Amazon Singapore: Market Potential and Seller Registration Guide

At the end of 2019, Amazon announced that it would open its Singapore site to Chinese sellers. Singapore not only has a very high Internet penetration rate, but its young consumer group and unique payment habits also provide fertile ground for cross-border e-commerce.

Singapore market characteristics

High Internet penetration

According to survey data, Singapore’s Internet penetration rate is very high, especially in terms of 4G network coverage. From June 2018 to November of the same year, in just half a year, Singapore’s three major operators M1, Singtel and StarHub jointly increased the 4G penetration rate from 82.6% to 87.1%, an increase of more than 4%. This shows that Singapore has a complete network infrastructure and is suitable for the development of e-commerce.

Characteristics of consumer groups

Singapore’s main online shopping consumer groups are concentrated in the age group of 25 to 34, accounting for about 38%; followed by people aged 35 to 44, accounting for 27%; and thirdly, students aged 18 to 24, accounting for 27%. than 14%. Among them, consumers aged 25 to 34 pay more attention to discounts and promotions, while young people constitute the main force of the online shopping market.

Shopping preferences

Singaporean consumers are more willing to purchase lower-value goods online, such as travel products (64%), clothing, shoes and hats (57%), and entertainment products (48%). In contrast, Singaporeans are more inclined to purchase high-value products offline, such as home appliances and sporting goods.

Payment method

Unlike other regions in Southeast Asia, credit cards are the most commonly used payment method among online shoppers in Singapore, accounting for 79%. Followed by PayPal, accounting for 12%. Only a small number of users will choose to pay eNETs or other payment methods locally.

Seller Registration and Sales Policy

Registration process

If you want to become a seller on Amazon’s Singapore site, you must first visit the official website and select “Become a Seller”, and then complete the relevant information, including but not limited to business information, bank account details, etc. After completing the registration, you still need to wait for the official review. Once passed, the products can be launched online.

Sales Policy

• Product information: It must be accurate and consistent with the actual product;
• Pricing strategy: Follow the platform rules and must not be lower than the minimum selling price;
• Logistics and distribution: Ensure on-time delivery and provide tracking information;
• After-sales support: Provide high-quality customer service and quickly handle return and exchange requests.

Payment methods

Sellers can receive payments via bank transfer, using Amazon Checkout, or accepting gift card payments.

Conclusion

Singapore is a leader in the e-commerce market in Southeast Asia. Its highly developed network environment and mature and stable consumer base give Amazon huge development potential here. For new sellers interested in entering, understanding local cultural customs, consumption habits and platform rules will be the key to success.