How to Set Up Your Online Shop in Singapore

Singaporeans are one of the most tech-savvy people in Southeast Asia, so it’s not unusual for many of us to do much of our shopping through places like Lazada or Shopee. This also means we’re a good market for businesses who mostly do all of their selling online, whether through e-commerce platforms or their own websites.

If you want to introduce new products to the market or are in the business of reselling, our country could be a great place for you. However, you still need to take the proper steps when setting up, from choosing your platforms to finishing Singapore’s company incorporation process.

Let’s have a quick review of what you should consider when starting an online shop here.

Create a Plan First

Before anything else, build yourself a business plan so you can define short and long-term goals for your venture.

Here are some questions to keep in mind:

• What products are you selling? How do they stand out from other similar products being sold today?

• Who is your target market? What demographics do they belong to?

• How would your product address their wants and needs?

• How much capital are you starting out with?

Such considerations will help you work on matters such as your marketing strategy, selling platforms, and product pricing.

Pick a Business Structure

Your chosen company structure affects various aspects of your e-commerce business. These include how it’s managed, how you’re taxed, and how much liability you hold. There are several options available, so determine what’s the best fit for you before you proceed with your company’s incorporation in Singapore.

• Sole proprietorships are the simplest structure and are suitable if you just want to run a small shop yourself. However, you will have unlimited personal liability in case you incur debts and will be taxed using personal income tax rates.

• If you’re working with someone else or a small group, you could have a partnership instead. You share the liability and profits with your partners, though you’re still subject to personal income tax rates.

• A private limited company is the most popular option in Singapore, as it gives you limited liability (meaning your personal assets are safe). You’re also subject to corporate income tax rates and can be eligible for incentives. It’s the best choice if you want more growth opportunities for your business.

Setting Up Your Platform

You should also consider whether to build a custom website or use established marketplaces like Shopee or Lazada.

Having your own website gives you full control over your operations and only your products will be listed. However, you have to handle the hosting, payment gateways and how you’re going to drive more traffic to your online store. Meanwhile, the latter typically facilitates transactions and logistics, but you also have to compete with multiple sellers on the platform.

Regulations to Keep in Mind

You also have to consider several laws that e-commerce businesses in Singapore have to abide by. This is to protect both your store and your customers.

These regulations include:

• The Personal Data Protection Act provides the protocols for collecting, storing, and processing consumer data.

• The Consumer Protection (Fair Trading) Act ensures businesses conduct themselves ethically so they don’t mislead consumers with misleading advertising and unfair sales tactics.

• The Internet Code of Practice sets the standards for the type of content your company can release online.

• Lastly, the National E-commerce Standard has guidelines on various activities such as payments, deliveries, and returns.

Register the Right Way With Incorporation Assistance

It’s completely possible for locals to register their e-commerce businesses themselves. But regardless if you’re a Singaporean or a foreigner, it would be in your best interest to work with one of Singapore’s company incorporation services. They’ll see to it that you have all the requirements ready before submitting your application on BizFile+.

Not only that, but many of these service providers can also assist with the other steps of setting up your company, such as opening your corporate bank account and implementing an accounting system.

Their help can be crucial to your success, so don’t dismiss the notion of hiring such services for your new enterprise.

Take the Next Step to Online Success

Singapore offers tremendous opportunities for entrepreneurs who want to start an online business. However, you still need to plan carefully and consider many factors first, from the regulations affecting your activities to how you process payments.

So feel free to reach out to local professionals if you want to ensure your business grows properly. With the right support, your venture can definitely flourish in Singapore.