How to Start a Dropshipping Business in Singapore: A 2024 Beginner’s Guide
In 2024, Singapore's dropshipping market was valued at approximately $6.12 billion USD,, and is expected to grow to $19.43 billion USD by 2030. If you’re considering tapping into the dropshipping scene in Singapore, there’s no better time than now.
In this guide, we’ll walk you through the basics of how to start your own dropshipping business in Singapore, from choosing the right niche and finding reliable suppliers to marketing strategies that’ll help your business thrive. Read on to get started.
Related: Singapore Company Registration Cost Guide
What is Dropshipping?
Dropshipping is a retail fulfillment method that allows store owners to sell products online without keeping them in stock.
When a customer places an order, the seller purchases the item from a third-party supplier, who then ships the item directly to the customer. This allows store owners to focus on marketing and customer service without worrying about managing inventory, warehouse storage, or shipping logistics.
Many entrepreneurs prefer the dropshipping business model because of its convenience. It's also a startup-friendly option if you’re experimenting with an e-commerce business, allowing you to test different products without the risk of holding unsold inventory.
Plus, dropshipping allows for flexibility — you can run your business from anywhere as long as you have an internet connection.
Is Dropshipping in Singapore Suitable for You?
Dropshipping is becoming a popular business model in Singapore, but is it the right choice for you?
If you’re a beginner entrepreneur looking for a low-risk, low-investment online business, it can be a great option. Since you don’t need to buy stocks or manage a warehouse, you can begin selling as soon as you find a supplier.
However, the dropshipping industry is getting increasingly competitive, and you’ll need the right mix of hard work, a good supplier, and great marketing to succeed as a dropshipper.
Here is a list of the benefits and risks of dropshipping in Singapore to help you decide if the dropshipping model is right for you.
Advantages of Dropshipping
Here are some of the main advantages of running a dropshipping business in Singapore.
Low Startup Costs
Starting a retail business requires significant investments in inventory and storage. With dropshipping, you don’t need to buy stock upfront, making it a good way for new entrepreneurs to enter ecommerce without a large investment.
No Inventory Management
Since dropshipping suppliers handle storage and fulfillment, store owners don’t have to worry about overstocking or running out of products. This eliminates the risk of holding unsold inventory and frees up capital for marketing and business growth.
Easy Scalability
With dropshipping, your workload remains under control even as your business grows. Since suppliers are handling most of the logistics, you can focus on scaling your business without the challenges of large warehouses and fulfilment teams.
Easy Product Testing & Expansion
Dropshipping is a great way to experiment with trending products and test different niches with minimal risk. If a product doesn’t sell well, you can simply switch to a new one without worrying about managing inventory or financial losses.
Supportive Regulatory Environment
Singapore’s environment is incredibly business friendly, with the government actively promoting entrepreneurship through grants and funding programs for new businesses. This makes it easier for both local and foreign startups to launch and grow their dropshipping business without restrictions.
Disadvantages of Dropshipping
Before you start dropshipping, it's important to be aware of some of the main downsides of running a dropshipping business in Singapore.
Reliance on suppliers
As a dropshipper, you don’t directly handle the products you sell. While this makes things easier, it also means you have limited control over product quality and overall customer satisfaction. If a supplier delivers subpar products or has delayed shipping, this can lead to customer complaints, returns, and negative reviews even if things are managed well from your side.
Low profit margins
Dropshipping typically has lower profit margins than traditional ecommerce stores. Since dropshipping suppliers charge more to cover storage and fulfillment costs, sellers have to carefully balance marketing costs and pricing to consistently turn a decent profit.
Shipping complexities
Shipping can get tricky in dropshipping, particularly if you’re working with suppliers from various regions. Coordinating different shipping times, fees, and methods from multiple suppliers can sometimes create confusion for both you and your customers.
Limited opportunities for branding
In dropshipping, products come directly from the supplier with little room for customization. This limits your ability to create a unique brand identity through packaging, product design, or branding elements, and makes it difficult to distinguish your business from others in the Singapore market.
Setting Up Your Dropshipping Business — Step By Step
Ready to start dropshipping in Singapore? We’ve broken down the process into five simple steps.
1. Find a Profitable Niche
Choosing the right niche is the foundation for your dropshipping business. A profitable niche will ensure steady customer interest and help you scale your business in the long run. Try picking a niche you are interested in and keep these tips in mind:
Consider the local market — electronics, health and wellness products, and household accessories are some of the top-selling product niches in Singapore.
Use Google Trends, Google Analytics, and keyword search tools to track what your customer base is looking for.
Choose products that have enough markup between wholesale costs and selling prices to allow a decent profit margin.
Consider shipping feasibility — avoid items that may be fragile, oversized, or difficult to ship efficiently.
Avoid fad trends and seasonal products — look for niches that encourage repeat customers all year round.
Always check local regulations to confirm what you can and cannot sell. Some products, like health supplements or electronics like laser pointers, may require approvals or face restrictions in Singapore.
