Singapore’s business-friendly environment presents many business opportunities for locals and foreigners alike. It takes minutes to register a company online, and the fees are affordable. Singapore is also increasingly being chosen as the headquarters for multinational companies in Asia.

One of the things that you need to consider when choosing Singapore as a base to run your business is the cost of living. We have listed for you some of the costs (prices listed are in Singapore Dollars unless otherwise stated) associated with living in Singapore as a foreign business owner.

1. Rental

We will go through the price of rental by location and house type.

By Location

​​Singapore is divided into five regions: Central, North, North-East, East, and West. The Central Region (including areas like Holland Village, Marina Bay and Tanjong Pagar) is the most expensive region to live in, because of its strategic location and proximity to the Central Business District and shopping centres. The monthly rent for apartments in Orchard Road, for example, starts at around $4,000 for a studio apartment to around $7,000-9,000 for a three-bedroom apartment.

The least expensive region to live in is the North region (includes Woodlands, Sembawang, and Yishun), as it is farthest from the CBD area. However, the Singapore Sports School and the Singapore American School are located here, and the North region is relatively more quiet and green than the other regions in Singapore. A studio apartment in Woodlands costs around $1500 per month, and a three-bedder is about $2,600 per month.

The monthly rent in the North-East, East, and West ranges from about $1,700 for a studio apartment in Ang Mo Kio, to around $4,000 for a three-bedroom apartment in Buona Vista.

These are some of the recorded transactions in the past 12 months as published by the Urban Redevelopment Authority (URA).

*Based on a 3-room flat (2- bedroom apartment)

**Condo units vary significantly in size and layout; these numbers reflect the average monthly rate for a condo unit across the entire district.

Table from: https://www.income.com.sg/blog/guide-to-renting

By House Type

HDB Apartment

You could rent a room (rental costs about $800-$1000 monthly for a room with an ensuite bathroom) or an entire unit (approx. $2,500-$2,700 monthly for a 3-bedroom unit) of an HDB flat in Singapore. HDB stands for the Housing Development Board, and its public housing flats are where 80% of the Singaporean population lives.

Condominium

Condominiums are private apartments with shared facilities such as swimming pools, gyms, tennis courts, barbecue pits and 24-hour security. Similarly, you could choose to rent a room or a whole unit. Prices are around $1,500 monthly for a studio and $5,000 for a 3-bedroom unit outside of the CBD. 3-bedroom units in the CBD cost approximately between $7,000-$9,000 monthly.

Landed Property

Houses with gardens and/or swimming pools are rarer than HDB flats and condominiums in Singapore due to its land scarcity. Prices typically start from $12,000 monthly for a semi-detached house, and could even go up to more than $100,000 per month for a Good Class Bungalow (houses with a land area of at least 15,000 sq feet in sought-after locations).

On top of the monthly rent, set aside an additional 1 month’s rent for a 12-month lease and 2 months’ rent for a 24-month lease as a down payment. Factor in the property agent’s fees too if you are using one, usually between half or a full month’s rent. Discuss with your landlord if the utilities are paid by him or by you, and if the internet and cable subscription fees are included in your rent.

Rent price estimates are from the property rental website PropertyGuru. You could also search for rentals on sites like 99.co, SRX, and iProperty.

2. Utility Costs

Utilities for water, electricity and gas generally start from $110 for 1 person living in a 480 sq ft (45 m2) studio and could go up to $600 or more, depending on house size and the number of people living together. Higher utility bills are usually attributed to high water and air-conditioning usage.

It is common practice in Singapore that the landlord pays for the conservancy charges (for maintenance and upkeep of the HDB flats) and maintenance fees (for condominiums). Conservancy charges cost around $80-$100/month for a 3- or 4-bedroom HDB flat, and an average of $250-$350/month for condominiums (and could go up to more than $1,000 for luxury condos).

There is no council tax in Singapore.

3. Mobile and Internet Plans

Mobile Phone

SIM-only mobile data costs $10/month for 50 GB data, 30 SMSes and unlimited mobile-to-mobile calls plan with TPG and $48/month for 4G unlimited data (100GB + rollover of unused data to the next month) with Circles Life.

