Singapore's e-commerce sales are expected to exceed US$14 billion by 2027

Singapore's e-commerce sales are expected to reach a staggering US$14 billion (S$19.6 billion) in 2027 , despite inflationary pressures and supply chain disruptions in 2022 , according to a report released on Tuesday by Facebook parent Meta and Bain Group .

The forecast reflects a long-term bullish outlook for Southeast Asia , as the number of online consumers in the region has been growing steadily.

The latest Sync Southeast Asia report states that by 2027, online consumers in Southeast Asia are expected to account for 88% of the total population, or 402 million people.

Singapore's e-commerce sales are expected to grow to US$9 billion in 2022 , from US$8 billion in 2021 , but this is far lower than the 73% year-on-year sales growth in 2021.

However , this year, Singaporean consumers have a higher average order value per order , with the average order value increasing from US$119 in 2021 to US$131 in 2022.

At a media briefing on Tuesday, Bain Group co-founder Praneeth Yendamuri said the growth was driven by consumers’ growing familiarity with online shopping platforms and more frequent promotions .

He added that e-commerce sellers ' shortened delivery times, improved supply security , product quality and return policies also helped boost customer spending .

The survey was launched in June this year and interviewed 16,000 consumers in six Southeast Asian countries including Singapore.

Although offline shopping channels have seen a certain degree of recovery as epidemic prevention measures have been relaxed, online channels remain an important shopping channel for consumers in the region.

About 97% of Singapore ’s population aged 15 and above have tried online shopping , which is much higher than other countries in Southeast Asia.

The report found that about three-quarters of Singaporean consumers use online channels such as social media to discover and evaluate products.

About 31% of Singaporeans said they purchased more products recommended by social media influencers in 2022 compared to last year.

The research found that after the outbreak of the epidemic, Southeast Asian consumers are shifting to a new stage, and young consumers are now very interested in comprehensive shopping experiences that integrate online shopping and offline services, which will continue to drive e-commerce growth in the region.

"As more consumers engage, we are also seeing the rise of an innovative economy in the region," said Benjamin Cho, Meta's vice president for Southeast Asia and emerging markets.

Singaporeans are also ahead of other countries in the region in embracing new technologies.

More than 40% of Singaporeans have used VR-related technologies such as cryptocurrencies and non-fungible tokens (NFTs) in 2022. Nearly 50% of Singaporeans have used fintech solutions such as online banking and e-wallets in the past year.

The research found that Southeast Asia has an even higher penetration rate of e-wallets, cryptocurrencies and NFTs than markets such as China, the United States, the European Union and Japan , and nearly 70% of consumers in Southeast Asia used at least one VR-related technology last year.

Singapore

E-commerce