Exploring the E-commerce Preferences and Behaviors of Singaporean Shoppers

Table of Contents

Get the latest e-commerce industry news, best practices, and product updates!

Reading Time: 10 minutes

Southeast Asia (SEA) has emerged as a promising market for e-commerce in recent years, with a rapidly growing population of over 687 million people and a rapidly expanding middle class. The region has also seen a surge in internet and mobile penetration rates, with an estimated 400 million internet users and a mobile penetration rate of around 74%. This has led to a rise in online shopping platforms and digital payment systems, making online shopping more accessible and convenient for consumers across the region. 

The e-commerce industry in SEA is diverse, ranging from prominent players like Lazada, Shopee, and Tokopedia to smaller niche players catering to specific markets. The growth potential of e-commerce in SEA is immense, enlarging space for small and medium enterprises.

Singapore is one of the major countries where e-commerce has become the most significant industry. It is a highly connected country with a thriving e-commerce industry, and as such, its online consumer demographic is diverse and evolving. Singaporeans are also known for trusting online retailers, making them highly reliant on online shopping. 

This article focuses entirely on Singapore shoppers and what factors have influenced them to use e-commerce platforms. 

Who Are Singapore’s Online Consumers?

Singapore has one of the most diverse online shoppers encompassing people from different ethnicities and communities. It is one of the most prevalent countries where consumers are ceaselessly shopping online without interruptions. 

In fact, Singapore has one of the highest basket sizes amongst other SouthEast nations. Transformations such as cashless payment to instant delivery, Singapore has come a long way in metamorphosing its lifestyle. 

Singaporeans have high purchasing power and a willingness to spend on quality products and services. In addition, they value convenience and efficiency. They are drawn to online shopping due to the ease of comparison of different platforms. With the rise of mobile usage, Singapore’s online consumers increasingly use their smartphones to make purchases. 

Let’s understand how Singapore shoppers think while purchasing online and to what extent e-commerce has transformed their shopping abilities. 

An Overview of Singapore’s Online Shoppers

According to Hootsuite, 3 out of 4 people are shopping online, among which 73% of them have bought items from overseas online stores. Conventional brick-and-mortar stores are still available in Singapore, but they all have marked their online presence, making it even more feasible for Singaporeans to shop. 

More than ten online shopping platforms in Singapore have well institutionalized themselves. The categories with maximum attraction are– electronics, fashion, food, cosmetics, and personal care. The e-commerce market revenue is expected to hit US$8.23 billion by 2023.

During the pandemic, when people were restricted from going out shopping, e-commerce mustered tremendous traction, making Singapore one of the countries that rely on e-commerce the most. With 98% internet penetration and smartphone bearers, Singapore online shoppers are expected to be 58% by the end of 2023. 

Based on the age of Singapore shoppers, we can divide them into two sections:

  • People aged between 25-34 makes up 46% of  total online shoppers, whereas
  • People aged between 18-24 make up 17% of total online shoppers. 

Moreover, the male shoppers stood at 51%, which is higher than the female shoppers (49%). There are numerous elements on which their online shopping pattern depends. Let’s delve into it. 

Why do Singaporeans Shop Online?

Some prominent reasons why Singaporeans shop online more often are:-

COVID-19’s influence

The COVID-19 pandemic in 2020 hugely influenced the e-commerce landscape when people were not allowed to shop at offline stores, increasing their reliance on online shopping platforms. People wanted contactless shopping with minimum or no interaction. That’s where online shopping came into play. In 2021, there were 16.15 million monthly online visitors, Shopee being the number one. From that year onwards, it started to surge even more. 

Loves discounts

When it comes to online shopping, discounts are not gimmicks. Online shopping platforms such as Lazada can offer special discounts of up to 90%. With the high internet speed, people can compare the two shopping platforms and see who has the best deals. In e-commerce, the more you shop, the more discounts or coupons will be available. 

As more people shop online, they get an abundance of discounts, increasing retention and engagement. Promotions like Black Friday and season sales have become notorious, and 82% of the respondents know about these promotions. 

Item availability

E-commerce has opened the door of effortless online shopping as people can buy from other countries, which was missing from traditional stores. They have more access to items online than they had before. Moreover, buying items in bulk guarantees lower prices. Another factor associated with item availability is the estimated delivery time, which has often been reduced to same-day delivery. 

Treating themselves

Online shopping has become a treat to themselves where many people buy online items after their payday. E-commerce has successfully picturized itself as a reward system where people can log in anytime, place orders, and earn rewards. Other sectors, such as FMCG, have recently gathered propulsion, which ensures delivery within minutes. This is also one of the ways by which people treat themselves, ensuring a high level of customer satisfaction. 

Influences and Expectations in Singaporeans’ Online Buying Decisions

Influences

Social media advertisements on platforms such as Facebook, Instagram, and WhatsApp highly influence Singaporean shoppers. One in five online shoppers in Singapore said that they found out about online platforms after viewing social media. According to the National University of Singapore (NUS), their professor said that successive target advertisements have helped gain this online traction. 

Expectations

Online shopping storefronts have undoubtedly manifested a bunch of new options. However, there is still room for improvement where they can ace. Singapore shoppers are tech-savvy because of the high internet availability and smartphone penetration. Due to the prevalence of cashless payment, many online shoppers prefer seamless payment without interruptions. They expect more flexibility and convenience since plenty of options are available for shoppers. 

Another eminent expectation is the rapid delivery services, wherein customers can customize their estimated delivery time to receive the parcel as soon as possible. Moreover, there should also be different delivery address options where you can get your item anywhere you want. 

What Devices Do Singaporeans Use to Shop Online?

