10 Reasons why you shouldn’t move into SEA or Singapore for E-commerce business?
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The Qoo-ler Way to Shop!
10 Reason why you shouldn’t move into SEA
or Singapore for Ecommerce business
Ver. 2015
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8th ~10th most visited Web site in Singapore
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-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
3,750,000 daily page view
408,000 daily user
1,630,000 members
43,000 daily orders
“ We are No 1 in Singapore,
but it’s just beginning”
Sales Growth YoY : 80%
15M
Jan 2013
27M
Dec 2014
47M
Dec 2015
40,000 ~ 50,000 daily transactions
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1. Customers don’t search
10% of transaction comes from Search.
70% of search query is Qoo10
“ Customers don’t search for
shoppping”
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2. Customers don’t click
1% of transaction comes from Display Ads
“ Customers don’t react to
display Ads intended for
shoppping”
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3. Advertisement cost is high
(most effective case)
10,000 clicks, 300 transactions, $5000 sales, $250 profit => USD $10000
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4. Shipping cost is high (still depending on postal service)
Average transaction amount $20 but delivery cost $10
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5. Fast migration to mobile
50% of browsing happens on mobile devices
40% of transactions comes from mobile App
“requires superb mobile
technology/operational
capability ”
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Summary
1. Ecommerce business cannot grow by conventional search
campaign. (Waste of money, threat to initial set up)
2. Ecommerce business cannot grow through usual display
Ads campaign. (for the same reason mentioned)
3. Shipping cost or logistics infrastructure is expensive. It
may not be feasible to provide superb customer
experience because of higher cost. (setting your own is
another cost)
4. Mobile is a must. You need a superb mobile team ready to
change or modify mobile experience fast.
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Success case or Recommendation
Your own platform Google/Facebook/Etc
Strong Financial back-up (eg. Rocket Internet)
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Success case or Recommendation
Qoo10 store
platform
(Web, Mobile)
Qoo10 Search
Engine
http://www.onemart.sg/
http://www.cocomo.sg/