B2C ecommerce exports to reach $2.6b by 2026 in SG: report

Singapore’s business-to-consumer (B2C) exports – with an estimated annual value of S$1.4 billion (US$1 billion) this year – could grow almost threefold, reaching S$3.5 billion (US$2.6 billion) by 2026, according to an Amazon and AlphaBeta report. However, this growth rests on micro, small, and medium-sized enterprises (MSME) accelerating their pace of using ecommerce platforms to sell overseas.

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About 24% of  Singapore MSMEs currently conduct B2C transactions online, with 90% of them exporting to overseas buyers. This is estimated to make up 45% of Singapore’s B2C export value, according to the report.

“Local businesses of any size can benefit from this report to understand a range of topics, from business models and export regulations to consumer needs and foreign competition,” said Bernard Tay, head of Amazon Global Selling for Southeast Asia. The study’s findings were revealed at the 2021 Amazon Expo Seller Boot Camp.

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From the over 300 Singapore-based MSMEs surveyed, 35% of the respondents expected better prospects in overseas markets, with Malaysia, China, Australia, Indonesia, and Thailand emerging as their top targets by 2026.

However, for 81% of the surveyed MSMEs, cost of shipping is the top blocker to getting into ecommerce. Import regulations are also unclear for 78% of the respondents. A majority of them are not confident in competing with other global players, while 71% are “unsure” of overseas market preferences.

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Singapore currently supports local businesses for export needs, said the report, but 32% of the small enterprises surveyed said they “will find further support valuable.”