If you’ve purchased anything online in the past 24 hours, try thinking of the things you’ve bought. And why you got it on the Internet instead of a brick-and-mortar store.
And just like that, you’ve gained some quick and easy insight into why online shopping is growing and is most likely to continue growing in the foreseeable future, particularly in one of the region’s fastest-growing e-commerce markets.
Already hitting the SGD8.3 billion-mark in 2019, Singapore’s e-commerce market is expected to reach SGD9.5 billion this year. Quoting findings by iPrice Group, The Asean Post points out how Singaporeans spent an average of USD83 online in the first half of 2020, with the average basket size increasing by 51% compared to the same period, last year.
Many of us will find it easy to see how e-commerce came to enjoy its rapid rise in current Covid-driven business conditions, and how business owners across verticals increasingly find it necessary to start selling online.
If you’re one of these entrepreneurs or among the many who have already adopted an e-commerce business model, you may find it helpful to take a look at ongoing trends in what people are buying, and where.
And if you’re an aspiring entrepreneur looking to get into e-commerce as a way to succeed in the “new normal” economy, you might find it helpful to look at trends that suggest practical courses of action.
What are people buying?
Several retailers with physical stores like Esprit have had to close shop due to present circumstances. With pretty much everyone staying at home to help stop the spread of the virus, they’ve all but turned to online shopping alternatives. And it hasn’t just been for scratching the proverbial retail therapy itch, either.
E-commerce logistics solutions provider, Janio identifies the following top categories of items that Singaporeans have been snapping up online since the outbreak began:
● Groceries
● Snacks
● Personal hygiene supplies
● Health supplements
● Work-from-home equipment
● Sports and fitness gear
● Board games
● Arts and crafts materials
The Asean Post likewise notes how clothes have become a favourite purchase during the pandemic, and how the webcam became the most in-demand work-from-home gadget, as webcam sales in Singapore skyrocketed by 82% in March this year.
It’s also interesting to note how these items aren’t limited to essentials like rice or toilet paper or even to home office accoutrements, but likewise include decidedly “non-essential” purchases such as yoga mats or paint and brushes.
This trend may be attributed to the growing prevalence of the homebound lifestyle. It might encourage entrepreneurs who may be reluctant to venture into alternative verticals rather than food and other essentials.
Where are people buying?
Speaking of food, Accenture reports on how revenue per online transaction for restaurants, cafes and fast-food delivery has spiked by about 50%, even after the massive Covid-caused hits sustained by the F&B industry at large. Revenues and transactions went up by 281% and 129% respectively during the Circuit Breaker compared to a regular week.
Online food delivery services like Grab and Foodpanda have also seen surges in the number of orders and new customers. In contrast, express delivery services such as Ninja Van have reported particular increases in pharmacy or healthcare deliveries. Rewards and discovery platform, ShopBack has enjoyed significant correlated growth during this time, as well.
Another key e-commerce trend is the rise of online supermarket shopping via platforms belonging to the likes of NTUC FairPrice. But shopping for groceries online isn’t the province of supermarket chains alone, as it plays a crucial role in the growth of Singapore’s leading e-commerce platforms—RedMart, for instance, is the grocery arm of Lazada.
As to which specific platforms are leading the pack, the top five listed by Tech in Asia based on the Map of E-commerce report by iPriceGroup and SimilarWeb are:
1. Shopee
2. Lazada
3. Qoo10
4. Amazon.sg
5. Ezbuy
Though the only multinational kid on an otherwise proudly Singaporean block, Amazon continues to gain ground in the local e-commerce market. From 751,467 visitors in the first half of 2019, Amazon saw more than 19.4 million visits to its platform in the first six months of this year.
What's your e-commerce game plan?
For businesses that have had to go online this year, taking to e-commerce isn’t so much a jump on the bandwagon as it is a fight for survival. And because there’s just no telling when the pandemic will really come to an end, business owners can expect their customers to continue shopping online.
Here are some quick pointers for entrepreneurs venturing into e-commerce or working on improving their online business operations:
● Make sure you use crisp, well-designed images for your products or services
● Make sure your website is set up properly for e-commerce and data security
● Make sure you have a consistently stocked inventory and that your logistics are sorted out
● Make sure you pay attention to feedback from customers who are becoming more discerning
● Keep watching the latest e-commerce trends and technology like virtual showrooms
● Keep your eyes peeled for ways in which e-commerce platforms support entrepreneurs
● Keep an eye out for government support for businesses like yours during the pandemic
● Keep tabs on government regulations for e-commerce which are continually evolving
To receive in-depth instruction and guidance on the ins and outs of starting and growing an e-commerce enterprise, SMU Academy offers the Certificate in E-Commerce programme. This eight-module programme equips participants with the necessary skills for building an e-commerce website on WordPress and using the WooCommerce plug-in.
Modules likewise cover the digital marketing aspect of e-commerce, which includes search engine and social media marketing as well as persuasive copywriting and content creation. The Lean approach to business operations will also be covered, along with ways for brick-and-mortar businesses to make the transition to operating online.
Conducting the online classes for these modules are a powerhouse team of instructors, including the co-founder of e-commerce furniture store HipVan, Deborah Wee, and Mediafreaks Group General Manager and SMU Adjunct Lecturer, Adrian Chye. Media Freaks Project Directors Andrea Tan, Song Lili, and Ang Hui Xuan will be joining them in the virtual classroom.
Click or tap here to find out how you can set yourself up for success in the e-commerce space during the current situation and beyond, today.
