Singapore’s E-commerce Market Overview in 2025

Singapore’s e-commerce landscape has grown rapidly into 2025, fueled by ultra-high-speed connectivity and strong government support for digital business. The market’s gross merchandise value (GMV) surged to around US$8.2 billion in 2022 and is projected to reach roughly US$11 billion by 2025. This represents a healthy growth trajectory as online shopping becomes increasingly ingrained in consumer habits.

User penetration – the share of the population engaging in e-commerce – stood at about 58.8% in 2024 and is on track to exceed 80% by 2029, reflecting broad digital adoption. Notably, Singapore boasts one of the highest average online spending per user in the region (over US$1,400 ARPU in 2024), underscoring the substantial online spending power of its consumers. Overall, Singapore has solidified its status as a hub for online commerce in Asia, with a relatively smaller market size made up for by affluent, tech-savvy shoppers and a robust digital ecosystem.

For foreign investors considering starting a business in Singapore, the e-commerce sector in 2025 presents considerable promise. Whether one’s focus is launching a retail platform, providing B2B e-commerce solutions, or introducing a new D2C brand to Asia, Singapore offers a stable, sophisticated springboard.

Forecasted e-commerce market size for Singapore’s overall online economy, comparing 2024 vs. 2028. Singapore’s total e-commerce sector – including retail, travel, and online services – was valued at about US$18.1 billion in 2024, and is on pace to grow at roughly 8.8% annually over the next few years. At this rate, the market could approach US$25 billion by 2028. This steady expansion is backed by strong consumer demand, nearly 96% internet penetration in the population, and pro-digital government initiatives (as part of Singapore’s Smart Nation agenda).

In 2024, online sales accounted for an estimated 13–15% of total retail sales in Singapore, a dramatic rise from just 5–6% pre-pandemic. E-commerce has thus become a mainstream channel, prompting most businesses to integrate online platforms into their strategy.

B2C E-commerce: A Mature and Diverse Market

Business-to-Consumer (B2C) e-commerce in Singapore is highly developed, with consumers enjoying a rich array of platforms and product choices. Major online marketplaces like Shopee and Lazada dominate the scene – for instance, Shopee contributed about 53% of Singapore’s e-commerce GMV in 2022 and attracts over 13 million monthly visits domestically. Lazada ranks second with roughly 6 million monthly visits, followed by Amazon and others, reflecting a competitive marketplace ecosystem. Popular product categories online are led by consumer electronics and telecom equipment (47% of online sales in 2022) and furniture & home appliances (30%), with significant sales also in fashion, food & groceries, beauty/personal care, and toys. This indicates that Singaporean consumers purchase both big-ticket items (electronics, furnishings) and everyday goods via e-commerce.

Consumer behavior trends point to frequent and high-value online shopping. The average Singaporean online order is about US$137, and nearly 60% of internet users shop online at least once per week – a frequency among the highest globally. Mobile commerce is especially prominent: over 63% of e-commerce purchases are made on mobile devices (smartphones), thanks to the convenience of apps and seamless payment integrations. Shoppers increasingly expect fast and reliable fulfillment; free shipping is a strong driver (57% cite it as a top purchase incentive), and even next-day delivery is becoming a common expectation in 2025. To meet these expectations, retailers have invested in logistics and omnichannel strategies – blending online and offline experiences – to provide consistent service across storefronts, mobile apps, and physical outlets. Studies show that robust omnichannel retailers in Singapore retain significantly more customers and enjoy higher revenue growth than those with single-channel focus. Payment preferences are also evolving: while credit/debit cards remain popular, 81% of e-payment users in Singapore use cashless methods for online purchases. Digital wallets and “Buy Now, Pay Later” (BNPL) installment options have gained traction, reflecting consumers’ comfort with fintech. Overall, the B2C e-commerce segment in Singapore is characterized by mature consumer habits, mobile-centric usage, and a demand for convenience, pushing businesses to continually innovate on shopping experience and customer service.

