Singapore, e-commerce and logistics
With excellent international trade and strong links to the rest of the Asian market.
Singapore is an ideal location to expand your international customer base. Could this be your new global trading destination?
Why Singapore?
Singapore is a small, but wealthy city-state with an open and trade-driven economy. It is a leading financial, shipping, and trade hub and the government has a pro-business economic and trade policy.
On top of this, you'll be pleased to learn that Singapore has the 2nd highest GDP in the world, and thanks to its digitally savvy population, and commerce focused government-backed initiatives, Singapore's global e-commerce market looks poised for growth.
- 62.8% 1
- Singaporeans purchase products through online channels
- GMT +8
- Singapore Standard Time
- Electronics
- Is the biggest e-commerce sector
Stats taken from: https://oosga.com/e-commerce/sgp/
The e-commerce landscape
As with many markets, the pandemic has accelerated the shift of brick-and-mortar retailers in Singapore to online channels. Retailers have launched initiatives such as parcel deposits, contactless delivery, and improved delivery infrastructure to meet the growing demand.
According to retail sales data for 2022, online sales of consumer goods accounted for 14.8% for total online sales. This trend is expected to continue, with consumers buying more computers and telecom equipment online, with online spending on these goods accounting for 51%? 2
Opportunities
Since the post-pandemic market has become more stabilised, the focal point of e-commerce competition in Singapore has shifted from not just increasing the number of users, but also enhancing spending behaviour.
Many e-commerce businesses are focusing on user experience and engagement whilst on the platform. Integration with an online shopping platform can help enhance your shop front and create a seamless shopping experience that will go a long way to securing customer loyalty.
E-commerce sales comparison as a % of retail in Singapore
E-commerce sales comparison as a % of retail in Singapore
Logistics
Goods shipped from the UK will need to go through customs clearance in Singapore. As the importer, you will need to ensure that certain documents are submitted, such as the commercial invoice, packing list, and bill of lading/airway bill. The type of goods being imported will also determine if any other permits are required.
The essentials
| Transit Times | From 4 to 8 working days |
| Maximum Dimensions | L<1.4, (L + 2W + 2H) <3m |
| Maximum Weight | 30kg per parcel |
| Maximum Container Value | N/A |
| Low-Value Limit | SGD 400 |
| GTS | 8% GTS must be collected by retailer at point of sale for all LV goods of they are an OVR vendor. 8% GTS will be collected at point of importation for HV goods. |
| Duty | N/A |
| DDP Available | Yes |
| DDP Fee | As agreed |
| Clearance Fee | As agreed |
Keep in mind
Goods shipped from the UK to Singapore are subject to a standard 9% Goods and Services Tax (GST). As a business, you must register for a Goods and Services Tax (GST) when your taxable turnover exceeds $1 million. You may also be liable for GST registration under the Reverse Charge and Overseas Vendor Registration regimes.3
For more information you can visit this page to determine whether you need to register for GST or get in touch with SAMOS
Good to know
Under the Singapore Free trade Agreement (UKSFTA), preferential rates for importing UK goods into Singapore may be enjoyed with an origin declaration by an approved exporter authorised by the UK customs authorities, or in any consignment consisting parcels or packets containing UK-originating imports with total value of less than €6,000. 4
What our experts say:
“Ambitious e-commerce businesses can expand into new Singaporean markets by leveraging the best shopping platforms and international shipping rates.”
Simon Perkins, Commercial Director, SAMOS.
To find out more about how SAMOS can help you achieve fast and cost-effective deliveries to Singapore get in touch today
1 https://oosga.com/e-commerce/sgp/
2 Singapore Department of Statistics | Retail Sales Index and Food & Beverage Services Index, Nov 2022 (https://singstat.gov.sg)