Amazon, the world’s biggest e-commerce giant, has effectively admitted defeat in Singapore. On July 6, the US company began phasing out its fulfillment service, whereby it stores goods for retailers in its facilities. Amazon Fresh, which delivers groceries within a two-hour window, will cease operations and third-party sellers will also be affected.
It is not quitting the city-state entirely. “We’re seeing strong demand for products from international stores,” said Peter Li, Amazon’s Singapore country manager, in a statement announcing the move. He said the company will now focus on shipments from its stores in the US, Japan, and Germany.
This mirrors its strategy in other parts of Southeast Asia, but “strong demand” is a relative term. Amazon’s share of the region’s e-commerce market is less than 0.3%.
Singapore residents’ shopping attitudes explain part of the problem. “At first I thought Amazon was the best, as items from the US arrived within a few days,” said Jonathan, an American engineer in his 50s who has lived in Singapore for more than a decade. “But when it comes to casual clothes and dog food, I don’t really care about brand. Price matters more, and Shopee has now become my first choice.”
