Market Trends of Singapore Last Mile Delivery Industry
Growth in E-commerce Driving the Market
Singapore has one of the world's strongest economies due to its wealthy population, opulent lifestyle, disposable income, and wide range of internet possibilities. With the quickest internet speed, it is ranked first in the world. Since the epidemic, there has been an increase in new users, and this is expected to continue as locals migrate to e-commerce platforms for more critical items like groceries. The growth of the E-commerce logistics business in Singapore has been boosted by the expansion of Internet services and rising demand for online logistics services. High internet penetration, the introduction of new businesses, enhanced logistical infrastructure, and government initiatives are all driving the Singapore E-Commerce Logistics Market, which is now in a stage of expansion.
E-commerce sales in Singapore are expected to reach USD 14 billion (SGD 19.6 billion) by 2027. E-commerce sales in Singapore are projected to grow to USD 9 billion in 2022, an increase from USD 8 billion in 2021. The effectiveness of their last-mile delivery strategy will be crucial to the expansion of e-commerce logistics providers. The convenience of placing orders is anticipated to increase collaborations with neighbourhood retailers and increased the adoption of digital wallets. Additionally, Singapore's E-Commerce logistics is anticipated to expand shortly thanks to advancements in technologies like GPS Monitored Robots, Drones, Driverless Deliveries, Inbuilt RFID, GPS, IoT, and telematics that will be utilised to track Inventory. Due to the increased device penetration, the average order value per transaction in the Singaporean e-commerce sector would rise. The transparency and security of the supply chain are predicted to improve with technological advancements, increasing cost-effectiveness. Also, in the upcoming years, commercial opportunities will be generated by the development of logistical infrastructures such as intermodal connectivity, logistics parks, and ports.
Increase in Cross-Border Shopping in Singapore
According to an industry report, cross-border e-commerce in Singapore in 2022 found that 54% of respondents stated that they shopped cross-border due to better prices. In comparison, 39% of respondents stated that they shopped cross-border because they discovered new and interesting products. Cross-border purchases have always been popular among online shoppers in Singapore. According to an industry report, nearly 78% of all shoppers in Singapore had already purchased from another country, while 55% of all online shopping in Singapore could be attributed to cross-border eCommerce and overseas eCommerce purchases by Singaporean shoppers, fashion and apparel accounted for 44% of the merchandise, while 18% of respondents purchased cosmetics. Specific eCommerce product categories, such as consumer electronics, toys, and cosmetics, are particularly popular among online shoppers across Singapore. Cross-border e-commerce would be further supported by a growing middle-class population, rising mobile internet usage that supports m-commerce, rising social media adoption that supports social commerce, and cutting-edge technology like blockchain that supports a variety of payment methods.