Digital 2021 reports that among 79.7% of internet users, 56.9% use mobile devices for online shopping. Even if people are not buying anything online, they prefer window shopping and hovering around different categories to discover the best deals. Browsing through a mobile phone has become easier since it just takes one time to sign up, and then you don’t have to log in again.

As for Singaporean shoppers, there is still a conflict about whether they would prefer desktop or mobile. In 2022, the leading devices for making online purchases are– smartphones (84%), laptops (36%), desktops (18%), and tablets (10%). 

What are the Popular Online Shopping Platforms in Singapore?

Here are some of the most popular online shopping platforms in Singapore:-

Shopee (14.4 million monthly users)

Shopee is a popular e-commerce platform in Southeast Asia and Taiwan, known for its user-friendly interface and innovative features. Shopee provides a seamless and secure online shopping experience for buyers and sellers alike. One of the best features of Shopee is Shopee Mall, a section within the platform that features products from official brands and authorized distributors. 

Shopee Live is the platform’s USP, allowing sellers to interact with buyers through a live stream. This feature lets sellers showcase their products and answer questions in real-time, providing a more engaging and personalized shopping experience. 

With its innovative features and commitment to customer satisfaction, Shopee has become one of the most popular e-commerce platforms in the region.

Carousell (10.5 million monthly users)

Carousell is a popular peer-to-peer e-commerce platform that allows users to buy and sell a wide range of products, from fashion and accessories to electronics and furniture. Some of the best features of Carousell include its user-friendly interface, which makes it easy to navigate and communicate with customers. 

Carousell’s features are designed to provide users with a convenient and secure buying and selling experience. It offers social sharing features, which let users share their listings on social media platforms like Facebook and Instagram. The platform also offers a variety of payment options, including Carousell Protection, which provides buyers with additional security when making purchases.

Lazada (6.8 million monthly users)

Another popular e-commerce platform in Singapore is Lazada. Lazada is best known for keeping the minimum price at maximum quality, presenting major brands such as Sony and Apple. It offers various products and categories from fashion, electronics, home decor, and more.  

Some of the best features of Lazada include its user-friendly interface, making it easy for buyers to search for products and for sellers to manage their online stores. Lazada also offers a secure payment system, including credit cards, bank transfers, and Lazada Wallet options. 

Moreover, Lazada offers regular discounts and promotions, such as flash sales and daily deals, making it an attractive platform for bargain hunters. 

Qoo10.sg  (2.1 million monthly users)

Qoo10.sg is a popular e-commerce platform in Singapore founded in 2010. It encompasses trendy clothes and the latest products for its customers. With its extensive range of products, Qoo10 has expanded itself to services like door-to-door delivery, payment channels, broadband plans, and beyond. 

Qoo10.sg offers its payment service, Qmoney. Furthermore, other notable features in Qoo10 are– daily deals and promotions, offering buyers attractive discounts and cashback rewards. These facets are designed to provide Singapore shoppers with a convenient and secure online shopping experience.

eZBuy  (1.04 million monthly users)

eZbuy is an online shopping platform that allows buyers in Southeast Asia to purchase products from China, Korea, Taiwan, and other countries at a lower cost. eZbuy is one of the leading platforms which offers brands like Nike, Adidas, Louis Vuitton, Gucci, and more at cheaper rates. 

eZbuy also offers a “Buy-For-Me” service, which allows buyers to request eZbuy to purchase items on their behalf, making it convenient for buyers who may face language or payment barriers. eZbuy’s features are designed to provide a convenient and cost-effective way for buyers to purchase products from overseas.

Key Takeaways

In a nutshell, Singapore’s e-commerce market has become vast, making it one of the leading countries for entrepreneurs to start their online storefronts. If there is one thing that we can take away from this article is that– Singaporeans are all about finding convenience in their online shopping journey. A platform that can provide them with seamless payment options without interruptions. With the continuous rise of online shopping, SEA has surely become the biggest evolving market in the world.

FAQs

What are people buying online in Singapore?

People in Singapore buy a wide range of products and services online, including clothing, electronics, books, furniture, entertainment, travel, and food delivery. Other popular items include beauty and health products, home and lifestyle products, toys, and games.

Who are the online shoppers by age group in Singapore?

Based on the age of Singapore shoppers, we can divide them into two sections:

  • People aged between 25-34 makes up 46% of  total online shoppers, whereas
  • People aged between 18-24 makes up 17% of total online shoppers

What is the number one e-commerce company in Singapore?

The largest e-commerce company in Singapore is Lazada. It is the leading online shopping platform, offering many products. It is owned by Alibaba Group, the world’s largest e-commerce company.

Where do people shop online in Singapore?

People in Singapore shop online at major e-commerce sites such as Amazon, Lazada, Shopee, Qoo10, and Zalora. Several local retailers, such as Reebonz, Courts, and Challenger, also offer online shopping services.

Is e-commerce popular in Singapore?

Yes, e-commerce is very popular in Singapore. Its homegrown platform Lazada received 7.18 million customers from Singapore in the first half of 2022 alone.

What items do people buy most online?

Clothing and accessories are two categories that people buy online the most. Other items are– shoes, electronics, toys, etc.

Experience fulfillment by LOCAD

Grow your business through Locad’s simplified and automated fulfillment solution

  • Unlimited and scaleable warehousing
  • Pay only for what you store
  • No hidden fees or lock-in periods
  • Zero inbound costs
  • Wide integration with marketplaces
  • Automated logistics and delivery
Get the latest e-commerce industry news, best practices, and product updates!

Don't miss out on the latest news!

Get the latest industry news, best practices, and product updates!

Up to $250K USD Credits for Locad Customers!

Sign up today and accelerate your growth with Locad’s Partners. Unlock deals across SaaS, Agencies and more.

Exclusive benefits to ace your e-commerce game this 2023 with Locad’s desk calendar!