Broadband Internet

Broadband internet for home WiFi prices starts from $29.90/month for 500 Mbps connection speed with M1, Starhub and ViewQwest or $45.90 for 1 Gbps with Singtel.

4. Taxes

Taxes are calculated based on residency in Singapore and only on income earned in Singapore. Generally, if you are a non-resident foreign business owner staying in Singapore for less than 183 days (~6 months) per year, you would be charged a flat income tax rate of 22%.

Residents in Singapore, whether Singaporeans or foreigners are charged progressive income tax rates. Those earning less than $22,000 are not liable for taxes (however, they would still need to file a tax return when they are notified to do so). Income tax rates start at 2% for the first $22,001-$30,000, and are capped at 22% for incomes $320,000 and above.

5. Transportation

To get around Singapore, you could choose to go around by public transport which is very convenient, rent a vehicle, go with private hire, or buy your own vehicle.

Rental

You would need to have a valid driving license in English or an International Driving Permit if you are a foreigner in Singapore. You could use this for the first 12 months staying there, before needing to convert to a Singapore driving license. Conversion costs about $40-$50 which entails sitting for a basic theory test. Long term car rentals cost about $1,500 -$2,000 for a sedan, and petrol, ERP and parking could come up to an additional $450 monthly.

Buying a car is another option, and you should consider the taxes and fees involved (such as certificate of entitlement, registration fees, and excise duty). To illustrate, a USD $20,000 car in the United States would cost USD $110,000 in Singapore due to taxes and fees.

Private Hire

A 24km, 27 minutes trip on Grab would cost around $20 during non-peak periods, and $19 for a Comfort DelGro Taxi. If you take these rides twice a week, it would cost about $160 per month.

Public Transport

Public transport costs between $100-$120 if you take the bus and MRT to commute to work daily. There is also the Adult Monthly Travel Pass offered by Transitlink for unlimited travel on MRT and basic bus services at $128/month.

6. Education

If you’re thinking of bringing your family to Singapore and you have kids who would be attending school soon, you might want to consider the cost of education here at various international schools or local schools. If your kids are older, you might want to look at how much the fees at local tertiary institutions are.

International Schools

International schools in Singapore cost about $17,000-$50,000 which includes application fee, annual tuition fee, admission fee and building, facility or development fee. There are 61 international schools in Singapore, such as the Global Indian International School, Overseas Family School, Nexus International School, UWC South East Asia and German European School Singapore. Subscribing to the school canteen meals would cost between $900-$1,800 annually, uniforms could cost between $30-$250 per year, and the school transport price ranges between $1,100 to $6,100 per year.

Local Schools

For most local Ministry of Education-run (MOE) schools, school fees differ for students from ASEAN countries (Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Thailand, and Vietnam) and non-ASEAN countries. The maximum monthly school fees for the primary school level are $478 for ASEANs and $788 for non-ASEAN. Secondary school fees are a maximum of $800 for ASEANs and $1,470 for non-ASEANs per month, and junior college level fees are between $1,000 to $2,500 per month.

Tertiary

Polytechnic fees cost $11,000 per year for a full-time diploma program for international students, while annual Institute of Technical Education fees are around $15,500 - $20,500. Without tuition grants, a bachelor’s degree for an international student costs upwards of $30,000 annually in public and private universities in Singapore and could go up to about $160,000 per year for Medicine and Dentistry courses. Master’s degree programs cost about $46,000 per year.

7. Healthcare

Polyclinic: Medical consultation with a doctor at public polyclinics in Singapore would cost $51.50 for a non-resident, and $67.80 upwards at a family physician clinic. The cost for dental checks (which includes an examination, diagnosis and review) at public polyclinics ranges between $37.40 to $111.80 depending on the procedure.  

GP: The average price of a short visit to a private doctor is $57 for a 15-minute consultation.

Specialist: A consultation with a specialist in Singapore would set you back more than $120 per visit for a non-resident.

