Ecommerce Warehousing in Singapore: A Seller’s Guide

What is ecommerce warehousing in Singapore

Ecommerce warehousing can cover more than simply storing your products. Depending on the provider, the service can include receiving inventory, keeping track of stock, picking products for orders, packing them, and dispatching them to customers. Some providers also handle returns, so products coming back from customers can be inspected and either restocked or set aside.

It’s worth separating storage from fulfilment, though. A warehouse may simply give you space to store your inventory, while a fulfilment provider handles the work involved in getting those products to customers. Not every ecommerce warehouse offers the full range of services, so check exactly what’s included before choosing a provider.

Additional services ecommerce warehouses can provide

Some ecommerce warehouses offer services beyond basic storage and order fulfilment. These can include:

• Inventory tracking and audits: Warehouses can track stock movements and carry out regular inventory audits, or cycle counts to check that physical stock matches the inventory records.
• Warehouse slotting: Products can be assigned specific storage locations based on factors such as order frequency, size, or handling requirements.
• Barcode scanning: Barcode systems can be used when receiving, picking, and moving inventory to make it easier to identify products and track stock movements.
• Order accuracy controls: Warehouses may use additional checks during picking and packing to reduce mistakes with products, quantities, or shipping labels.
• Replenishment: Warehouse staff can move stock from storage areas to picking locations when inventory in those areas runs low.
• Kitting and assembly: Some providers can bundle multiple products together or assemble items before they are shipped to customers.
• Shipping and carrier management: Depending on the provider, the warehouse may help select carriers, arrange shipments, and manage tracking.
• Specialised storage requirements: Some warehouses can accommodate products that need specific storage conditions, handling procedures, or additional security.

Types of ecommerce warehouses

• Private or in-house warehouse: Your business owns or leases the warehouse space and manages everything itself. This gives you more control over how inventory is stored and orders are fulfilled, but you also have to handle the day-to-day warehouse operations.
• 3PL fulfilment centre: A third-party logistics (3PL) provider stores your inventory and handles fulfilment on your behalf. They can take care of tasks such as picking, packing, and dispatching orders, depending on the services you choose.
• Shared or public warehouse: You rent space in a warehouse that is also used by other businesses. This can give you access to warehouse space without taking on the cost of running an entire facility yourself.
• Micro-fulfilment centre: This is a smaller fulfilment facility located close to the customers it serves. It is mainly used to keep popular products nearby and get orders out for delivery more quickly.
• Hybrid or overflow storage: You use your own warehouse while bringing in external storage or fulfilment capacity when you need it. This can be useful when your usual space is not enough during busy periods or when your inventory grows.

Ecommerce warehousing costs in Singapore

Ecommerce warehouses in Singapore generally charge for the space you use, the work involved in processing orders, and getting those orders to customers. There can also be additional charges depending on what you need from the provider.

To give you a clearer idea of what these costs look like, let's take BrickHub, a Singapore-based 3PL provider, as an example. Its currently published rates are:

• Storage: BrickHub charges SGD $100 per CBM per month, based on the actual space your inventory occupies
• Pick and pack: The rate starts at SGD $1.99 per order. This covers picking, packing, SKU verification, and label printing. The rate is tiered, with SGD $2.50 per order for 101- 500 orders and SGD $2.00 for 500+ orders per month
• Inbound receiving: BrickHub currently lists SGD $0 for receiving, counting, and checking incoming stock
• Shipping: Last-mile delivery starts at SGD $2.40 per parcel, with delivery tracking included
• Software: There is no separate WMS/software fee listed by BrickHub
• Packaging: Standard packaging materials, including polymailers and fragile stickers, are included in its current starter offering

These figures are specific to BrickHub, not standard prices across Singapore. Other 3PL providers may use different pricing models, so it's worth checking exactly what's included before comparing quotes. Using proper ecommerce accounting software can also give you a clearer view of your actual finances.

Is outsourcing always more cost-effective

Not necessarily. It depends on how your in-house fulfilment costs compare with what a 3PL would charge. Using BrickHub's published rates, here's what that could look like.

Scenario 1: When keeping fulfilment in-house makes more sense

Let’s assume the scenario as follows:

• 100 orders/month
• 1 CBM of inventory
• You already have storage space
• You handle fulfilment yourself
• No additional staff needed

BrickHub cost for comparison:

Storage: 1 CBM × SGD $100 = SGD $100/month

Pick and pack: 100 orders × SGD $1.99 = SGD $199/month

Total before shipping: SGD $100 + SGD $199 = SGD $299/month

If your existing setup costs less than SGD $299/month for storage and fulfilment, keeping things in-house could make more financial sense.

Scenario 2: When outsourcing starts making more sense

Let’s assume the scenario as follows:

• 500 orders/month
• 5 CBM of inventory
• You need additional storage
• Your team is spending significant time packing orders

BrickHub cost for comparison:

Storage: 5 CBM × SGD $100 = SGD $500/month

Pick and pack: 500 orders × SGD $2.00 = SGD $1,000/month

Total before shipping: SGD $500 + SGD $1,000 = SGD $1,500/month

Now compare that with your actual in-house costs:

Storage + labour + packaging + fulfilment time + other operating costs

If those costs are approaching or exceeding SGD $1,500/month, outsourcing starts looking more attractive.

