Expanding your business to a new market can be both exciting and challenging. In recent years, Singapore has emerged as a significant hub for e-commerce in Southeast Asia, with Shopee Singapore leading the charge as one of the most popular platforms.
Whether you are a small business owner looking to scale or an established brand aiming to tap into a new demographic, understanding the nuances of Shopee Singapore is crucial for your success.
This guide provides a comprehensive overview of how you can leverage Shopee Singapore to expand your business effectively in 2024. From setting up your store to mastering local marketing strategies, this article will equip you with the knowledge and tools needed to thrive in the Singaporean e-commerce landscape.
Why is Shopee so Popular in Singapore?
Understanding why Shopee is a top choice for consumers in Singapore is essential for any business looking to expand into this market. Here are the key reasons:
1. Knowing What Users Want
Shopee has a deep understanding of what its users desire. They conducted a survey of over 1,300 users aged 15 to 70 to explore Singaporean consumers’ online shopping habits. The survey revealed that 87% of respondents find the convenience of online shopping to have a positive impact on their lives.
More than 70% of them receive up to five packages from e-commerce platforms each month. This shows that consumers value the ease and efficiency of online shopping. They are also attracted to platforms that provide a comprehensive shopping experience, including engagement and entertainment.
These digital-first shoppers are keen on quality and spend time ensuring product and retailer authenticity before purchasing.
2. Building a Community of Trust
Trust and authenticity are paramount in online shopping. Shopee fosters a community of trust by encouraging users to read and leave reviews. This feedback helps other consumers make informed decisions, with three out of four survey respondents finding customer reviews on Shopee reliable.
Shopee also implements robust consumer protection measures. For instance, Shopee Mall allows users to purchase directly from brands or authorized retailers, guaranteeing the authenticity of the products. This focus on trust and authenticity builds consumer confidence and loyalty, making Shopee a preferred platform in Singapore.
By focusing on understanding user needs and fostering a trustworthy shopping environment, Shopee has positioned itself as a leading e-commerce platform in Singapore. For businesses, leveraging these insights can help in crafting strategies that resonate with the local market and drive sales.
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Types of e-Commerce Businesses You Can Pick on Shopee Singapore
Shopee Singapore offers a diverse range of business models for sellers. Whether you are a manufacturer, wholesaler, dropshipper, or interested in white labelling, Shopee provides the platform and tools to succeed. Here are the types of e-commerce businesses you can choose from:
1. Manufacturing
If you produce goods from raw materials, you can list yourself as a manufacturer on Shopee. This involves creating products from scratch. You have the flexibility to sell items across various categories such as fashion, beauty, home and living, health, and accessories.
The key requirement is that you must be producing these products yourself. This model allows you to control the quality and uniqueness of your offerings, making it ideal for those who want to build a brand from the ground up.
2. Dropshipping
Dropshipping is a popular business model on Shopee Singapore. It involves selling products without holding any physical inventory. Instead, you act as an intermediary, connecting buyers with wholesalers, manufacturers, or fulfillment centers that handle the delivery.
Dropshipping is attractive because it requires minimal upfront investment, no need for storage space, and low overhead costs. It allows you to focus on marketing and customer service while your suppliers take care of the logistics.
3. Wholesale
Shopee Singapore also supports wholesalers who sell products in bulk. This model caters to buyers looking to purchase large quantities at discounted prices. As a wholesaler, you must sell a minimum quantity of goods rather than individual items.
This approach can help you move inventory quickly and cater to businesses or large buyers who need bulk supplies. It’s a great option for those who have a steady supply chain and can handle large orders.
4. White Labelling
White labelling allows you to purchase products from manufacturers or wholesalers and rebrand them as your own. This means you can sell these repackaged items under your brand name. Many similar-looking products on Shopee with different logos and brands are a result of white labelling.
This business model is ideal for those who want to build a brand without getting involved in the manufacturing process. It offers the advantage of leveraging existing products and giving them a unique identity through branding.
Shopee Singapore provides a robust platform for various business models, each with its unique benefits. Whether you want to manufacture your products, sell in bulk, connect buyers and suppliers, or rebrand existing items, Shopee has the tools and resources to help you succeed.
| Read related article: Simple Guide How to Import to Singapore in 2024
How Much Commission Does Shopee Singapore Charge?
Understanding Shopee Singapore’s commission structure is essential for planning your business expenses. Shopee charges a transaction fee for each successful order on its Marketplace and Shopee Mall platforms. In Singapore, this fee is 2% of the order amount after any promotions or discounts have been applied. This fee is separate from the 7% GST that is also applicable to your order.
