Understanding e-commerce trends is crucial for e-commerce, especially in an evolving market like Singapore. Sellers gain a glimpse of shopping behaviour in the region, understand trends influencing purchases, and how to keep up to offer shoppers a transformative online shopping experience.
Considered to be one of the best-equipped markets in Southeast Asia, Singapore is experiencing remarkable growth. The average revenue generated per user is a whopping US$1445. It is estimated that by 2029, the user penetration will hit 80.4%, with e-commerce businesses looking at a customer base of 4.9 million users. As a premium market with extensive potential, Singapore attracts intense competition from both local merchants and external players. Many retailers are looking to launch their products in this market and establish their presence.
As an online business owner, you need to make your brand stand out in Singapore’s various marketplaces. What are the evolving e-commerce trends that you can factor in for your 2025 business plan? Here’s a detailed guide to help you double your wins, transform selling, and gain a competitive advantage.
Exploring the Top E-commerce Trends in Singapore for 2025
Q4 can be an important time for e-commerce businesses as consumers ramp up their holiday shopping. But as they manage this peak sales period, business owners also need to effectively prepare for 2025. By understanding e-commerce trends for 2025, you can lay the groundwork for sustained success in the coming year!
Augmented Reality (AR)
The rise of 5G technology in Singapore has played a key role in driving the AR wave. Augmented reality is an interactive technology that combines real-word visuals with digital information to enhance the user experience. It is completely changing the way consumers interact with brands. According to data from Shopify, products with the AR feature have a 94% higher conversion rate.
Leading marketplaces like Amazon, TikTok Shop, WooCommerce and Shopify have integrated AR, helping e-commerce brands scale. Locad’s seamless integration with these leading marketplaces ensures that brands can efficiently manage their fulfillment while leveraging AR technologies. Tap into multiple sales channels and reach a broader audience without the hassle of complicated logistics.
Cart abandonment rates hover around 70% and augmented reality is all set to change that.
With Locad’s integration into AR-enabled marketplaces, you can boost conversions like never before.
The impact of inflation on consumer spending
With rising inflation, the cost of raw materials and goods is also increasing. In 2025, inflation will continue to impact the economic landscape including e-commerce spends. For instance, 69% of consumers in Singapore are worried about how inflation will affect their purchasing power. 49% have reported a decrease in their disposable income. The Singaporean government has started distributing money to each household to help residents combat the effects of inflation.
Many consumers around the world plan on changing their shopping patterns, and retailers must brace for impact. A Nielsen report found that shoppers are gradually making a shift from cautious spending to intentional spending.
As inflation persists, e-commerce businesses need to adopt more customer-centric approaches. Brands should focus on personalizing product recommendations, interactive packaging and increasing customer touch points.
To help online businesses manage these inflationary challenges, Locad provides flexible inventory storage and management solutions. With Locad, businesses only pay for the inventory space they use for storage, partner with multiple last mile carriers to give sellers preferential shipping rates and help reduce overall costs.
7 in 10 customers in Singapore are worried about the rising costs of inflation.
With Locad, reduce storage costs, shipping rates, and costly overheads
AI-powered personalization
Fun fact: 35% of Amazon’s revenue comes from product recommendations. 66% of consumers in Singapore only buy from online stores that provide personalized experiences.
As online shoppers increasingly seek tailored experiences, businesses are leveraging AI to analyze vast amounts of data. AI engines are programmed to continuously learn and keep track of click rates, browsing patterns and product preferences. This allows brands to stay efficient and on top of consumer behavior patterns.
Personalization can boost sales by 4.5X, and for that e-commerce businesses need robust inventory management. Locad provides real-time inventory insights, enabling brands to identify fast-moving products and adapt to consumer demand.
Personalized recommendations can increase conversions by 288%.
Is your e-commerce brand able to keep up with the demand?
Ensure you’re always stocked and ready with Locad’s smart inventory management!
Social Commerce
While social commerce was a budding e-commerce trend in 2024, it’s all set to rise in 2025.
A study found that 1 in 5 Singaporean shoppers discovered online brands after seeing them on social media. The Social Commerce Sector in Singapore is growing and is expected to reach US $8.47 billion by 2029. During the double day sales in 2024, Locad found that Tiktok accounted for 3.3% of the overall sales.
Social media platforms like TikTok are also launching initiatives to strengthen the social commerce sector. They have created e-commerce training programs for over 120,000 small businesses in Singapore. As social commerce continues to gain traction, businesses must embrace this trend to stay competitive and connect with consumers in a more meaningful way.
Locad’s seamless integration with social commerce platforms like TikTok ensures that businesses can easily manage their social commerce operations. With a distributed warehouse network across Southeast Asia, Locad helps brands deliver faster and stay ahead of competitive brands.
90% of marketers predict that social media will become the preferred retail channel in Singapore.
