How to sell online in Singapore: a complete guide

By Shermaine TanPublished on 24 December 20248 min
GuidesBusiness tips
How to sell online in Singapore: a complete guide
In this article

Are you looking to grow your customer base and increase revenue? Starting an eCommerce channel might be the solution you need. The eCommerce market in Singapore is growing rapidly, with user penetration projected to grow to 80.4% in 2029.1

eCommerce can also help you acquire customers beyond Singapore, including countries like China, which make up 62% of cross-border eCommerce sales.2 Fintech companies like Airwallex have made it easier for businesses to accept cross-border payments. 

In this article, we’ll take you through a comprehensive guide for how to sell online in Singapore, from sourcing suppliers to eCommerce laws in Singapore. We’ll also discuss the benefits of using a digital business account, and why Airwallex might be the all-in-one payments platform your eCommerce business needs.

Things to know before selling online

Here are some things to keep in mind as you build your eCommerce strategy.

Think global: open a digital business account

The right business bank account will help your business manage sales and support future growth. Singapore offers a wide variety of corporate bank accounts and fintech business accounts to choose from, but we recommend using a global business account even if you aren’t selling overseas yet.

A global provider like Airwallex sets you up for growth and scalability. We are licenced to operate in 60 countries, which means you can instantly open local currency accounts with local bank details in these countries, transact like a local business, without the hassle of opening a local bank account. 

This makes it easier to future-proof your business and prepare for international growth.

Sourcing products and paying overseas suppliers 

Sourcing products from countries like China can offer many advantages, such as high manufacturing expertise, competitive pricing, and the ability to scale production. With the right suppliers in China, you can ensure consistent quality and even customise products to suit your market’s needs.

This is where a multi-currency account becomes incredibly useful. It simplifies supplier payments by allowing you to accept customer payments in currencies like USD or CNY, then paying overseas suppliers directly in the same currency. This eliminates the need for constant currency conversions, saving you money on unnecessary fees.

Choose an eCommerce payment gateway for your online store 

Another crucial part of your eCommerce strategy is choosing the right payment gateway for your online store. A payment gateway ensures you can accept payments from customers securely and move the money safely to your business account. Selecting a gateway with a global presence lets you enter new markets more quickly.

Airwallex Payment Gateway offers:

  • The ability to accept payments in 180+ countries and currencies, which flow seamlessly into our Global Accounts.

  • Like-for-like settlement in 11 currencies, so you can accept foreign currencies (e.g., USD) and pay suppliers in the same currency without unnecessary conversions to SGD.

  • Support for 160+ local payment methods, such as AliPay in China, ensuring customers can pay with their preferred method. This flexibility is essential given that 77% of consumers will abandon their cart if their preferred payment method isn’t available.3  

Additionally, Airwallex integrates effortlessly with leading platforms like Shopify and marketplaces like Lazada, ensuring a smooth setup and minimising technical issues that could disrupt your sales.

Accept customer payments. Like a local.

Find out more

How to set up an online business in Singapore?

Setting up an online business requires careful planning and consideration of key factors like your products, logistics, and payment solutions. 

  • Step 1: choose the right eCommerce business model. Your eCommerce business model will align your operations with customer needs and revenue goals. Popular models include B2C, B2B, C2C, and subscription-based models.

  • Step 2: select and source your product. Your product should solve a specific problem or meet a need that matters to your customers. Choose a product with high margins so your business stays profitable.

  • Step 3: set up your business entity and business bank account. Now that you know what you’re going to sell, it’s time to register your business. Company registration in Singapore is a straightforward process, but you’ll need to make decisions about what type of company you’re setting up.

  • Step 4: find your logistics and fulfilment solutions. Singapore has several fulfilment centres and logistics providers built specifically for eCommerce. Compare quotes from different providers and factor in these costs.

  • Step 5: build your sales channel(s). Decide whether you want to sell on an eCommerce marketplace or build your own eCommerce website. Both approaches have significant strengths and considerations that can impact your business’s viability.

Check out our Singapore eCommerce guide for detailed explanations on these five steps.

eCommerce laws and regulations for selling online in Singapore

Before making your first online sale, it’s important to comply with the various eCommerce laws in Singapore. Understanding these regulations helps you avoid legal issues and anticipate costs that come with sourcing products from overseas.

