How to do Dropshipping in Singapore

Guide to Start Dropshipping Business in Singapore

The topic of discussion in this article is dropshipping in Singapore. Nevertheless, this piece of advice is relevant regardless of where in the world you call home. We have some excellent guidance in store for you.

Both people who want to run their own businesses full-time and those who just want to make some extra money are turning to dropshipping in increasing numbers. Because of the accessibility of the internet and the frequency with which its citizens use it, dropshipping has become a common business practise in Singapore.

By the year 2020, the value of e-commerce in Singapore will have reached 2,405 million USD. It is anticipated that growth will reach 4.079 million USD by the year 20251. In Singapore, a dropshipping business can be started off on the right foot right now.

This guide will help you get started in Singapore and provide advice on how to build a successful business. It will also answer questions you may have about doing business in Singapore. You will also be able to make the most of your sales in foreign countries with Wise Business’ assistance.

The statistics on dropshipping in Singapore

The growth of e-commerce is accelerating rapidly. It is essential to enter a market as quickly as possible, particularly one that is experiencing expansion. The shift of more customers to online shopping will be beneficial to the already established players.

You will gain a better understanding of the opportunities available thanks to these statistics.

The majority of Singaporeans (89%) use the internet to look up information on products that they might be interested in purchasing.

In the year 2020, 52.4% of the population of Singapore made their purchases through the use of e-commerce. It is anticipated that by the year 2025, this number will have increased to 67.2 percent.

There are currently 3.1 million people living in Singapore who make use of e-commerce. The average revenue generated from each customer is $784.52 US dollars.

Because of the high cost of living in Singapore, it is possible to export goods from countries with lower costs while maintaining healthy profit margins.

In the year 2020, the market segment that will be the largest will be food and personal care products. Users in this age range account for close to a quarter of all consumers who shop online.

In 2019, some of the most popular searches conducted on the internet were for terms related to Qoo10, Amazon, and Lazada.

You should also read about the pricing structure of Big Cartel, which includes free, premium, and additional costs.

Establishing a dropshipping business via an online store in Singapore

Ideation: It’s a relaxing Sunday evening, so you’re lounging on the beach and thinking, “Life is just the status quo; I have to shake things up a little bit; make it crazy; add some pzazz.” What about launching a brand-new business from scratch?

Oh, I see–everyone I know dives into e-commerce because it’s an easy and cost-effective way to get my feet wet without burning a hole in my pocket, and I completely understand why they do so. What could possibly be better than that? Should I give dropshipping a shot? There is nothing that I need to do; all I need to do is set up an online e-commerce website and a dropshipping account, and I will be in good company. Whoa! Why on earth haven’t I given this any consideration before?

It’s pretty cool to hear, but does it also sound easy? You’re betting. However, when everything seems too good to be true, it is important to read the fine print.

But hey, don’t let that discourage you; we’re here to help with step-by-step instructions, so don’t worry. You just need to make sure that you have thorough plans, that you cover all of your bases, and that you go into it with your eyes wide open so that you won’t be surprised by the problems. You can start an online business in Singapore with the help of the free advice and suggestions that are provided in this article. If you’re considering opening a dropshipping business in Singapore, the information in this post will be helpful to you. You have the option of choosing to only engage in domestic sales or to also take part in international commerce within your country.

Why are you making me wait? Let’s plunge into it!

Also read about Korean companies that dropship skincare, makeup, and cosmetics here.

Having prior knowledge of the competition is a beneficial advantage.

Spend some time looking into the practises of other dropshippers in your industry. Participate in social media organisations, observe videos on YouTube, and investigate statistics gleaned from public sources, all of which can be found on the internet.

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Next, conduct some focused market research to identify the most reputable dropshipping companies operating in your region. Whether you’re looking for simple arts and crafts or sophisticated electronics, it should come as no surprise that China is home to one of the world’s largest dropshipping industries.

Contact a number of different dropshipping vendors and conduct interviews with them. Pricing, stock levels, discounts, shipping / realisation procedures, return policies, and damage management should all be compared and contrasted. It will take some time, but in the end it will be well worth it.

After narrowing it down to a few different vendors, compare the products that each of them offers for sale. Try to get a grasp on customer behaviour in order to gain an understanding of trends, such as which products are popular, which ones have high profit margins, which ones are less susceptible to damage, and which ones produce a high percentage of usable goods.

It is time to move on to the next stage if you are prepared with your provider and product mix.

