Singapore is South-East Asia’s smallest country spread over just 719 square kilometers, yet it has one of the region’s biggest ecommerce market spreads. Singapore’s ecommerce revenue is projected to reach USD 7.29 billion in 2022. This assumes huge significance in a matter of comparison, as Singapore closely follows behind Malaysia, the fourth largest country in South-East Asia with a projected ecommerce revenue of USD 10.12 billion in 2022.
Why is Singapore's Ecommerce story a Grand Success?
According to the World Bank, Singapore has been ranked right at the top as the best country in Asia to do business, and the second best globally. The country also has an enviable Internet coverage of 90 percent, which is amongst the highest in the world driven by robust mobile and fixed Internet infrastructure. Singapore’s smartphone usage stands at a good 78 percent of the population.
Out of a population of 5.87 million citizens, 90 percent or 5.29 million Singaporeans are connected to the Internet. Singapore’s active online shoppers are expected to touch 4.1 million in number by 2025. The average annual online spend of users in the country is USD 1,618 which is among the highest in the region. Growth is racing ahead with 75 percent of Singaporean consumers aged 18 to 29, using their mobile devices to shop. Around 47 percent of all ecommerce transactions are carried out using mobile devices. The annual mobile commerce growth rate is outdoing the overall ecommerce growth rate, at a compounded 13.6 percent to become a USD 4.8 billion market by 2023.
Singaporeans favor cashless methods to pay for products purchased online. According to WorldPay Global Payments Report 2021, Singaporeans’ top three preferred payment modes are credit cards, digital wallets and bank transfers. The cash on delivery payment mode is the least preferred option of payment.
According to Semrush, a reputed SaaS platform offering keyword research and online ranking data, the first and second ranked ecommerce marketplaces in Singapore by monthly traffic in May 2022 were Lazada and Shopee. This blog also focuses on Qoo10 and Zalora as they are some of the fastest growing marketplaces in Singapore.
As an aspiring ecommerce seller, the most important decision to take is which ecommerce marketplace you will associate with to showcase your products for selling to millions of shoppers. Each has its own unique selling propositions. Let us discover them for you, so that you can make an informed decision.
The Lazada vs Shopee vs Qoo10 vs Zalora Analysis
One of the earliest ecommerce marketplaces to launch in Singapore was Lazada which opened in 2012 with a clear mission to be the Amazon of South-East Asia. A decade later, in May 2022 Lazada earned a virtual footfall of 17.9 million, the highest number vis-a-vis its competitors, which was an increase of 3.4 percent compared to the preceding month. The average time spent by an online shopper in the Lazada portal was 13:09 minutes.
The James Z Dong led Lazada with a headcount of 10,000 has been funded to the tune of USD 4.6 billion and latest revenues stand at USD 1 billion. Apart from Singapore, Lazada has operations spread across Indonesia, Malaysia, Thailand, Philippines, and Vietnam. Its product categories include fashion, electronics, baby food, and home decor amongst others. As a seller, to know more about how Lazada functions overall click right here: Lazada University. The company’s ‘Growth Center’ division assesses the seller’s store health with key metrics and analytics.
Lazada does not charge commission or selling fee if you are a local seller. Registration for a sellers’ account is free. However, depending on the product type, Lazada charges LazMall sellers, especially established global brands a commission rate of 1 to 4 percent. The rates go higher depending on which country the seller is based in. The commission structure has to be kept in mind as it dictates your pricing if you prefer good profit margins. As an ecommerce seller, your payment related queries to Lazada can be answered by clicking the following links: when do I get paid; what is seller balance and seller balance guide. Lazada Singapore does not accept cash upon delivery mode of payment.
If you have an eye on the delivery options for your products, Lazada has partnered with logistic vendors like Ninja Van, CJ Logistics, Singapore Post and J&T Express. To maintain a high level of customer satisfaction, Lazada has drawn up its late shipment penalty which is very important for the seller to be aware of. Meanwhile Lazada’s sellers can heave a sigh of relief regarding security as it uses 128-bit SSL (secure sockets layer) encryption technology when processing financial details.
Shopee began its Singapore operations in 2015 and is always in a neck-to-neck race with Lazada. In May 2022 an online traffic of 13 million visitors graced its portal spending an average duration 18:17 minutes per visit. The traffic saw an increase of 0.5 percent from April 2022.
The 30,000 strong Shopee has Chris Feng at its helm with revenues touching USD 1.8 billion. The company has 300 million users in South-East Asia running across Singapore, Malaysia, Philippines, Thailand, Indonesia, Vietnam, and Taiwan. Shopee is doing well in the home & living, women’s apparel and health & personal care product categories. As a seller, to know more about how Shoppe functions overall click right here: Shopee Seller Education Hub. The company offers its sellers an analytics tool called ‘Business Insights’ on its Seller Center and Shopee App, giving insights on sales trends and performances.
