Following last year’s introduction of a dedicated e-commerce launchpad for local businesses looking to sell their wares abroad, Amazon has now released its first Global Selling Singapore Trend Report.
It details the benefits of selling on the platform, the perspectives for cross-border commerce exports for Singapore companies as well as some information on the performance of merchants already using Amazon to expand their presence abroad.
American Dream
Singapore is a global trade hub, so it’s natural for local companies to try to grow their customer base beyond the small local markets.
And it turns out that the priority market for 44 percent of them, according to Amazon’s own survey, is the USA (followed by the UK at 36 percent).
But what do Singaporean companies even sell half the world away? Well, the company listed the Top 5 categories from SG sellers in the North American stores:
One prominent example from the Baby space, is the already-established Singaporean brand KeaBabies, which has been on Amazon since 2017, seeing global sales grow to S$78 million last year, including over S$1.3 million during Prime Day 2023, a two-day deal event, this year falling on 16-17th of July.
The US was really just a start for them, as the company is now present in 10 international markets on the platform.
And the global perspectives are good:
For Singapore-based businesses, the pace is expected to be even higher than the global average, with an anticipated doubling of the volume of e-commerce export revenue, from $1.7 billion in 2022 to $3.9 by 2027.
According to the company:
“The global e-commerce landscape is undergoing a rapid transformation, fueled by a confluence of cutting-edge technologies and emerging consumer passions. This translates to a surge in demand for products that cater to these trends, such as sustainable and eco-friendly options, smart home solutions, personalized tech experiences, and outdoor and recreational gear.”
In collaboration with Enterprise Singapore and the Singapore Business Federation, Amazon launched a program in 2023 to help local companies which would like to sell abroad but are unsure how to go about it.
Its goal is to offer assistance to 100 local SMEs and education for hundreds more, on how to enter and conquer foreign markets using Amazon as a platform of direct Business-to-Consumer sales (B2C).
The benefits are mutual, of course, as Amazon appears to want to leverage B2C to encourage more diverse sourcing, making sure it captures all of the suppliers it can before other platforms do.
On the side, it has also been reported that Amazon intends to launch its own competitor to companies like Temu or Shein, offering products made and shipped directly from China — though little is known about the specifics yet, other than it is planning to start onboarding selected brands in the autumn.
It could undermine some Singaporean sellers, who stock their online stores with unbranded goods bought in China, as Amazon may simply circumvent them to offer the best price to buyers in the US.
On the other hand, for branded goods offered, there is no competition other than the one for the attention of buyers bombarded with ever-more-attractive offers.
Still, since the global cross-border e-commerce pie is set to continue growing rapidly, there should be enough for everybody to go around in the foreseeable future.
Featured image: Official commencement of “Singapore Cross-border Brand Launchpad” with SBF and EnterpriseSG in July 2023 / amazon.com.sg