Hospitalisation: Excluding daily treatment fee, procedures, medication, laboratory tests, x-rays, etc, inpatient daily ward charges start from $214 for a normal C-class ward for a resident foreigner or non-resident, and goes up to $480/day for an A1-class ward.

8. Food

Groceries: Groceries in Singapore are quite expensive compared to other ASEAN countries because almost all goods are imported. It is still less expensive, however, to cook rather than eat out every day. These are some of the prices of groceries in Singapore:

• Milk (1 litre): $3.30
• Loaf of white bread (500g): $2.29
• Rice (1kg): $2.85
• Eggs (a dozen): $3.21
• Chicken fillets (1kg): $10.04
• Beef (1kg): $23.44
• Apples (1kg): $4.89
• Banana (1kg): $2.83
• Tomato (1kg): $2.81
• Onion (1kg): $2.47
• Lettuce (1 head): $2.20
• Laundry detergent (3 litres): $11
• Dishwashing liquid (2 litres): $6.15
• Shampoo (650ml): $10.35
• Shower gel (500ml): $4.49

Eating out: Singapore is renowned for its food. There are many options at all budget levels, all delicious. Here are some price points:

Hawker Centre: Hawker centres are open-air food centres with many stalls serving food, drinks, and desserts. They serve local Chinese, Indian and Malay food, and also Western and Fusion dishes. Prices for a hot meal starts from about $4 upwards and drinks $2.

Food Court: Food courts are similar to hawker centres, but they are usually air-conditioned and most are located in shopping malls. Prices start at about $6-$7 for a meal.

Fast Food: There are the usuals, McDonald’s, KFC, Pizza Hut, and many more, in Singapore, and it costs about $8 for a Big Mac Meal at McDonald’s.

Restaurant: Dining at a mid-range restaurant would cost about $30-$40 per person.

9. Apparel

A pair of branded jeans cost $80, $52 for a dress in a high-street store, and a pair of branded sports shoes could cost $120. Of course, there are also thrift stores and luxury boutiques (and many stores in between) in Singapore.

10. Electronics

Electronics are sold at competitive prices here in Singapore. The cost of a 40” flat-screen TV is about $500, $350 for an 800/900-watt microwave, and a 6.1” 128GB iPhone 12 Pro costs $1,649.

11. Domestic Help

Live-in: A live-in maid is especially useful if you have small children or live in a property with a sizable floor or land area to clean, cook, and help look after the children. A full-time live-in domestic helper would cost you around $1,000 per month as you would need to pay both the helper’s wages and agent’s fees. You would also need to provide food and accommodation for the helper which is not included in her wages.

Weekly: Weekly cleaners cost about $25/hour. Cleaning companies usually have a minimum number of hours that customers need to engage for their cleaning services.

12. Recreation

Gym memberships prices are about $120-$150/month, and it is not uncommon for gyms to ask for a full-year or two-years’ payment when signing up. Kayak rentals are between $15 to $20/hour, and SG Bike offers bicycle rentals around Singapore at $5 for a half-day rental.

Singapore’s Cost of Living Comparison

Singapore is the 4th most expensive city in the world for expatriates to live in, behind Zurich, Paris and Hong Kong which are tied in the first place. It is more expensive than Osaka, which is in 5th place. Due to its land scarcity, property and rental prices are always on the rise. Almost all goods are imported in. The cost of buying and running a car in Singapore is the most expensive in the world too due to government regulation on the number of cars permitted to be on the road.

However, Singapore’s high cost of living translates into its high standard of living. Singapore has a corruption-free business-friendly environment, and it enjoys political stability with world-class healthcare, education, and transportation systems.

Ready to Set Up A Company in Singapore?

We’ll get your company registered, set up the annual reporting, and help open a bank account online from wherever you are in the world. Once the world opens up, you can fly into Singapore and focus on growing your business more efficiently, with all the paperwork done for you. If you need to settle all your compliance matters, our experienced corporate secretaries can help you with that too. You can do everything yourself, but why should you? You don’t have to. Find out more about our prices and services on our website.

E-commerce is on the rise. For entrepreneurs, e-commerce is an exciting and growing industry. People naturally want a slice of the market.

