E-Commerce market opportunities - Market opportunities: Snapshots Collins Rex - Global Trade Professionals Alliance
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e-Commerce market opportunities Part 3 Market opportunities: Snapshots Collins Rex Director, Global Trade Professionals Alliance (GTPA)
Disclaimer
Information provided in this webinar is of a general nature only, and is not
to be construed as specifically-targeted business advice.
The NSW government, the GTPA, the presenter of this webinar, and
any other representatives, Directors or office bearers take no
responsibility if this information is used to inform business or legal
decisions.
Every business’ circumstances is different. Please consider your own
circumstances and obtain professional advice before making any
business, legal or personal decisions.
* THIS WEBINAR IS BEING RECORDED *
3
Welcome - Investment NSW
Cameron Prowse
Director Export and Export Programs, Investment NSW
Cameron joined the Trade team in Investment NSW in January 2021. Coming from
the private sector, Cameron has diverse experience in international business
development and management and has worked with some of Australia's leading
exporters.
Cameron has over 25 years experience in exporting and has lived and worked
overseas. He has led international M&A activities, worked with and been on Boards,
and has negotiated international distribution, licensing and manufacturing
agreements across Australia, Asia, the Americas and the UK and Europe. He has
also worked with businesses across the e-commerce, digitized technology and
advanced manufacturing sectors.
What is Investment NSW
Investment NSW is a newly formed central agency, driving all trade
and investment attraction activities within the NSW Government,
which will maximise economic benefits and jobs growth.
About the organisers
is an organisation that cultivates international standards within international trade.
The aim is to create a trade environment that is both inclusive and trusted by all.
The GTPA has partnered with Investment NSW to deliver the comprehensive
program, e-Commerce Strategy Development: Roadmap to Success.
5
Today’s presenter
Collins Rex, Director, GTPA
Collins sits on the international advisory board of the
Netherlands-based e-commerce Foundation, and she is a
member of the World Customs Organisation’s Working Group on
e-commerce.
She has for some 20 years been involved in the Australian ICT
industry, through associations with Australian technology firms
and various ICT industry clusters (several of which she initiated
and managed).
She is the Chief Judge of the AIIA’s iAwards, and also as an
international judge at APICTA, the Asia Pacific ICT Alliance
Awards.
6
01 Selecting your e-Commerce market/s
02 Republic of Korea snapshot
03 Singapore snapshot
Agenda 04 Questions
7
Selecting your e- Commerce
market/s
8
Market research
Market research is critical to successful e-Commerce:
Knowledge of target markets enables you to determine what motivates buying decisions. It helps you choose
a location, determine the product or service to offer, establish pricing and plan a selling strategy
There are two key components to any market research:
• Primary market research, including direct contact with experts, customers or other sources of
information. This could involve interviews and consultations
• Secondary market research, involving bench research on your potential market (for example, via the
internet)
9
Market research
What you should research:
• Product/service demand
• Is there a need? How large is it? Can you meet it?
• Culture
• The culture of the market in relation to the product you are intending to market. You need to be
comfortable that the culture fits your product in terms of things like religious beliefs, gender dominance
(male or female) and age of population, etc
• Appropriate online marketplaces
• Do the accepted online marketplaces suit the attributes of your product?
• Promotion/marketing/sales channels
• What re they? Do they suit your brand image and products’ characteristics?
• Available distribution channels
• Do they work for you and your products?
