How to Become a Successful Seller on Shopee Singapore: 2024 Guide
Photo - TheGreatSG'rean (Wikipedia)
Shopee is one of the largest commerce platforms in Southeast Asia and Taiwan, with over 295 million annual users.
If you’re looking to expand your e-commerce business in Singapore, becoming a seller on Shopee promises a vast user base and marketing support to help you grow.
This guide will walk you through how to set up your store, understand the associated fees, and explore opportunities to expand your reach. No more Googling "How to sell on Shopee" anymore!
Ready to Grow Your Business on Shopee? Let Us Help You Start Strong
Entering the e-commerce market is exciting, but building a successful business requires the right foundation. PilotoAsia offers comprehensive business setup and advisory services tailored for entrepreneurs looking to launch on platforms like Shopee Singapore.
From business registration to compliance and strategic guidance, we’ll help you navigate each step to set your venture up for success.
The 3 Shopee Platforms for Sellers
Before you register as a Shopee seller, it’s important to know about the three Shopee selling platforms and decide which works best for you. These are:
Shopee Marketplace
Shopee Mall
Shopee Supermarket
Shopee Marketplace
Shopee Marketplace caters to local sellers, including part-time sellers and resellers. Sellers on this platform gain access to a Shopee Seller Centre, free marketing tools, opportunities to join Shopee promotional events, and a large user base.
Fees include a commission fee after the initial 90 days, GST, standard transaction fees, and applicable service fees. The commission fee varies by product category and is different for local vs non-local sellers.
It ranges from 2.18% (for local sellers on free shipping or coins cashback programs) to 3.82% (for all other local sellers). There is a $30 cap on certain categories, such as mobile and gadgets and computers and accessories.
Shopee Mall
Shopee Mall is designed for selected brand owners and authorized distributors who meet specific criteria. To sell on Shopee Mall, you must offer 100% authentic products, a 15-day return and refund policy, and free shipping.
Shopee Mall gives all the advantages of Marketplace and can help enhance your brand’s reputation. Fees for Shopee Mall include a commission on all successful orders, alongside other standard fees.
For local sellers on coins cashback or free shipping programs, the commission fee ranges from 5.45% to 7.63% and is capped at $80 for electronic items. For all other local sellers, the commission fee ranges from 7.63% to 9.81% and is capped at $80 for electronics.
Shopee Supermarket
Shopee Supermarket is ideal for local manufacturers or distributors selling groceries and household items.
Benefits include assisted store management and listings, marketing support, Shopee-sponsored vouchers, free delivery provided by Shopee, and access to a large customer base.
How to Become a Shopee Seller in Singapore
Follow the steps below to get started as a Shopee seller.
1. Register as a Seller
To start selling on Shopee, you first need to create a Shopee seller account, which can be done online or via the Shopee app. Here's how to register online:
Visit the Shopee desktop site and click on "Sign Up."
Enter your phone number and complete the verification puzzle.
Input the verification code sent to your phone.
Follow the prompts to set up your account and password.
Ensure you verify your phone number and check that your products are not on the Shopee prohibited items list.
2. Customize Your Shop Profile
After registering as a Shopee seller, you can begin setting up your store. Take these steps:
Log in to your account and click on "Seller Centre" located in the corner of the homepage.
Choose a memorable and appealing shop name and create an attractive profile.
Include a description of your store and a cover photo.
Be mindful of Shopee’s store naming policy—avoid using vulgar or sensitive words, do not include the platform's name, and avoid using brand names unless you are the brand owner or an authorized distributor.
3. List Your Products
You’re now ready to start listing products. In the sidebar, select ‘My Products’ under ‘Product’. Now, click on “Add New Products” and follow these steps:
Name your product.
Choose an accurate product category. This will help customers find your product quickly and easily.
Add a detailed product description. Include all relevant information such as dimensions, weight, quantity, materials, and any unique selling points.
Upload clear, high-quality product photos from multiple angles. It is mandatory to add at least one photo per product, but you may add up to nine. Consider including a product video to give customers a complete 360 of what you offer.
Set your product price. Factor in product costs, shipping fees, and the desired return on investment, and research similar products to set attractive and competitive prices.
4. Select Shipping Methods
Shopee offers three shipping and delivery options:
Shopee-supported logistics—These are third-party shipment providers that allow you to track and manage shipments directly through Shopee. Advantages include same-day shipment, pick-up hours, high security, and reliable deliveries. These are Shopee’s supported logistics partners:
Custom shipping options—Shopee offers custom shipping options with alternative delivery methods for specific customer requests. To set up your preferences, go to Shop Settings in My Shop and select Shipping Options.
Free shipping programs—Shopee offers a Free Shipping program where the platform covers buyer-borne shipping costs for sellers. To participate, sellers need to pay a 2% service fee on all successful orders.
Once you’ve selected relevant shipping details, click on “Save and Publish.” Your product listing is now live.
How Much Does Shopee Charge Sellers?
Depending on how your business is arranged, you may have to pay three types of seller fees on Shopee. Some fees are waived for new sellers, while some are only applicable if you use all of Shopee seller services. Here are the details:
1. Commission Fee
For every completed order on Shopee Marketplace or Mall, you will be charged a commission fee.
This fee is separate from the 9% Goods and Services Tax (GST) that applies to your order.
For non-Mall sellers, the commission fee structure is as follows:
For Shopee Mall sellers, the commission fee structure is as follows:
If you add any seller-sponsored discounts or vouchers for customers, these promotions will be deducted from the selling price before calculating the commission fee. For more details on Shopee’s commission structure, click here.