B2B E-commerce: Digital Transformation in Trade

Singapore’s strength as a global business hub is also propelling the growth of Business-to-Business (B2B) e-commerce. Companies in Singapore – from large enterprises to SMEs – are increasingly digitizing their procurement and sales channels, leveraging online platforms to transact with suppliers and clients. Globally, B2B e-commerce is enormous, and the Asia-Pacific region leads with roughly 15% annual growth in B2B online sales, outpacing the worldwide average. Singapore is at the forefront of this trend: it ranks among the top markets in cross-border B2B e-commerce readiness, behind only China and South Korea in Asia. This indicates that Singaporean businesses are well-prepared to engage in international e-commerce, aided by strong digital infrastructure and trade connectivity. In fact, Singapore’s strategic location and world-class logistics network make it an ideal base for regional e-commerce operations. The country is a major logistics and transportation hub – connected to over 600 ports and hosting regional distribution centers for global firms – which greatly facilitates B2B fulfilment and cross-border shipping. It’s no surprise that Singapore is often cited as the best-equipped e-commerce market in Southeast Asia in terms of infrastructure and efficiency.

Key sectors driving B2B e-commerce include wholesale trade of electronics, industrial and IT equipment, and fast-moving consumer goods, where businesses use digital platforms to streamline supply chains. Many firms are adopting e-procurement systems and B2B marketplaces (for example, tapping into Alibaba or global SaaS procurement platforms) to obtain supplies more efficiently. The Singapore government actively supports this digital transformation. It launched the Networked Trade Platform (NTP) as a one-stop trade information management system, which digitizes and automates trade document exchange for businesses. By reducing manual paperwork and expediting customs processes, such initiatives lower barriers for companies to participate in B2B e-commerce, especially in cross-border trade. Furthermore, Enterprise Singapore and other agencies offer grants and resources to help local enterprises build online export capabilities. While B2B e-commerce often happens behind the scenes, its growth in 2025 is significant – businesses are finding that going digital is not only a cost-saver but also opens access to a wider regional supplier and customer base. For foreign investors, this means opportunities in providing B2B e-commerce solutions or partnering with Singapore firms in digitally-driven supply chains. The continued push for digitalization in trade and enterprise ensures B2B e-commerce will remain a robust growth area in Singapore’s digital economy.

D2C and Social Commerce on the Rise

Direct-to-Consumer (D2C) e-commerce has become a notable trend in Singapore’s market, with both homegrown brands and international companies selling directly to end-customers via online channels. Cutting out intermediaries allows these brands to control customer experience and build loyalty – a strategy that resonates well with Singapore’s digitally savvy consumers. Enablers like user-friendly e-commerce platforms (e.g. Shopify), affordable digital marketing, and efficient cross-border logistics have empowered many niche brands to launch online and reach customers in Singapore and beyond. By 2025, we see a flourishing D2C scene in sectors like fashion, beauty, health supplements, and artisanal products, where smaller brands compete by offering unique value propositions or personalized engagement. Consumers, in turn, enjoy a wider variety of choices beyond what’s in traditional retail stores, often discovering D2C brands through social media and influencer marketing.

In tandem with D2C growth, social commerce has exploded in popularity. Singapore’s social media penetration is among the world’s highest (around 95% of the population), and shoppers are increasingly buying products directly through social platforms. In fact, more than half of Singaporean consumers made purchases via Facebook in 2023, thanks to features like Facebook Shops and Instagram Checkout that enable in-app buying. Live streaming commerce (livestream shopping events) is another powerful trend – retailers and influencers host live video sales sessions, showcasing products and interacting with viewers in real time. This “shoppertainment” model has gained traction because it blends entertainment with instant purchasing; limited-time offers in live sessions help boost conversion rates. Overall, the social commerce market in Singapore is seeing remarkable growth – it was around US$2.5 billion in 2024 and is projected to reach US$3.17 billion in 2025, reflecting a 26.8% annual increase. While this pace may moderate in coming years, analysts still expect double-digit growth (around 15% CAGR from 2025 to 2030) as social shopping cements itself as a key sales channel.