10Market research
What you should research:
• The competition
• The competition, whether local, imported or of an indirect or substitute nature, and their pricing,
distribution and performance versus what you plan to introduce
• The Government
• Government and industry barriers to entry – issues such as registration, quotas and regulations
• Market metrics
• The size, characteristics and demographics of the market. Consider: disposable income of different
income sectors, the size of those sectors, the geographic positioning of those sectors across the country,
the age and cultural/religious beliefs that impact on purchasing decisions
11Market research
What you should research:
• Market entry requirements
• Some markets have entry quotas or steep entry costs (duties) on goods imported via e-commerce to
protect tax revenues and/or local production. Additionally, there may be government controls on the
import of certain products to protect local producers or manufacturers
• In-country logistics
• Be aware of how you move your product around another country and potential problems, delays, costs
and storage issues. For a local buyer, they want the same access to your product as they would from a
local provider. Always consider the last mile along with the first
12Market research
Some resources to kick-start your research:
• https://www.cia.gov/the-world-factbook/
• https://www.worldbank.org/en/home
• https://www.transparency.org/en/cpi/2020/index/nzl
• https://www.wto.org/
• https://ftaportal.dfat.gov.au/
• https://www.abf.gov.au/importing-exporting-and-manufacturing/tariff-classification/current-tariff
• https://www.un.org/en
13International support from 9 locations, increasing soon
NSW Trade Commissioners located in key international markets
USA UK & Europe Middle East India Vietnam Singapore Japan Korea China
Joe Keirra Moin Lisa Kien Van Janice Reiko Yoojin Murray
Kaesshaefer Smith Anwar Rodrigues Nguyen Goh Shimada Kim Davis
Future additions:
-Canada
Key: NSW Government Office
-Chile
Austrade Office -Europe (separate from UK)
-Indonesia
-Malaysia
To connect with a Trade Commissioner, email contactus@global.nsw.gov.auRepublic of Korea
15Market size
Korea’s e-Commerce market is the sixth largest in the world, placing it behind Germany but ahead of France.
In 2020, the South Korean market was estimated to have a revenue of USD 74 billion, with a 22% increase
year-on-year.
e-Commerce share of total sales:
Korea online spending represented 30.8% of total retail sales for 2018. It is predicted this market will reach
US$325.12 billion in 2025
16Regular cross-border trade
Item USD Thousands % of total imports
Electrical machinery and equipment and parts 94,106,853 20
Mineral fuels, mineral oils and products of theirdistillation 86,553,146 19
Machinery, mechanical appliances, nuclear reactors, boilers; andparts 57,360,544
12
Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical 19,381,267
4
Vehicles other than railway or tramway rolling stock, and parts andaccessories 18,202,773
4
Ores, slag and ash 15,896,870 3
Organic chemicals 12,093,512 3
Plastics and articles 11,484,015 2
Iron and steel 11,120,246 2
Pharmaceutical products 7,964,330 2
17Key consumer trends
• Women own the Korean (consumer) world!
• The 25 – 40 female market is shaping consumer trends in Korea
• 탕 진 잼 (TangJinJem)
• Korean millennial's are spending money on small pleasures. This is being driven by a “devil may care”
attitude as a result of youth unemployment, expensive housing, changing attitudes to marriage, etc.
• Youth unemployment
• Korean youth are disillusioned, employment prospects are low and many are abandoning hopes for
marriage and family. Rather than tightening the proverbial belt, this disillusionment is driving millennial
spending. As career prospects look bleak, the youth of Korea have reverted to instant enjoyment and
spending money while they are young
• Newtro
• A “Konglish” term that means New Retro. When old things are cool again. Consumer products are, e.g,
switching packaging to original versions from the 70s – 90s.
18Key consumer trends
• Single households
• 2 in 5 Seoul households were single-member in 2019. Post-COVID (and even before) Koreans are
increasingly isolating themselves and previous group activities such as meal times, having a drink or
going to the movies are now becoming socially acceptable to be done alone. More companies are
tailoring products for this trend, like meal delivery services, pre-made home meals, private stalls for
barbecue restaurants and solo-travel packages
• Ex-pat Koreans
• Koreans living or visiting overseas are often the driving force behind a trend that they have picked up
while on holiday or residing in those countries. Examples include the black-sugar bubble tea craze from
Taiwan or the Malatang trend, or the Chocolate-Banana craze
• Pet ownership
• Currently over 25% of Koreans own a pet, this was 18% in 2012
• Anti-Japanese product sentiment
• Currently Korean consumers are avoiding Japanese products
19What drives online sales?