That said, it’s easy to get lost in the crowd, and it’s hard to compete against market leaders like Amazon and Alibaba. An increasing number of business owners are looking to establish themselves by focusing on a niche and generating a strong brand presence.

If you’re just starting or looking to go in a new direction, finding a lucrative niche will make every part of running your e-commerce business easier. When you need to register your e-commerce company, we can help you deal with the administrative paperwork while you focus on growing your company. This article will look at the most lucrative niches to consider.

Benefits of Finding a Niche for Your E-Commerce Business

Before discussing the most lucrative e-commerce niches, it’s worth briefly discussing why you should focus solely on a particular sector, to begin with. After all, it’s counterintuitive to think that reducing your target audience increases your chance of success and profitability.

1. You'll have to compete with fewer companies.

One major benefit of niching down is you reduce the number of competitors. More importantly, you will avoid competing directly with a site like Amazon or Alibaba, which would be very hard to compete against, even if you did have millions of dollars to spend.

When selecting your niche, it’s good to avoid sectors that have a dominant brand. For example, the Dollar Shave Club has established itself as the market leader in the home grooming sector with an e-commerce subscription model. Other companies have imitated this approach, for example, Harry’s.

After growing so quickly, Dollar Shave Club is the biggest company in this niche. It has a competitive advantage. For instance, it can source products for cheaper than you’ll be able to. Equally, it can spend more on marketing than a startup.

Most importantly, though, it is the market leader. If people think subscription razors, Dollar Shave Club probably comes to mind.

So, niche down to reduce the number of competitors. Then, if you want to grow fast, do something to make your business stand out. For example, Dollar Shave Club didn’t just sell razors. They launched a subscription service selling razors. It’s a subtle difference based on a good business plan that enabled the company to grow quickly.

2. It’s easier to design a successful marketing strategy.

If you’re going to set up an e-commerce business, you’ll need a coherent marketing plan. One of the major benefits of niching down is that it’s easier to develop and execute a marketing strategy. Moreover, it can be easier to dominate the search results for your target keywords with a clearly defined marketing strategy.

Take the example of a company in the electronic bikes space. The company Electric Bike Review exclusively does reviews of e-bikes.

That’s a clearly defined marketing strategy. It’s easier for the site owners to devise their content marketing calendar. Picking keywords is relatively straightforward. That saves time and money, which is great.

Site visitors know what type of content to expect, which helps the site build an audience.

Thanks to this simple content marketing strategy, the site is dominating its niche for relevant search terms. According to Ahrefs, it gets around 56k visitors a month. I’m sure the real visitor numbers are at least triple that figure.

The type of benefits that I’m highlighting from a focused content strategy apply to other marketing channels. For example, it’s easier to identify relevant keywords for a Pay Per Click marketing campaign when you have a clear keyword focus and limited options.

3. It’s easier to establish your brand identity.

One of the important issues I’ve been hinting at up to this point is the importance of establishing a strong brand identity. To be successful in business, you need people to turn to your business to solve their problems. For example, many men turn to the Dollar Shave Club if they want a razor.

That’s strong brand identity.

If you’re setting up an e-commerce business, you want to establish that same presence in the mind of your customers. If you’re unable to do this, you’ll struggle with customer churn. That’s a big problem for any business that hopes to grow fast.

You can slowly evolve out of your initial niche once you’ve established your business. The most famous example of a company to take this approach was Amazon. They initially started as an online store selling books. Now, well, they sell a lot more than just books.

4. It makes inventory management easier.

An important logistical benefit of niching down is inventory management. If you sell a limited number of items, you should find it easier to source goods, manage stock and distribution.

If this is your first e-commerce business model, you want to make sourcing products, stock inventory, and distribution straightforward. After all, you don’t know how well your stock will even sell.

Niching down initially allows you to take this approach. As your business grows, like Amazon, you can expand your product line. It’s not obligatory, but it’s an option.

The 5 Most Profitable E-Commerce Niches

We touched on four reasons why niching down makes sense for a budding e-commerce store owner. Now, let’s look at which niches make sense to target. There is plenty of data out there that shows what e-commerce niches are and will continue to be profitable in 2021.

