Wish to launch a successful ecommerce business in Singapore? What are some of the key factors you need to consider before setting up your online store?
The e-commerce landscape in Singapore is thriving, driven by several key factors and trends. As of 2024, the market is valued at approximately USD 5.04 billion and is expected to grow at a compound annual growth rate (CAGR) of 11% to reach USD 8.4 billion within the next five years.
Furthermore, Singaporean consumers have high purchasing power and are comfortable spending online. The average online shopper in Singapore is estimated to spend about USD 785 annually, with a high basket size of USD 67.40.
Traditionally, businesses tap on platforms like Shopee, Lazada, and Carousell to sell their products. However, competition is intense on these platforms with many offering discounts and perks to attract customers.
As a digital marketing agency serving SMEs, we are seeing more and more businesses having successes with setting up their own ecommerce stores and reaching consumers directly via Facebook and Google ads. Here are the traits of successful ecommerce companies in Singapore.
Key Traits of Successful Local Ecommerce Businesses
Let us now look at some of the characteristics of the top Singapore ecommerce brands, and study what they do.
#1 Sell Your Own Brand
Avoid selling widely recognized brands like HP or Philips, as price comparisons make it difficult to compete. Instead, focus on selling your own branded products. By establishing the value of your unique offerings, customers are more likely to choose your brand, even if it isn’t the cheapest option.
Examples of highly successful Direct-to-consumer brands in Singapore include Prism, Secretlab and Razer. Establishing their own brands meant that these companies are able to keep costs low while passing the savings to consumers. For a start, it is important to focus on a niche and serving a specific target audience in order to gain traction. In the case of Secretlab, they started with gaming chairs for gamers before expanding to other products. Likewise, Prism only sold TVs at the start.
#2 Target Impulse Purchases
Having ran so much Facebook ads, we found the optimal price range for getting purchases on Facebook is below $100. Aim for a price range that encourages impulse buying, typically under $100. Facebook ads work well for these lower-priced items as users are often casually browsing.
High-ticket items require more consideration, which can lead to lost interest over time. Impulse-friendly pricing ensures quicker purchase decisions and better conversion rates.
You can always sell expensive products once the customer starts buying from you. The key thing is to gain the foot in the door. Thereafter, you can try to upsell them higher value products in order to improve your Customer Lifetime Value (CLV).
#3 Combine Service with Product
To differentiate in the local market, combining services with your products can be highly effective, as consumers are willing to pay for added convenience.
For instance, the e-commerce jewelry store Hoseiki offers free in-person bazi readings to help customers choose the right fengshui bracelet based on their bazi. This service allows them to charge a premium while attracting many customers.
Similarly, Curious Creatures provides an in-store customization service for friendship bracelets, setting them apart from global competitors who lack a physical presence in Singapore. At a higher level, product businesses often evolve to include services, and service businesses start offering products, creating a unique market position.
#4 Expand Beyond Products
Ecommerce isn’t limited to physical products; service-based companies can also thrive. By offering online sales for trial sessions or deposits for full packages, you can capture a share of the ecommerce market.
This approach reduces no-show rates, automates payment processes, and offsets advertising costs, making your marketing efforts more cost-effective.
Examples of services that can do well on ecommerce may include personal services like health and wellness consulting, education, creative services (graphic design, photography) and similar others.
#5 Innovate On the Offers
If you have many other similar products competing against your product, fret not. You can innovate on your offer. An offer is independent of your product. It is a bait that you put out to attract your target
In the case of a supplements company, the offer we used was a 7 days free trial, followed by monthly subscription. Once a customer signs up for this offer, they try the supplement for 7 days for free while they only pay for shipping. After which, they are enrolled into the monthly plan. This offer worked very well and generated additional revenue in the 6-figures range. We experimented with a number of offers such as selling 30 days supply upfront or 1-for-1 deal etc, but nothing beat this particular 7 days free trial offer in terms of the sales results.
This approach is effective for several reasons.
First, we mitigate the risk for customers trying out a new product by offering it at $7 for shipping. Since they are unfamiliar with our product and unsure if it is legitimate, lowering their financial risk encourages them to give it a try.
Second, we recognize that people have busy lives, so we designed an opt-out system instead of an opt-in one. Even if customers enjoy our product, they might not repurchase due to forgetfulness or the hassle involved.
By enrolling them in a monthly plan automatically, we ensure continuity while giving them the freedom to cancel at any time.
Keep in mind that customers are not locked into a monthly plan; they can opt out or request a full refund at any time. Despite this flexibility, our refund rate is exceptionally low, at just 1%
Conclusion
The e-commerce landscape in Singapore is vibrant and rapidly evolving, driven by high consumer purchasing power and advanced digital infrastructure.
By focusing on unique branding, impulse-friendly pricing, and combining services with products, local businesses can successfully navigate the competitive market. The examples of successful D2C brands like Prism, Secretlab, and Razer highlight the potential for growth through strategic niche targeting and innovative offerings.
With these insights, businesses can effectively tap into Singapore’s thriving e-commerce sector and achieve sustained success.
Author
Ted is the co-founder of Ice Cube Marketing, a digital marketing agency that is a Google Premier Partner and a Meta Partner serving SMEs since 2015.
Apply the insights from the article to other relevant contexts for broader impact and relevance.