• Internet penetration
• According to Ministry of Science and ICT, by 2019, Korea’s internet user population and smartphone user population
reached 91.5% and 91.8% respectively
• In April 2019, Korea became one of the first countries to launch commercial 5G network services nationwide. Thanks
to its 5G networks, Korea ranks first in the world for mobile connection speed according to the Speedtest Global
Index, April 2020. As of now, the country has 5.36 million 5G subscribers and the country expects to have 10 million
5G subscribers within 2020
• Mobile e-Commerce
• Mobile e-Commerce is the main driver of the explosive e-commerce growth. Purchases from mobile platforms make
up 61.5% of the total market value
• Confidence in e-Commerce-sourced products
• It is illegal to sell counterfeited products on e-commerce sites and to bring any counterfeit goods into Korea via cross
border e-Commerce. Consumers who want assurances that imported products are legitimate, favour e-Commerce
20Search engines & social media
Search engines:
• Google: the most popular search engine in South Korea, accounting for 77% of the market share
• Naver: with a market share of 18%
• Daum: accounting for 6.8% of the search market
Social media:
85% of South Koreans use social media, far ahead of the United States (70%), the United Kingdom and
Canada (both 67%)
• Facebook: enormously popular with Koreans under 24 years-old
• Instagram: also very popular with the younger demographic
• Daum/KakaoTalk: a Whatsapp-style messaging service
• BAND (by Naver): communications app for teams & groups
• Cyworld: came before Facebook; hierarchy matches the structure of Korean society
21Search engines & social media
22Marketplaces & platforms
G-Market
• http://gpromotion.gmarket.co.kr/Plan/PlanView?sid=169367&gclid=EAIaIQobChMImJ71zZfZ8AIVVa6WCh3pQgL6EA
AYASAAEgKxzfD_BwE
• Acquired by eBay in 2009, it is estimated that 64% of the Korean population uses G-Market for online purchases
Products that are popular on G-Market include:
• Fashion & Clothing
• Cosmetics and Beauty Products
• K Pop
• Food and Beverages
• Kids/Baby
• Accessories
• Health/Diet
• Electronics
23Marketplaces & platforms
• 11Street
• https://global.11st.co.kr/html/en/main_en.html#
• It is estimated there are 55 million products and 200,000 sellers on the website. Similar to G-Market, 11Street has a
broad product range, including:
• Fashion & Clothing
• Accessories
• Cosmetics & Beauty Products
• Food and Beverages
• Sports/Automotive
• Kids/Baby
• Home and Furniture
• Health/Diet
• Electronics
• Books/Hobbies/Pets
24Marketplaces & platforms
• Auction.co
• http://auction.co.kr/
• Auction.co, like G-Market, is owned by eBay. As the name implies its focus is on auctions. One drawback of this
website is that it is only available in the Korean language, making it more difficult for foreign sellers.
• Auction.co lists many foreign brands, including:
• Samsung
• P&G
• Dyson
• Philips
• LG
• Microsoft
• Asus
• Lenovo
• Anyone wishing to pursue opportunities with Auction.co is advised to make direct contact to seek assistance with
onboarding and customer support.
25Marketplaces & platforms
• Interpark.com
• http://www.globalinterpark.com/main/main
• An online auction and shopping website, founded in 1996.
• Interpark.com product categories include:
• Collectibles
• Appliances
• Computers
• Furniture
• Equipment
• Vehicles
• Food
• Tickets
• Clothes
• Jewellery
26Marketplaces & platforms
• Coupang
• https://www.coupang.com/
• One of the biggest retailers, with annual revenues of approximately USD 6 billion. It has developed an extensive
logistics network and it is estimated that 70% of the Korean population lives within 10 minutes from a Coupang
distribution centre, making last mile deliveries flawless
27Opportunities
Product Categories Purchased Directly from Overseas
Source: Korea Customs Service
28Opportunities
The following have been identified as key opportunities:
• Fashion (premium/mass apparel, outdoor wear, accessories, etc.)
