How to Start Dropshipping in Singapore in 8 Steps (2026)

Dropshipping in Singapore is on a remarkable growth trajectory, with revenue reaching about USD 8.2 billion in 2024 and projected to soar to over USD 25 billion by 2030. With the market expanding rapidly, it’s no surprise that more entrepreneurs are looking to seize the opportunity.

Dropshipping in Singapore offers a low-risk entry into ecommerce, allowing you to sell products without the burden of managing inventory or logistics. If you’re interested in joining but still wondering what dropshipping really involves, how to get started, and what to consider in the Singapore market, this comprehensive guide is for you. Here, you’ll learn everything you need to know to launch a successful dropshipping business in Singapore.

Dropshipping is a type of online retail business and a retail fulfillment method where a store doesn't keep the products it sells in stock. Instead, when a customer purchases a product, the store buys the item from a third-party supplier, who then ships it directly to the customer. 

In simple terms, you handle the online storefront and customer experience, while your supplier takes care of inventory management, order fulfillment and logistics. It’s a simple model that lets you start selling online with little upfront investment and no need for inventory or warehouses.

However, since you rely on third-party suppliers, you have less control over shipping times, product quality, and stock availability.

If you were running a dropshipping business, this is what it looks like in practice. 

1. You partner with a supplier who manufactures or stocks the products. You act as their dropshipper.
2. You promote their products through your online store, social media or marketplace.
3. When someone orders a product from your store, you receive the order and payment.
4. You send the customer’s order details and shipping information to the supplier.
5. The supplier handles packaging and ships the product directly to your customer. You keep the customer updated on shipping and delivery.
6. You earn the difference between the retail price and the supplier’s cost.

Starting a dropshipping business in Singapore can be an exciting way to enter the ecommerce world with relatively low upfront costs. Follow these 8 essential steps to start your dropshipping business in Singapore.

Identifying a profitable niche is crucial because it determines whether your business can actually make money. If your niche is too broad, you’ll get lost in competition. If it’s too narrow or unprofitable, there won’t be enough demand to sustain your work.

Focus on a specific, underserved niche with consistent demand and room for markup.

• Avoid saturated categories (like generic phone cases or leggings).
• Target a defined audience, for example, “eco-friendly pet accessories” instead of just “pet supplies.”
• Use tools like Google Trends, Google Analytics, TikTok Creative Center, AliExpress Dropshipping Center, Ecomhunt, and Amazon Best Sellers to gauge demand, track trends, and analyse profit margins.

In Singapore, the top dropshipping products by revenue include toys, hobby & DIY, furniture, appliances, food, personal care, electronics, media, and fashion. 

However, just because these categories generate the most revenue doesn’t mean you should jump in. High revenue usually also means high competition. Instead of diving in or avoiding trending products entirely, the better move is to niche down within those larger categories.

Once you’ve settled on your niche, the next critical step is finding suppliers who not only have the products you want but also deliver reliably and quickly. Your supplier performance is your brand performance.  If your supplier delays or fails to meet shipping expectations, you risk damaging your reputation with customers.

Popular Supplier Platforms 

What to Ask Suppliers

Before committing to any supplier, make sure to ask about

❔How long does it take to process and ship orders?

❔Return & Refund Policies. What happens if a product is damaged, defective, or delayed?

❔How often do they restock, and can they handle sudden order increases?

❔What is their service‑level agreements (SLAs), which is a formal contract or commitment between a service provider and a client that defines the specific level of service expected.

It is also important to compare pricing and minimum order quantities (MOQ), considering not just the item price but also shipping costs, since a platform with a lower unit price can sometimes end up more expensive due to higher shipping fees.

Once you have a shortlist of potential suppliers, you should place small test orders to assess shipping speed, packaging quality, and product accuracy. 

To operate legally, register your dropshipping business with Singapore’s Accounting and Corporate Regulatory Authority (ACRA). 

For most dropshipping businesses, the two most suitable and popular structures are a sole proprietorship and a private limited company. 

