More people from around the world are shopping online, and Singapore has recently seen a surge in the amount of e-commerce activity. According to a infographic put together by Flipit.com, the total e-commerce revenue prediction for 2015 is $4.4 billion. Flipit attributes this increase to a number of factors: increased Internet access via mobile devices, lower prices, better selections, rising rental prices and labor crunch. These factors have driven up the amount of revenue driven by online shopping several billion dollars over the course of a few years.
According to Export 2 Asia, ecommerce transactions accounted for only $1 billion in 2009 and by 2014 the total was up to $3.5 billion. Mobile phones have driven this growth tremendously. Around 50 percent of all E-commerce business is conducted via mobile devices, and around 90 percent of those transactions are completed with a smartphone, reported Export 2 Asia. This is expected to continue as time goes on and smartphones become even more popular in Singapore. Export 2 Asia listed Singapore as the country that has the greatest penetration of smartphones worldwide.
Global recession may have led to ecommerce boom
Singapore was hit fairly hard by the global recession. Export 2 Asia claims that this may have ultimately contributed to the rise of the e-commerce market in the country. The high unemployment rate and housing costs caused more people to search for the best possible deals online. E-commerce is great for comparing and contrasting items and their prices.
What this means for the country and the continent
Singapore has always been known as a shopping capital. According to Export 2 Asia, the country is called one big shopping center, meaning there are malls and places to buy goods all over Singapore. This shift to more e-commerce payments and shopping could drastically change the environment of the nation. While the brick and mortar stores obviously won't disappear overnight, if they can't learn to capitalize on the new e-commerce shopping trend, or find a way to bring customers back into the store, there could be trouble for many businesses.
When Singapore's e-commerce boom is considered from a view that takes in the whole region and the rest of the world, it appears that Singapore is simply following other trends. Forbes notes that other countries are seeing a rise in e-commerce sales as well. Singapore's close neighbor Malaysia and further north China are both seeing dramatic rises in the amount of Internet shopping and online payments being made.