• Beauty & Cosmetics (small-batch cosmetics, organic cosmetics, male grooming, perfumes, etc.)
• Baby products & Toys (organic/hypoallergenic baby cosmetics, clothes, educational toys, etc.)
• Food & Beverage (health supplements, organic food, confectionery, etc.)
• Home & Living (home décor, kitchen/tableware, bed/bathroom accessories, pet accessories, etc.)
• Livestream e-Commerce
• A new addition to the mobile shopping experience is livestream e-Commerce – a form of online shopping that
originated in China and has quickly taken off in Korea. Live commerce is a combination of TV home shopping and
livestream platforms, it gives consumers a chance to purchase items while viewing real-time video streaming on their
mobile phones. The hosts give detailed descriptions of products, try on fashion items and try out beauty products,
creating an experience similar to in-store shopping while also immediately responding to questions posted by viewers
via chat.
29Opportunities
• m-Commerce
• The Korean government has made investment in the Internet a national priority since the early 1990s and the country
is well known for its leading position in broadband penetration and download speeds
• Korea has also long been at the forefront of mobile technology, both in relation to handsets and the supporting
network. In June 2019, 93.2% of the population used a smartphone and there were 50.4m active domestic
smartphone subscriptions. According to Statistics Korea, the average Korean made 68.3% of their purchases via a
mobile device in May 2020, a 4.4% year-on-year increase. August 2020 data shows that 92.1% of Korean consumers
purchased something via mobile in the past three months and 94.9% had the experience of online shopping via
mobile at some point
• It is also important to note the preference for mobile apps over mobile web – Koreans have an average of 6.1
shopping apps installed on their phones. In the first quarter of 2018, apps accounted for 66% of mobile sales and the
conversion rate was 5 times higher than on mobile web. This trend is also reflected in website design of major
platforms – e-Commerce companies experiment significantly more with their app user experience and mobile web
page designs are much less frequently updated
30e-Commerce regulation
There are two Customs authorities with respect to trade and customs in Korea:
• The Korea Customs Service (KCS) (www.customs.go.kr), as an enforcement agency
• The Ministry of Strategy and Finance (MOSF) (www.mosf.go.kr), as a policymaking agency
• Individual customs number
• Since July 2015, individuals who purchase goods online have been encouraged to obtain an e-clearance
registration number called a Personal Customs Clearance Code, commonly referred to as an Individual
Customs Number, issued by KCS. This is to ensure a faster clearance process when the item is received
and processed by KCS. If an individual does not have an Individual Customs Number, a resident
registration number can be used to receive goods from overseas.
31c-Commerce regulation
• Korea’s tax and duties enforcement
• KCS sets the regulations on duty-free goods and determines the taxes on items that exceed duty free allowances
• The following criteria are used to determine duty-free status:
• Items with a value less than US$150, or US$200 for items from the US, including shipping, addressed to a domestic residence for
personal use
• Items with a value less than US$240 to be used for commercialsamples
• Imported items to be used by an individual participating in exhibits or trade shows for the purposes of distributing them for free,
approved by KCS. The value of each item should be less than US$5
• Items with a 0 percent customs duty rate
• Individuals who would like to import an item with a value greater than the US$150 limit, or US$200 from the US, must
pay import duties and taxes in addition to the 10 percent Value Added Tax
32c-Commerce regulation
Duty-free allowances for parcels for personal use
The International Country Tax free
currency code for threshold for
South Korea South Korea
US$ US US$200
US$ All countries US$150
except US
*Tax-free threshold is the minimum value under which no duties are
collected by the customs43.
The cost is based on the complete shipping value, including:
• The price of the imported goods
• The cost of freight
• Insurance.
