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Amazon narrows Singapore grocery ambitions

Amazon. com Inc is cutting jobs in Singapore and phasing out Amazon Fresh as it retreats from local fulfilment in the city-state, shifting resources towards cross-border retail and international selection from its US, Japan and Germany stores.

The company said a “small number of roles” in its Singapore Stores organisation would be affected as Amazon. sg winds down local fulfilment, including Amazon Fresh and grocery partnerships. The affected workforce is understood to represent less than 10 per cent of Amazon’s 2,500 employees in Singapore, with the company saying the “vast majority” of roles across cloud, retail, technology and corporate functions will not be touched.

Amazon has framed the move as a response to customer demand rather than a broader withdrawal from the market. Its Singapore platform will continue to operate as a local storefront offering local currency payments, customer service, Prime benefits, deal events and fast delivery on eligible international items. The company is placing greater emphasis on tens of millions of products available through its International Store, including goods shipped from the US, Japan and Germany.

Peter Li, Amazon Singapore country manager, said customers were showing strong demand for international-store products and that Amazon was increasing investment in the selection shoppers “want most”. The company said Prime members would continue to receive fast free delivery on eligible products, along with access to Prime Video, gaming benefits and shopping events such as Prime Day.

The decision marks a sharp turn for Amazon’s grocery ambitions in Singapore. Amazon entered the market in 2017 through Prime Now, making the city-state its first Southeast Asian market for the fast-delivery service. Amazon. sg followed in 2019, while Amazon Fresh was introduced in 2020 as a grocery service for Prime members, offering two-hour delivery on fresh, chilled and frozen products, household goods and daily essentials.

Amazon Fresh had been positioned as a one-stop grocery channel with local produce, branded pantry items and partnerships involving grocery and specialty food suppliers. Its withdrawal suggests the economics of local fulfilment in a dense but highly competitive market proved less attractive than the company’s cross-border model.

Singapore’s grocery delivery market is served by strong incumbents and specialist platforms, including FairPrice Online, RedMart, Cold Storage, Sheng Siong and other last-mile operators. These players already have established supplier networks, physical supermarket footprints or deep local brand recognition, making customer acquisition and fulfilment efficiency difficult for newer or less locally anchored challengers.

The shift also fits a wider reassessment of Amazon’s grocery strategy. The company has adjusted its Amazon Fresh and Amazon Go physical-store operations in other markets, while placing greater weight on Whole Foods Market, delivery logistics and household essentials ordered through its main marketplace. Grocery remains strategically important to Amazon because it drives repeat purchasing, Prime engagement and delivery-frequency gains, but the company has been more selective about which formats can scale profitably.

For Singapore sellers and grocery partners, the change could disrupt access to Amazon’s local fulfilment channel. Amazon said it was working to transition vendors and sellers to alternative ways of serving customers where possible. That wording indicates some businesses may retain a route to Amazon customers, though not necessarily through the same fulfilment structure or grocery channel.

For employees, Amazon said it would seek internal transfers where possible. Staff unable to secure another role, or those choosing not to pursue one, will receive severance and career-transition support. The company has not disclosed the exact number of workers affected.
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