Choose a Sole Proprietorship if you want a simple, low-cost setup. This structure is easy to start and manage, but you’re personally responsible for all business debts. Profits are taxed as personal income, and while it suits small or trial operations, it may seem less credible to suppliers.

Choose a Private Limited Company (Pte Ltd) if you plan to grow your business or want to protect your personal assets. A Pte Ltd is a separate legal entity, which means your personal finances are protected and you only risk the amount you’ve invested in the company. This structure tends to look more professional to suppliers. However, it involves more paperwork and higher incorporation and compliance costs than a sole proprietorship. With Pte Ltd, you pay corporate tax and can explore rebates. 

Depending on your product category, specific licenses or permits may be required. 

While dropshipping generally doesn’t require a special license, certain product types do. For example, if you plan to sell health supplements, cosmetics, food items, or electronics, you may need approvals from authorities such as the Health Sciences Authority (HSA), Singapore Food Agency (SFA) or Enterprise Singapore.

Use GoBusiness Licensing to check whether your products need approval to sell in Singapore.

Once your business structure and compliance are set, it’s time to establish your online storefront. You can choose between:

• Build an online storefront on marketplaces like Amazon. This is a great option for testing demand and tapping into existing buyer traffic. 
• Using an ecommerce platform like Shopify, WooCommerce, or BigCommerce. This is ideal for those who want a quick setup, built-in payment integrations, and customisable templates.
• Building your own ecommerce website. This offers full branding control and scalability, though it requires more setup effort.

If you’re using an ecommerce platform or running your own website, having a smooth and secure payment process is essential for both your customer experience and cash flow. 

You’ll need a payment gateway, which is a service that authorises and processes online transactions. You can choose one that fits your needs, such as one that supports the payment methods your target customers prefer, and connect it directly to your website.

In Singapore, popular payment methods include platform-specific systems (e.g., Shopee Pay), digital wallets, and credit cards. Debit cards, PayNow, bank transfers, and digital wallets are also commonly used. 

Since suppliers handle fulfillment, your main responsibility in a dropshipping business is to attract the right audience, build a trustworthy brand, and convert visitors into paying customers. That’s why marketing is truly the backbone of dropshipping. 

Start by investing in a professional website design, compelling branding, and robust marketing strategies. 

You can:

• Use social media: engage audiences on Facebook, Instagram, and TikTok with posts and videos
• Run paid ads: Facebook, Instagram, Google Ads, and TikTok for targeted reach 
• Focus on SEO: optimise product listings, blog content, and website structure so they are easier for search engines like Google to find.
• Work with influencers: genuine reviews and unboxing videos can create engagement. Micro-influencers can be affordable. 

A dedicated business account separates personal and business funds, making bookkeeping and tracking simpler. 

Record all expenses and revenue, including supplier costs, shipping, platform fees, and marketing. This keeps you informed about cash flow and helps you set pricing to maintain healthy margins. 

Using accounting software that integrates with your business account and ecommerce platform can further simplify tracking and keep your store organised.

Dropshipping offers a business model with unique advantages that make it appealing for new entrepreneurs. Here are some of the key benefits you can expect.

One of the biggest advantages of dropshipping is that there is no need to purchase or store inventory. There are no warehousing or storage fees. You don’t have to manage stock levels, and there’s no risk of unsold products. This greatly lowers overall operating costs and makes the model beginner-friendly. 

Since you are not limited by storage capacity or pre-purchased inventory, you can expand your product range easily. When a product performs well, you can scale up by increasing your advertising budget or adding new products. This allows for rapid growth compared to traditional retail, where expansion is often constrained by stock availability, physical space, and the upfront cost of purchasing inventory.

Dropshipping allows you to operate your business from anywhere with an internet connection. Whether you are travelling, working from home, or managing multiple businesses, you have full control over your schedule. This flexibility makes it an attractive business model for digital nomads and those looking to achieve a better work-life balance.