Imports are also subject to sales taxes. The shipping cost is based on the actual weight or volumetric weight of the actual
box in which the merchant packs the purchased goods – whichever is the greater. For goods coming from Australia, no tax
and duties apply if the value of the imported product is under US$150.
33e-Commerce regulation
Korea Customs’ clearance list
• There are two types of clearance that apply to cross-border online trade:
• Manifest clearance (rapid entry) for approved goods categories
• A simple customs check is done if the package has an invoice containing a list of contents, the weights and value, and contact details
of the sender and consignee. No duties and taxes are imposed if the total amount of the price of the imported goods, the cost of freight
and insurance are under US$150 in total (or US$200 for US orders). In addition, the purchased goods must not fall into the restricted
goods list (if not applicable, the shipment must go through the Standard Customs process). A simple customs check takes one to two
business days.
Standard clearance
• If the package includes at least one item that falls into the restricted goods list, the package is required to go through
Standard Customs clearance. This applies to all countries including Australia. If the purchased goods are categorised
as Standard Customs, the quota is US$150.
• Purchased goods must be for personal use and the total amount of the price of the imported goods, the cost of freight
and insurance must be under US$150.
• The KCS will inform the customer of any additional tax to be paid. The Standard Customs clearance process usually
takes two to nine business days.
• Restricted goods include health supplements and functional food, Chinese medicine, pharmaceutical products,
functional cosmetics, food and agricultural products. In addition, alcohol, cigarettes, and products that do not include
name, quantity and price are required to undergo the Standard Customs process.
34e-Commerce regulation
Goods that are subjects to customs and quarantine check
Source: Korea Customs Service
(www.customs.go.kr)
35e-Commerce regulation
Quantity approved for personal use by items
Source: Korea Customs Service
(www.customs.go.kr)
36e-Commerce regulation
Korea’s consumer protection law
• The Korea Consumer Agency (www.kca.go.kr) is a government organisation established in 1987 in accordance with the
Consumer Protection Act to implement Korean consumer protection policies.
• To support the development of the e-commerce sector, relevant Korean government bodies established and revised e-
commerce regulations, culminating in the enactment of the Framework Act on Electronic Message and Electronic
Commerce (1999) and the Electronic Signature Act (1999). In 2002, the E-Commerce Consumer Protection Act (2002)
was enacted to protect the rights and interests of consumers by prescribing matters relating to the fair trade of goods or
services by means of e-commerce transactions.
Privacy and consumer protection
• Recognising the importance of privacy protection, Korea has set up both a regulatory framework and means for self-
regulation.
• The Korea Information Society Agency (KISA) (www.kisa.or.kr) has been authorised to oversee privacy protection in the
private sector pursuant to the Act on Promotion of Information and Communication Network Utilization and Data (the
Network Act). The Network Act promotes the use of information and communications networks to protect the personal
information of users using information and communications services, and to build a safe and sound environment for
information and communications networks.
37SINGAPORE
38Market size
Singapore’s e-Commerce market was ranked in 2019 by eshopworld as number 27 in the world, with revenue, projected by
Statista to reach US$2,793m in 2021 and US$4,079m by 2025.
e-Commerce share of total sales
Projected e-Commerce sales as a proportion of retail sales, as estimated by Statista, is expected to reach 6.7% by 2025.
Around three quarters of all online purchases were from foreign companies.