Sale of Goods Act 1979

The Sale of Goods Act 1979 protects buyers by ensuring that products are of satisfactory quality, fit for purpose, and match their description.4

Trade Marks Act 1998

With the Trade Marks Act 1998, businesses can protect their brand identity by registering trademarks and preventing others from using similar marks without permission.5

Electronic Transactions Act 2010

The Electronic Transactions Act 2010 ensures that digital records and electronic signatures in Singapore are legally recognised just like paper documents and handwritten signatures. This makes online transactions subject to legal protections.6

Misrepresentation Act 1967

The Misrepresentation Act 1967 holds Singapore businesses accountable for making false or misleading claims that influence a purchase.7

Goods and Services Tax (GST)

A 9% tax is applied to most goods and services sold locally. Businesses registered for GST must include this tax in their prices unless the sale qualifies for special exemptions.8 GST may also apply to products from your overseas suppliers, but the rate depends on your shipment’s cost, insurance, and freight value.9

Corporate Income Tax

Singapore applies a 17% Corporate Income Tax on all income earned. eCommerce businesses must file two Corporate Income Tax returns with IRAS per financial year.10

Customs Duty

Singapore Customs charges Customs Duty and GST on 4 types of imported products: alcohol, tobacco, petroleum products, and motor vehicles. All other imported goods are subject to GST only.11

Excise Duty

Excise Duty is another type of tax applied to alcohol, tobacco, petroleum products, or motor vehicles. Unlike Customs Duty, which is applied to imported products only, Excise Duty is applied to these products even if they are manufactured locally. Excise duty discourages the consumption and production of these products.12

Prohibited and restricted products and services 

As a new eCommerce business, it’s important to be aware about what products are prohibited or restricted. These include the following:13

  • Chewing gum  

  • Telecommunication equipment

  • Electronic vaporisers

  • Drug paraphernalia

  • Telecommunication equipment

  • Products derived from endangered species (i.e. rhinoceros horn)

  • Explosives

On the other hand, restricted goods require special permits, licenses, or authorisation from relevant authorities before being imported or sold online. Examples of restricted goods include:  

  • Food items14

  • Medical devices15

  • Precious stones and metals16 

eCommerce platforms also maintain their own list of prohibited items in compliance with Singapore regulations. Sellers who list these items can receive non-compliance points, and risk getting their store permanently deactivated.17

Singapore offers a variety of eCommerce marketplaces and platforms that allow businesses to reach customers online or sell from their website. Below is a list of these platforms and a quick exploration of Amazon, Lazada, Shopee, and Shopify:

  • Carousell

  • Amazon

  • Lazada

  • Shopify

  • Etsy

  • eBay

  • RedMart

  • Zalora

  • Qoo10

  • Craigslist Singapore

  • Fishpond

  • SellUp Singapore

  • Eltov Singapore

Amazon Singapore

Amazon is a pioneering eCommerce platform that provides businesses with an opportunity to reach a wide audience. The launch of the Amazon.sg storefront in 2019 made it possible for local businesses to start selling on the platform.18

New eCommerce businesses can use Amazon.sg to list their products and manage inventory, all while benefiting from Amazon’s trusted reputation and global customer base. Amazon Singapore gets approximately five million monthly visits.19

Lazada

Lazada is one of Southeast Asia’s first eCommerce platforms, with a strong presence in six countries, including Singapore. It was founded by Rocket Internet in 2012 with the vision of becoming the “Amazon of Southeast Asia” and is now owned by Alibaba.   

Lazada offers eCommerce businesses a platform to reach customers in Singapore and Southeast Asia. In March 2024, home and living products accounted for the largest share of revenue in Thailand20 and The Philippines21, followed by health and beauty. Businesses in these high-demand categories can use Lazada to enter these markets and increase their sales across the region.

Shopee

Shopee is a mobile-first online marketplace founded by SEA Limited in 2015. They initially focused on providing a low-cost platform for merchants, which helped Shopee become a major competitor to Lazada. In July 2024, Shopee Singapore was the most visited eCommerce platform in the country at 13.2 million monthly visitors.22 

eCommerce businesses can use Shopee to generate sales in Singapore and its active Southeast Asian base. Shopee has popular shopping categories like beauty and home living. These are popular in the region, while electronics are a big category in countries like Thailand and Malaysia.23 By offering products in these top categories, businesses can effectively reach their target audience and grow their sales across multiple markets.