Constructing the business while negotiating the legal and regulatory minefields

To begin, it is beneficial to be located in a nation that is well-known for its pro-business climate. Singapore is recognised as having the best practises in the world when it comes to assisting individuals or businesses in establishing a legal entity that is authorised to conduct business in Singapore. Even people who live in other countries than Singapore have the ability to create legal entities that can operate outside of the country. If you are a citizen of a country that is located in or around Singapore, you may find that it is much simpler to incorporate your business in Singapore than it is in your own country; at the very least, you should give it some thought.

Check out this article for a comparison of the best Shopify recurring payment solutions.
The Singapore Broadcasting Authority is in charge of monitoring all of Singapore’s internet service providers. In order to begin operations in Singapore, dropshippers and other types of online retailers are required to first obtain the necessary governmental licences.

Which type of permission are you going to require, exactly?

When deciding how to incorporate your business in Singapore, if you are a resident of Singapore, you will need to assess the benefits and drawbacks of each type of company entity, including partnership, limited partnership, sole proprietorship, and limited liability partnership. Please refer to this exceptionally helpful website regarding the various options for additional data. Bear these in mind as you work toward complying with the INTERNET CODE OF PRACTICE, which is a requirement for all online firms operating in Singapore. It is possible that you will be required to seek additional regulatory approval if you send limited goods or services or products that have been used.
Both the Common Gaming Housing Act and the Singapore Public Entertainment Act apply to any and all online advertising operations that take place. The Singapore Code of Advertising Practice, the Computer Misuse Act, and the Consumer Protection Act all apply to advertising that is displayed on the internet in Singapore. Check to see that these are taken into consideration by your business professional when your company is being established.

As an ecommerce company, you need to exercise extreme caution before making any commitments to the internet or entering into any implied agreements. In Singapore, the law that governs contracts includes provisions for online agreements. One of the laws that you should familiarise yourself with is the Electronic Transactions Act (ETA), which came into effect in the year 1998. This is done with the intention of increasing consumer confidence in e-commerce and providing legal validity for agreements made over the internet.

You may also be interested in reading, How Much Does It Cost to Start a Dropshipping Business?
Consumer rights in Singapore are protected by various pieces of consumer protection legislation, including the Unfair Contract Terms Act (UCTA), the Sales of Goods Act (SOGA), and the Misrepresentation Act, amongst others.

Protecting Your Digital Assets The Computer Misuse Act prevents unauthorised users from accessing, changing, intercepting, or interfering with the programmes and information stored on your computer. This safeguards your digital assets. Your digital assets are protected as a result of this action.
Customers are extremely worried about the protection of their personal information and privacy.
You are required to have an information management policy in place in order to prevent clients from accidentally disclosing the information you have gathered about them. This may necessitate the management of worker access, the implementation of corporate firewalls, the performance of frequent system audits, or the utilisation of sophisticated encryption (for the protection of information) technology.

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Credit card fraud

As a merchant operating on the internet, you are responsible for safeguarding all credit card information that comes to you. By travelling through a portal to make the payment, this is handled immediately and automatically for you.

The safeguarding of intellectual property (IP) when using the internet
Because photographs, information, and data are so simple to share via the internet, protecting intellectual property (IP) rights is an absolute necessity in the digital realm. Copyright law and trademark law are two areas that you, as the owner of an ecommerce company, need to be especially concerned about. Copyright is protected in Singapore under the provisions of the Copyright Act, and this protection extends to anything creative as well as anything physical.

The registration of trademarks in Singapore is governed by the Singapore Trademark Act, which also regulates such trademarks.

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Another factor that must be taken into consideration is the names of the domains. You have an obligation to make certain that a distinctive and registered version of your domain name is obtained as quickly as possible in accordance with the principle of “first come, first served.”


It is crucial to be aware of the authority and selection of legislation in the event that there is a conflict as a result of your internet business, particularly international trade. Generally speaking, a Singapore court will have jurisdiction over a case if the defendant is served with a claim in Singapore or if a defendant located outside of Singapore is permitted to be served by the tribunal. Please take note that there is no “blanket rule” that states that in the event of a conflict, the regulations of a nation that is asserting its jurisdiction shall be used.

In order to protect oneself, you want to have a clear online agreement that specifies the legal route that may be taken (in your case, Singapore jurisdiction). As an additional measure to protect oneself from potential legal complications, you may want to think about incorporating a “I Agree” button into the purchasing procedure itself.

The very last stage involves legally registering the company.

