Image: Adobe | Singapore City Skyline

Amazon continues its expansion move as it now sets its eyes on Southeast Asia.

Singapore has been pin-pointed as the location where it will start its expansion in the Southeast region. It could also happen very soon, as there are indications that it might come within the week.

Amazon Singapore

Services that would be available for Amazon Singapore include Amazon Prime, Amazon Prime Now as well as regular eCommerce services that are offered by Amazon.

amazon logo

Amazon was actually getting ready for entry into the Southeast Asian market as early as the first quarter of 2017, but the company decided to postpone that to later this year.

Now things seem to be moving ahead for a bigger Amazon presence in Southeast Asia.

Already Amazon is seen to be close to coming to Southeast Asia with a number of social media posts showing some of the products from Amazon Prime.

This is most notable on Instagram, where sponsored teasers have been noted by users in Singapore.

The teasers have not been labeled as Amazon yet, but the hint is on the distinctive tick found on the packaging.

East vs West

If Amazon decides to fully enter into Southeast Asia, it will have much competition from Alibaba and Tencent.

Alibaba is already active through the company Lazada which started last year and has also acquired the Singapore eGrocery store Redmart.

As of now Southeast Asia is still a much untapped potential for eCommerce.

Less than five percent of the total eCommerce traffic comes from the region, but many analysts believe that there would be much growth coming from it in the coming decade.

As more people in the region gain internet access, and logistics complications get answered the use of eCommerce will become even greater.

Singapore has been chosen to be Amazon’s entry point since it is greatly Westernized, though Indonesia could be a good target as well as it is the world’s fourth most populated country.

I guess time will tell as to whether Amazon will be able to compete in the East.

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