Thursday, March 28, 2024

Breaking down the top four e-commerce platforms in Singapore

In one of our , we explored the future of retail and began with the rise of e-commerce amidst a VUCA world. Although patrons can look forward to increased capacity limits and group size restrictions in malls during the Phase 3 period, the new normal of working from home and entry restrictions in malls/establishments remain.

Regardless, e-commerce is not likely to lose its reign – as always, convenience is king. According to analysts, the top four e-commerce platforms in Singapore based on monthly online traffic are Shopee, Lazada, Qoo10, and Amazon. The government has also identified these four platforms as e-commerce partners in their E-commerce Booster Package to support businesses' digitalisation.

Although companies might have an online presence via their page (eg. Instagram, Facebook), these may not be sufficient to drive online sales, and e-commerce platforms offer holistic solutions to achieve this. Due to the additional services offered, starting an e-commerce business or opening an e-commerce account may not be as straightforward as there are many factors to consider to ensure the right platform is chosen.

If you are just beginning your research on e-commerce platforms, this article would be an excellent place to start to cover the bases while we cover the cost aspect of each platform.

Set-up & registration

The costs of set-up and registration vary across platforms. Within each platform, there are also different tiers depending on the level of selling activity. The infographic below is a brief breakdown comparing the set-up/registration needs of each platform.

Breaking down the top four e-commerce platforms in Singapore - 3

Commission

Depending on the level of business activity, e-commerce platforms also charge a commission fee for successful transactions. The rates vary across platforms and are summarized in the following infographic.

Breaking down the top four e-commerce platforms in Singapore - 1

For in-depth details on each platform's commission/service fee charges, do visit their official websites – AmazonShopeeLazadaQoo10.

Delivery & shipping

Getting your first order on an e-commerce platform is only half the job done as the product would then need to be delivered to the customer. Some e-commerce companies partner-up with local delivery providers to ship out/deliver your product while others will have their own internal delivery service. Businesses selling on their e-commerce platforms can also choose to engage the platform's fulfilment centre if they wish. The following infographic tersely covers the information on delivery and shipping.

Breaking down the top four e-commerce platforms in Singapore - 2

For specific details on the shipping rates/calculations & fulfillment centre fees that each platform provides, do head on to their official websites – Fulfilment by LazadaLazada Shipping Fee Rate CardQdelivery Service by QxpressShopee Supported LogisticsFulfilment by Amazon fees.

Starting an e-commerce journey requires much research and the above is a non-exhaustive summary of the costs involved in running an e-commerce business. Other aspects that are worth taking note of would be the type of product a business is focusing on, and the chosen platform's market presence as each platform have strengths in different product categories and serve different markets. This would obviously play a big role as it helps businesses plan and align their needs accordingly to their target consumer base and product. The exciting world of e-commerce awaits you.

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Kim Casper
Kim Casper
Kim is a freelance writer at Tech Edition. As a lifelong learner, Kim aims to be a multi-disciplinarian in design x technology. With a penchant for adventure, she enjoys video games like the Metal Gear series and Horizon Zero Dawn.

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