Is Dropshipping Legal In Singapore? Must Things

Dropshipping is a popular online business model where you sell products without having a physical storefront. There are many benefits to dropshipping, including the ability to start and grow your business with little investment, flexibility to run your business however you want, and the ability to work from anywhere in the world.

However, dropshipping can also be legal in Singapore if you follow the correct rules and regulations. In this article, we’ll discuss dropshipping in Singapore and outline the legal requirements that you must meet to operate this business model legally.

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shopify dropshipping store set up

How Does Dropshipping Work?

Dropshipping is a business model where you sell products without having to carry any inventory. You simply create an online store, purchase products from manufacturers, and then sell them to customers through your website.

In most cases, dropshipping is legal in Singapore. There are a few exceptions, but for the most part, dropshipping is a viable business model that can be used to make money online.

Here are reasons why dropshipping in Singapore may be legal:

1) The Goods and Services Tax (GST) applies only to businesses that have an annual turnover of more than $100,000. Since most dropshippers don’t have an annual turnover of more than $100,000, they’re not subject to the GST.
2) The Sale and Supply of Goods Act does not prohibit the sale of goods online. It only prohibits the sale of goods “by retail sale or any other manner whatsoever” without the written consent of the buyer. Since dropshipping involves selling products online, it falls within the definition of “sale by retail sale or any other manner whatsoever.”

Is Dropshipping Legal In Singapore?

Dropshipping is legal in Singapore as long as you abide by the following guidelines:

-You must have a valid business license
-You must comply with all local regulations
-You must not engage in any illegal activities
-You must declare your income to the tax authorities

If you meet these requirements, dropshipping is a great way to start and profit from your online business.

The benefits of dropshipping in Singapore

Dropshipping can be a great way to start your own ecommerce business in Singapore. Here are some of the benefits of dropshipping in Singapore:

1. Low startup costs: Unlike traditional ecommerce businesses, dropshipping doesn’t require a large up-front investment. You can start small and scale up as you grow your business.

2. Flexible hours: With dropshipping, you can work when you want, which is great if you’re a busy person or have family obligations. You can also choose to dropship during off-peak hours to save on shipping costs.

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shopify dropshipping store set up

3. Greater control over your business: With dropshipping, you have total control over your product selection and pricing. You can set your own prices and determine how much margin you want to make.

4. Greater opportunity for profits: With a wide range of products available on the market, there’s plenty of room for profits with dropshipping in Singapore. You can set your own prices and make a healthy income from your online store.

What are the Risks of Dropshipping in Singapore?

Dropshipping can be a very profitable business model, but it is not without risks. The biggest risk is that you could get sued if you do not comply with local laws. You also need to be aware of the tax implications of dropshipping in Singapore. Finally, you need to be prepared for scams and fraudsters who may try to take advantage of you.

Examples of dropshipping businesses in Singapore

Dropshipping is a great way to start your own business in Singapore. There are many examples of successful dropshipping businesses in Singapore, so you can find inspiration and start your own business. Here are three examples of dropshipping businesses in Singapore:

1. Etsy Shop: A dropshipper can start an Etsy shop to sell handmade items. This is a great way to sell unique and high-quality products to a global audience.

2. Online Store: A dropshipper can also start an online store to sell items online. An online store allows you to reach a wider audience than an Etsy shop, and it’s also easier to set up since you don’t have to build a website from scratch.

3. eBay Store: Another option for a dropshipper is to start an eBay store. This is a great way to get started if you want to sell items that aren’t handmade or are less specialized.


Dropshipping is a great way to start your own business in Singapore, and there are many benefits to doing so. First of all, it’s an extremely low-cost way to start selling products online. You don’t need any specialized equipment or a large capital investment – just some space on your computer and the willingness to put in some hard work. Secondly, dropshipping offers you complete control over your product pricing and distribution channels. This means that you can set your own prices and determine which products you want to sell (and at what price). Finally, dropshipping allows you to work from home – which not only saves money on living costs but also gives you the flexibility to take care of your parenting duties while still running your business part-time. If these sound like reasons why dropshipping might be right for you, then read on for more information on how it works in Singapore.