With dropshipping, you are not limited to selling in your local area. You can reach customers around the world without the need for international warehouses or logistics. This opens up a much larger market than traditional retail.

While dropshipping can be attractive, it also comes with challenges that you need to consider before starting. Here are the main disadvantages.

Your business success is closely tied to your suppliers’ reliability. If they make mistakes, go out of business, or raise prices, it directly affects your customer satisfaction and your operations. Building strong relationships and having backup suppliers is essential to minimise risk.

The low barrier to entry means many entrepreneurs can enter the dropshipping market in the same niche. This can lead to saturated markets, aggressive pricing competition, and the need for strong marketing strategies to stand out.

Because products are purchased individually from suppliers rather than in bulk, the cost per item is often higher than if you managed inventory yourself. Combined with intense competition in many niches, this can lead to thin profit margins, meaning you need a higher volume of sales to generate significant profitability.

Handling returns, replacements, or complaints can be more complicated in dropshipping. Because you don’t physically manage the products, coordinating with suppliers to resolve issues can take longer, which may frustrate customers and affect reviews.

If you’re planning to do dropshipping targeting Singapore customers. It’s worth noting that Singapore’s ecommerce scene is mature and competitive. There are a few local realities worth considering before diving in. 

Shopee, Lazada, and Taobao dominate Singapore’s ecommerce landscape, with Amazon and TikTok Shop quickly catching up. These established players have set high expectations with fast deliveries, competitive pricing, and frequent discounts. Competing directly with them on pricing strategies or speed alone is rarely sustainable.

Seller Tip 

To stand out, focus on niche products or unique value propositions, for example, items not widely available on mainstream platforms, or those offering superior design, quality, or eco-friendly appeal. Build your edge through branding and service: tell a compelling product story, offer responsive customer support, and create a shopping experience that feels personal, which large marketplaces often lack.

Singaporean shoppers have high standards when it comes to online shopping, shaped by leading ecommerce platforms.

✔️Fast delivery is great, and being on time matters. For local orders, most expect delivery within 1-3 days, and some even look for same-day delivery. 

✔️ Delivery fees should stay reasonable. 62% of shoppers say they would abandon their cart if the cost is too high.

✔️ Checkout should feel safe. 87%of consumers in Singapore are concerned about fraud, and many will abandon their carts if the online checkout feels risky.

✔️ According to the YouGov and Amazon survey, cost is still a major factor in online shopping, but buyers are giving more weight to product quality and authenticity, especially in Health and Personal Care and in PC and Electronics. 80% say they are willing to pay more for better quality.

To meet these expectations, work with suppliers who offer reliable fulfillment times and consistent product quality. Set realistic delivery expectations on your website, and keep customers updated along the way. Proactive communication, responsive support, and a clear return and refund policy all help build trust and encourage repeat purchases.

When sourcing products, it’s crucial to avoid infringing on trademarks or copyrights. Always verify that brand names, logos, and product images are used with proper permission. Singaporeans are wary of counterfeit products, and fake listings can damage trust quickly. 

Keep documentation of your supplier’s certifications, licenses, and proof of authenticity to ensure the products you sell meet legal and safety standards. 

Many dropshipping suppliers are based overseas, which means longer delivery times compared to local ecommerce giants. Singaporean consumers, used to quick domestic deliveries, may hesitate to wait weeks for international shipments.

To manage this:

• Be upfront about delivery timelines on your website and product pages.
• You could work with suppliers that offer ePacket, DHL, or local warehouse fulfillment to shorten shipping times.
• Focus on items that are unique or not easily available locally, so customers are more willing to wait a little longer.

Starting a dropshipping business in Singapore is a viable and potentially lucrative endeavour. By conducting thorough research, complying with legal requirements, and implementing effective marketing strategies, you can build a successful online store that grows alongside Singapore’s ecommerce market with minimal financial risk. 

Stay informed about industry trends and continuously seek opportunities to optimise and grow your business.

If you’re ready to take the next step, ensure your business is built on solid foundations by incorporating with Statrys and opening a Singapore business account..