Suggestions for Starting Your Singapore eCommerce Business
It is not easy to start a business online these days, however, having a business idea is just the beginning of your business journey. Owning an online shop can be difficult for those who are not familiar with the details, including licensing, business finances, and legal structure.
The e-commerce industry is on the rise. More businesses are turning to online sales to reach a wider audience. In this article, we will be going to see some of the helpful & beneficial Suggestions for Starting Your Singapore eCommerce Business in long run.
Why do You Need to Start an eCommerce company in Singapore?
Singapore’s Asian Financial Hub business environment makes it a great place to start a business. This furthermore applies to eCommerce businesses.
Online shopping is a popular option in Singapore. There are approximately 33.3 million Singaporeans who shop via eCommerce stores. This has generated up to USD$2.7million in eCommerce market revenues in 2021.
This market is projected to grow by 9.9% annually starting in 2021 and reach USD$4,000,000 by 2025. Like any other business venture, however, a successful eCommerce business requires business planning and a significant investment of money.
There are some things that you should consider when you start an e-commerce company in Singapore. We’ll be sharing some Suggestions for Starting Your Singapore eCommerce Business. So, without any further, ado let’s get started.
Tip #1: Understanding the requirements and procedures for Singapore company set-up
There are some Suggestions for Starting Your Singapore eCommerce Business to remember when setting up an e-commerce business in Singapore.
Once you have established the right business structure (highly recommended for foreigners to register a private limited company in Singapore), choose a suitable company name, and then work with an experienced incorporation service provider to legalize your company.
A professional incorporation service provider in Singapore may be able to open your Singapore company within a matter of hours. Next, submit your application to ACRA – Accounting and Corporate Regulatory Authority – with all required documents and payment. This will complete the process quickly.
The best thing about Singapore is the ease of business registration. However, you need to make sure that all required documents are in order. Here are the basic documents required for Singapore company incorporation.
- All company members must have a certified true copy of their passports
- All company members must have a certified copy of their address proofs
- Details about business details, such as services, industries, and significant operating nations
Note:- To get your e-commerce site up and running in the city-state, customers will need to pay you. You’ll need to open a corporate account. Each bank in Singapore may require you to go through a different KYC process. This is why it’s important to get in touch with your bank before opening a bank account.
Tip #2: Choosing the right e-commerce platform and target market
A powerful, user-friendly e-commerce platform is essential to ensure your e-commerce business runs smoothly. The right e-commerce platform will be the best for your website.
There are many e-commerce platforms that you can choose from, each with its strengths and weaknesses. To choose the best one, you will need to assess your needs. Shopify is a popular choice for small businesses. It’s also easy to set up.
Others choose to open their shop and have a strong promotion strategy on different marketplaces, such as Amazon or Lazada.
Tip #3: Choosing the right payment gateway
Customers have become more comfortable shopping online, and online business owners often struggle with the various payment processors they use. How will you manage the thousands of dollars that flow through your business accounts each day?
It’s good news that payment gateways have allowed them to reduce their workload. They allow e-commerce businesses the ability to process multiple types of payments simultaneously.
It is crucial that you choose the right payment gateway to allow payments to be accepted online for your e-commerce store in Singapore. Paypal, which is easily integrated with many platforms, is one of the most popular choices.
Here are some considerations to help you choose the right payment gateway for your startup:
- Fees for the payment gateway. Some gateways charge higher transaction fees than others. It is worth considering your business model, accepted payment types, and your monthly/annual income from transactions.
- Security of payment gateway. You should ensure that the payment gateway you select has a strong reputation for security. This will ensure that your customers’ data is safe.
- The payment gateway provider provides customer service. Look for a service provider who is accessible and can assist you with any issues you might have.
- Check if the gateway is compatible with the e-commerce platform that you are using
Tip #4: Shipping and fulfillment
According to a JPMorgan report, it costs US$5.8 million for Singapore-based businesses to access the consumer e-commerce market. To deal with high-demand markets, it will be necessary to increase the number of fulfillment and shipping solutions available for e-commerce businesses in the city.
You will need to arrange shipping and fulfillment if you sell physical products. Fulfilment by Amazon or local providers like ShipBob and Asendia can help you do this. E-commerce businesses have many options.
Third-party fulfillment and shipping services are a great choice. They can handle the logistics of shipping and handling. This allows you to concentrate on other aspects of the business instead.
It is important to evaluate the price, speed, and level of customer service when choosing a shipping or fulfillment service.
Tip #5: Check out useful e-commerce resources for startups in Singapore
Startups in Singapore can find a few useful e-commerce resources.
- Singapore Chamber of E-Commerce is an open-source community organization that promotes and supports e-commerce in Singapore.
- Singapore Infocomm Media Development Authority offers e-commerce initiatives, research, and innovation updates within Singapore.
- Singapore Economic Development Board (EDB), provides support, resources, and region insights to investors who do business in Singapore.
Conclusion
There are many opportunities for businesses to succeed in e-commerce. E-commerce is a rapidly growing industry in Singapore. It is important to take into account the competition and other factors. These Suggestions for Starting Your Singapore eCommerce Business will help you out in your business.
If you’re still having questions regarding these Suggestions for Starting Your Singapore eCommerce Business or any other question, we are ODINT Consultancy. We’re we are here to assist you at each step of your way.
FAQ’s
All broadcasting services licensed by the Singapore Broadcasting Authority Act (SBA), including online services offered by Internet Service Providers, ISPs, and Internet Content Providers, must be licensed.
You must register your online company in Singapore.
Shopee had 16.15 million monthly visits and was the most popular e-commerce website. Shopee is closely followed by Lazada, a Singapore-based e-commerce provider, and Amazon, with approximately 9.2 million and 5.2 million visits respectively.
- Decide what you want to sell.
- Select a business model.
- Incorporate the business.
- Select your platform.
- Create your store.
- Register for a Business Account
- Connect Payment Systems
- Establish customer communication.