For example, if you successfully sell an item for S$100, Shopee will deduct a transaction fee of S$2. Additionally, a GST of S$0.14 will be applied. Therefore, the final amount you will receive is S$97.86 (S$100 minus S$2.14). It’s important to factor in these fees when setting your prices to ensure you maintain healthy profit margins.
For those selling through Shopee Supermarket, the margins and commission rates are negotiated individually with each seller during the onboarding process. This personalized approach ensures that both Shopee and the seller find a mutually beneficial agreement.
Shopee’s transparent commission structure helps sellers manage their costs effectively, allowing them to focus on growing their business and maximizing their sales potential.
Tips To Boost Sales on Shopee Singapore
Getting your products listed on Shopee Singapore is just the beginning. To truly drive sales, you need to engage with potential customers effectively. Here are six tips to help boost your sales and enhance your presence on Shopee Singapore.
1. Enhance Your Product Searchability
Visibility is crucial. If your product doesn’t show up on the first few pages of search results, it’s less likely to be purchased. Optimize your product titles and descriptions with popular SEO keywords to improve your search rankings. Use structured naming conventions such as:
- Brand Name + Product Model + Specifications + Size + Keywords for SEO
- Gender + Specifications + Product + Keywords for SEO
- Age + Specifications + Product + Keywords for SEO
- Age + Gender + Specifications + Product + Keywords for SEO
- Specification + Product + Keywords for SEO
These formats ensure your products are easily found by potential customers.
2. List Your Business On Shopee Mall
Building trust is vital for online sales. Listing your business on Shopee Mall can enhance your brand’s credibility. Shopee Mall is a platform for top sellers and official brands, offering increased visibility and consumer trust.
However, be prepared for stricter guidelines and additional costs, such as the S$315 ACRA registration fee and service fees. Review Shopee Mall’s terms and conditions thoroughly before applying.
3. Leverage Shopee’s Advertising Campaign Options
Running advertising campaigns on Shopee can significantly improve your product’s visibility. Under the ‘My Ads’ tool, you can use two types of ads: keyword ads and targeting ads.
Keyword ads involve bidding for relevant keywords, ensuring your product appears in relevant search results. Targeting ads bid for slots in the ‘Similar Products’ feature, positioning your ads alongside similar items.
Manage your campaign’s duration, budget, and bid price effectively, and use the insights to refine future marketing efforts.
4. Utilize Campaigns and Flash Sales
Shopee’s “My Campaigns” feature allows you to nominate products for main or category page promotions at no cost. Approved products are highlighted on campaign banners, email blasts, and targeted push notifications.
Additionally, participate in Shopee’s flash sale promotions. Flash sales attract Singapore shoppers and can help clear out outdated or excess stock while boosting sales.
5. Maintain a Separate Business Account to Save on Costs
Using a separate business account for expenses like paying overseas suppliers and online advertising can save costs. Consider options like the Aspire Cashback Reward Card, which offers 1% cashback on digital marketing and SaaS purchases.
The Aspire Corporate Card also provides competitive rates for multi-currency transactions, particularly beneficial if you source goods from China. These financial tools can help you maximize your marketing budget and reduce transaction costs.
6. Use High-Quality Images and Detailed Product Descriptions
Great marketing won’t compensate for poor visuals and vague descriptions. Invest time in improving your product photography by studying competitor images and learning from online resources.
Ensure your product descriptions are detailed, highlighting key features and specifications. Tools like Grammarly can help you maintain high-quality grammar and spelling, making your listings more professional and trustworthy.
By following these tips, you can improve your product’s visibility, build trust with consumers, and ultimately drive more sales on Shopee Singapore.
How to Dominate Shopee Singapore Market
If you want your products to thrive and dominate the Shopee Singapore marketplace, AsiaCommerce can help you achieve this goal. Our Southeast Asia Marketplace Distributions & Fulfillments services are designed to maximize your success. We offer a comprehensive range of solutions including:
Localized Product Listings: Tailor your product descriptions and listings to meet the preferences and expectations of the Singaporean market.
Order Management: Streamline your order processing with our efficient management systems, ensuring a smooth and seamless experience for your customers.
Order Fulfillment: Rely on our robust fulfillment services to handle all aspects of your shipping and delivery, ensuring timely and reliable service.
Monthly Sales Report: Stay informed with detailed monthly reports that provide insights into your sales performance and areas for improvement.
Click here to be a partner with AsiaCommerce to enhance your presence on Shopee Singapore and watch your business grow.
