Local sellers, Global consumers: Capturing Singapore’s e-commerce export opportunity

Local sellers, Global consumers: Capturing Singapore’s e-commerce export opportunity

In a not-too-distant past, it was commonly acknowledged that companies had to be big to export. With e-commerce, micro, small and medium-sized enterprises (MSMEs) can export at significantly lower costs than before. In Southeast Asia, where rapid growth in business e-commerce adoption has occurred over the past decade amidst rising Internet penetration rates, e-commerce provides a platform for local MSMEs to gain access to a growing pool of foreign customers.

Singapore is no exception, with e-commerce adoption rates rapidly growing and cross-border e-commerce becoming an increasingly important opportunity for sellers. Despite the strong domestic e-commerce growth, the biggest economic prize is likely to lie beyond national borders.

AlphaBeta has conducted a study (commissioned by Amazon) to examine the economic significance of the e-commerce export opportunity for MSMEs in Singapore, Thailand and Vietnam.

For Singapore, we estimate that e-commerce sellers in the country currently earn an estimated S$1.4 billion from e-commerce sales made to overseas consumers annually, with 45% of these earned by MSMEs. If MSMEs were to accelerate the pace at which they adopt e-commerce for exports, this value could grow even further to reach S$3.5 billion by 2026, with 73% of this earned by MSMEs. MSMEs are cognizant of this opportunity: through a survey of over 300 micro, small and medium-sized e-commerce sellers in the country, we also found that 87% of them find that e-commerce is critical for their ability to export. However, they face challenges in regard to high cross-border shipping costs, navigating a complex landscape of importing regulations in foreign markets and not having the knowhow to cater to overseas consumer preferences.

A regional report on this e-commerce export opportunity is forthcoming.

Please click the button below to access the Singapore infographic.

More

Related Articles

Impact Assessments: Supporting AI Accountability

Impact Assessments: Supporting AI Accountability

Artificial intelligence’s applications span everything from healthcare and education to manufacturing and energy. Automation is influencing strategies across industry, but...

28 Jan 2023 Reports
Exploring the benefits of a future metaverse: What can we learn from current virtual reality applications?

Exploring the benefits of a future metaverse: What can we learn from current virtual reality applications?

The metaverse has the potential to redefine almost every sphere of our daily lives, from healthcare and education to work,...

23 Jan 2023 Metaverse Policy Lab
Tech Policy Trends 2023

Tech Policy Trends 2023

What does 2023 have in store for technology, policy, and regulation? 2023 represents a defining year for the tech sector....

17 Jan 2023 Reports
The Growing Digital Economy in the Philippines

The Growing Digital Economy in the Philippines

The Growing Digital Economy in the Philippines: Opportunities, Challenges, and Google’s Contributions Backed by strong government support, the Philippines’ digital...

7 Jan 2023 Reports