The retail industry has undergone massive transformation in the last 10 years. The use of social media, the flexibility of payment, improved logistics, and the prevalent use of smartphones have contributed to the rapid growth of the online retail scene; now enhanced through the developed marketplaces and fulfillment network.
In
Singapore alone, there are at least 6 marketplaces to reach out to customers. Qoo10
Singapore started in 2010, Lazada and Zalora both launched in 2012 and Shopee
joined the crowd in 2015. With the high traffic and low set up cost, most
sellers have stores in multiple marketplaces in a bid to increase sales
channels.
For
small and medium enterprises (SMEs), managing multiple marketplaces can be a
logistical challenge. With different dashboards and rules, listing and updating
all your SKUs will be the first stumbling block amongst other tasks like order
processing, arranging fulfilment's, handling enquiries and maintaining reviews.
Sellers
can participate in promotional activities within marketplaces to jump-start in
getting the first few orders. But a consistent effort to garner decent chat
response time and positive reviews will drive confident results in getting
orders in the long run. Furthermore, managing search algorithm and purchase
data is the key hustle and bustle to increasing sales and reducing obsolete
inventory.
Faced
with Singapore’s small domestic market and slow economic growth, it is vital for
Singapore sellers to venture beyond Singapore marketplaces. And with that, it will
take approximately 12 months to reach a healthy monthly GMV. So,
how can SMEs get ready for this?
Like
how online retail scene developed with the demands of users, the evolution of
marketplaces stimulated the birth of enablers. Enablers are third-party
companies that manage marketplaces on behalf of sellers; and some of them have
their own propriety software. In one single dashboard, sellers can easily align
SKUs, publish listings, complete fulfillment and sync inventory across all Singapore
and Overseas marketplaces; easing the cumbersome task of syncing bulk data. This propel SMEs in their growth by reducing
overhead cost and logistical woes. Enabler is at heart a partner of the seller
to champion the essential task of growing sales.
Moreover,
eligible businesses adopting enabler solutions can now receive 70% subsidy from
Enterprise Singapore; a government agency supporting Singapore SMEs to develop,
upgrade capabilities, innovate, transform, and internationalize. This subsidy
bolsters SMEs to expand to overseas marketplaces and participate in marketing
activities in the first 12 months, in hope to reach a healthy GMV by the start
of second year.
So,
the next development in e-retail world is now here, selling to customers
without borders. Are you ready for it?