2. Search Competitors
Once you've identified a potential niche, the next step is to conduct some market research on your competitors.
Understanding what similar dropshipping businesses are doing will help you refine your product selection, pricing strategy, and marketing approach.
Start by browsing ecommerce platforms like Shopee, Lazada, and Qoo10, as well as independent Shopify stores.
Look at the best-selling products, pricing models, customer reviews, and overall store presentation. Pay attention to how they market their products — do they use influencer collaborations, social media ads, or SEO-driven content?
Additionally, study their customer service approach. See if they offer perks like free shipping, loyalty programs, or 24/7 chat support. Identifying gaps in their service or product offerings can allow you to differentiate your store.
Here are some important factors you should analyze:
Product selection, including bestselling or unique items.
Pricing strategy — price points and bundle or exclusive deals.
Marketing tactics, including Google rankings, social media content, or influencer partnerships.
Customer reviews, especially repeat complaints or praises in customer comments.
Shipping times and fees, and whether they offer express or free delivery options.
Learning from competitors is a great way for your store to offer something that others don’t — whether it's better service, competitive pricing, or a unique product selection.
3. Choose Reliable Dropshipping Suppliers
The right supplier is crucial to the success of your dropshipping store.
Your supplier plays a big part in determining the product quality, shipping efficiency, and overall customer experience, so carefully consider your options before making a decision.
Here are some factors to consider when searching for potential suppliers:
Product Quality
This may seem like a no-brainer, but we can’t stress this enough. Since products don’t pass through you before going to customers, it’s essential to partner with a supplier whose product quality you can vouch for. One way to vet suppliers is by requesting product samples and trying them out before you list them on your store.
Supplier Reliability
A reliable supplier makes all the difference. Always research supplier reviews, ratings, and testimonials from other drop shippers. You can use platforms like AliExpress, Spocket, or SaleHoo to find vetted suppliers with a proven track record.
Competitive Pricing
Your supplier’s pricing will affect your profit margins. Carefully analyze shipping fees, handling charges, and other hidden fees to estimate potential profit margins before you commit. While cost is an important factor, don’t choose the cheapest available option at the expense of quality.
Shipping Efficiency
Fast delivery is an important competitive advantage when dropshipping. Look for suppliers offering reliable shipping times, tracking options, and local warehouse availability to reduce delays.
Customer Support & Communication
A supplier with responsive customer service can resolve issues quickly. Always test their communication by asking detailed questions before making a decision.
If you’re unsure where to find suppliers, platforms like Shopify’s integrated apps — Oberlo and Spocket — can connect you to many trusted dropshipping suppliers to help you get started.
4. Set Up Your Online Store
The first step to setting up your store involves picking the right ecommerce platform.
Look for a platform that has built-in tools for store design, payment, and integrations. Here are some popular ecommerce platforms for dropshippers in Singapore you can consider
Shopify. Popular for its ease of use, extensive app marketplace, and built-in dropshipping integrations like Oberlo and DSers.
WooCommerce. A free WordPress plugin that offers full customization and control, ideal for those comfortable with web development.
BigCommerce. A powerful platform with scalable features for larger stores.
Magento. Best for tech-savvy users who need highly customizable features, though it requires more setup and maintenance.
Once you’ve picked a platform that suits your requirements, you can begin customizing your store.
It’s important to have a professional-looking and well-optimized store to rank well in search engines and improve customer experience for whoever visits your site.
Here are some aspects to cover when building your dropshipping store.
Choose a template. Select a clean, mobile-responsive template that fits your brand vibe and product niche. Shopify, WooCommerce, and BigCommerce offer various free and paid themes you can pick from.
Customize the design. Adjust fonts, colors, and layout to create a cohesive interface that works with your brand. You can also add a high-quality logo and branded visuals to make your store stand out more.
Create Essential Pages. Ensure your store includes a Home Page, About Us, Contact Us, an FAQ section, and a Shipping & Returns page.
Optimize for Mobile Users. Since most Singaporean consumers shop on their phones, your site must be mobile-friendly, with fast load times and a layout they can easily navigate on mobile.
Make eye-catching product listings. Add high-quality images, detailed descriptions, relevant keywords, and customer reviews to your listings to boost engagement.
5. Set Up Payment and Shipping Options
Once your store is all set up, it’s time to work on the logistics.
To ensure a smooth checkout process for your customers, provide a variety of shipping options and set up secure and convenient payment methods.
It’s a good idea to provide multiple payment options, including:
Credit/debit cards
PayNow and GrabPay for local transactions
PayPal and Stripe for international buyers
For shipping options, work with your supplier to set up reliable shipping methods through companies like Ninja Van, J&T Express, and DHL.
Also, consider offering free shipping on minimum purchases or sales, and offer express shipping options for high-demand items wherever possible.
Marketing Tips For A Successful Dropshipping Business
Once your store is up and running, it’s time to turn your attention to marketing. Here are some main marketing channels to focus on:
Social Media Marketing
Social media is the go-to for cheap and affordable dropship marketing.
