Pinduoduo makes a push with free shipping on single items; Local e-commerce competition heats up

Chinese e-commerce giant Pinduoduo’s introduction of free shipping for one item in Singapore is attracting price-conscious consumers and intensifying competition in the local e-commerce market, with consumers increasingly willing to wait longer for delivery in exchange for lower prices.  Asst Prof Chua Yeow Hwee from NTU’s Economics division said the promotion could further encourage online shopping, particularly for low-cost items, while local e-commerce competition is expected to remain segmented according to price, delivery speed, reliability and shopping experience. Although stronger competition benefits consumers through greater choice and better services, experts warn that it will put additional pressure on physical retailers, which may struggle to compete with China’s large manufacturing ecosystem based on price alone.

Click here to read the article.