The uncertainty of the pandemic is still strongly glooming over Singapore and the entire world. Multiple deaths occurring everyday is a norm now and people wearing masks and becoming weary just when someone sneezes is yet another norm today. Comparing it to just 2 years ago back in 2019, none of these existed. This just proves how fast the world can change in a glimpse of an eye, and that applies to the economy and market as well.
Trade shows, showrooms and in-person shopping — all the traditional means of in-person product discovery — have been dramatically altered by the global pandemic. Online marketplaces are experiencing rapid growth in the retail space. Data shows a whopping $2.67 trillion was spent at online marketplaces in 2020 alone. This year, 62.5% of all global online spending occurred via digital marketplaces in 2020 resulting in a 29% increase in gross merchandise sales.
While online marketplace giants like Amazon lead that growth, new players like The Yes, italist and Farfetch also saw tremendous traction and success. As such, more online marketplaces are entering the digital landscape to capture the rapidly-growing popularity of online shopping as the pandemic continues.
Despite the ongoing implementation by the Singapore government of turning the COVID-19 pandemic into an endemic, some may say that online marketplaces will not thrive as well anymore. However, online market places are still on the rise with shoppers continuing to look for safer, more convenient ways to shop as the pandemic continues.
In fact, research shows that digital, third-party marketplaces are seeing an 81% increase in gross merchandise value year-over-year thus far in 2021.
Given that the whole pandemic situation has been accepted by the public, it is still a given that people are still looking for convenient and safe ways to shop. As such, enterprises and organisations today should look into this consumer behaviour and adopt an approach that will suit the consumers’ needs in the long run.