As the ecommerce market continues to grow, we’re seeing a corresponding increase in dropshipping. In fact, the global dropshipping market was worth US$102.2 billion in 2018; that figure is expected to see a compound annual growth rate of 28.8% through 2025. Add to that the fact that Singapore’s ecommerce market is expected to be valued at US$2,793 million in 2021, and it’s understandable that local retailers may want to expand into dropshipping. But a successful dropshipping business requires reliable dropshipping suppliers to provide quality products.
No matter where you are on your ecommerce journey, finding the right dropshipping wholesalers can be immensely valuable for your business. To help you on your way, this guide will show you how to start dropshipping in Singapore, how to pick suitable suppliers, and highlight some of the best dropshipping companies for Singapore.
What is Dropshipping?
Dropshipping is a method of order fulfillment where products are sent directly from dropshipping suppliers to customers. Like traditional retail supply chains, merchants act as a middle-man, but with dropshipping, merchants don’t own stock or keep inventory. When a customer places an order, it gets sent to the supplier who processes, packs, and ships the order without the retailer getting involved.
Why Should I become a dropshipper?
There are many advantages to becoming a dropshipper in Singapore, and many dropshipping Singapore guides will highlight benefits such as:
- Dropshipping stores are easy to start, especially on Shopify.
- Start-up costs are low.
- There are low overheads.
- You can run a dropshipping store from anywhere.
- It’s easy to test products.
- Dropshipping stores are easy to scale.
But, as with any venture, dropshipping has its disadvantages. Before you think about how to start dropshipping in Singapore, you should consider these potential difficulties:
- Margins can be low.
- There’s little control over quality and shipping.
- Dropshipping wholesalers can be unreliable.
- You could be blamed for your suppliers’ mistakes.
- You might not be able to offer customized or branded products.
How do I become a dropshipper?
If you’re wondering how to start dropshipping in Singapore, here’s what you need to know. In Singapore, you can set up a dropshipping company for almost any product—as long as the product is legal in the country. To do so, you’ll need to take the following steps:
- Do some market research and find a niche.
- Decide on a company name.
- Register your business—this isn't strictly necessary but can be useful.
- Find dropshipping suppliers.
- Source and test products.
- Choose an ecommerce hosting platform—like Shopify.
- Set up your online store—integrate products from your chosen dropshipping suppliers.
- Begin marketing to customers.
- Start selling.
How do I choose my dropshipping suppliers?
One of the critical components of a successful dropshipping company is having reliable dropshipping suppliers. You'll need to consider many things when exploring your options, and it's essential to take your time to find suppliers that are right for your company. Don't forget that your requirements may change as your business grows, and for this reason, you might want to change suppliers at different points of your dropshipping journey. Still, there are a few things you should always look for when choosing the best dropshipping companies for your business.
With a dropshipping business, you'll be relying heavily on your suppliers to deliver on their agreements, from creating quality products to delivering them to your customers in good time. That's why you need dropshipping wholesalers that offer high-level, responsive customer service.
Check that potential suppliers have multiple communication channels, such as email, phone, and live chat. This way, if customers have questions, delivery problems, or want to return a product, you can get the answers you need as soon as possible, allowing you to provide good customer service to your customers.
The ecommerce market is highly competitive, and shipping plays a significant role for companies who want to get ahead. Many customers now expect to receive their online orders in less than 4.5 days, and they want free shipping, too. That’s why you should consider shipping options and delivery times when choosing dropshipping wholesalers. Find out how long potential suppliers will take to process and ship orders and what types of shipping solutions they offer—the best dropshipping companies will usually have this information on their website.
Once you have a few potential suppliers on a shortlist, place a small order. This will allow you to test their order processing and shipping for yourself to see what your customers will experience.
Ratings and reviews
Whether you’re using a dedicated platform or looking at individual dropshipping suppliers, it’s important to do your research. Many ecommerce platforms that support dropshipping suppliers—like AliExpress—have a customer rating and review system that will allow you to understand better how the supplier operates and whether they might suit your business. Most independent wholesalers should also have customer reviews on their site.
You should always be able to find ratings or reviews for potential suppliers—if you can't, that may be a red flag. Again, placing a test order will help you work out whether a supplier really delivers good quality products in good time. Check how long the supplier has been in business, too—if it's been a while, then there’s a better chance that they’re experienced and could be a good supplier for your company.