Several factors drive the D2C and social commerce boom. Consumers appreciate the direct engagement and authenticity – buying straight from a brand (or via a brand’s social page) often means access to exclusive products or better prices. Businesses benefit from rich customer data and feedback loops, allowing them to tailor offerings. Even large B2C players have jumped on the social commerce trend: leading e-marketplaces (Shopee, Lazada) and social media giants have integrated live video and group-buying features to spur more in-app spending. On the regulatory side, authorities are monitoring this space – for example, considering age restrictions on social media commerce content to protect younger users – but overall, the environment remains accommodating. For foreign brands eyeing Singapore, leveraging D2C strategies and social commerce can be a highly effective way to enter the market. With the right online presence, even a company with no physical stores can tap into Singapore’s affluent customer base. It’s worth noting that in this highly connected society, trends can go viral quickly; successful D2C brands often invest in influencer partnerships, online community building, and seamless mobile shopping experiences to build buzz and trust among Singaporean consumers.

Supportive Regulatory Environment and Government Initiatives

One reason Singapore stands out for e-commerce investment is its pro-business regulatory environment and active government support for the digital economy. The government has continually strengthened laws and consumer protections to boost confidence in online transactions. Robust regulations – covering electronic transactions, consumer rights, data protection, and cyber security – provide a trusted framework for e-commerce operations. This helps reassure consumers (and investors) that online marketplaces in Singapore are safe and reliable. In recent years, the government also tackled challenges like online fraud: for instance, as e-commerce usage grew, there was a noted spike in scam incidents, prompting enhanced enforcement and public education to safeguard e-shoppers.

A significant regulatory update affecting e-commerce was the introduction of GST (Goods & Services Tax) on low-value imports. Starting 1 January 2023, Singapore requires overseas online retailers to register for GST and charge it on B2C goods under S$400 shipped to Singapore. This move (mirrored by neighboring countries) leveled the playing field between foreign e-commerce sellers and local businesses, and ensures tax compliance in the booming cross-border online trade. Additionally, Singapore raised its GST rate from 7% to 8% in 2023 (and to 9% in 2024), which slightly increases costs but also reflects the country’s need to support public finances in a growing digital economy. Despite these tax changes, Singapore’s tax regime remains very business-friendly – corporate tax rates are moderate and there are various incentives for tech and e-commerce firms establishing regional headquarters or innovation centers in the country.

On the support front, the government has rolled out multiple programs to help companies (especially SMEs) adopt e-commerce and digital tools. The SMEs Go Digital program, for example, provides firms with step-by-step industry digital plans and grants to implement pre-approved e-commerce solutions. As of mid-decade, tens of thousands of small businesses have used these schemes to get online and upgrade their digital capabilities. During the COVID-19 period, an E-commerce Booster Package was introduced to help brick-and-mortar retailers quickly set up online stores on major marketplaces (like Amazon, Lazada, Shopee) with subsidized fees. Other support includes the Productivity Solutions Grant (PSG), which co-funds SMEs in adopting e-commerce software and digital marketing tools, and the Market Readiness Assistance (MRA) grant that supports international e-commerce expansion and cross-border marketing. Strategic blueprints like the Retail Industry Transformation Map and the Digital Economy Framework also explicitly call out e-commerce as a growth pillar, aligning public resources towards building a vibrant digital commerce ecosystem. For instance, under the Retail Industry Transformation Map, traditional retailers are encouraged to innovate and embrace omni-channel models, with initiatives that even partner tech platforms to onboard local retailers online. Singapore is also investing in next-generation infrastructure – nationwide 5G networks (targeting full coverage by 2025) to enable richer mobile commerce experiences, and secure digital ID/payment systems to streamline transactions.

