Singapore’s e-commerce landscape stands out from emerging markets, with sellers shifting their focus from basic survival to continuous evolution and sustained performance, a new study by Milieu Insight revealed.
The consumer research firm said in a statement on last Friday that a small but growing share of Singaporean sellers report operating without major challenges (12 percent), signaling a budding maturity and business resilience.
And while this indicates a positive development, the vast majority (88 percent) still continue to navigate a complex, high-expectation environment.
This reality demands constant adaptation across operations, competition, and customer experience.
Together, these findings underscore both the market’s progress and the opportunity ahead: resilience in Singapore’s e-commerce ecosystem is increasingly attainable, but remains unevenly distributed.
“In a market as advanced as Singapore’s, resilience is about consistently meeting buyer expectations. Our findings show that sellers do best when platform support, logistics, and regulations work well together,
“Strong customer experience, reliable delivery, and good support systems now define competitive advantage. The next phase of growth is about extending these strengths across the ecosystem to build trust and long-term competitiveness,” said Juda Kanaprach, Co-founder and Chief Commercial Officer at Milieu Insight.
As Singapore’s e-commerce sector matures, the report noted sellers face a distinct set of pressures that reflect the market’s high standards rather than its fragility.
Rising logistics costs affect 40 percent of sellers, while 36 percent struggle to meet buyer expectations for fast delivery and seamless refunds.
Competition from overseas sellers places pressure on another 36 percent, and 31 percent cite limited visibility or marketing support on platforms.
These challenges underscore the reality of operating in a developed market, where buyers expect speed, reliability, and transparency as a baseline – and where even small inefficiencies can quickly erode margins and customer trust, particularly for smaller sellers.
It is noted that for Singaporean sellers, resilience extends beyond day-to-day continuity.
It reflects the ability to navigate macroeconomic volatility, geopolitical uncertainty, and intensifying competition while protecting margins and maintaining buyer confidence.
The study also highlights three interconnected dimensions shaping seller resilience.
The first is operational infrastructure and capability. With 67 percent of sellers processing fewer than 50 orders per month, even minor disruptions can have an outsized impact.
Sellers consistently prioritize fast and reliable logistics, cited as critical by 64 percent, alongside digital readiness and access to online tools (56 percent).
Consistent platform support – including subsidies, sales programs, and coaching – is also seen as essential by 55 percent, helping sellers reduce friction, improve buyer satisfaction, and drive repeat purchases.
Beyond baseline infrastructure, practical investments matter: marketing support, valued by 40 percent of sellers, and affordable financing, highlighted by 28 percent, are seen as driving measurable gains in operational efficiency and conversion.
The second dimension is a supportive operating environment. Business resilience is strengthened when the ecosystem lowers barriers rather than introducing new ones, said the study.
Government intervention plays a significant role, with over half of sellers (51 percent) citing clear and supportive regulations as essential for business confidence, while 53 percent value grants or financial assistance.
Tax incentives and access to low-interest loans are important to 48 percent of sellers, and 44 percent highlight the need for compliance or capital support to enable longer-term planning and investment.
When public-sector enablement complements platform-led support, sellers are better positioned to justify investment, optimize operations, and remain productive even amid economic headwinds.
The third and most enduring pillar of resilience is trust and customer loyalty, according to the study.
In a market where reputational damage can quickly impact visibility and sales, sellers recognize that buyer-centric policies are not just good practice but commercially essential, directly shaping repeat purchases and long-term revenue stability.
Easy returns and refunds help build buyer confidence for 43 percent of sellers, while 41 percent say free or subsidized delivery encourages more frequent purchases.
Secure payment protection and buyer guarantees matter to more than one in three sellers, and 38 percent highlight the importance of authenticity and quality checks.
Together, these measures transform trust into a tangible economic asset that helps sellers weather periods of uncertainty with greater confidence.
Meanwhile, despite Singapore’s advanced infrastructure, logistics remains the most immediate and consequential source of friction for sellers.
One-third report late deliveries, while 31 percent experience lost or damaged parcels and 29% face inconsistent service pricing.
These issues have direct commercial consequences, including revenue and customer losses for 30 percent of sellers, increased refund requests for 31 percent, and negative reviews or ratings for 33 percent.
As a result, sellers place strong emphasis on logistics reliability, cost, and speed when evaluating delivery partners.
Reliability is prioritized by 53 percent of sellers, followed by cost (46 percent) and speed (43 percent).
Notably, 72 percent believe platforms should take greater responsibility in ensuring third-party logistics providers meet consistently high standards, underscoring that logistics performance is now inseparable from customer experience and seller resilience in Singapore’s high-expectation market.
The study also emphasizes that sustained e-commerce growth and resilience in Singapore’s e-commerce sector cannot be achieved in isolation.
Platforms play a critical role by investing in performance-driven tools, targeted training, and higher logistics standards that directly improve seller outcomes and buyer experience.
Policymakers can reinforce these efforts through regulatory clarity, financial assistance, and policy frameworks that reduce uncertainty and operational risk.
Sellers, in turn, must continue to adopt buyer-first practices, strategically leverage available platform and government support, and invest in operational stability and service quality.
The 12 percent of sellers currently operating without significant challenges offer a clear picture of what resilience can look like in practice – highlighting the need for ecosystem-wide commitment to scale this success and strengthen Singapore’s e-commerce sector for the long term, said the study.