Amazon Seller in Singapore – How To Get Started

  • Post category:Singapore

Amazon seller in Singapore has a massive advantage because even though Singapore is a small country with a population of about 5.8 million, e-commerce penetration is extremely high at 70%, and the market is growing steadily. Online shopping and eCommerce are two areas of the global economy that have benefited greatly from the COVID problem.

Due to the pandemic’s widespread lockdowns, customers were forced to switch from in-store to online shopping. Singapore implemented one of the strictest lockdowns of any nation, and as a result, the country’s eCommerce market has expanded significantly. 

Amazon Seller in Singapore

Revenue from eCommerce sales is expected to show an annual growth rate (CAGR 2020-2024) of 9.1%, resulting in a market volume of US$3.939 billion by 2024.

User penetration was 70.4% in 2020 and is expected to hit 73.7% by 2024.

E-COMMERCE IN SINGAPORE

The eCommerce industry has advanced significantly since eBay was introduced in Singapore in 2004. Singapore’s eCommerce sector now has the highest average revenue per user among Southeast Asian nations, according to the most recent Statista data. Singapore’s high GDP per capita, well-developed technology infrastructure, and the government’s ambition to make Singapore a “smart,” or tech-savvy nation, are the main contributors to the country’s success. 

The nation touts itself as having Southeast Asia’s best eCommerce market. These elements suggest that Singapore’s eCommerce market has significant growth potential.

Amazon has become one of Singapore’s most well-liked online platforms, where people and small and medium-sized businesses may simply launch their eCommerce businesses. 

Due to its global reach and extensive range of seller-friendly features, Amazon.sg has become one of Singapore’s top-ranking eCommerce platforms and the most desirable choice for foreigners. For merchants, Amazon.sg can act as a portal to the expanding eCommerce marketplaces in the rest of Southeast Asia.

WHAT IS AMAZON FBA?

Amazon FBA (Fulfilment By Amazon) is a service that enables companies to contract with Amazon to fulfil their orders. To put it another way, all they have to do is have the goods shipped from a manufacturer or supplier to an Amazon warehouse or fulfillment center for storage. Amazon then stores, choose, packs, ships, and delivers the goods to customers. Customer assistance and returns for these orders are likewise handled by Amazon.

Their listings are easily searchable on the Amazon Marketplace as an Amazon FBA vendor. Also, they can provide limitless and free shipping for items that qualify for Prime.

TYPES OF ACCOUNTS WITH AMAZON SINGAPORE

Vendors

These are businesses that Amazon has asked to join its retail network. The company serves as a vendor to Amazon, which buys its products and then sells them to customers. Since Amazon is the seller of record in this situation, the relationship is referred to as a “first-party” relationship. A brand manufacturer who sells goods straight to Amazon, which subsequently sells them to the client, is known as a first-party seller (1P). These products are marked “Ships from and sold by Amazon.com” when they are displayed to customers on the platform.

Sellers

Anyone can become a seller, but vendors need an invitation from Amazon. Sellers are independent businesses or people that operate their own online store on Amazon. As Amazon is not the seller of record in this partnership, but rather a third party, the seller is, it is referred to as a “third-party” relationship. There are two types of sellers: brand owners and resellers.

To provide customers with a distinctive assortment, brand owners can produce their own items or obtain things to sell under a private label. Resellers locate well-liked existing products and offer them in Amazon’s marketplace.

WHAT CAN YOU SELL ON AMAZON SINGAPORE?

As a seller, one should ensure the following conditions are met:

In accordance with the relevant export, import, and customs rules, you are allowed to sell and transport products.

The products all meet the rules governing local consumer protection, product compliance, content, and other restrictions.

The product’s sale and delivery do not violate anybody else’s intellectual property rights.

Similar to other markets, Singapore has product limits. However, they often vary by brand, product category, and restriction.

A Professional seller account is required for some categories, while others call for special approval or cannot be posted due to ethical, moral, or other limitations. Some categories are open to all vendors.

Amazon.sg divides products into more than 20 categories that are open to all sellers. You can check whether your products are on the list of eligible product categories. Below is a list of the product categories that currently require approval to be sold on Amazon Singapore:

SELLER ACCOUNT REGISTRATION REQUIREMENTS IN SINGAPORE

Eligibility

The applicant must have documentation of a business establishment in one mentioned country on the Amazon Seller Central website to sell on Amazon Singapore as a company or a sole proprietor. If the applicant wants to sell on Amazon, Singapore is a very good jurisdiction to register the business in.

They need to be a citizen of one of the eligible nations if they want to sell privately on Amazon. But if the applicant sells privately, they could be subject to indefinite personal liability, jeopardizing all of the family’s assets. Thus, it is always preferable to incorporate a business and conduct sales using that business’s legal framework.

Payment Settlement

The applicant should provide Amazon with a bank account opened in one of the nations supported by the Amazon Currency Converter as well as a credit card that can be used to make overseas purchases and is acceptable to Amazon. 

