Why Singapore is a strong option for ecommerce business
Singapore is one of Southeast Asia’s most developed ecommerce markets, supported by strong digital infrastructure, high digital payment adoption, and growing cross-border commerce. For founders, Singapore also offers a practical base for reaching customers across the wider region. Its fast and reliable digital infrastructure supports online businesses, while government grants can help eligible businesses cover part of the cost of adopting ecommerce solutions.
Singapore’s position as a regional business hub also makes it easier to build an ecommerce business with expansion in mind. You can start by serving local customers, then add marketplaces, cross-border sales, and international suppliers as your business grows.
How to start ecommerce business in Singapore
Here are the steps that will make your journey easier if you do it right:
- Choose something unique rather than just focusing on the price: If you compete only on being cheaper than other sellers, it will be a losing game for you. You need to study your category on platforms and then focus on delivering your product.
- Register with ACRA: You need ACRA to get paid cleanly. A sole proprietorship will cost you about SGD $115, and a private limited company in Singapore will cost you around SGD $315 to register with the Accounting and Corporate Regulatory Authority.
- Choose your sales channel first: Your sales channel will set your fees, payment options, and control, so it is better to decide before you build anything
- Set up and test the store: Set up your store properly for your potential customers, have clear photos, honest product descriptions, PayNow and cards at checkout, and a return policy you can honour
You can also reduce your setup costs. Enterprise Singapore has announced PSG, EDG, and MRA will be consolidated into a new unified "EDGE" grant launching in the second half of 2026. Make sure you check the latest eligibility requirements before applying.
Where to sell: ecommerce companies in Singapore
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Before setting your prices, make sure to add all your costs, which include platform fees, payment fees, ads, and fulfilment. Small differences in fees can make a big difference to your profit.
Singapore ecommerce tax and the rules you cannot skip
If you register for GST late, IRAS can backdate your registration, require you to pay GST on past sales, and impose a fine of up to SGD $10,000 plus a penalty of 10% of the GST due.
In Singapore, Goods and Services Tax (GST) is 9%, and you must register for GST once your taxable turnover passes SGD $1 million in a 12-month period. Below this amount, GST registration is just a choice, and for some sellers, it is not even worth it.
One point to be noted is that GST now applies to low-value goods brought in by air or post as well, so you must check the latest rules for your model rather than trusting any older guides.
When it comes to customs in ecommerce Singapore, they are a bit easier on you. Singapore is a free port, so most of the goods enter duty-free, with excise duties mostly on liquor, tobacco, motor vehicles, and petroleum. This ease makes importing simpler for sellers in comparison to other regions.
Here are some more Singapore ecommerce tax and compliance points you need to remember:
- Restricted and prohibited goods: Products like healthcare products, cosmetics, and supplements may need approval from the Health Sciences Authority, while alcohol and tobacco need proper permits
- Customer data under PDPA: You need to handle your customers’ personal data under the Personal Data Protection Act
- Accurate product listings: Under the Sale of Goods Act and consumer protection rules, your descriptions need to match what you ship to the customer
- InvoiceNow/e-invoicing requirements: Singapore is phasing in mandatory InvoiceNow e-invoicing requirements for GST-registered businesses, with the rollout taking effect in stages based on when a business is GST-registered.
Singapore ecommerce fulfilment and logistics
Delivery speed and cost can vary depending on the fulfilment option you choose. For local orders, standard delivery typically takes 1–3 working days, while express and same-day options are available for eligible orders. Delivery costs also vary by parcel size, service level, and volume, so compare providers based on both price and turnaround time.
- Self-fulfilment: Good for smaller order volumes and gives you more control, but takes more time as you grow
- Third-party fulfilment: Providers can store, pack, and ship your orders for you, saving time as your business grows
- Local delivery providers: Options include Ninja Van, SingPost, uParcel, ezyCommerce, and SP eCommerce
- Cross-border shipping: Providers such as DHL, FedEx, and UPS can help you ship orders internationally
The right option depends on your order volume, parcel size, and delivery needs. Compare the cost of handling orders yourself with a fulfilment provider before you decide. Also factor in returns and failed deliveries, as these can add to your costs.
What Singapore shoppers do at checkout
You must have heard from other sellers that good traffic does not always guarantee sales, and most of the shoppers usually drop off at the last step. As per ECDB benchmarks, cart abandonment sits around 82%, which shows that most revenue loss happens at checkout and not at the main product page. Here are some Singapore ecommerce trends you can follow to avoid this:
- Mobile shopping is more preferred than other platforms, so if your checkout is awkward on mobile, you might lose the sale
- Buyers want their usual payment method during checkout, so if their payment method is not available, they may just abandon the cart
- Cross-border buying is common for your customers, which acts as your opening and pricing competition
- Short videos and livestreams move real volume and help you sell better
B2B ecommerce in Singapore
Most founders think about selling directly to shoppers, but B2B ecommerce in Singapore is also growing, with the market estimated to grow by around 12% a year. Singapore is also introducing mandatory electronic invoicing through InvoiceNow, which can help businesses manage invoices with less manual work.
For sellers, B2B ecommerce in Singapore can mean larger orders and more repeat business. If your products work well for wholesale or business buyers, this can be a good option alongside consumer marketplaces.
Payments and cross-border money
Getting the payment at the checkout is just the job half done, as there is a lot that happens after that in ecommerce Singapore. Here are some points to take care of:
- Local payment methods to offer: Cards still carry a lot of value and mobile wallets have also grown to around 45% of transactions. Have popular options like PayNow and SGQR, Visa and Master card, GrabPay and ShopeePay, and pay later through Atome.
- Overseas payment methods: Buyers abroad often prefer their own local options, so it is important to consider their choices for a smooth payment experience.
- Double-conversion cost: Your US customer pays in US dollars, your provider will convert it to Singapore dollars, and you will again convert to pay a US supplier, this leads to paying for swapping the currencies twice.
- Holding the currency you earned: Keeping your funds in the currency you got paid in and converting only when you choose will protect the margins on every cross-border order
How Aspire helps you manage cross-border money
It gets tough to keep money aside clean once the orders come in through several channels and stock goes out to overseas suppliers. So, a multi-currency account like Aspire helps you out with exactly these while dealing with ecommerce Singapore:
- Hold multiple currencies in one account and convert only when the rate works for you, instead of losing margin on automatic conversion
- Pay overseas suppliers directly instead of receiving, converting, then converting, and paying again
- You can issue cards for your Meta, Google and other software spends in one place
- Track multiple payouts and supplier and ad payments together without managing multiple accounts
Frequently Asked Questions
Do I need to register a company to sell online in Singapore, or can I just start on any platform?
It depends on your situation. If you are carrying on a business in Singapore, you may need to register with ACRA depending on your business structure and circumstances. Check the current ACRA guidance for your case before you start.
Do I need to charge GST from my first sale?
No, GST registration is only compulsory once your taxable turnover crosses SGD $1 million in a 12-month period, else it is a choice.
How do I stop currency conversion from eating my profit?
Sell and hold in the same currency wherever you can. If you earn US dollars and pay suppliers in US dollars, keep the funds in US dollars rather than converting to Singapore dollars and back.
Should I handle my own delivery or use a fulfilment partner?
At low volumes, self-fulfilment is usually cheaper. As orders, returns, and failed deliveries grow, a third-party or marketplace fulfilment service often wins on total cost and speed. Get real per-order quotes before you decide, and count failed deliveries.
Is Singapore too small a market to bother with?
The population is small, but spend per shopper is high and cross-border demand is strong, which is why the ecommerce SG market works as both a home base and a launchpad into the wider region.
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