Amazon's US playbook flopped in Singapore — local fulfilment shut down in May 2026

Amazon launched in Singapore in 2017 with its proven US playbook: a centralized fulfilment centre, Amazon Fresh grocery delivery, and marketplace services for third-party sellers. It built a local warehouse network and employed about 2,500 people in the city-state. But the model that worked in the US and Europe did not translate to Southeast Asia.

Regional platforms Shopee, TikTok Shop, and Lazada together controlled 98.8% of Southeast Asia's US$157.6 billion e-commerce market. Amazon captured just 6% of Singapore's US$5.9 billion GMV. Amazon could not compete on price or selection because the region's supplier base is in China, Vietnam, and Indonesia — platforms with direct China supply-chain links could offer lower prices and faster assortment turnover.

Every bundled service that propped up the Prime model elsewhere faced a stronger local rival in Singapore: Prime Video trailed Netflix, Amazon Pay trailed ShopeePay and GrabPay, Amazon Fresh struggled against FairPrice, Cold Storage, and Sheng Siong on one side and Grab and Foodpanda on the other.

In May 2026 Amazon announced it would end local fulfilment, including Amazon Fresh, Amazon Retail, and third-party marketplace operations in Singapore. The changes took effect on July 7, 2026. Less than 10% of the 2,500-person workforce was laid off. Amazon.sg shifted to cross-border sales from its US, Japan, and Germany stores — nearly 80% of local customers already shopped for such products.

Ended local fulfilment after 9 years, shifting to cross-border sales from US, Japan, and Germany stores, and laid off 10% of staff.

Amazon's bundling strategy (Prime + delivery + video + grocery) did not work in Singapore because each service competed against entrenched local leaders independently

Regional rivals Shopee, TikTok Shop and Lazada leveraged China's supply chain to offer cheaper goods and faster assortment — an advantage Amazon could not replicate from a Singapore warehouse

Singapore was not a viable fulfilment hub for SE Asia when the supplier base is in China, Vietnam and Indonesia, making last-mile economics unfavourable

Amazon's 6% market share was too small to justify the fixed cost of a local fulfilment network and grocery operation

A global playbook that works through bundling in one region does not travel to markets where every component of the bundle faces a stronger local champion.

Amazon ended local fulfilment, Amazon Fresh, Amazon Retail, and third-party marketplace in Singapore as of 7 Jul 2026. About 250 employees were laid off. Amazon.sg continues as a cross-border storefront selling from Amazon's US, Japan, and Germany warehouses. Prime benefits including video and free delivery on eligible imports were retained for Singapore customers.