1. Technology and Home Office Equipment

The COVID-19 pandemic meant that many workers moved from the office to their homes. Many had never worked from home before and suddenly needed the technology and home office equipment they usually had access to at work.

Thanks to this shift from the office to the home, remote working technology and home office supplies are in demand. According to one survey, 45% of workers who had to work from home due to COVID-19 purchased home office supplies because of this.

Of course, the immediate effect of the masses of workers who suddenly had to work from home in 2020 was a spike in home office supplies sales.

But there is no sign of remote work going away. One expert suggests that by 2025, 70% of the US workforce will be remote. The need for home office supplies and remote work tech will not only continue but is also likely to increase.

2. Home Gym and Fitness Gear

Offices weren’t the only places to close during the pandemic. Gyms also closed and forced many of us to start working out at home. The money saved on gym memberships was noticeable for many. For others, working out at home was one of the first times they started to enjoy exercise.

An article in the New York Post suggests that gyms will become “a thing of the past” because of the pandemic. Many people are starting to return to the gym, but others are more than happy to continue their home workouts.

The home fitness equipment market saw a dramatic rise in 2020 due to the pandemic, and it’s expected to continue growing. One report suggests that the market will grow to 14.74 billion USD by 2028.

Fitness equipment and gear is a great e-commerce niche as it also has sub-niches - fitness activities from weightlifting to yoga all have a distinct target audience. With an accessible website that includes excellent e-commerce photos, your business could tap into this growing market.

3. DIY and Home Improvement

Some people got fit during the pandemic. Others transformed their homes. The DIY and home improvement market is one of the most lucrative e-commerce niches. One study predicts that the DIY and home improvement retail market will grow by 143.3 billion USD between 2020 and 2024.

DIY and home improvement also have many e-commerce niches that your business can tap into. From DIY woodworking kits to bespoke garden furniture, consumers want all sorts of products and services for their homes.

One recent success story is the French start-up Mano Mano, an e-commerce business selling a range of home improvement and gardening products. It was recently announced that they had raised 335 million USD from investors to expand their business thanks to increased home improvement shopping during the pandemic.

4. Food, Drink, and Cooking

Being forced to stay at home during the pandemic changed the way many of us prepare food. It will come as no surprise that one survey found that 57% of respondents cooked more from scratch during the pandemic than before.

That has been great news for the food, drink, and cooking e-commerce market, which is expected to continue rising in the years to come. One foodie magazine even named e-commerce the ‘trend of the year’.

There are plenty of food, drink, and cooking trends to look out for if you’re thinking of choosing this e-commerce niche. Vegan and vegetarian food, ethical packaging, recipe subscription boxes, and virtual cooking classes are popular with foodies.

5. Entertainment

With movie theatres, live music venues, and sports events closing during the pandemic, many of us had to rely on home entertainment to keep having fun in our spare time.

Home entertainment covers a lot of e-commerce niches in itself. Video games, board games, TV sets, and craft supplies are a few examples of home entertainment products your e-commerce business could specialize in.

Board games, for example, are a growing market, one that is expected to have a value of 30 billion USD by 2026. Nowadays, board games don’t just include your standard Monopoly or Scrabble set. The board games industry is filled with exciting games for all age ranges that more and more consumers are loving.

Conclusion

2020 brought in many changes for e-commerce businesses. Many people turned to buying online rather than in-store. Many budding e-commerce owners saw it as an opportunity to start a business.

If you’re hoping to do that, finding an e-commerce niche is important. Without a niche, you will be competing with companies like Amazon or Alibaba. It will be difficult to acquire customers and establish brand recognition. That is why you should niche down.

This guide discussed the most lucrative e-commerce niches in 2021. You also learned why finding a niche for your e-commerce business is so important.

I hope you’re brimming with ideas after reading. Good luck!

Choosing a business name is not that simple, and you may wreck your brains over choosing one, only to find out that ACRA did not approve its registration. What you should know is that there are some considerations you should keep in mind when choosing the most suitable name, and we will cover them in the guide below.