The fees they owe to Amazon will be charged to the credit card, and Amazon will pay the sales proceeds into the bank account.

When the seller account balance is positive, Amazon will use electronic transfers to deposit the sales revenue to the specified bank account. Keep in mind that Amazon is unable to process payments through online payment services like PayPal or credit cards.

For Amazon to bill your credit card for its monthly subscription fees and other expenses associated with the selling plan, the applicant must give the credit card information.

Taxes

The applicant will have to give Amazon their personal or corporate tax ID when they sign up for an Amazon seller account (i.e., Singapore GST registration number or other VAT registration numbers in countries outside Singapore, where applicable).

Singapore residents are subject to a value-added tax known as GST. Unless the applicant is GST-registered and has given Amazon a Singapore GST as proof that they are GST-registered in Singapore, Amazon fees paid to the selling account if they are a Singapore resident are subject to Singapore GST. If the applicant is a resident of Singapore, Amazon will charge you GST at the usual rate of 8% on its fees if they do not supply the GST registration information. 

Identity verification

The applicant must provide the seller’s or corporate representative’s identification verification document—a passport or national ID card—to Amazon as part of the account registration process. 

Certain languages must be used to provide this document: Spanish, Portuguese, Chinese, English, French, German, Italian, Japanese, or any other of these. The applicant must offer a notarized translation of the documents into one of the supported languages if they are not in one of these languages.

Additional documents

The applicant might also be required to provide Amazon with a credit card or bank account statement. The business name (or the name of the point of contact) given during registration must coincide with the firm’s name (or the name of the point of contact) mentioned in the statement. Also, these documents must be published in one of the aforementioned languages (or properly translated).

Product Listing

Before starting a business on Amazon.sg, the applicant must adhere to any applicable local laws and regulations for any goods they plan to sell. They must list the products using the local currency. Ensure that all taxes are included in the sale price.

Customer service

In accordance with Amazon customer regulations, the applicant must handle general customer care inquiries in the language of the marketplace where they are selling the products, including addressing customers’ requests for invoices. English is the preferred business language in Singapore.

If the applicant wants to run the business outside of Singapore, they should make sure that they are aware of and capable of adhering to local, i.e. Singapore statutory norms and requirements before selling on Amazon.sg as an international seller.

AMAZON SELLER ACCOUNT REGISTRATION PROCEDURE IN SINGAPORE

The applicant must decide which selling plan is best for them before creating an Amazon.sg seller account. There are two choices on Amazon: individual and professional. Sellers who wish to perform a one-time sale or who want to sell a few items per month can consider opening an account under the individual plan. 

Creating this kind of account (i.e., an individual account) is cost-free. Therefore, becoming a “professional” is the best bet if their goal is to consistently sell more than 30 items per month. For professional accounts, Amazon charges a monthly fee.

The next action is to use the Seller Central page to register as a seller with Amazon Singapore. The applicant may manage the selling account, add product information, update the inventory, manage the payments, and list the products via Seller Central, which is essentially a portal for the Amazon business.

A step-by-step tutorial for creating a seller account with Amazon Singapore is provided below. It shouldn’t take more than 20 minutes to complete the process.

The applicant’s email address and password for the seller account must be entered on the Seller Central page. They will be sent to the “Seller agreement” phase after the email address has been verified, where they must enter your legal name (either the complete name OR the registered name of the firm, depending on their business model).

Afterward, the applicant will be required to give some information about the organization (e.g. business address, phone number of the contact person, website of the company, display name). They can enter their residential address if they don’t yet have a business. Later, the applicant can modify the address. Keep in mind that the “display name” is the seller’s company name as it appears to customers on Amazon.

The applicant should enter the credit card information after submitting the company information in order to set up a billing method for their Amazon account. It must be a credit card that may be charged worldwide and is recognized by Amazon.

Following the verification of their billing information, they will be questioned briefly regarding the goods they intend to offer on Amazon.sg. These factors include things like whether the products have Universal Product Codes (UPCs); whether the applicant is a brand’s maker, owner, or representative; and how many different products they intend to offer.

Next, the applicant should pick a product category from the suggested list or if the product category isn’t there, they must offer one of their own. The seller identity verification process must be completed in its entirety before the Amazon seller account can be activated.

As this verification is done for a specific person (if they plan to sell as a private person), OR if this verification is being done on behalf of a firm, the supporting documents must be linked to information about the person applying for a seller account.

The applicant must upload an identity verification document (a scan copy of the seller’s passport or national ID card) after providing the necessary information. They can also be required to provide more paperwork, such a bank statement or credit card statement.

The account will be reviewed after the applicant has uploaded the necessary documentation and submitted the identity verification form. The seller account will be reviewed by Amazon and approved within the next two business days.

Amazon will get in touch if any of its received information needs more explanation. The applicant will be able to access the Seller Central account and launch their Amazon Singapore company as soon as the account is approved.

If you want to know more about forming an e-commerce company in Singapore, refer to our page, Singapore company registration, for more information.

Contact us at Relin Consultants – Leading Global Business Set Up Partners for more.