InCorp Global will help you navigate all legalities and documentations required to set up a business in Singapore. As always, understanding local consumer preferences and regulatory nuances will be key to success, but with the right approach, Singapore’s e-commerce boom in 2025 can be a gateway to sustainable growth for international businesses.

Regional Comparison: Singapore, Malaysia, and Indonesia

In evaluating Singapore’s e-commerce potential, it’s useful to compare it with neighboring Southeast Asian markets. Indonesia is by far the region’s e-commerce giant, thanks to its huge population – Indonesia’s e-commerce revenue is estimated to reach around US$95 billion by 2025, dwarfing all other ASEAN markets. Malaysia, with a sizable population of its own, is also experiencing rapid e-commerce growth; its online market was about US$14.8 billion in 2024 and forecast to continue expanding at ~9% CAGR, aiming for over $21 billion by 2028. By contrast, Singapore’s e-commerce market (~US$10–11 billion by 2025) is smaller in absolute terms due to the city-state’s limited population. However, scale isn’t everything – Singapore punches above its weight on several fronts important to investors.

First, Singapore’s purchasing power and digital engagement are unparalleled in the region. Its average revenue per user and basket sizes are the highest in Southeast Asia, meaning consumers spend more per capita online than those in Malaysia or Indonesia. The frequency of online purchases (weekly shopping, use of subscriptions, etc.) is also greater in Singapore, indicating a deeply ingrained e-commerce culture. In Malaysia and Indonesia, e-commerce is growing fast but from a lower base of digital adoption – for instance, Malaysia’s user penetration, while rising, still trails Singapore’s, and Indonesia’s vast rural areas are only gradually coming online.

Second, infrastructure and ease of doing business give Singapore an edge. Singapore consistently ranks at the top for logistics performance and internet infrastructure in ASEAN. Consumers enjoy faster delivery times and reliable payment systems, while merchants benefit from efficient customs clearance and minimal supply chain bottlenecks. By contrast, Indonesia faces logistical challenges across its many islands, and Malaysia’s e-commerce logistics, while improving, still contend with cross-border customs delays and varying last-mile capabilities. Moreover, Singapore’s stable regulatory regime and strong IP protection attract major e-commerce players to base regional operations there – indeed, Shopee and Lazada both have their regional headquarters in Singapore. This creates an ecosystem of talent and services (digital marketing agencies, fintech startups, logistics providers) clustered in Singapore, which further reinforces its position as a regional e-commerce hub.

Finally, government support in Singapore is often seen as more proactive and cohesive. While Malaysia and Indonesia also have digital economy plans and are catching up with regulatory reforms, Singapore’s holistic approach (from education and skills training in e-commerce, to trade agreements enabling e-commerce exports) is a benchmark in the region. That said, foreign investors may consider the market entry strategy differently in each country. Indonesia offers volume – a huge customer base – but often requires partnering with local players and navigating infrastructural hurdles. Malaysia offers a growing middle class and a bilingual market (Bahasa Malaysia and English) somewhat akin to Singapore’s, making it a common second market after Singapore for expansion. Singapore, on the other hand, while small, can serve as a test market or a regional launch pad; its consumers are trend-savvy and demand high quality, providing a good gauge for product acceptance before scaling to other countries. It’s also an ideal location for regional headquarters, R&D, or distribution centers to serve Asia-Pacific e-commerce operations.

Conclusion: Outlook for Foreign Investors

In summary, Singapore’s e-commerce sector in 2025 offers a mix of high-end opportunities and a supportive environment that complements the larger-scale prospects in neighbors like Indonesia and Malaysia. Savvy investors often leverage Singapore’s strengths (advanced infrastructure, talent, legal system) while tapping into the broader region’s customer base – a strategy that many multinational e-commerce companies have successfully employed.