These are illustrative calculations using BrickHub's published rates. Shipping and any other applicable charges are not included.

Ecommerce warehousing as your business scales

You don't have to hand over your entire fulfilment operation to a third-party provider. Ecommerce warehousing can be something you use when you need extra capacity, whether that's during a major sale or when your existing setup is struggling to keep up.

You could also outsource only certain parts of your operation. For example, you might keep your best-selling products in-house while using a warehouse for ecommerce to store and fulfil slower-moving items. You could even use a provider for orders coming from one sales channel while handling the rest yourself.

Use ecommerce warehousing during peak seasons

If your order volumes jump during major sales periods, you don't necessarily need to expand your own warehouse just to handle those few weeks or months. You can bring in external fulfilment capacity when your existing setup starts getting overwhelmed.

You can also send inventory to the warehouse ahead of a major sales period, so more orders can be processed without putting extra pressure on your own team. Once demand settles down, you won't be left maintaining permanent ecommerce warehouse capacity that you only needed during your busiest periods.

Outsource specific channels

You can keep some sales channels in-house while outsourcing others. For example, you could continue fulfilling Shopify orders yourself while sending Shopee or Lazada orders to an external provider.

This can make sense when one channel generates significantly more orders than the others or has different ecommerce warehousing fulfilment requirements. You get extra capacity where you need it without having to move your entire operation to a third-party warehouse.

Use outsourced ecommerce warehousing as you scale

You don't have to make a permanent decision about outsourcing from the start. As your order volumes and storage needs grow, you can gradually move more of your fulfilment work to a provider.

You might start by outsourcing a specific product range or a portion of your orders, then increase the amount you outsource as your business grows. This gives you a way to add warehouse capacity as your needs change, rather than committing to a completely outsourced setup before you need one.

What should you look for in an ecommerce warehouse in Singapore

Choosing an ecommerce warehouse Singapore provider comes down to how well it fits the way you run your business. Look at where it's located, how it handles your sales channels, and whether it can support you as your order volumes change.

• Location and delivery coverage: Where you keep your stock can make a difference to how quickly customers get their orders. When comparing an ecommerce warehouse, check where it's located and which courier networks it works with. If you also sell internationally, have a look at which countries the provider can deliver to and how those shipments are handled.
• Technology and platform integration: If you sell through Shopify, Shopee, Lazada, or other platforms, check whether the warehouse connects to them. A good ecommerce warehouse management system should bring your orders into the warehouse and keep your stock levels up to date. Check what reporting is available too, especially if you're selling across several channels.
• Fulfilment and customer support: Look at how the provider handles ecommerce warehouse fulfilment once an order comes in. Find out when their team is available and what happens if there's a problem with an order. If you usually see more orders during sales, ask how they handle those busier periods and whether they can take on the extra volume.
• Ecommerce warehouse management software: The ecommerce warehouse management software should make it easy to track inventory, manage orders, and see what's happening in your warehouse. It should also integrate with your ecommerce platforms, support barcode scanning, and give you useful reporting so you can manage your stock and orders without relying on manual updates.

Common ecommerce warehousing challenges in Singapore

Running an ecommerce warehouse in Singapore comes with a few practical challenges, especially as your order volumes and inventory grow.

• High warehouse and operating costs: Warehouse space in Singapore can be expensive, and you also have to account for the people and day-to-day work needed to keep things running. As your inventory grows, you may need more space, while receiving stock, packing orders, and other warehouse work add to your operating costs.
• Inventory and stock management problems: Keeping track of stock gets harder when you have a larger product range or sell through several channels. Inaccurate counts can lead to overselling, while having too much stock ties up money and storage space. Managing inventory across multiple channels can make this even harder.
• Fluctuating demand: Order volumes can change quite a bit throughout the year, particularly during sales events and seasonal periods. You need enough capacity to handle those spikes without paying for warehouse space you don't need when things slow down.
• Rising customer delivery expectations: Customers expect orders to arrive quickly and without mistakes. Your warehouse ecommerce fulfilment process needs to keep orders moving, provide accurate tracking, and have a clear process for handling returns.

How to choose your ecommerce warehousing partner

There's no single right way to handle ecommerce warehousing. Take a look at your order volumes, how much inventory you keep, and how much time your team spends on fulfilment. From there, you can decide whether it makes sense to keep everything in-house or bring in some outside help.

When comparing your options, look at the full cost, which parts of fulfilment you want to outsource, how well the provider works with your selling platforms, and whether it can handle you as the business grows. Aspire can also help you keep track of your operating expenses, including supplier payments and other costs that go into running your ecommerce business. The right setup is the one that fits what you need now without making things harder later.