Here’s why hopping into the e-commerce bandwagon is harder than retailers think

Retailers should take measured steps, analysts say.

The e-commerce wave has swept Singapore’s retail scene, and it’s either join or be left out for the city-state’s retailers.

But along with the use of new technology comes stricter expectations for these players, according to OCBC. While it is an important platform, OCBC says, order fulfilment rates have to be constantly robust, or retailers could be slammed with margin erosion.

Additionally, OCBC says there is also increasing pressure from consumers on delivery costs and speed.

“Nonetheless, we understand that online sales currently make up a small component for OSIM, and we like that Sheng Siong is taking cautious steps to work towards their desired model,” OCBC said.

Meanwhile, OCBC says along with e-commerce initiatives, making the leap to optimised logistics should also be prioritised by retailers.

“This involves managing their inventory, returned goods, and delivery to multiple channels. In the next few years ahead, we think the government’s recent logistics initiative is worth noting for the consumer sector,” OCBC said.