Premia TNC Singapore Team
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Singapore is establishing itself as one of the most attractive e-commerce markets in the Asia-Pacific region. This is due to its robust digital infrastructure, high internet penetration, and position as a global logistics hub, which are driving rapid e-commerce growth. Specifically, a recently published report projects that Singapore’s e-commerce market will reach approximately US$5.4 billion by 2025, representing a more than fivefold increase compared to 2015. In this post, we’ll explore the latest trends in Singapore’s e-commerce market and outline key strategies for successful entry.
Singapore's e-commerce market size and growth potential
Despite its small size, Singapore boasts the highest online shopping share in Southeast Asia, fueled by its high-purchasing consumer base. As of 2023, its e-commerce gross merchandise value (GMV) reached approximately US$8 billion and is expected to surpass US$10 billion by 2025. In particular, the advancement of mobile payments, convenient payment systems, and the expansion of AI-based recommendation services are driving market growth.
Looking at the market share of major platforms, Shopee holds the top spot with 53%, followed by Lazada with approximately 35%, forming a two-way competition. Recently, social commerce platforms, including TikTok Shop, have been rapidly growing, creating a new competitive environment in the market.
3 reasons why the e-commerce market in Singapore is an attractive alternative
1. Strategic logistics hub
Singapore serves as a logistics hub connecting Southeast Asia and the world, enabling rapid logistics processing through Changi Airport and PSA Ports. This meets the needs of consumers in various countries seeking expedited delivery.
2. Advanced digital infrastructure
High smartphone penetration and a stable internet environment are fueling the growth of e-commerce. Consumers prefer shopping via mobile apps and expect a convenient experience during the purchase process.
3. Transparency of the legal and regulatory environment
Regulations such as the Personal Data Protection Act (PDPA), the GST (Value Added Tax), and the Consumer Protection Act are clear, providing businesses with greater predictability. In particular, the recent strengthening of platform liability for trademark and copyright infringement is creating a favorable environment for brand protection.
4 Projected e-commerce trends in Singapore for 2025
- Improving customer experience with AI and chatbots: Personalized recommendations and quick customer responses are contributing to increased sales.
- The rise of social commerce: With the recent popularization of TikTok and Instagram-based shopping, marketing strategies utilizing short video content and live broadcasts are seeing enormous success.
- Introduction of a simple payment system: It is essential to increase customer convenience by introducing local simple payment systems such as PayNow and GrabPay.
- Sustainability and eco-friendly delivery: Singaporean consumers are highly interested in ESG (Environmental, Social, and Governance) issues, so eco-friendly packaging and carbon-neutral delivery are also positively evaluated.
5 Proven strategies that deliver results in Singapore’s e-commerce landscape
1. Establishing brand trust
Singapore is a market that values intellectual property rights and trademarks. It’s crucial to register brand logos, product names, and other items in advance and establish a monitoring system to prevent counterfeiting.
2. Localization
To effectively target local customers, you should operate both English and Chinese websites and prepare marketing events tailored to shopping events and public holidays, such as 11.11 and Black Friday.
3. Active marketing
Viral marketing using social media and product reviews by influencers is effective. Video content, in particular, has a high conversion rate.
4. Regulatory compliance
It is necessary to thoroughly review and respond to legal requirements, such as personal data protection based on the PDPA, GST registration, and compliance with consumer protection laws.
5. Collaborate with partners
We also recommend working with local partners specializing in logistics, customer service, taxation, and accounting to improve operational efficiency.
Conclusion
While seemingly small, Singapore boasts a strong purchasing power, a digitally savvy consumer base, and a position as a global logistics hub, creating an environment ideal for e-commerce. As of 2025, the growth of mobile and social commerce, coupled with strengthened legal protections, is further enhancing its stability and growth potential.
If you’re planning to enter the e-commerce market, building trust with Singaporean consumers through thorough market research, localization strategies, and regulatory compliance is essential. Since even small differences can make the difference between success and failure, meticulous preparation is crucial to seize the opportunity.
Premia TNC provides a comprehensive one-stop solution, from company formation to tax and regulatory compliance, tailored for the Singapore e-commerce market. We serve as your strategic partner to ensure a smooth and successful market entry.
Premia TNC Singapore Team
Author
Premia TNC Singapore is a dynamic team of experts dedicated to supporting businesses and entrepreneurs as they establish, manage, and grow their presence in Singapore and across the region. Premia TNC Singapore specializes in providing tailored corporate services, from company incorporation and compliance to tax planning and accounting. With our extensive experience and deep understanding of the local regulatory environment, we are here to make business operations smoother and more efficient.
