Guide to Start Dropshipping Business in Singapore

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This article is about dropshipping in Singapore. However, the same advice can be applied wherever you live in the world. We have some amazing advice for you.

Dropshipping is growing in popularity among both full-time entrepreneurs and people who want to make a side income. Dropshipping is a popular option in Singapore because of the ease and regular use of internet by citizens.

Ecommerce in Singapore will be worth USD2,405 millions by 2020. Growth is projected to reach USD4.079 million by 20251. Now is the best time to start a dropshipping company in Singapore.

This guide will help you get started in Singapore, as well as provide tips and tricks for building a successful business. Wise Business will also help you maximize your overseas sales.

Singapore dropshipping statistics

Ecommerce is growing rapidly. It is important to get into a market that is growing as soon as possible. Established players will thrive as more customers switch to online shopping.

These statistics will help you understand the potential opportunities. 

  • 89% of Singaporeans use the internet for searching products they are interested in buying
  • 52.4% of Singaporeans used ecommerce in 2020 to make their purchases. This is expected to rise to 67.2% in 2025.
  • Today, ecommerce is used by 3.1 million people in Singapore. The average revenue per user is US$784.52.
  • Singapore’s high cost of living means that it is possible to export goods from lower-cost countries with good margins.
  • In 2020, food and personal care will be the largest market segment. Nearly a quarter of all ecommerce users are between 35-44 years.
  • Qoo10, Amazon, and Lazada are some of the most searched online terms in 2019.
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Starting an online store in Singapore for dropshipping

Ideation: It’s a lazy Sunday evening, so you’re relaxing on the beach thinking–life is just a status quo–I have to stir stuff up a little–make it crazy–add some pizzazz.  How about a fresh company start-up?

Oh, I understand–everyone I know jumps into ecommerce because it’s an simple, cost-effective way to get my feet wet without burning a pocket hole. What’s better than that–should I attempt dropshipping? I don’t have to do anything–just create an ecommerce website online, set up a dropshipping account, and I’m in company. Whoa! Why haven’t I ever thought about this before?

Sounds cool–does it sound simple?  You’re betting. But when everything sounds too nice to be true–read the FINE PRINT!

But hey–don’t get discouraged–with step-by-step guidelines, we’re here to assist. You just need to plan well, cover all the bases and then jump into it with your eyes wide open so you won’t be caught off guard by the problems. Here are some free advice and tips to assist you start an online business in Singapore This post will assist you if you’re thinking about starting a Singapore dropshipping company. You can decide whether you only want to sell or participate in cross-border trade within your nation.

Why are you waiting?   Let’s plunge into it!

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Knowing your contest is nice before you start

  • Take some time to investigate what is done by other dropshippers. Join social media organizations, watch videos from You Tube, study data from the government to discover stats–all over the web.
  • Next do some targeted market research to discover your region’s most reliable dropshipping firms. Obviously, China is one of the largest dropshipping industries–from easy arts and crafts to high-end electronics.
  • Call and interview various dropshipping vendors. Compare pricing, stock levels, discounts, procedures of shipping / realization; return policies, management of damages. It’ll take time, but it’s worth it altogether.
  • Once a few vendors have been selected, compare the products they sell. In order to comprehend trends–which goods are selling, which ones give excellent margins, which products are less susceptible to harm, which ones have a large proportion of yields–try to comprehend customer behavior.
  • If you’re prepared with your provider and product blend, it’s time to move into the next stage

Setting up the company: Navigating the legal / regulatory maze

For starters, it helps to be in the nation known for being business-friendly. In assisting people or businesses set up a legal entity permitted to do company in Singapore, Singapore receives top honors. Indeed, even citizens outside of Singapore can set up a legal entity to function outside of Singapore. If you’re a citizen of a nation in / around Singapore, you might discover it simpler to integrate your business in Singapore than you do in your own nation–at least it’s worth thinking!

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The Singapore Broadcasting Authority oversees all internet companies in Singapore. Before beginning activities in Singapore, all ecommerce businesses including dropshippers must acquire regulatory permits.

What permit are you going to need?

If you are a resident of Singapore, the pros and cons of each form of company entity –Partnership, Limited Partnership, Sole Proprietorship, Limited Liability Partnership–must be weighed in order to integrate your company. Refer to this truly informative site on the possibilities for more data. Keep these in mind while all ecommerce businesses in Singapore need to comply with the INTERNET CODE OF PRACTICE. If you send limited goods or services or used products, you may need to obtain extra regulatory permission.

All online advertising operations are subject to the Common Gaming Housing Act and the Singapore Public Entertainment Act. All online advertising is subject to the Singapore Code of Advertising Practice, the Computer Misuse Act and the Consumer Protection Act. Ensure that your business professional takes these into account when setting up your business.

You need to be careful while making any internet commitments or implied agreements as an ecommerce company. Web agreements are subject to contract law in Singapore. The Electronic Transactions Act (ETA), which was implemented in 1998, is one statute you need to learn about. This is aimed at boosting consumer confidence in e-commerce and providing internet agreements with legal recognition.

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Singapore also has legislation on consumer protection such as Unfair Contract Terms (UCTA), Sales of Goods Act (SOGA), and Misrepresentation Act that safeguards consumer rights.