Leverage Locad’s integration with TikTok to streamline fulfillment across Southeast Asia.
Quicker deliveries
With consumer expectations constantly rising, quicker deliveries are becoming a key differentiator for online businesses. 61% of online shoppers choose one brand over the other when it comes to better delivery options. Meeting this demand can drive customer loyalty and even boost sales.
According to Deloitte, merchants around the globe expect 66% of orders to be delivered either the same day or the next day by 2029. In fact, when companies offer express shipping they grow faster than their counterparts.
To tap into this market potential, maintaining a 100% Service Level Agreement (SLA) with integrated marketplaces like Shopee and Lazada is essential. Locad empowers online businesses to achieve this by offering efficient fulfillment services that ensure timely deliveries. Our logistics engine helps brands maintain SLA by providing real-time visibility into account health metrics such as cancellation rates and return rates. This transparency enables brands to address issues proactively, streamline operations, and enhance customer satisfaction.
Consumers expect faster delivery times, making it essential for online businesses to stay competitive.
Optimize your fulfillment process to unlock same-day and next-day delivery!
Mobile Commerce
It’s no surprise that the mobile commerce market is growing and will continue to grow at a rapid pace. 97% of Singapore’s residents own a smartphone and almost all homes have access to high speed internet. About 85% of consumers in Singapore say they use their mobile phones to shop online. The items that are most frequently shopped for via mobile include clothes, shoes, electronics such as tablets, laptops and skincare products.
To capture this expanding market, businesses must optimize their websites and apps for mobile users and invest in enhanced UX. In fact, 3/4th of consumers in Singapore say that they don’t end up buying, if a brand doesn’t have a mobile app.
The mobile commerce landscape is diverse. It includes various channels such as mobile apps, social media platforms, messaging apps, and even QR codes! Locad’s logistics engine supports e-commerce brands by allowing them to manage orders from all these channels efficiently through manual order uploads. This flexibility ensures businesses can track and fulfill orders comprehensively, ultimately enhancing their operational efficiency.
One platform for all your mobile orders!
Track sales from apps, social media, and messenger channels. Simplify your logistics and enhance your e-commerce success with Locad!
Omnichannel experiences
With omnichannel, e-commerce retailers can create seamless customer experiences across various channels and marketplaces. Customers can begin interacting with a brand through online chat but ultimately complete their purchase in a physical store. For example, Pomelo Fashion allows customers to order items online and pick them up in-store, where they can try on the products before making a purchase. This approach enhances the shopping experience by combining the convenience of online shopping with the tactile experience of trying on clothes.
A recent report found that Singapore shoppers are already leading the way towards omnichannel experiences. Half of them look at products in physical stores before purchasing online, and the remaining half browse online stores before purchasing offline. In fact 57% of retail sales in Singapore in 2022 came from omnichannel experiences!
To support this trend, Locad offers B2B solutions that enable merchants to efficiently manage inventory and fulfillment. Our logistics engine allows businesses to ship products from our warehouses directly to their retail stores, ensuring they can meet customer demand across all channels.
Omnichannel strategies achieve 91% greater year-over-year customer retention rates
Locad helps you connect online and offline sales with our logistics engine, ensuring smooth order management.
Supply Chain Resilience
Recent global conflicts have had a significant impact on the flow of commodities and e-commerce supply chains. These disruptions have resulted in increased freight charges, container shortages, and diminished availability of international warehousing space.
Moreover, key trade routes have become vulnerable, with incidents of conflict causing major shipping companies to reconsider their operations. Such instability leads to longer voyage times and heightened costs – fuel, manpower etc.
In response to these persistent challenges, companies are adapting their strategies to becoming resilient. 71% of retailers are looking to invest in regionalization and localization. Companies are increasingly turning towards nearshoring. This is the practice of storing inventory closer to the customer or to the company headquarters.
Locad supports this shift by enabling brands to store their products in warehouses close to their customers, allowing for faster deliveries and reduced costs. With Locad, businesses can store locally and grow globally, ensuring a more efficient supply chain amid global uncertainties.
Global conflicts are creating instability and driving up logistics costs for e-commerce.
Locad’s nearshoring strategies allow brands to store inventory closer to customers, enhancing resilience against supply chain disruptions.
Voice Search
In 2021, voice search commerce was valued at US $4.6 billion. In 2023, that number surged to a whopping $19.4 billion. By 2028 it’s expected to hit $45 billion.
With busy schedules and multitasking on the rise consumers are looking to make tasks as easy as possible. Voice search offers one such avenue of convenience. Data shows that 3 out of every 4 consumers are using their mobile voice assistants at home. Younger consumers are driving the voice revolution and are changing the way they interact with online stores. Google searches for ‘Alexa’ also continue to trend high throughout the year.
Investing in voice commerce can bring about significant returns for online businesses. Experts estimate that voice search can increase revenue by up to 30%, purely because of user convenience. As voice search prioritizes local brands, it can also help your business rank higher in search results.