Use Facebook, Instagram, TikTok, and LinkedIn to showcase your products, interact with customers, and run targeted ad campaigns.
Here are some general tips to keep in mind:
Adjust to your audience. Your chosen platform should be in line with your target customer base and their age group. If you’re selling to a more mature audience, consider using Facebook and Pinterest to promote your products. For a younger audience, alter your approach by prioritizing Instagram and TikTok, partnering with popular influencers, and engaging with the latest trends in short form content.
Engage With Your Audience. Interaction is key for successful social media marketing. Reply to follower comments, host Q&A sessions, and run polls to gauge what your audience is interested in buying. Hosting giveaway competitions is also a great way to increase social media traction and direct users towards your products.
Leverage Influencer Marketing. Partner with Singapore-based influencers for sponsorships and PR content to extend your reach and credibility. If large influencers are out of reach, consider targeting micro-influencers (with 5,000 to 50,000 followers). They often have strong, engaged communities of followers and may be more willing to partner with your business.
Use Facebook and Instagram Shops. Once you’ve built a decent social media presence, list your items on Facebook and Instagram shops to let visitors browse and buy directly from your page. Make sure to optimize product descriptions and checkout processes for mobile users, since most shoppers will access these sites through their smartphones.
Tag Products. When posting products on social media platforms, tag them directly in images, videos, or reels so users can tap and shop instantly. Use features like shoppable Instagram stories with “Swipe Up” or “View Product” links, and run live Instagram shopping sessions where you showcase products and let viewers make real-time purchases.
Search Engine Optimization (SEO)
SEO helps your store rank high on search engines like Google, driving traffic to your site without additional advertising costs.
Here are some helpful SEO practices for your dropshipping business:
Do Keyword Research. Use tools like Google Keyword Planner to find keywords that your target audience in Singapore uses. Incorporate these keywords into product titles, description, website tags, and blog content.
Optimize Product Listings. Great product listings are essential to get noticed. Optimize your listings with clear, descriptive product titles, relevant keywords, high-quality images, and detailed product descriptions with easy to read bullet points.
Create A Blog Page. Once your store is live, consider adding a dedicated blog section with regular weekly uploads. A blog with informative articles, buying guides, or FAQs related to your niche can attract more visitors. For example, if you sell fitness products, a blog post on “Best Home Workout Equipment in Singapore” is a great way to drive traffic to your website.
Use Local SEO. If your dropshipping store primarily targets Singaporean customers, use location-based keywords like “fast shipping in Singapore” or “top online gadget store in Singapore” to increase visibility in local search results.
Email & SMS Marketing
Dropshipping businesses often struggle with brand building and customer retention.
Email and SMS marketing is one way to build and maintain customer relationships, encourage repeat business, and solidify your brand presence even with a dropshipping model.
Here are some ways you can use SMS and email marketing for a successful business:
Welcome Emails. First impressions matter. Create a subscription list for your store and send a well-crafted welcome email to all new subscribers. Offer an exclusive first-time discount or a trending product recommendation to keep them interested.
Cart Abandonment Emails. Many potential buyers leave their carts without completing the purchase. Sending a reminder email, possibly with a discount or free shipping offer, can sometimes encourage users to go back and complete their purchase.
Personalized Promotions. Use customer data to send targeted offers based on their purchase history. For example, if a customer recently bought a skincare product, you can email them about complementary items that suit their skin type.
SMS for High Engagement. Use SMS marketing to contact customers who may be inactive on email. Send exclusive deals, restock alerts, or time-sensitive promotions with a link that directs receivers straight to your store.
Community Engagement
Engaging with local community groups is a great way to market your products in a more personalized way. Here are some platforms you can explore:
Facebook Groups & Forums. Join Singapore-based groups related to your niche (for example, parenting groups if you sell baby products). Instead of directly marketing your items, contribute meaningfully to the community by answering questions, giving advice, and recommending products wherever asked.
Reddit & Niche Online Communities. Many Singaporeans turn to platforms like Reddit and HardwareZone for product recommendations, especially when it comes to niche items. Having a presence on these sites is a great way to keep up with your target audience’s interests and attract organic customers.
User-Generated Content. Once you’ve built a loyal customer base, encourage customers to share their experiences with your products through reviews, testimonials, reels, or social media posts. This is a great way to connect with your customers and also build trust with your following.
Ready To Launch Your Dropshipping Business in Singapore?
As you start your dropshipping journey in Singapore, don't forget that the right support can make all the difference in scaling your business.
That's where Piloto Asia comes in.
Our expert corporate incorporation services help entrepreneurs navigate every step of the process, from registering your dropshipping company to ensuring compliance with Singapore’s regulations.
Whether you're just starting or looking to expand beyond an ecommerce store, Piloto Asia ensures your business setup is smooth, efficient, and hassle-free. Contact us for a free consultation today.