The e-commerce industry has been steadily growing with new developments in technology. However, this growth saw a spike in 2020 when the pandemic hit and any kind of product purchasing were shifted online. It was also observed that those who already had a strong online presence had a higher chance of surviving through the pandemic.
In Singapore, the e-commerce industry saw a huge spike in 2020 with a shift in consumer behaviour and greatly increased the city-state’s digital economy. An internship in Singapore at this time is going to be greatly beneficial because of the technological direction that the world is heading in.
AIP aims to provide internships that are going to be valuable to students in their future careers. And today, the e-commerce industry is gaining a lot of traction in the markets, especially in Singapore. This is an important reason to begin your internship experience in Singapore today.
E-commerce is the buying and selling of goods, services and data over an electronic network, primarily through the internet. E-commerce platforms like Amazon and e-Bay have contributed exponentially to the growth of e-commerce. In 2020 alone, Amazon’s annual revenue increased 38% to $386 billion and the company’s net profit was up to 84% in 2020 compared to 2019.
There are different types of e-commerce that exist. The four most popular ones include:
- Business-to-business (B2B): This refers to the electronic exchange of products, services and information between businesses. Examples include online directories that allow businesses to search for products and initiate transactions through e-procurement interfaces.
- Business-to-consumer (B2C): This refers to businesses that sell products, services or information directly to the consumers. There are a number of virtual stores online today that sells numerous products. The most popular online site is Amazon.
- Consumer-to-consumer (C2C): This is a type of e-commerce in which consumers trade products and services with each other online. This type of transaction is usually done through a third party that provides the online platform.
- Mobile e-commerce: This type of e-commerce includes online sales transactions made by using mobile devices like smartphones. M-commerce includes mobile shopping, mobile banking and mobile payments.
Fig. 1: Online Shopping (Source: Pexels)
With the increased popularity of e-commerce, government regulations have also increased. For example, in the United States, the Federal Trade Commission (FTC) and the Payment Card Industry (PCI) Security Standards Council are some of the primary agencies that regulate e-commerce activities in the country.
To better secure e-commerce activities, businesses should also authenticate their business transactions and control access to resources, encrypt communications and implement security technologies.
Start off with an internship in e-commerce to get a head start and learn all the tips and tricks of this market. You may also get a chance to secure valuable connections during your time in this industry. AIP aims to give you sufficient experience in the field and a taste of the real world before completely diving into it.
Due to the worldwide lockdowns that took place at the beginning of 2020, online purchasing witnessed an all-time high. Southeast Asia’s online sector is expected to hit US $300 billion by 2025 and the e-commerce sector is expected to be worth US $150 billion by 2025.
In Singapore specifically, the country’s digital economy is earning the additional US $500 million annually and some businesses saw up to three times their normal growth rate. Online sales in Singapore had increased from 5.8% in January to 14.3% in November 2020. Some of the most prominent e-commerce sites in Singapore are; Qoo10, Lazada, Zalora, Carousell, RedMart and Honestbee.
Fig. 2 E-Commerce (Source: Pexels)
Observing this growth in the economy, Singapore’s Minister of Trade and Industry introduced the latest strategy to transform the country into a regional and global e-commerce hub at the 2021 Amazon Southeast Asia Online Seller Summit.
The strategy includes strengthening Singapore’s digital infrastructure, specifically in digital connectivity, data analytics, payment systems and new business innovation. Developing the country’s 5G infrastructure is placed as one of the priorities in this plan as it is the backbone of the country’s digital economy.
Singapore also aims to ramp up its cybersecurity systems to make businesses more secure and protected when sharing sensitive information. By guaranteeing the protection of data flow between businesses across borders, companies will also be more encouraged to accept e-payment solutions.
Another target of Singapore is positioning its logistics sector to be better integrated with the global supply chains. This means more focus is placed on specializing in value-adding capabilities like cold chain management and pharmaceutical logistics.
Fig. 3 Marina Bay Sands, Singapore (Source: Pexels)
Therefore, while the pandemic has disrupted the flow of the economy, it has also spurred innovation among many companies and businesses. New and innovative technologies are taking shape that is more efficient and tailored to the new emerging markets.
With the information provided above, it is clear that this is a great time to start an internship in Singapore. Not only are businesses grasping at the opportunity to grow their digital footprint in this market, but they also have the support and backing of the government. This will ensure the sustainable growth of the e-commerce industry in the foreseeable future.
An internship in e-commerce is a great opportunity to learn how the industry operates, how it is developing and evolving with the changing environment. An internship with AIP will not only ensure you increase your professional skills but will also grant you the opportunity to learn more about the Singaporean culture.
This industry is one that is experiencing immense growth, particularly now. That is why it is a great chance to seize this opportunity and open yourself up to new experiences with this internship.
The e-commerce industry in Singapore is not going to slow down its progress because businesses in the country are adopting and assimilating quickly with their changing environment. Furthermore, the government is ready to back up this digital economy with policies that support these emerging businesses. That is why an internship in Singapore is a great place to start your career introduction in the e-commerce industry.
If you want to learn more about e-commerce or experience the growth of the digital economy in Singapore, visit our website and see which program best suits your interests and passion!