39Regular cross-border trade
Item USD Thousand % of total imports
Electrical machinery and equipment and parts thereof; sound recorders and reproducers,television 108,750,644 33
Machinery, mechanical appliances, nuclear reactors, boilers and parts 52,904,287 16
Mineral fuels, mineral oils and products of their distillation; bituminoussubstances 49,116,492 15
Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad 22,600,711 7
Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical 12,799,516 4
Plastics and articles 7,188,830 2
Organic chemicals 7,113,100 2
Aircraft, spacecraft, and parts 6,507,462 2
Essential oils and resinoids; perfumery, cosmetic or toilet preparations 4,243,485 1
Miscellaneous chemical products 4,238,556 1
Vehicles other than railway or tramway rolling stock, and parts and accessories 3,819,354 1
Pharmaceutical products 3,606,328 1
40Key consumer trends
Fashion and Apparel Trends
• Singaporeans are increasingly comfortable working from home
• Despite the circuit breaker ending, not every worker in Singapore has gone back to the office
• Athleisure trend
• Athleisure apparel appeals to Singaporeans’ more practical side as it offers style, durability, and comfort
for life at the gym or at the office. Rising health consciousness is also seeing Singaporeans engaging in
more fitness activities like running, pilates or yoga
• Going to the beach
• Encouraged by low community case numbers, many Singaporeans preferred to spend their leisure time
at beaches like those at East Coast Park, enjoying picnics or engaging in activities like biking and
rollerblading
41Key consumer trends
Health and Beauty Trends
• Fitness-focused, preventive approach to healthcare for both adults and children
• Younger Singaporeans’ fast-paced, stressful lifestyles have led to unhealthy habits like heavily relying on
eating out and at times requiring sleeping aids. Many who rely eating out tend to have carbohydrate and
meat-rich meals, which leads to gaps in nutrition which are filled by consuming dietary supplements and
vitamins
• There is also a growing trend of Singaporeans leading healthier lifestyles, such as incorporating more
fitness activities into their regimes
• Clean Beauty
• The ‘clean’ movement extends beyond health products and also towards skincare and cosmetics.
Singaporeans are becoming increasingly aware of the harmful effects of synthetic chemicals and are
conscious of what they apply on their skin as a result
42Key consumer trends
Mom & Baby Products
• Singaporean parents looking for natural and organic products
• Following the trend from general health and beauty products, Singaporean parents look for products that
they feel are best for their children, not necessarily the most expensive or luxurious products but
products deemed ‘natural’ and ‘organic’
• “Mummy influencers” gaining prominence among singaporean parents
• “Mummy influencers” are parents keen to take photos and post about their babies or children, as well as
the products they, use on social media platforms like Instagram. Influencers like Tammy Tay and Tjin Lee
are two good examples who also tag and mention brands in their posts
43What drives online sales?
• Growth is powered by middle class shopping spending and user penetration
• The middle class in Southeast Asia is ever-expanding. This growing spending power opens market opportunities for
more luxury goods
• Brick and Mortar business opens possibilities for further growth in e-commerce
• Big brands in e-Commerce are looking for ways to increase their online sales even further. They establish brick and
mortar flagship stores to push awareness of their brand. After the visit to the physical store, the customer goes online
to enjoy the digital experience – true omnichannel shopping!
• B2B e-commerce follows the B2C path
• Business to business transactions are getting more digital and following in the footsteps of B2C e-Commerce. More
young people in management are leading the charge to adopt their way of shopping at the business procurement
level. This includes improved communication, mobile optimised procurement processes and excellent CX
• Boosting sales with in-app entertainment
• The two big shopping platforms, Lazada and Shopee, are working hard to increase engagement with customers
through different entertainment offers. The live-streaming leads to video shopping
• Voice search is growing
• In Singapore, 12% (GoGlobe) of all searches are voice based. In the dominant smartphone space, 68% (GoGlobe) of
users have adopted voice assistants
44What drives online sales?
• Immersive Shopping with augmented reality
• With big video platforms adding AR and VR content, e-Commerce opportunities in the virtual space are becoming
more interesting. Technology leaders like Sephora, IKEA, or Amazon are already using these technologies
• Social commerce
• The difference between social media marketing and social commerce is the complete shopping experience happens
within the social media site. Currently, the main platforms for social commerce are Instagram, Pinterest, and
Facebook.
45Search engines & social media
These are the top search engines in Singapore:
• Google Singapore
• Yahoo Singapore
• Bing
• Yandex
• Baidu
• DuckDuckGo
• Ecosia (The search engine that plants trees)
• Ezilon Asia
46Search engines & social media
Singaporeans love social media!