Shopify

Shopify Singapore is a user-friendly eCommerce platform with around 9,000 stores in Singapore.24 Unlike marketplaces such as Shopee or Lazada, Shopify isn’t a platform where businesses list their products alongside others. Instead, Shopify is a website builder with tools that allow businesses to create and customise their eCommerce store, manage inventory, process payments, and track sales. 

In other words, using Shopify lets you create a branded online store where you have full control over customer interactions and data. On the other hand, selling on marketplaces like Shopee means leveraging their vast customer base but also operating within their ecosystem, where customer relationships are primarily managed by the platform, limiting your ability to establish a direct brand connection.

Online payment gateway integrations for your online store with Airwallex

Airwallex integrates with leading eCommerce platforms in Singapore. We offer two types of integrations: 

  • Payment Gateway integration. If you use an eCommerce website builder like Shopify, you can easily integrate our payment gateway through a no-code plugin. Once integrated, can accept payments in 180+ countries using 160+ local payment methods, and enjoy features like fraud protection and like-for-like settlement.

  • Marketplace integrations. Airwallex customers can collect sales proceeds from Amazon, Lazada, and other marketplaces into the Airwallex Global Account. Sales data collected through Airwallex can also be viewed on your dashboard.

 Here’s a list of the different Airwallex integrations with the following platforms:

eCommerce platform

Airwallex integrations

Amazon

Marketplace integration

eBay

Marketplace integration

fnac

Marketplace integration

Lazada

Marketplace integration

Shopee

Marketplace integration 

Magento

Payment Gateway integration 

Shopify

Payment Gateway integration

Shoplazza

Payment Gateway integration

Shopline

Payment Gateway integration

WooCommerce

Payment Gateway integration

Sell locally and globally with Airwallex

In this comprehensive guide to selling online in Singapore, we’ve covered the essentials – from setting up your business and understanding important laws, to the most popular eCommerce platforms and the benefits of a payment gateway. 

Whether you’re focused on selling locally or ready-to-go global, Airwallex’s all-in-one Business Account can take you there. We’re an all-in-one payment platform that simplifies your financial operations with services like Global Accounts, FX and transfers, corporate cards with in-built Expense Management, and payment gateway.

Airwallex is the only payment gateway in Singapore that lets you accept and settle payments in 11 major currencies, including USD, EUR, and HKD. With our multi-currency accounts, you can hold these funds and pay suppliers in the same currencies, skipping unnecessary conversions to SGD. This means fewer fees and making the most of every dollar your business earns.

With infrastructure to accept payments from 180+ countries and support for 160+ local payment methods, we make it easy to connect with customers worldwide. For eCommerce businesses using website builders like Shopify, you can easily integrate Airwallex with no-code plugins, or create a branded checkout experience with our APIs.  

With 60+ global payment licences, Airwallex is equipped to support your business’s financial needs - whether it’s opening 23+ local currency accounts with local bank details to making low-cost international transfers, and minimising unnecessary currency conversions. 

Singapore businesses like Wine Kin, Little Blossom, and Igloohome have used Airwallex to expand their local and global customer base. Open a free Airwallex Business Account today.

Take your eCommerce business to the next level with Airwallex today.

Frequently asked questions

1. What are the costs involved in starting an online business in Singapore?

Starting an online business in Singapore involves costs like business registration and name application, which typically starts at S$315.25.25 You’ll also need to set up a website or eCommerce platform, which can range from a few hundred to several thousand dollars depending on your needs. Other expenses include marketing, inventory, and payment gateway fees to process transactions. It’s important to budget for these initial costs to ensure a smooth start and build a strong foundation for your business.

2. What are the differences between domestic and international eCommerce platforms in Singapore?

Domestic eCommerce platforms in Singapore focus on serving local customers, often offering features tailored to the local market, like payment methods in SGD and local delivery options. International eCommerce platforms allow businesses to sell to global customers and accept multiple currencies, but they may have higher fees and require more effort to manage international shipping and taxes. Choosing between the two depends on your business goals, target audience, and whether you want to focus on local or global sales.