After you have successfully registered your company with the government-run Singapore Trade Register, it is time to go on to the next step, which is the exciting process of establishing an online store.
Constructing your presence on the internet and establishing your brand identity
You have completed all of the necessary papers, and you are now eager to get started. That is the component that I like best. With more than ten years of experience in the eCommerce industry, KLoc is the location where we help aspiring business owners realise their online aspirations. Don’t misunderstand me. My services are not offered for sale. To find the “right online” partner who can help you create, maintain, and develop your business in the same way that you questioned yourself to investigate thoroughly before selecting a dropshipping company, I will recommend that you do the same. In the same way that you questioned yourself to investigate thoroughly before selecting a dropshipping company. Please be aware that in order to operate your firm in a variety of different ways, you could require more than one vendor. Permit me to elucidate it for you.


Create your trademark using the helpful information provided by Shopify’s excellent post on registering your mark available here in Singapore. You need to go through this process in order to “reserve” your own trademark. You might want to collaborate with a designer so they can assist you in developing a unique brand identity / name and branding property for your company.
Choosing the appropriate image for your brand means that you must reflect your company’s values, including its ethos, passion, and goal. It needs to make it abundantly clear what you believe in. Your company’s mission and values ought to shine through in the logo and tagline. You may give collaborating with experienced developers on websites such as a shot, after which you could select the design resources that best suit your needs.
Register a domain name–
A domain name is an extension of your brand identification that may be used online. In addition to the procedures described above, you should make an effort to conduct research and make a reservation for the domain name, since this is a vital component of your online business. The following is an excellent place to begin.
Also Read How to Get Started with a Dropshipping Business Using Shopify
Start Selling Online
The task of selecting the optimal platform for your business can feel like an insurmountable obstacle. Shopify is definitely the market leader when it comes to the process of setting up a user-friendly and customised storefront for your dropshipping firm. They have 600,000 retailers using their platform across more than 160 countries.
You may get started selling independent products online using Oberlo; all you need to do is add the products to your shop, and you’ll be ready to start making sales.
After you have completed all of these steps, you should then go to the Intellectual Property Office and register your names and other branding assets in order to protect your mark.
Make sure that your payment gateway is properly set up (Shop Payments or Shop Payment Gateways, Singapore)
Putting up the Retail Outlet
Shopify is most likely the only do-it-yourself platform available, but if you have better things to do with your time, you should leave the setup, design, and growth to an organisation like us so that you can focus on what’s most important to you: your business. Shopify is the only platform that offers these features.

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Building your online presence: setting up your brand identity

When it comes to configuration, hiring an expert lets you to make the right decisions, such as picking the appropriate theme or third party app, choosing the appropriate characteristics for your businesses, learning tips and techniques to increase traffic and conversions, and maximising productivity.
The specialist will be able to assist you in integrating the payment gateway, integrating the dropshipping application, and deploying the shop in order to make you accessible to business customers.
Oh, wait, there’s something else to consider here. It is usually a good idea to record precisely all of your strategies, such as your Privacy Policy, Shipping and Return Policy, Terms and Conditions, and a general FAQ (Frequently Asked Questions), obviously on your website in line with the nations in which you do business.
Testing the entirety of the process is the one surefire technique to ensure that your customers have a pleasant experience when making a purchase from you.
Also Read about the 11 best dropshipping products to sell throughout the summer here, along with details about the suppliers.

Start Selling Online

As long as your company’s structure is legitimate and your suppliers are trustworthy, dropshipping in Singapore is perfectly lawful. You should familiarise yourself with the relevant legislation, as is the case with any type of company strategy, in order to avoid running into any difficulties.

You shall be responsible for ensuring that your goods are in accordance with all applicable laws. This means that they can be marketed legally without infringing on any copyrights or raising any concerns about their safety. In addition to this, you will need to think about how to set up your firm and how to file and pay taxes based on the money you make. Perform adequate research to reduce the likelihood of encountering legal issues in the future.

Building the Store

Earnings from dropshipping that are brought into Singapore are subject to taxation. Make sure you have a complete understanding of all the requirements for your income and business registration to avoid running into any problems. In addition to that, make sure that your tax returns and payments are paid on time and that you finish everything on schedule.
It is easy to see why dropshipping has become so popular as a business model: it enables entrepreneurs to launch profitable online enterprises with very little capital investment and very little risk. However, one should not be fooled by the apparent straightforwardness of the model. There are a lot of different aspects of running a dropshipping business in Singapore that you need to consider in order to ensure its success. And because there are low hurdles to entry when it comes to beginning a dropshipping business, the level of competition can be fierce in certain markets.