Starting a Successful Dropshipping Business in Singapore: Tips and Benefits

10 minute read

If you find yourself wondering whether it’s really that difficult to start a business from scratch, then maybe it’s time to legitimately consider your options.

Did you know that you could market your very own brand and sell products to customers online with only a small amount of money and modest technical skills? The dropshipping model allows you to sell online from the comfort of your home without holding any inventory. As a dropshipper, you are simply the link between the retailer and the customers.

Singapore’s eCommerce market was projected to reach US$8.23 billion by 2023. As one of the fastest growing eCommerce markets, Singapore is expecting between 25% to 35% growth, with a projection to hit US$14 billion by the end of 2027.

If you want in on the booming eCommerce industry, dropshipping in Singapore offers one of the best starts. There’s no better time than now to start an online business. We can show you the right direction with this dropshipping Singapore guide – but it’s up to you whether you’re ready to take the leap.

Overview

• What is dropshipping, and is it different from eCommerce?
• Start a dropshipping business
• Comparative study of eCommerce platforms
• The benefits of starting a dropshipping business

What is dropshipping, and is it different from eCommerce?

This table summarizes the differences between dropshipping and traditional eCommerce:

Start a dropshipping business

After all your research, you might be ready to start your very own dropshipping business in Singapore. So how do you begin? What are the steps involved in registering your dropshipping business?

Don’t worry, we’ll prepare you for starting this business venture confidently and with the right tools. Let’s get started with your new dropshipping guide so you can learn all of the little tips and tricks for anyone who wants to get into the dropshipping business.

Steps to start a dropshipping business in Singapore
1. Consider the business model’s pros and cons
2. Conduct competitor analysis and market research
3. Identify your Singapore dropshipping suppliers
4. Incorporate your dropshipping business
5. Appoint a company secretary
6. Acquire relevant trading licenses
7. Build, launch, and market your dropshipping store
8. Manage your finances

1. Consider the business model’s pros and cons

As tempting as it might be to jump on the dropshipping business model immediately, there are numerous factors you want to consider. Running a successful dropshipping business takes hard work and grit.

It’s important to understand how to incorporate your business, build a store on an online platform, as well as manage costs. This is a prerequisite that you have to answer if you want to know how to do dropshipping in Singapore.

As long as you’re willing to do your research thoroughly and understand the processes and finer details involved, you’ve got a lucrative business idea in your hands.

2. Conduct competitor analysis and market research

What you sell matters. Therefore, you should take your time to hone in on the best dropship product that has high growth potential and a ready market.

Avoid trending products that sell for a short time and if possible, try to predict future trends. Also, consider your pricing, as healthy margins are important in ensuring your business can be profitable. As you continue your research, be sure to steer clear of these items that you might not know are illegal.

Next, stay one step ahead by analyzing your competitors. This will help you come up with a pricing strategy that can compete in this saturated market.

Look at how they are providing customer service and whether their methods work. Find out what successful businesses are doing differently from others, how they drive traffic to their business, and if they run offers to provide incentives to potential customers.

3. Identify your Singapore dropshipping suppliers

Your dropshipping suppliers are integral to success in the dropshipping business model. It’s important to select trustworthy suppliers after careful consideration of all your potential suppliers, and always have alternatives in case one fails you. But if you find reliable suppliers, you shouldn’t have this issue.

If you can get some advantage from your supplier, it will play an important role in your company. When evaluating potential dropshipping suppliers, check that their products are high quality, and explore the available shipping options and how long it takes them to ship and process orders. Some well-known supplier platforms are Alibaba, AliExpress, Taobao, and Shopee.

4. Incorporate your dropshipping business

Once you have settled on your business model and dropshipping suppliers, the next thing to do is register your dropshipping store. This is an important step that you have to take if you want to know how to do dropshipping in Singapore.

This includes naming your company, solidifying your shareholders and directors, as well as deciding on the official business address, among other tasks.

It’s a bit trickier if you’re not a citizen, permanent resident, or EntrePass Visa holder, but foreigners can still make use of Singapore’s tax framework and free trade agreements via nominee directors, virtual mailrooms, and local corporate secretaries.

Although it may seem like an overwhelming task, Sleek has been there, done that, and lived to share the resources. Let us know if you need help incorporating your business and we can help you through every step of the way.

5. Appoint a company secretary

Why should your small business have a corporate secretary/company secretary? Simply put, the Singapore Companies Act states that each business has to have one, even those in the eCommerce market.

Secretaries are expected to help with regulatory compliance, making sure your business upholds each government-mandated duty. They assist the directors to prepare and file all the necessary documents.

