The government will subsidize up to 80%! Singapore's e-commerce market will exceed US$10 billion by 2025

Singapore’s e-commerce market will continue to grow, driven by rising consumer spending, government support and growing demand for online shopping.

According to data analysis company GlobalData , Singapore will continue to develop into a major e-commerce market and will grow at a compound annual growth rate of 16.2%, from US$5.9 billion in 2021 to US$10.7 billion in 2025.

Singapore's e-commerce sales were adversely affected by the pandemic, with consumers becoming more cautious about shopping during this period. But according to Nikhil Reddy, senior payment analyst at GlobalData : " With the easing of pandemic restrictions and economic recovery, the e-commerce market rebounded in 2021. According to GlobalData 's analysis, e-commerce sales are expected to grow 18.3% in 2022 to US$6.8 billion. "

The rapid growth of e-commerce in Singapore, in addition to the impact of the epidemic, social distance measures and lockdown restrictions, has also pushed more consumers to online channels. Even for daily shopping, most consumers choose to solve it online. Despite the existence of physical stores, the change in consumer purchasing behavior and habits continues.

At the same time, Singapore has also taken various measures to provide benefits in the form of subsidies to encourage small businesses to join the ranks of e-commerce. The government provides subsidies to retailers to allow them to choose online channels and sell products on e-commerce platforms participating in the subsidy benefits, such as Lazada, Shopee, Zalora, etc. Eligible retailers can receive up to 80% of the subsidy, with a cap of US$6,052.

The growth of online shopping will also benefit the growth of electronic payments in the country.   In its 2021 Financial Services Consumer Online Shopping Survey, GlobalData found that payment cards accounted for 43% of all e-commerce sales in Singapore.   Payment methods such as PayPal and others have also been favored by many consumers in Singapore.

Reddy concluded: “Although the growth of the e-commerce market has been affected by the epidemic and the growth is relatively unstable, it has also prompted consumers to shift their purchasing behavior to online channels during this period. Coupled with the support of favorable government measures, Singapore’s e-commerce growth prospects are very good in the next few years.”

Under the catalysis of various favorable conditions such as the macro-environment and government support, the pace of development of Singapore's e-commerce market is expected to be faster in the future. Therefore, sellers who are interested in entering Singapore can seize the opportunity as soon as possible.

Singapore

E-commerce market