If you are a brick-and-mortar retailer, here is a chance for you again to take advantage of the Singapore government’s E-Commerce Booster package, to start selling online.
This e-commerce subsidy scheme was first introduced in April last year during Singapore’s Circuit Breaker period to diversify their revenue channels and defray costs of using e-commerce platforms to sell online. While the scheme initially lasted until the end of September 2020, it has been made available again from 16 May 2021, the first day the tightened rules of Phase 2 (Heightened Alert) kicked in.
The E-commerce Booster package will help retailers establish their online business in Singapore and provide them with information and tools on how to get started.
Retailers will receive a one-time 80% support on qualifying costs for fees charged by the appointed e-commerce platforms, capped at S$8,000, until 16 November 2021. Successful applicants can benefit from 6 months of support under this initiative.
Currently, there are only two appointed e-commerce platforms to choose from, Shopee and Qoo10. New platforms may be added in future. Shopee and Qoo10 will work with sellers to curate and list products for at least six months, participate in promotion campaigns, fulfil orders and perform basic data analytics of sales.
Under the scheme, each retailer can apply with only one e-commerce platform with whom it must not have an existing account. Here are 5 reasons why eligible businesses should start applying today.
#1 More People Are Buying And Spending More Online
With the proliferation of smartphones and the ease of internet access, more people are buying online either via an e-commerce app or from their laptops. Over the past one year, more consumers in Singapore have been pushed to do their shopping online as physical stores and shopping malls reduce their capacities to maintain social distancing.
According to a report by product comparison website iPrice, the total number of web visitors of Shopee in Singapore surged 82% from Q1 to Q2 last year. The online marketplace recorded an average of 10.9 million monthly web visits on desktop and mobile, making it the most visited e-commerce site in Singapore.
Lazada was second at 8.6 million visits in Q2 while Qoo10 emerged third, with monthly web visits rising 12% to 7.4 million.
Singaporeans spent an average of S$113 online during the first half of 2020 amid the pandemic. The average basket size increased by 51% when compared to the same period of 2019.
#2 Integration Of Offline And Online Shopping Experience
Pandemic aside, consumers today will search for an item on their smartphone or even take a photo with an e-commerce app to compare prices to products they see in physical stores or look for other similar items.
As a retailer, you need to offer your products online to provide customers with an end-to-end buying experience. Whether it is to buy online and pick up in-store, or to have customer reviews in your online store, or the after sales support via the chat function, you will have a better chance of retaining loyal and repeat customers when you provide a seamless offline to online shopping experience.
#3 Setting Up Your Online Store Is More Than Listing Items For Sale
With so many online stores out there, how do you stand out? How do you know if your online store will succeed? There are many factors that go into determining the success of an e-commerce store or business including conversion rate optimisation strategies.
Fortunately for Singapore businesses, the E-Commerce Booster Package includes solution offerings such as content development, product listing, fulfilment as well as advertising and promotion. If you have an online store and you are not doing anything to promote it, the likelihood that it will do well is low.
On the other hand, with engaging content copywriting, eye-catchy product photos, effective cross-channel and in-store marketing campaigns, you will have a better shot at gaining attention from your target audience who hopefully will add your products to their cart and check out.
#4 You Can Reach A Wider Audience Beyond Your Physical Store
Although Singapore is not big, there will be consumers who have not been and may never visit your physical store. However, with an online presence, you can reach anyone who has access to the internet.
Instead of relying solely on foot traffic in your physical store, which itself is currently limited due to the tightening of safe management measures in Phase 2 (Heightened Alert), you should consider making use of this downtime to cast a wider net by setting up an online store. With the grant and support under the E-Commerce Booster Package, it can give you a positive head start to attract new customers and increase sales.
#5 You Can Collect Customer Data To Enhance Your Marketing Strategy
A key advantage of having an online store is that it provides you with the opportunity to collect your customer data relating to their buying habits and behaviour. Armed with these valuable data, you can tailor your marketing directly to customer preferences and create or bring in new products that meet customer needs.
Using data analytics from your online store, you can make better data-driven decisions to boost sales and retain customers both offline and online.
Are You Eligible For The E-Commerce Booster Package?
Each retailer can only apply for the initiative with one of the appointed e-commerce platforms once and must not already have an existing account with its chosen e-commerce platform. An interested retailer should meet the following criteria:
• Business entity is registered / incorporated in Singapore. The company’s incorporation date should be on or before 30 April 2021;
• Has a minimum of 30% local shareholding;
• Group annual turnover not exceeding $100 million per annum based on the most recent audited report, or group employment not exceeding 200 employees;
• The Singapore Standard Industrial Classification (SSIC) code starting with 47. Food manufacturers, food services, and beauty services companies can apply if they are predominantly retailing B2C products, either through its own physical channel or a channel partner (e.g. Fairprice, Redmart, department stores); and
• Has a physical retail storefront. Pure online retailers and home-based businesses will not be eligible.
Read Also: What is Singapore Standard Industrial Classification (SSIC) Code And Why It Matters?
Solutions Offered By The E-Commerce Platforms Under The E-Commerce Booster Package
| Solution offerings | Qoo10 | Shopee |
| Content Development (e.g. product photoshoot, content copywriting, product packaging) | ✓ | |
| Product Listing (e.g. setting up of merchant store, uploading of content, store decoration) | ✓ | ✓ |
| Channel Management (e.g. assortment & pricing, promotion/campaign planning, forecasting and inventory management, data analytics) | ✓ | ✓ |
| Fulfilment (e.g. warehousing of products, fulfilment by e-commerce platforms, integration with last-milelogistics providers) | ✓ | ✓ |
| Advertising and Promotion (e.g. cross-channel marketing campaigns, onsite/ in-store marketing campaigns) | ✓ | ✓ |
| Training Workshops to Enhance E-Commerce Capabilities | ✓ |
How You Can Apply For The E-Commerce Booster Package
Retailers may directly contact the appointed e-commerce platforms listed below for more information on their service offerings and to apply. Each retailer can only apply with one e-commerce platform. You must not have an existing account with your chosen e-commerce platform.
You may apply with your preferred e-commerce platform partner by 16 November 2021. Applications will be assessed by the e-commerce platform providers.
| Ecommerce partners | Contact Details |
| Shopee | [email protected] |
| Qoo10 | [email protected] |
You can head to Enterprise Singapore (ESG) to find out more information about the E-Commerce Booster Package and read the FAQs on the grant scheme.
At the end of the day, the success of e-commerce depends on savvy business owners who can create a personalised and captivating online shopping experience for consumers. As its name suggests, the E-Commerce Booster Package aims to give you the ‘boost’ to get your business started on e-commerce platforms, refine your marketing strategy to tap on the growing opportunities of the online market. It does not mean that you will succeed by just tapping on it.
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