Shopee does not charge any commission from its sellers. Registration for a sellers’ account is free. However, this is not the case for established global names like Microsoft, L'oreal and Adidas selling on Shopee Mall who are billed a commission fee ranging from 3 to 5 percent.
As an ecommerce seller, your payment related queries to Shopee can be answered by clicking the following link: How do I get my payment?
Qoo10 rolled out its services in Singapore from 2010 onwards. May 2022 saw Qoo10 claiming 2.4 million visitors who checked out its product gallery for an average of 13:45 minutes per visit. It has done well to register 14.4 percent more visitors in May against the month of April 2022.
With a modest staff of 600 under the incharge of Ku Young Bae, Qoo10 has managed to get a funding of USD 82.1 million and fetched revenues totalling USD 60 million. Qoo10’s operations are significantly centered in Singapore and Japan. However, it is ambitious for a presence across South-East Asia and has partnered with many shopping centers and chains in the region. It has a more exclusive nature geared towards selling fashion and beauty products, especially Korean brands. Apart from fashion and beauty, it is increasingly stocking electronic devices and home appliances in order to push the envelope further. As a seller, to know more about how Qoo10 functions overall click right here: Qoo10 Seller Register.
The company charges the sellers fees for completed transactions such as Basic Fees, Option Item Fees, Shipping Charge Fees and other service fees for marketing and promotion activities. Registration on Qoo10 is free but USD 100 must be paid as a deposit. After that a service fee of 10 to 12 percent of the total transaction amount is charged for normal sellers; and similarly 8 to 10 percent, and 7 to 9 percent for good sellers and power sellers respectively. As an ecommerce seller, your payment related queries to Qoo10 can be answered by clicking the following link: Terms and conditions at Qoo10.
Qprime and Qxpress are its logistics partners. According to Qoo10’s user agreement, if a seller fails to deliver purchased items on time to the buyer, or if the seller delivered to a wrong address which is not the buyer’s fault, then the seller shall bear all liabilities or face action from Qoo10. The company also reiterates that its security policy for customers and sellers are stringent.
Functioning since 2012, Zalora, a premium online fashion and lifestyle marketplace in Singapore, ushered in 507,000 visitors who on an average spent 18:29 minutes there in May 2022 albeit facing a decrease of 3.7 percent when compared to the previous month. A 2000 strong company, the Gunjan Soni led company has been funded for USD 238 million with revenues adding upto USD 337.6 million.
With 300 fashion brands under its belt, it has a wide presence in South-East Asia throughout Singapore, Indonesia, Malaysia & Brunei, Philippines, Hong Kong and Taiwan. Zalora’s product portfolio ranges from apparel, shoes, accessories, to beauty products for men and women.
As a seller, to know more about how Zalora functions overall click right here: Zalora Sell With Us. Zalora’s data-solutions service ‘Trender’ helps sellers to devise brand strategy across all sales channels through data analytics on buying behavior, consumer insights, geo segmentation, pricing and design intelligence.
The Zalora marketplace can be accessed through registration for free. There is no fee charged for monthly up-keep. However, after uploading multiple images of a product there is a monthly charge for certain types of photo listings depending on the products. Commission fees ranging from 10 to 30 percent will be levied based on the product type or Zalora’s policies. Returned products also incur hidden charges. As an ecommerce seller, your payment related queries to Zalora can be answered by clicking the following link: Zalora Seller Center. The seller should also note that only certain products can avail of the cash on delivery mode of payment.
Zalora had introduced Zalora Now Express Delivery from February 2020, which offers a next-day delivery option only available within Singapore. The company has tied up with local delivery couriers like Singpost and NinjaVan. Zalora levies penalties if the seller does not adhere to its fulfillment performance assessment based on various factors. On the security front Zalora claims that its website is fully payment card industry (PCI) data security standard compliant.
Which Ecommerce Marketplace in Singapore is Ideal for You?
The best ecommerce marketplace for you is not the best conclusion to arrive at the instance of others. You need to process all the information given above and decide what is suited for your business. However, for your best interests it is prudent to consider selling on multiple platforms to reach a wider target audience, increase your online store’s visibility, get your sales multiplied during national holiday shopping events, and keep a backup in case you run into problems on a particular marketplace.
How Hopstack Can Help You
Hopstack integrates with all ecommerce marketplaces in South-East Asia. When an ecommerce seller gets an order on any of these marketplaces, the order gets synced with the Hopstack Platform in tandem with the inventory kept at the seller’s warehouse. The count of the inventory at a particular warehouse of the seller is shared between all the marketplaces associated with the seller. If the inventory is out of stock the same is communicated to all the marketplaces. So Hopstack acts as a control room for real-time inventory synchronization and reconciliation between the different sales channels which includes the marketplaces. Thus management of inventory levels and matching of your stock records at hand with what you physically have in your store is possible for quick updation. Read about How Hopstack Solves Multi-Channel Order Synchronization to know more.
We can also give you a first hand account, where you can directly interact with us by scheduling a demo.