Love, Bonito has monthly web visited of 747.4 million (Statista)

Started as a blog shop in 2010, interestingly, Love, Bonito has grown in the list of the top ten most visited ecommerce websites in Singapore nowadays. Fashionistas can thank Love, Bonito for bringing stylish, on-trend items to their front doors at an affordable price. Its biggest competitor is Zalora, the main fashion ecommerce player in the Asian market. However, Love, Bonito found its own way to cooperate with its rivals. Love, Bonito uses the ecommerce market as one of their selling methods rather than compete with Zalora.

7. Zalora: leading Southeast Asian online fashion retailer

According to Statista, Zalora’s monthly web visits is 671.4 million.

Founded in 2012, Zalora came in presence in Singapore, Indonesia, Malaysia, Brunei, etc. More than 3,000 different brands, including Adidas, Birkenstock, Under Armour, VANS, and many more, are represented to purchase on this website. Through their carefully chosen product selections and quick delivery services, Zalora focuses on offering high-end fashion brands to their clients at an affordable price range.

8. COURTS: Electronics and furniture online retailer

Courts receive 647.8 million monthly visits (Statista).

Originated in the UK, COURTS arrived in Singapore in 1974 and has since established a network of more than 10 physical locations across the country. Furthermore, its online store, which debuted in 2017, is currently among the top ten ecommerce sites in Singapore.

9. Ezbuy: Singapore-based global ecommerce website

Ezbuy gets 598.1 million web visits each month (Statista).

This cross-border shopping platform helps Singaporean consumers to access international brands and sellers from China, Taiwan, Korea, the United States, and many other countries.

During the Covid-19 pandemic, this platform suffered significant losses as a result of regional lockdowns and supply chain interruptions. Because of these limitations, Ezbuy redirected its attention to onboarding regional digital retailers, tripling the number of regional vendors in just one year. The great flexibility in strategy of the company helped it gain one of the most Singapore ecommerce visited websites.

10. eBay: Online marketplaces for bargain items

Originating in the US, Ebay gained 316.7 million web visits per month (Statista).

In fact, eBay is a website that supports consumer-to-consumer sales and auctions. Anyone may create a free eBay account and start selling new or used goods. The concept of ‘recommerce’ which describes the sale of used or pre-owned goods on internet marketplaces, is attributed to eBay’s success. This claim is supported by the result of eBay’s Recommerce Report, 34% of eBay customers mention sustainability as a reason for purchasing used goods on the website.

Conclusion

To sum up, Singapore’s ecommerce market has seen significant growth recently. Analyzing the reasons behind the success of Singapore top ecommerce sites help you to draw lessons learned for your own business. An effective ecommerce website offers much more than just a place to make purchases. It’s a location where businesses can design an encounter that strengthens their brand, engage in new clients, and turns casual customers into brand ambasadors.

Learn more about hiring an ecommerce agency to help you build your online store in Singapore here.

Why is Singapore an attractive destination to start an ecommerce business?

Posted on January 4, 2023 by hello@scuti

Covid-19 pandemic with the need for social distancing brought about the boom of Singapore’s ecommerce. Despite the re-opening of brick and mortar stores after the pandemic, the consumer behavior of buying online is still continuing. Therefore, if you want to expand your ecommerce business, Singapore is definitely an attractive destination for that. Here are the top reasons why.

The Singapore’s ecommerce current state

Statistics of Singapore’s ecommerce market

According to Facebook parent company Meta and Bain & Company, e-commerce sales in Singapore are predicted to reach US$14 billion (S$19.6 billion) by 2027. This estimate reflects the continued optimism over South-east Asia’s prospects for long-term growth, which are supported by the region’s steadily increasing digital consumer population. Besides, ecommerce sales in Singapore are anticipated to climb from US$8 billion in 2021 to US$9 billion at the end of 2022.

Meanwhile, online channels continue to be major platforms for customers in the country, even though offline shopping channels have recovered after Covid 19 pandemic. The survey showed that about 97 percent of Singapore’s population aged 15 and above are digital consumers, ranking the highest rate in South-east Asia. (straitstimes)

These figures indicate that Singapore’s ecommerce market is prospering and expanding swiftly.

Effective payment methods

Statistics from GlobalData’s 2021 Financial Services Consumer Survey indicated that payment cards made up 43% of all Singaporean online sales. In addition, alternative digital payment methods including PayPal, Apple Pay, Grab Pay, and Google Pay have also grown in popularity in this nation and now account for about 30.6% of the market share (globaldata). The presence of various payment methods obviously encourages Singaporean’s citizens to make more online purchases.

Significant growth of digital economy

The digital economy of Singapore is projected to increase by 22% at the end of 2022, reaching US$18 billion. This has happened as more companies adopt cutting-edge technology to digitalize processes and stimulate growth. Growth could almost treble to US$30 billion in 2025, according to a report by Google, Temasek, and Bain & Company (CNA). As can be seen, Singapore’s thriving digital economy brings about many opportunities for business.