Which are the best dropshipping companies for Singapore?
Now that you know how to start dropshipping in Singapore and how to choose your dropshipping suppliers, we can have a look at the best dropshipping companies for Singapore. While Singapore does have a manufacturing economy—the sector is worth about 21%, or SG$106 billion, of the local GDP—it mainly deals with high-level products like aerospace, electronics, biomedical science, and precision engineering. As such, Singapore-based dropshippers may need to look to other countries—like China—to source products. Below are some of the best dropshipping suppliers for retailers based in Singapore.
Any dropshipping Singapore guide will list this China-based ecommerce platform as one of the best places for local entrepreneurs to source dropshipping suppliers. Owned by the Alibaba Group, AliExpress is a major B2C marketplace. But, because most suppliers here offer dropshipping—those on the sister platform Alibaba usually don't—many Shopify dropshippers source products here. You can choose products from 40 different categories, including electronics, clothes, jewelry, and bags; you can also read customer reviews and ratings. It’s free to sign up for an account, and you can usually find integrations or plugins that’ll sync your ecommerce store to your AliExpress account.
Another B2C marketplace with dropshipping suppliers, ChinaBrands, has warehouses across the world, which helps cut delivery times and costs. You can source just about any product here, from cameras and cosmetics to homewares and clothing, and they claim their Quality Control team checks all products. Orders are shipped within 24 hours with established couriers like DHL and EMS. You can also expect wholesale pricing and high-quality product descriptions, and attentive customer service with a detailed help center and live chat. The platform also offers easy integration with Shopify, so it is a good choice for Shopify dropshippers.
Launched in Singapore in 2015, Shopee now also operates in Thailand, Malaysia, the Philippines, Vietnam, Indonesia, and Taiwan. Although it was initially a B2C marketplace, Shopee dropship Singapore now supports B2B transactions and dropshipping. For new dropshippers, the platform is especially attractive because its escrow service holds payments to suppliers until order deliveries have been confirmed. Additionally, Shopee's China Marketplace means Singaporeans can buy directly from Chinese merchants without paying shipping fees. The platform also has a ratings and review system, which can help you pick the best dropshipping companies on the site.
For Shopify dropshippers, Oberlo is one of the best dropshipping companies around. Sign up for an account, download the app from the Shopify app store, connect your Oberlo account to your Shopify account, and you’re ready to build your dropshipping business. The app allows Shopify dropshippers to source thousands of products directly from AliExpress. You can even test products on your store without paying for them since you won’t pay suppliers until customers pay you. Oberlo is a great way to source products for your business, no matter what stage you’re at—there’s a free basic plan for new dropshippers, while established companies can opt for paid plans that offer more functionality.
In operation since 1999, Worldwide Brands has established itself as a go-to B2B supplier directory. Although it's headquartered in Florida, it operates worldwide, making it a good choice for dropshippers managing a big international brand. The platform also prides itself on working only with "legitimate wholesale suppliers" and offers excellent customer service, which is why it’s considered one of the best dropshipping companies around. Suppliers are located in many different countries, so Singaporean dropshippers can choose dropshipping suppliers based in Asia; those who want to go global can look for dropshipping wholesalers situated around the world. There is a US$224 one-time charge for lifetime access, though.
FAQs about dropshipping companies in Singapore
Which are the best dropshipping wholesalers for Singapore?
1. Oberlo - best for Shopify dropshippers
2. AliExpress - best for a wide choice of products
3. Shopee - best for Singapore-based dropshippers and customers
4. Worldwide Brands - best for international dropshipping products
5. ChinaBrands - best for a range of good-quality products
Can I use Alibaba for dropshipping?
Does SaveValue2U work in Singapore?
Is dropshipping legal in Singapore
Start your business with the best dropshipping companies for SingaporeIf you do it properly, dropshipping can be a lucrative business. There are many elements to being a successful dropshipper—including picking a good ecommerce hosting platform and finding a valuable niche. But the best dropshipping companies know that finding suitable suppliers that offer great products, reasonable prices, and solid shipping solutions is crucial. Shopify supports dropshippers by making it easy to set up an online shop, offer multiple payment options, and a wealth of apps that connect you with dropshipping wholesalers.
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