Selling on Marketplaces & ECommerce Sites in Singapore

As eCommerce continues to grow, more and more businesses are looking to sell their products and services through online marketplaces. In 2019, these top platforms sold over $2 trillion in merchandise, accounting for a whopping 57% of all global web sales.

For small business owners, the question then becomes: ‘should I sell on online marketplaces?’ There are a number of factors to consider when making this decision. On one hand, such platforms offer a broad audience and potential for high sales volume. On the other hand, they also impose fees and commissions that can cut into profits.

Building Your Own ECommerce Site

An eCommerce website can be a great way to make money and have complete control over your sales and products. The process of building and promoting your own store may seem daunting, but it can be extremely rewarding if done correctly. The major advantage is that all the profits are yours. You won’t have to pay fees on each sale or follow any rules except your own. The only downside is that you will have to put in the effort to advertise your business and get people to visit your eCommerce site. In addition, creating a strong brand can also take some time.

Shopify

Shopify is the best way to create your own eCommerce site. It's easy to use, has great features, and is very affordable. With Shopify, you can sell on your own eCommerce website, on multiple marketplaces like Amazon and Shopee, and create personalized consumer experiences that lead to more sales. Not to mention, there are numerous apps you can use to extend your site's functionality, so you can really make your store your own.

Top Marketplaces

Amazon

As more and more people shop online, it is no surprise that Amazon is consistently ranked as one of the best marketplaces in Singapore and globally. With over 400 products sold per minute, Amazon provides retailers with a large and active audience to advertise to. So how has Amazon become the best online marketplace?

People have come to trust Amazon as a reliable and safe platform to shop online. The company is known for vetting vendors and removing fake or counterfeit products. Additionally, Amazon delivers items quickly and efficiently through its Prime shipping service. Prices and deals offered on the site are also competitive, which keeps customers coming back for more.

If you're looking to sell your products to a global audience, then Amazon is a good sales channel to consider. You'll pay a monthly subscription fee of $39.99, plus additional fees depending on your product category, fulfilment strategy, and other variables.

Shopee

Shopee is a Singapore-based eCommerce platform that was founded in 2015. It offers a convenient and secure platform for businesses to sell new products, with a strong focus on eCommerce. In 2020, Shopee generated 2.7 billion orders for a total gross merchandise volume of $35.4 billion, an increase of 102% from the previous year.

To protect buyers, Shopee offers an escrow service that holds the buyer's payment until delivery is confirmed. This guarantees that the buyer will receive their purchase as agreed upon.

If you are looking to start selling on Shopee, there is great news - it's free for retailers with fewer than 100 completed orders. Not to mention, there are promotional tools available to help you get started, like live streaming and social campaigns. It is the perfect platform for Singaporean businesses to sell their products. And if you're a brand owner or authorized distributor, you can sell through Shopee Mall. Just remember that all products must be authentic and have a 15-day return policy. In addition, you must also offer free shipping, or use one of Shopee's supported logistics providers.

Lazada

Lazada is headquartered in Singapore. It started out as a traditional retailer, selling goods directly. In 2013, Lazada launched an online marketplace, which quickly grew to account for the majority of the company's sales. Lazada has made significant investments in storage and shipping networks, as poor logistics hampered Singapore and the region’s early adoption of eCommerce.

Lazada's platform is divided into 3 areas. There's the main marketplace for local vendors, which charges no commission. Then, there's LazMall, which charges a 5% commission to brand owners and distributors. Finally, LazGlobal caters to merchants in China, Taiwan, South Korea, and the United Kingdom. Not to mention, in Singapore, there is the RedMart concept for fresh food and other grocery retailers.

Local Marketplaces

Facebook Marketplace

Facebook Marketplace is a site where you can find, buy, and sell products. Every month, more than one in three people visit Marketplace, providing great potential for you to reach a large audience across Singapore. Although listing products is absolutely free and Facebook does not charge any fees, there are some rules to follow when using the network. Facebook has also worked with platforms to allow retailers to display their eCommerce website’s inventory, advertise things, and discover new consumers.

Carousell

Carousell is a mobile app that makes it simple to buy and sell items. This is one of Singapore's greatest eCommerce platforms for both new and secondhand items. It's free to join, and listing your item for sale is straightforward. Take a few images of your item, write a description for it, and include information about the pricing and pick-up or delivery choices, and you're ready to go!

Global Marketplaces

AliExpress

AliExpress is Alibaba's cross-border eCommerce marketplace, which receives about 20 million daily visits and users from over 230 countries, including Singapore, Brazil, Russia and Spain.  Whether you are manufacturing products or utilising the dropshipping model for your eCommerce site, you can sell to both individuals and businesses.

Depending on your product category, AliExpress collects between 5% and 8% of commission fees from each sale. There are no further costs or fees associated with utilising the platform.

Best Ways to Sell Online

Every online business owner should look to utilise the different marketplaces.  They can assist new businesses in getting off the ground by providing a built-in audience of active purchasers as well as advertising opportunities.

In any case, it's critical not to rely solely on internet marketplaces either. To expand your brand, engage with customers, and keep more revenues, you'll want to open your own eCommerce site. By doing so, you can avoid paying commissions and fees and focus on growing your business over time with a digital home base.

OMNA allows you to manage different sales channels from your Shopify dashboard. You can use the platform to list products to all platforms, assuring accuracy and avoiding mistakes. OMNA also imports orders from Shopee and Lazada into Shopify, allowing you to conveniently fulfil them. Not to mention, the real-time inventory sync feature ensures that your stock levels are always up to date. When you sell a unit on one channel, the accurate levels are updated on all of the others as well.  OMNA can help you streamline your multichannel operations on your website and in marketplaces and guarantee a positive customer experience.