Note: for Shopee Supermarket, margins are negotiated individually with each seller upon onboarding.
2. Transaction Fee
Shopee charges a 2% transaction fee on every successful transaction made by various payment methods, including credit and debit cards, installment plans, PayNow, ShopeePay, and more.
The 2% transaction fee includes shipping fees paid by the buyer and any applied Shopee Vouchers, Coins, or Rebates. This fee is rounded up to the nearest cent.
The transaction fee is automatically deducted from each order's payment before it is credited to your Seller Balance. You can review the transaction fees deducted from your tax invoices.
3. Service Fee
If you participate in Shopee programs such as Coins Cashback and Free Shipping Special, you will be charged a service fee.
This fee is calculated as a percentage of the Cost of Goods Sold (COGS) for each item sold. The percentage varies depending on the product category and the specific program the seller is enrolled in.
Service fees are automatically deducted once an order is completed.
How to Grow as a Seller on Shopee
You now have an account set up on Shopee and understand the various fees you might have to pay. How do you grow so you never have to worry about Shopee’s commission? Take the following steps:
1. Marketing and Promotion
Shopee offers a range of marketing and promotional tools to enhance your visibility and help you grow as a seller. These include:
Shopee ads—Ads help you promote your products across the Shopee platform, including the Marketplace, the Shopee mobile app, and the Supermarket. By bidding on relevant keywords, your products will appear in search results when customers look for those terms. Ads can help increase product visibility, drive more traffic to your Shopee store, and attract buyers who are searching for what you offer.
Flash sales—Participating in flash sales is a great way to generate excitement and urgency around your products. These limited-time promotional events offer significant discounts, drawing in more customers and encouraging quick purchases. They are great for bringing in high volumes of traffic and clearing out your inventory.
Campaigns—Campaigns allow you to feature your products on Shopee’s home page or category pages. By joining these campaigns, you can reach a larger audience and advertise your products during special events or themed promotions.
Vouchers and discounts—Shopee offers various types of platform-sponsored vouchers, including coins cashback, and discount vouchers. These can encourage customers to make a purchase and return for future deals at your store while earning you Shopee Coins at the same time.
2. Include Polished Product Listings
Promotions won’t make much difference if your product listings aren’t up to par.
Make sure your photos look professional and your descriptions are clear and thorough. Consider checking out some tutorials on product photography and see how your competitors are presenting their products for inspiration.
Also, take the time to write detailed descriptions and use tools like Grammarly to polish your grammar and spelling. Grammar and spelling mistakes make a listing look suspicious and untrustworthy.
3. Bump up Your Product Searchability
If your product isn’t visible on the first few pages of search results, it's unlikely to attract buyers.
To maximize your chances of making sales, ensure your product listings are well-structured and include popular keywords in the title and description.
You also want to optimize product titles for good visibility. Here are a few ways to do this:
Brand name + product model + specifications + size + SEO keywords
Example: Samsung Galaxy S21 Ultra 5G + 12GB RAM + 256GB Storage + Smartphone + 5G Connectivity
Gender + specifications + product + SEO keywords
Example: Men's Waterproof Running Shoes + Lightweight + Athletic Footwear + Breathable
Age + specifications + product + SEO keywords
Example: Kids' Adjustable Bike Helmet + Safety Features + Ages 5-10 + Comfortable Fi
4. List Your Products on Shopee Mall
In addition to increasing product visibility, building consumer trust is essential for succeeding as a Shopee seller.
One way to enhance your business credibility is to sign up on Shopee Mall. Since this is designed for Shopee’s top sellers and official brands, it comes with promotional and marketing perks and can help attract more customers.
However, listing on Shopee Mall comes with strict requirements, so this option is only viable for high-performing, well-established businesses. The costs can also be too high for new business owners, as you'll need to cover the S$315 registration fee, along with service fees and other requirements for a Shopee Mall seller.
5. Expand Your Business Beyond Shopee
If you're looking to start an e-commerce business in Singapore, Shopee is an excellent platform to begin with. But once you've established a solid customer base, it's time to think bigger.
Piloto Asia can help you expand your e-commerce company beyond Shopee. We offer remote onboarding services, meaning you can register your Singapore e-commerce company from anywhere in the world.
For non-Singapore sellers, we also provide guidance on navigating the Singaporean market and growing your business, all while ensuring full compliance with local regulations. Book a free consultation today and grow way beyond Shopee.
Frequently Asked Questions
Is Selling on Shopee Free?
There is no initial sign-up or registration fee on Shopee Singapore. However, after 90 days, all sellers will be charged a commission and transaction fee on each successfully completed order.
Do I Need a Company to Sell on Shopee?
No, you do not need to be a registered business to sell on Shopee Marketplace. To get verified as an individual seller, all you need is a National Registration Identity Card (NRIC) or Foreign Identification Number (FIN) along with a local phone number. But registering a business in Singapore comes with several benefits, which is why recommend reading our Singapore company registration guide.
How Many Shops Can I Have on Shopee?
Each Shopee account can be used to set up only one shop. If you wish to register multiple shops, you will have to verify multiple seller accounts.
Can I Transfer Money From Shopee to a Bank?
Yes, you can transfer money from Shopee to a bank. After an order is completed, your earnings are added to your Seller Balance. To withdraw funds on the Shopee App, go to the Finance page, select "WITHDRAWAL," enter your bank account details, and choose the amount you wish to withdraw.
Can ShopeePay Be Converted to Cash?
No, funds in your ShopeePay wallet cannot be redeemed as cash and are not transferable to other users except at the platform’s discretion.