Source: Hootsuite
47Search engines & social media
Top social media
48Marketplaces & platforms
• Lazada
• https://www.lazada.sg/
• Lazada (owned by Alibaba) has been dubbed the Amazon of Southeast Asia. Its range of products is vast and it offers
discounts for members and allows payment in cash on delivery.
• Redmart
• https://redmart.lazada.sg/#home
• Redmart is essentially an online grocery store, specialising in fresh food including fruits, seafood, and vegetables. As
the website address suggests, it is owned by Lazada, which in turn is majority owned by the Alibaba Group. Redmart
offers a delivery timeline of 2 hours.
• Reebonz
• https://www.reebonz.com/sg
• Reebonz specialises in the high-end fashion and accessories sector, focusing on shoes, watches, jewellery, new bags
and even pre-owned bags, having in excess of 100,00 items available on their platform. Their stock includes famous
brands such as Prada, Chloe, Saint Laurent and Fendi, as well as a separate section exclusively dealing with Asian
designers. In keeping with their luxury reputation, packages are delivered in a black box with a golden ribbon.
49Marketplaces & platforms
• HipVan
• https://www.hipvan.com/
• HipVan focuses on home furniture that includes various designs such as industrial, contemporary, chic, classic, vintage,
and resort style. The furniture is high-quality and comes with a 100 days home trial period. A blog section offers
professional advice and some inspiration for the items on sale. HipVan offers free delivery and assembly.
• Qoo10
• https://www.qoo10.sg/
• Ajoint venture with eBay. The platform offers a wide variety of products, including: fashion, beauty, baby and kids,
digital and mobile, food and dining, and sport. It also offers services such as tour packages, hotel bookings and other
leisure activities. SMEs are encouraged on this platform and they have a strong presence.
• Zalora
• https://www.zalora.sg/
• Zalora focusses on fashion items and provides its own app. Although slightly favouring younger users in its marketing
approach, anyone looking for trendy fashion brands will find items of interest on this platform. Brands stocked include:
Calvin Klein, Banana Republic, French Connection, and mango. There is a 30-day return window, discounts for joining
their newsletter and fee delivery above a certain order value.
50Opportunities
• Electronics and Physical Media
• Singapore’s goal of becoming a Smart Nation isn’t just a government initiative, it’s a lifestyle embraced by
Singaporeans, right down to their shopping habits. This is a country that’s crazy about technology, as seen in the
consumer electronics and media sector’s valuation of US$1.9 billion in 2020, with a 24.5% year on year growth
• Fashion and beauty
• Singaporeans have a healthy appetite for fashion and beauty products, with revenue for this sector amounting to
US$326 million in 2020, growing by 9.9% from the previous year
• Toys, DIY, and hobbies
• Products in the toys, DIY, and hobbies segment are also massive in Singapore’s e-Commerce economy, amounting to
US$219 million in 2020, growing by 7.8% year-over-year
• Personal Care and Food
• Singapore’s online food and personal care sector is still the smallest vertical in terms of revenue, but it is also the
fastest growing e-Commerce segment in Singapore, growing by 47% in annual spending from the previous year
51e-Commerce regulation
• What laws and regulations apply?
• Singapore has an e-Commerce framework that includes regulation of internet content, advertising, electronic contract
formation, and consumer protection. The Internet Code of Practice places restrictions on the content that is published
on the internet. Singapore has a comprehensive advertising regulation regime, which includes the Singapore Code of
Advertising Practice, the Spam Control Act, and the Computer Misuse and Cybersecurity Act. The Electronic
Transactions Act 2010 regulates electronic contract formation. Singapore adheres to a high standard of consumer
protection through the Unfair Contract Terms Act, the Consumer Protection (Fair Trading) Act, Consumer Protection
(Fair Trading) (Opt-Out Practices) Regulations, and the Misrepresentation Act. Because of the depth of the
advertising regulations, you can find an advertising section here.