Advanced technology

In the region, Singaporeans are pioneers in embracing cutting-edge technology. In 2022, more than 4 out of 10 Singaporeans utilized metaverse-related technology, such as cryptocurrencies and non-fungible tokens (NFTs), and nearly the same proportion applied to fintech products, such as digital banking and e-wallets. Furthermore, the innovations of technology in Singapore has helped businesses to improve the quality of ecommerce service and drive more demand of customers for ecommerce service. (straitstimes)

Top reasons to enter Singapore’s ecommerce market

Secure Cyberspace

Needless to say, there are cybersecurity hazards associated with using the internet. Singapore is aware of the importance of providing customers with proper protection. To do this, it has signed a number of trade agreements, including the Singapore-Australia Digital Economy Agreement and the Digital Economy Partnership Agreement (DEPA) with Chile and New Zealand (SADEA). As a result, these protective measures, which are put into practise, boost consumer and company confidence in online transactions.

Low barriers to entry the market

Starting up a business and penetrating the market in Singapore is simple. There is minimal to no bureaucracy, and the procedure is basic and easy to follow. You can create a seller account on any of the regional marketplaces or launch your own website and start selling. Moreover, Singapore provides a welcoming business environment, low taxes, and good support services, making it simple for companies to establish and run operations.

Additionally, the fact that Singapore has four official languages, two of which are English and Mandarin, makes it possible for foreign ecommerce businesses to engage with local consumers.

Learn more about import taxt & duty in Singapore here.

Attractive schemes and grants for ecommerce business

The Singapore government has been implementing a number of efforts to encourage small ecommerce firms by providing incentives in the form of subsidies. The government provided incentives to retailers as part of its “E-Commerce Booster Package” for using online channels and selling goods online through participating e-commerce platforms like Lazada, Shopee, and Zalora. Up to 80% of setup and selling costs, up to a maximum of S$8,000 [US$6,052.89], were provided as subsidies to qualified shops. (globaldata).

Convenient infrastructure

Singapore’s infrastructure is well-developed, both in terms of its Internet connection and its ability to handle logistics. In terms of logistic infrastructure, effective local deliveries are made possible by Singapore’s well-developed road network. Therefore, Singaporeans typically anticipate same-day delivery for local goods and next-day delivery if customers pay more.

Regarding IT infrastructure, Singapore has improved its digital infrastructure further by providing 5G coverage throughout at least half of the country by 2023. It will also construct 2 nationwide 5G networks by 2025. Meanwhile, 90 percent of Singapore’s population are internet users, which is equivalent to 5.29 million Singaporeans are connected to the Internet. On average, a Singaporean spends 8 hours and 7 minutes on the internet each day. Because of their extensive internet usage, reaching them only requires the proper sales channels and marketing techniques.

High-spending power

It’s no surprise that Singaporeans have high purchasing power when it comes to ecommerce. The data showed that the average Singaporean spends about USD785 on buying online, which is greater than the majority of Southeast Asian nations. The statistics indicated the rising importance of Singapore’s ecommerce.

Popular platforms in Singapore to sell your products

Singaporean shoppers use the three major shopping websites Shopee, Lazada, and Amazon to make annual purchases. Besides, social media are also famous channels for ecommerce. On average, Singaporeans spend 2 hours and 31 minutes daily on these social media. These platforms are potential for businesses to start and operate.

Learn more about top best ecommerce sites in Singapore 2023.

How to start your ecommerce business in Singapore

Step 1: Research and plan

First, start a research to identify the products you want to sell, your target customers, competitive advantage of your business and demands in the market and competitors.

Step 2: Funding seeking

You may look for angel investors to support financially for your business. Another idea is to take out a loan from lending institutions. Also, searching for government funding such as Startup SG Tech, Enterprise Development Grant, Startup SG Equity Programme, and Market Readiness Assistance Grant is a good step.

Step 3: Decide your business model and structure

Step 4: Register legal documents

First, decide your company’s name, director, and secretary. Second, register your Singapore address. Next, register company constitution, where you would explain your business structure

Step 5: Prepare to sell your products.

Decide where to sell your products. You may choose some popular platforms to start your ecommerce stores such as Shopee, Lazada, Amazon, etc. Other channels you can consider to sell products are social media.

Besides, if you want to build your own brand, opening a Shopify store is an ideal way.

Learn more about Shopify in Singapore here.

Conclusion

Singapore is proven to be an ideal place for ecommerce business because of its well-developed infrastructure, protective cyber space, high spending power and friendly business environment. Moreover, its ecommerce market has many potential for rapid growth in the future. Obviously, it’s the perfect time for you to grab the opportunity and start your own ecommerce business in this nation. If you want to hire a professional ecommerce agency to help you build your online store, consider Scuti.

About Scuti

Online shopping trends in Singapore 2023 you should discover to adopt for your business

Posted on January 4, 2023 by hello@scuti

Singapore’s ecommerce market has seen rapid growth over recent years. This emerging trend gives online retailers a number of opportunities to increase market share and revenue growth. In this article, we will take a look at some online shopping trends in Singapore 2023 and discover how you can apply these to grow in revenue and market share in your own business.