Singapore’s leading marketplaces like Shopee, Lazada, and Amazon have already integrated voice search capabilities on their platforms. Locad’s robust integration with these various marketplaces ensures your e-commerce fulfillment is efficient.
Before 2025, the number of voice search assistants will grow to 8.4 billion units.
Don’t get left behind—capitalize on the voice commerce trend!
Integrate with Locad for seamless fulfillment across platforms like Shopee and Amazon that feature voice search capabilities.
Cross Border Commerce
Cross-border commerce is another trend to watch, as Singaporean consumers increasingly seek products from international markets. Data shows that close to 4 out of 5 consumers have already shopped from international brands. In fact >50% of e-commerce sales in 2022 came from cross border shopping.
Advancements in logistics and shipping solutions are making it easier than ever for retailers to fulfill international orders. With the rise in social media and social commerce, consumers are gaining increased visibility of international products and brands.
Locad offers essential support for cross-border commerce through our Importer of Record (IOR) and Seller of Record (SOR) services. These solutions simplify the complexities of international transactions, allowing businesses to expand their reach. Additionally, our expertise ensures efficient freight management, helping e-commerce brands deliver products globally while optimizing for costs.
High logistics costs and legislations continue to be major barriers to cross border commerce.
Streamline your international sales with Locad’s IOR and SOR services. Expand your reach and deliver seamlessly across borders!
Sustainability
In Singapore, shoppers are becoming very conscious of the environmental impact of their choices. The most prominent e-commerce trend seen here is sustainable packaging. A research study found that 33% of consumers in Singapore chose to use sustainable packaging for their online purchases. Major retailers like Lazada are leading the trend by using 100% recyclable plastic bottles for mineral water.
Taking the sustainable route isn’t just good for the planet. It also helps build trust and distinguishes a brand’s perception. As the demand for sustainable products continues to rise, integrating eco-friendly practices into your business strategy will not only meet customer expectations but also contribute to a healthier planet.
Locad empowers merchants by offering customizable sustainable packaging options. Our logistics solution focuses on reducing emissions by strategically selecting warehouses closest to your end consumers. This approach minimizes transportation distances, lowering carbon footprints while ensuring faster delivery times.
Many consumers prefer sellers to incorporate sustainability in e-commerce processes.
Choose Locad for customized eco-friendly packaging solutions and reduce your carbon footprint!
Subscription and Loyalty Programs
Why should subscription programs be restricted to OTT platforms and gyms? In Singapore, where e-commerce competition is fierce, loyalty programs can be a game-changer. 15% of online buyers in Singapore are already subscribed to one or more products. The global market is expected to grow to a value of $2227.63 billion by 2028.
Subscription models provide businesses with predictable revenue, allowing them to better manage inventory and delivery schedules. This stability is appealing to many e-commerce businesses looking to enhance their financial forecasting. In addition, they also play a crucial role in repeat purchases and building customer loyalty. If you’re looking for cross-selling or upselling, Subscription programs can be a great way to get started.
Locad supports subscription strategies by creating a system to manage forecasts effectively. By helping brands track demand forecasts, Locad ensures optimal stock levels to meet the end consumer’s needs.
High competition in Singapore’s e-commerce landscape makes customer retention challenging. Subscription models can drive loyalty and predictability for online businesses.
Locad helps streamline the subscription process by helping you manage forecasts and inventory stock levels.
Live Streaming
Conversations about live streaming have increased by 1890% on Singapore’s social media platforms since March 2020. As a result of live streaming, TikTok saw its total sales grow four times in the second half of 2023 compared to the same time in 2022.
Live streaming allows brands to engage directly with consumers, showcasing products in real time. Through live streaming, customers can see products being used, ask questions, and receive immediate responses. The live streaming model is quite similar to the telecommerce model that took over the world in the 1980s. It creates an engaging experience, while creating a feeling that time is limited. This also helps to tap into consumers’ innate fear of missing out. In Singapore, where digital presence is strong and social media usage is high, live streaming can be a great channel to drive sales.
Locad seamlessly integrates with TikTok Shop, allowing brands to optimize their live streaming efforts and manage orders. By utilizing Locad’s capabilities, businesses can ensure a smooth experience from shopping during live events to delivery.
With Locad’s seamless integration, managing fulfillment for your TikTok Shop is simple and efficient.
The e-commerce landscape in Singapore is set for significant transformation in 2025. As consumers increasingly prioritize convenience, businesses need to rethink their strategies to meet these evolving demands. This is where Locad comes into the picture. With its robust integration capabilities and innovative fulfillment solutions, Locad empowers e-commerce brands to reduce storage and fulfillment costs, streamline their operations, and enhance customer satisfaction.
As you prepare for the upcoming year, staying attuned to these trends will enable you to navigate the dynamic market and position your online business for success!