3. What are the common mistakes to avoid when selling online in Singapore?

Common mistakes include not understanding Singapore’s eCommerce laws and regulations, which can lead to fines or restrictions. Another pitfall is failing to research your target audience, resulting in mismatched products or ineffective marketing. Lastly, neglecting customer experience—like slow responses, unclear return policies, or poor website usability – can hurt your reputation and sales.

4. Are there specific certifications or accreditations needed for selling certain products online in Singapore?

Yes, certain products require specific certifications or accreditations to be sold online in Singapore. For example, medical devices must be registered with the Health Sciences Authority (HSA) to ensure they meet safety and quality standards. It’s important to check the regulations for your product category to stay compliant and avoid legal issues

5. What are the key metrics to measure the success of an online business?

Key metrics to measure the success of an online business include sales revenue, which shows how much your business is earning, and customer acquisition cost (CAC), which tracks how much you spend to gain each new customer. Other important metrics are conversion rate, to see how effectively you’re turning website visitors into buyers, and customer lifetime value (CLV), which reflects the total revenue a customer brings over time. Regularly monitoring these metrics helps you understand your business performance and make better decisions for growth.

Sources

1) https://www.statista.com/outlook/emo/ecommerce/singapore

2) https://www.statista.com/statistics/1176919/singapore-e-commerce-cross-border-share-by-country/

3) https://www.airwallex.com/newsroom/cross-border-ecommerce-2024-report

4) https://sso.agc.gov.sg/Act/SGA1979

5) https://sso.agc.gov.sg/act/tma1998

6) https://sso.agc.gov.sg/act/eta2010

7) https://sso.agc.gov.sg/Act/MA1967

8) https://www.iras.gov.sg/taxes/goods-services-tax-(gst)/basics-of-gst/current-gst-rates

9) https://www.customs.gov.sg/businesses/importing-goods/import-procedures/

10) https://www.iras.gov.sg/taxes/corporate-income-tax/basics-of-corporate-income-tax/basic-guide-to-corporate-income-tax-for-companies

11) https://www.customs.gov.sg/businesses/importing-goods/import-procedures/

12) https://www.customs.gov.sg/businesses/valuation-duties-taxes-and-fees/duties-and-dutiable-goods/

13) https://www.customs.gov.sg/businesses/importing-goods/controlled-and-prohibited-goods-for-import/

14) https://www.sfa.gov.sg/food-retail/businesses-that-currently-do-not-need-licence-permit/online-food-businesses/requirements-for-online-food-sellers

15) https://www.hsa.gov.sg/medical-devices

16) https://acd.mlaw.gov.sg/regulatory-regime/

17) https://www.straitstimes.com/singapore/illegal-items-found-on-e-commerce-platforms-disguised-as-other-goods

18) https://www.aboutamazon.sg/news/company-news/amazon-sg-turned-one

19) https://www.statista.com/statistics/869701/singapore-top-10-e-commerce-sites/

20) https://www.statista.com/statistics/1421312/thailand-share-of-lazada-revenue-by-category/

21) https://www.statista.com/statistics/1487860/lazada-philippines-share-of-revenue-by-category/

22) https://www.statista.com/statistics/869701/singapore-top-10-e-commerce-sites/

23) https://www.statista.com/statistics/1534998/sea-shopee-categories-gmv-by-country/

24) https://trends.builtwith.com/shop/Shopify/Singapore

25) https://www.acra.gov.sg/how-to-guides/company-related-fees

This publication does not constitute legal, tax, or professional advice from Airwallex nor substitute seeking such advice, and makes no express or implied representations / warranties / guarantees regarding content accuracy, completeness, or currency. If you would like to request an update, feel free to contact us at [[email protected]]. Airwallex (Singapore) Pte. Ltd. (201626561Z) is licensed as a Major Payment Institution and regulated by the Monetary Authority of Singapore.

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Shermaine Tan
Manager, Growth Marketing

Shermaine spearheads the development and execution of content strategy for businesses in Singapore and the SEA region at Airwallex. Leveraging her extensive experience in eCommerce, digital payment solutions, business banking, and the cross-border industry, she provides invaluable insights that guide businesses through the complexities of global commerce. Specialising in crafting relevant and engaging content that resonates with business owners, her work is designed to drive growth and innovation within the fintech and business economy space.

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