Singapore’s online shopping market overview

Online shopping statistics in Singapore

In July 2022, Singapore’s Internet users was estimated to be approximately 5.18 million, ranking the second highest percentage of Internet penetration in the Southeast Asia region (Statista). Besides, J&T Express reported that 97% of Internet users in Singapore have made at least one purchase. In another article by the Digital 2021: Singapore report, the average Singaporean shopper spends USD785 on online shopping, higher than most Southeast Asian countries. As can be seen, Singaporeans have shown to have a robust appetite when it comes to ecommerce.

Singapore’s online market revenue

Singapore was once ranked as the second-easiest country in the world to launch an online store by the World Bank. In 2021, ecommerce turnover in Singapore was 6 billion USD. The number is expected to grow to approximately 11 billion U.S. dollars by 2025. (Statista). Without a doubt, any business searching for sales growth in Singapore should recognize ecommerce as an opportunity to thrive in the long run.

Learn more about the reasons Singapore an attractive destination to start an ecommerce business here.

Main ecommerce platforms for Singaporean users

Shopee, Lazada, and Amazon are three main shopping websites that are used by Singaporean consumers each year. With about 15 million monthly visitors as of the first quarter of 2022, Shopee was the most popular e-commerce website. Meanwhile, Lazada and Amazon, both based in Singapore, come in second and third, with roughly 7.2 and 4.9 million visits, respectively, behind Shopee. (Statista).

Popular platforms to build online shopping website in Singapore 2023

As noted, Shopee leads the way when it comes to the most visited shopping website in Singapore. However, these are some other platforms available for making your own business online website.

Shopify: Shopify is an all-in-one ecommerce platform. With this platform, you can easily build your ideal company and begin selling to clients wherever they may be. Shopify had more than 13,320 live stores in Singapore in March 2022.

BigCommerce: BigCommerce is an ecommerce solution in which company owners can build a store and sell items digitally. In March 2022, there were 129 live Singapore stores on BigCommerce.

WooCommerce: This is a self-hosted eCommerce platform for you to build your website on WordPress. As reported in March 2022, 9,879 live WooCommerce stores were available in Singapore.

Squarespace: Known as the ‘Apple’ of website hosting, Squarespace makes it simple to create an online store with a variety of convenient commerce tools.

Learn more about how to hire dedicated Singapore web developer to build your own ecommerce website here.

Online shopping trends in Singapore 2023

Growth in the purchase of local brands

According to a survey by Amazon Singapore, more than half of Singaporeans across all generations would like to shop for local goods over international ones. The survey also indicated that local brands accounted for 48% of Gen X consumers’ recent purchases, closely followed by Millennial (44%) and Gen Z (34%).

Meanwhile, 67% of Gen Z customers said they would prefer to purchase the same product from a vendor who supports the local community over one who does not, as opposed to 55% of Millennial and Gen X customers.

This poses an opportunity for local brands to increase in market share in the country.

Prevalence of digital payment

Surprisingly, credit cards are still the most popular payment option for online transactions in Singapore, despite the availability of e-wallets and real-time bank payment systems. According to a Rapyd study on payment methods, 34.4% of consumers prefer to use credit cards to make online transactions, as opposed to PayNow, Singapore’s national real-time e-payments system, which only receives 18.2% of the market. Needless to say, the increase in level of efficiency and convenience of online payment results in the absense of cash on payment.

Learn more about how to choose Shopify payment gateway in Singapore here.

Growing emergence of voice search

Voice search grow in online shopping trends

Most modern smartphones come with voice search capabilities, whether they are made by Apple or Samsung. Needless to say, most individuals use this function to do searches for products they want to purchase without typing their own questions. After all, they have to ask the virtual assistants on their smartphones, like Siri or Alexa, to help them find what they’re looking for.

There is no denying that voice search is revolutionizing online buying, since 77% of consumers prefer it to typing. Therefore, voice search will grow in popularity over the next few years, with a market value of 27.16 billion USD by 2026, as stated in Statista.

Development of social media shopping

Increase of social media shopping in Singapore

Ecommerce has developed to accommodate social media channels rather than just relying on websites.

There are 5.3 million social media users in Singapore, which is up 6.9% year on year. They use social media on a daily average of 2 hours and 31 minutes. We Are Social stated that 24.6% of social media users indicate that looking for products to buy is one of the main reasons they use these platforms. Meanwhile, 38% of Internet users visit social networks to learn more about companies and products.

Each day in Singapore, new users sign up for Facebook, Instagram, Pinterest, TikTok, and other social media platforms. And each new user represents a potential new customer for e-commerce businesses.

Greater application of augmented reality

Increase in using augmented reality in Singapore's online shopping trends

Augmented reality (AR) is an interaction experience that virtually places virtual objects in the actual world. When using augmented reality (AR), customers are able to view products interactively without having to open them. Without a doubt, AR is the trend that will completely revolutionize the ecommerce sector in Singapore 2023.

Conclusion

As we can see, the continuous growth of Singapore ecommerce will open the door for all businesses to thrive. Therefore, make sure you keep a keen eye on the Singapore online shopping trends in 2023 to make strategic direction for your company.

Learn more about how to hire an ecommerce agency to build your online store here.