• Internet Code of Practice
• The Internet Code of Practice, issued by the Media Development Authority of Singapore, requires that your best effort
be made to ensure that prohibited material is not broadcast via the Internet to users in Singapore. Essentially, the
Internet Code of Practice is an internet content regulator that would apply to internet practices, including but not
limited to, website content, advertising, and marketing. Prohibited material means anything objectionable on the
grounds of public interest, public morality, public order, public security, national harmony, or is otherwise prohibited
under applicable Singapore laws. The Internet Code of Practice lists factors to be considered when determining
whether material is prohibited. When in doubt, the Authority can be contacted to issue its decision.
•
52e-Commerce regulation
Singapore introduced its first-ever Guidelines for e-Commerce Transactions (TR 76) to help businesses develop customer-
centric e-commerce policies. TR 76 aims to bring greater transparency to the e-Commerce industry, which will lead to
consumers making more informed purchases. TR 76 provides guidelines on the best practices for pre-purchasing
activities, purchasing process, and post-purchasing scenarios.
What are the general guidelines under TR 76?
• e-marketplaces should display their legal identity on their website and their contact details. They should also ensure
merchants are fulfilling their obligations to their customers as it could impact their reputation as an e-marketplace.
• e-marketplaces could establish a monitoring system covering aspects such as the merchant’s transaction history or
order processing speed to measure their overall performance. This will help the e-marketplace detect fraudulent
behaviour or merchants who are not providing the highest quality of service.
• Furthermore, e-marketplaces and merchants should develop mechanisms to handle customer enquiries, complaints,
and dispute resolution. Websites should state clearly expected turnaround times and working hours for customer
support (if applicable). E-marketplaces and online merchants need to comprehensively investigate each complaint and
its severity and implications to the business. These complaints, as well as positive feedback, should be tracked and
reviewed to improve customer service.
53e-Commerce regulation
• Pre-purchase
• During this process, information regarding the functionality and benefits of the product/service must be correct as well
as health and safety concerns and whether there are guarantees or warrantees available.
• The product/service advertised should be presented with information and designs that are accurate and reflect the
key selling points of the product/service to minimize misrepresentation. Price(s) should be displayed with the
applicable currency and product reviews, comparisons and ratings can be used to assist customers in making an
informed decision.
• Purchase activities
• The e-marketplace must ensure that the information for the product/service being purchased is listed clearly.
• This includes the quantity, description, and applicable taxes such as goods and services tax (GST) or import/export
fees where applicable. Other important information should incorporate payment options, delivery options, and refunds
and exchange policies. The e-marketplace should provide a variety of electronic payment options that provide
convenience, security, and smooth user experience. A secure security strategy should ensure customer data is safe
against breaches.
• Any processing fees and level of protection related to the payment type needs to be considered when the e-
marketplace chooses a payment solution. Once the payment is complete, the customer should be notified, which
should include all their billing details.
54e-Commerce regulation
• Post purchase
• e-marketplaces working with third-party logistics providers need to ensure they adhere to applicable handling
protocols and that delivery times are within the estimated time promised to the customer
• Customers ought to be provided with the information on the delivery status upon request. Additionally, the e-
marketplace and the logistics provider should agree on the suitable proof of the delivery method. This could come in
various forms such as photo evidence to signatures.
• Any refund policies should be clear and should include the conditions for refunds, the timeframe for reimbursements,
and the method of payments
Always get professional advice before selling into a new market!
55e-Commerce regulation
Currently, any online purchase in Singapore under SGD$400 (USD$290.17) is exempt from GST.
56Connect with us
Website: global.nsw.gov.au/exporter-support/overview
Export / TradeStart Advisers: contactus@global.nsw.gov.au
NSW Trade Commissioners in-market: contactus@global.nsw.gov.au
Register for this workshops series: gtpalliance.com/nsw-e-commerce-
roadmap-to-successQuestions?
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