Annual general meetings, annual returns, financial statements, and corporate taxes will all be handled by the secretary. You can learn more about the integral role of company secretary here.

6. Acquire relevant trading licenses

Once your business has been registered, you can apply for relevant trading licenses and permits. The licenses will also vary, depending on the sector your business falls under.

If you fail to comply with permit and licensing regulations, you are liable to serious fines and you risk your business’s growth. Here’s a guide to permits and licenses in Singapore if you’re not sure which ones you need.

7. Build, launch, and market your dropshipping store

When you have a name for your business, you can get a matching domain name to build your website with brand credibility and awareness in mind. You can find numerous high-quality domain names online for sale (e.g. on domain.com).

Next would be to build a brand identity that will go with your business name. This would include brand collaterals such as your logo, brand color, and fonts. Establishing a brand identity can be of real help because it will make the process of finding loyal customers much easier.

As soon as you’ve solidified your brand identity, start marketing and building hype around your products. You can do this even before your store is launched by interacting on forums like Reddit and Quora and putting up advertisements on Google Ads, Facebook, and Instagram.

Use web analytics tools such as Clickmeter, Similarweb, and Google Analytics to examine how well your website is doing and test new methods to bring in sales.

8. Manage your finances

The key to growing your business lies in proper financial management, no matter the scale of operation. If this is your first dropshipping company in Singapore, then it is of utmost importance to get your business finance basics right.

You can get started with our 10 tips for excellent financial management. You need to understand your income stream, your sales volume, and what the two figures mean so you can make business adjustments when and where necessary.

Only by understanding the direction of your cash will you be able to determine the profitability of your business. We recommend using accounting services that integrate with your eCommerce software.

Why not try Sleek’s accounting platform, which can link to Shopify and Amazon, among others? Our all-in-one digital platform comes with easy bookkeeping, free business account setup, and an all-star accounting team to help you, too.

9. Keep growing

Once you’ve sold some items and gotten comfortable with your dropshipping routine, you can start focusing on scaling up. How can you scale your business?

• Find ways to consistently increase your customer base and expand your offering.
• Advertise your products to various customer segments and on various platforms.
• Monitor which products are working and which demographics are buying.
• You can then get a bigger share of the market by targeting those audience segments with content that may interest them.
• Review your supplier’s delivery time and carrier options to increase business while keeping costs down.

Better anticipation of trends will guide your future decisions and this is key for scaling your dropshipping company in Singapore.

Comparative study of eCommerce platforms

Ready to start your dropshipping business?

Here’s a summary table with popular eCommerce platforms you can consider:

Shopee

Shopee, as one of the major e-commerce platforms, has partnered with logistics businesses to make shipping more accessible and economical for both sellers and buyers.

For instance, in Singapore, Shopee has partnered with delivery services such as Speedpost Economy, Ninja Van, J&T Express, and UrbanFox, among others.

With millions of daily visitors, a user-friendly mobile app and website, and campaign promos, Shopee provides a solid online presence that is difficult to replicate if you are just getting started.

Lazada

Lazada’s constantly evolving technology, logistics and payments infrastructure connects this vast and diverse region, and offers Southeast Asia a shopping experience that is safe, seamless and enjoyable. 

With Lazada, any business can scale and become a super eBusiness. They’re also equipped with digital capabilities to enable your ambitions as you grow in the region.

Amazon

Most people, when they think about online shopping, they instantly think about Amazon.

These are the reasons to strongly consider Amazon as your dropshipping platform of choice:

• With over 300 million active accounts and almost 2 million selling partners, Amazon is the largest online retailer in the world. Despite being just 25 years old, it has revolutionized the way people worldwide purchase every day.
• As a marketplace platform, Amazon allows you to purchase virtually anything, with vendors from across the world quickly connected to global customers.
• Amazon has far more regular users than any of its competitors combined. But what’s likely more crucial is that buyers have faith in Amazon.

The benefits of starting a dropshipping business

You may be wondering why you should start a drop shipping business over choosing some other business model. You’ll be happy to know that there are some exclusive benefits that only apply to drop shippers who directly ship quality products to their customers.

Wrap up

Dropshipping is a great business opportunity if you’re looking to build an income from the comfort of your home. Even though this is a viable high-growth business model, you still need to be determined and consistent in your efforts to succeed.

If you are ready to turn your business idea into a reality, our expert team is available to incorporate your business and answer any questions you may have on how to start and manage your dropshipping business. So don’t wait around for success to fall into your lap, take charge and become a drop shipper today.