SME  /  E-COMMERCE

By Eric Tan | First published: May 30, 2023  Updated: January 29, 2026

Singapore’s e-commerce landscape is entering a more competitive phase, shaped by online marketplaces, social commerce, and rising expectations around delivery and payments. We break down the key trends local SMEs need to know to stay relevant and grow with confidence.

• Singapore’s e-commerce landscape is maturing rapidly, driven by mobile-first consumers, cross-border shopping, and SME digitalization.
• Online marketplaces and social commerce now shape buying behavior, as livestream selling and “shoppertainment” drive discovery and immediate purchases. This creates sharper demand spikes for SMEs.
• Seamless delivery and flexible payment options are critical differentiators, defining whether customers complete purchases and become return shoppers.

Singapore’s e-commerce market has moved well beyond its pandemic surge. Today, it’s a sophisticated, fast-evolving ecosystem defined by digital-first consumers, platform-led selling, and rising expectations around delivery and payments.

For small businesses, keeping up isn’t about chasing every new trend – it’s about choosing the right ones and building the capabilities to scale with confidence. Here’s what’s shaping Singapore’s e-commerce landscape today, and how your business can respond.

1. Singapore’s e-commerce ecosystem is maturing – fast

Singapore remains one of Southeast Asia’s most advanced digital markets. Strong consumer trust, high smartphone penetration, and supportive regulations have helped e-commerce become a core retail channel.

Industry forecasts expect Singapore’s e-commerce market to reach USD 24.8 billion by 2028, driven by mobile-first shopping, cross-border demand, and ongoing SME digitalization. Singapore consumers are also among the region’s most confident cross-border shoppers, with 98% being comfortable with buying from overseas e-merchants – higher than the global average of 89%.

While this offers massive opportunities, it also creates stiffer competition. To stand out in Singapore’s e-commerce industry, businesses need sharper execution across channels, logistics, and the customer experience.

2. Online marketplaces are now the main growth engine

Online marketplaces have become the default starting point for many shoppers and now account for the majority of global e-commerce. In 2024, marketplaces generated 62% of global retail e-commerce sales, totaling USD 2.4 trillion.

Platforms like Temu, Shein, and AliExpress leverage direct manufacturer-to-consumer models that streamline supply chains and pass cost savings on to shoppers. Marketplace customers also value the convenience of browsing, paying, and tracking orders all in one place, especially during peak sales events.

For Singapore SMEs, these marketplaces offer reach, built-in trust, and lower barriers to entry. They can also amplify volume spikes. Flash sales, livestreams, and influencer-led campaigns can drive sudden demand, which means fulfillment needs to scale just as quickly. This is where reliable, flexible delivery becomes a competitive advantage beyond its backend function.

3. Social commerce and “shoppertainment” offer new ways to discover brands

Speaking of influencer-led campaigns, social platforms are increasingly becoming where the shopping journey begins – and ends.

Social commerce in Singapore was expected to account for up to 34% of the country’s overall e-commerce market in 2025, with a CAGR of 15.6% between 2025 and 2030. Live commerce, short-form videos, and influencer-led selling are fueling this rapid growth.

While social commerce generally refers to selling products on social media, live commerce takes it a step further by enabling hosts to engage shoppers in real time via livestream. In fact, live commerce may yield conversion rates about 10 times higher than traditional e-commerce, thanks to its ability to sustain viewer interest and inspire impulse purchases.

Platforms like TikTok are even blending entertainment and e-commerce to create “shoppertainment”. This trend is changing how brands connect with consumers by offering a seamless, interactive experience from livestream to shopping to in-app checkout. Shoppers can move from discovery to purchase within minutes.

For SMEs, this means that logistics must keep pace with marketing. When a livestream performs well, customers expect the same reliable fulfillment they associate with established brands. Missed delivery promises can undo even the strongest campaigns.

4. Customer satisfaction is now defined by the delivery experience

While price and product still matter, the delivery experience increasingly decides whether customers will return. Customers in Singapore have higher expectations than ever and demand fast, personalized service at every touchpoint.

On the delivery front, consumers expect accurate tracking, predictable delivery windows, and easy delivery management on mobile. Meeting these expectations will be key to customer satisfaction, especially in digitally mature markets like Singapore. Delayed deliveries, missed handoffs, or the lack of visibility can lead to customer churn and negative reviews.

To keep pace with these expectations, small businesses can consider shipping services designed specifically for e-commerce growth. Choosing the right logistics solutions can equip SMEs with the agility to handle both everyday orders and seasonal sales spikes.

For example, FedEx International Connect Plus allows businesses to provide day-definite worldwide shipping, while enabling shoppers to choose their own delivery timings and locations. Integrating flexibility and control into your delivery experience can give your business a key advantage.

5. Payments are no longer one-size-fits-all

Payment preferences in Singapore continue to diversify and evolve quickly. Consumers expect their preferred payment method to be available by default – and when it isn’t, they’re more likely to abandon their cart altogether. Offering multiple payment methods helps your business reduce friction at the point of purchase, especially in mature markets like Singapore.

Today, digital wallets account for a growing share of e-commerce transactions, alongside card payments and Buy Now, Pay Later (BNPL) schemes. In 2024, digital wallets accounted for 39% of Singapore's e-commerce transaction value, rising from just 7% in 2014.

While digital wallets are on the rise, credit cards remain the preferred payment method among Singapore consumers, accounting for 50% of online transaction value. In fact, over 70% of digital wallets in Singapore were funded via credit cards.

BNPL services are also gaining traction, particularly among younger consumers who value flexibility and speed at checkout. While BNPL accounted for only 3% of e-commerce transaction value in 2024, 64% of Gen Zs and millennials say they have used it.

How can Singapore SMEs get ahead of these trends?

Success in e-commerce will be less about adopting these trends at once, and more about building a connected operation where marketing, payments, and logistics work together.

Here’s a quick checklist you can use to stay competitive:

• Meet customers where they shop. Make sure you’re actively selling on online marketplaces and social platforms.
• Plan for peaks, not averages. Seasonal sales spikes are normal, and your fulfillment strategy should be ready for them.
• Invest in the delivery experience. Speed, visibility, and flexibility directly affect repeat purchases.
• Reduce checkout friction. Offer payment options that your customers already trust and use.
• Think beyond borders early. Cross-border demand is built into Singapore’s e-commerce DNA.

As digital channels multiply and customer expectations rise, the most successful small businesses will be those that combine smart online engagement with dependable delivery and seamless payments. With the right foundation, SMEs can turn today’s e-commerce momentum into long-term growth – locally and beyond Singapore’s borders.