  • Digital Assets Protection: The Computer Misuse Act

Act protects your pc’s program and information stored in computer from unlawful access, alteration, interception and interference. This safeguards your digital assets.

  • Consumers are very concerned about the privacy and security of private data

In order to protect the data collected from inadvertent disclosure from clients, you must have an information management policy. This could require control of worker access, corporate firewalls, periodic system audits or sophisticated encryption (for safe information) technology.

  • Credit card fraud

As an internet seller, all credit card information communicated to you must be protected. This is taken care of automatically by going through a portal to payment.


It is very essential to safeguard intellectual property (IP) rights in cyberspace because of the ease of distribution of pictures / information / data. As an owner of an ecommerce company, you need to be especially worried about copyright law and mark law. According to the Copyright Act, copyright is protected in Singapore and extends to creative and anything concrete.

The Singapore Trademark Act governs the registration and regulation of trademarks in Singapore.

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Another element to be aware of is the names of the domain. You must guarantee that your domain name is registered as soon as possible as distinctive and achieved on a first come first served basis.


In the case of any conflict resulting from your internet company, in particular cross-border trade, it is essential to be conscious of the authority and selection of legislation. A Singapore court will typically have jurisdiction over a matter if the defendant is served with a claim in Singapore or a defendant outside Singapore is allowed to be served by the tribunal. Please notice that there is no “blanket rule” that the regulations of a nation claiming jurisdiction will apply in the case of a conflict.

You should have an explicit internet agreement to safeguard yourself, specifying the option of law (in your case, Singapore jurisdiction). You may also consider maintaining a checkbox form “I Agree” as part of the purchase process in order to safeguard yourself from legal issues.

Registering the company legally–the final step!

Once you have registered your business with the official Singapore Trade Register, it’s time to get into the exciting part of setting up the online store

Building your online presence: setting up your brand identity

You’re done with all the paperwork and you can’t wait to get started. That’s my favorite component. KLoc is the location where we assist entrepreneurs launch their dreams online with more than 10 years of experience in eCommerce. Don’t mistake me. I don’t sell my services. Just as you questioned yourself to investigate well before choosing a dropshipping company, I’ll recommend you to do the same to find a “right online” partner that can assist you create, sustain and develop your business. Please be advised that you may need more than one seller to manage your company in distinct ways. Let me clarify it to you.

  • Set up your trademark–here in Singapore, Shopify has an outstanding article about registering your mark. Go through it to “reserve” your trademark of your own. To help you develop a distinctive brand identity / name and branding property, you could participate with a designer.
  • Selecting the correct brand image–you reflect your brand–your ethos, your passion, your objective. It should show obviously what you stand for. Your business line should be illuminated by the logo / tag line. You could attempt to participate with skilled developers on locations such as and then choose the design resources you want.
  • Register a domain name–An expansion of your brand identity is a domain name. In conjunction with the above operations, you should attempt to research and reserve the domain name as it is an essential component of your internet company.  Here’s a nice starting point.
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Start Selling Online

  • It can be a daunting challenge to choose the correct platform for your company. With 600,000 retailers in more than 160 nations, Shopify is obviously the market leader when it comes to setting up a user-friendly, branded storefront for your dropshipping company.
  • Oberlo allows you to begin selling ind products online to sell, add them to your shop, and you’re prepared to sell them.
  • Once all of this has been set up, register with the Intellectual Property Office your names / branding assets to safeguard your mark.
  • Ensure that you set up your payment gateway (Shop Payments or Shop Payment Gateways, Singapore)

Building the Store

  • Shopify is probably the only DIY platform there is, but if you have better stuff to do with your time, leave the setup, design and growth to an organization like us and concentrate on what’s essential to you–your company.
  • Hiring an expert enables you make the correct decisions when it comes to configuration like selecting the correct theme or third party app, selecting the correct characteristics for your shops, tips and tricks to enhance traffic and conversions, and optimizing efficiency.
  • The specialist can assist you incorporate the gateway of payment, integrate the dropshipping application, and deploy the shop so that you are accessible to company.
  • Oh wait, there’s something else. It is always a great idea to document explicitly all your strategies such as Privacy Policy, Shipping and Return Policy, Terms and Conditions and a general FAQ (Frequently Asked Questions) obviously on your site in accordance with your countries
  • Testing the entire workflow is the foolproof way to guarantee that your clients have a smooth purchasing experience.
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Is dropshipping legal in Singapore?

Dropshipping in Singapore is legal as long as your business structure and suppliers are reputable. As with all business models, there are laws that you should be aware of to ensure you don’t run into any problems.

You will need to ensure that your products are legal compliant. This means that they can legally be sold without any breaches of copyright or safety issues. Also, you’ll need to consider how to set up your business and how to file and pay taxes on your income. To avoid legal problems down the road, do your research.

Dropshipping tax in Singapore

Dropshipping income earned in Singapore is subject to tax. To avoid any hassle, make sure you fully understand all requirements for your income and business registration. Also, file tax returns, pay your bills, and complete everything on time.

Dropshipping is an understandably popular business model which allows entrepreneurs to start up online businesses with very low initial outlay and risk. The simplicity of the model, though, can be deceptive. There are plenty of things to think about to set your dropshipping business in Singapore up for success. And because there are few barriers to getting started in dropshipping, the competition can be tough going in some niches.