Choosing the right company name is just part of the process of getting your company registered in Singapore. There are many more steps to take note of which you might not be aware of if this is your first time doing so. You can do it on your own but you don’t have to. Let us handle the administrative part of this process while you focus on growing your business.

Registering Your Company Name

When you have decided on your future business plans and direction, the next thing to do is to choose a company name that defines your business and determine how your customers identify with your company. Before you can successfully set up a company in Singapore, you must reserve and register your company name.

The proposed name will be sent for approval by the Singapore Accounting and Corporate Regulatory Authority (ACRA). Certain restrictions can cause your name to be rejected by ACRA. Get to know what increases your chances for successful name registration.

Steps To Register Your Company Name

1. Register your name via BizFile+ before you incorporate your business.

The name application will cost $15.

2. Specify your business activity with your application.

When you are filling out your application, you will be asked to specify the primary and secondary activities of your business. This can be done by choosing which classification code best corresponds to your business activity. A search for the Singapore Standard Industrial Classification (SSIC) code can be done here.  

3. Once your application has been approved, the name will be reserved for 120 days.

If you fail to register your business or incorporate your company within 120 days, ACRA will release the name and it will be available to the public to register.

For more download links for sole-proprietorship, partnership, local private limited company, limited liability partnership (LLP) or limited partnership (LP) companies, refer to the ACRA website here.

How Do I Ensure A Higher Chance Of Name Approval?

According to the Business Names Registration Act, ACRA will refuse a business name application if it is:

• Identical to an already existing business

Avoid selecting names that are similar or almost identical to an existing business. ACRA will not allow two very similar company names to be registered.

• Identical to an already reserved name

A reserved name refers to one that is already approved by ACRA but not yet fully registered because the business has not incorporated the company yet. The name will be held for up to 120 days and released if the company fails to incorporate the company by the deadline.

• Undesirable

If the name chosen is obscene, vulgar or offensive, ACRA will reject your application. Keep in mind that Singapore is a multi-racial country and your chosen name should not appear offensive to any race or religion.

• Prohibited by order of the Minister for Finance

This includes the word “Temasek” for now until there are new words that the Minister has directed the Registrar not to accept.

If you need more detailed guidelines on your name selection, you can read up on ACRA's Policy Statement on the Treatment of Business Names and Name Complaints and Companies (Identical names) Regulations 2015.

Tips For Coming Up With Your Company Name

If you have spent a lot of time deciding on your perfect company name, you do not want your application to be rejected. So, we strongly recommend that you make sure your name is within the recommended guidelines to avoid disappointment.

Remember, if any entity or person lodges a valid complaint within 12 months saying that your name is similar to their company’s and is likely to be mistaken, the Registrar has the right to direct you to change your name with discretion.

Here are some simple tips for you to consider when picking your name.

• Check for names with similar pronunciations

For example: Chong, Chung, Cheong / Yen, Yan, Yien / The Electron, De Electron, De’Electron etc.

• Check for names in a different sequence

For example: if your chosen name is “Salt, Pepper and Cumin”, you should check for “Pepper, Salt and Cumin”, “Cumin, Salt and Pepper” or “Cumin, Pepper and Salt”.

• Check for names of countries and places

For example: “Nobita Trading” is similar to “Nobita Trading International”, “Nobita Trading Singapore” or “Nobita Trading South-east Asia”.

• Check for punctuation marks in the name

For example: “Daikon Electronics” is considered similar to “Daikon! Electronics”, “Daikon-Electronics” or “Daikon@ Electronics”.

• Avoid words that may require additional licences

Some words may trigger further inspection from regulatory bodies and you will either be asked to remove the word in your name or require additional licenses.

For example: if your name is “Carrot School and Academy”, it may be referred to the Ministry of Education for review and approval. Similarly, if your name has words like “university”, “bank” and “insurance” for instance, they may require additional approval.

How Do I Make Sure My Chosen Name Isn’t Already Taken?

To confirm that your chosen name is not yet taken or reserved, it is best to do a search on ACRA’s Bizfile+, or simply do a Google search. Once you have run the search, it will reveal a whole list of names that are identical or similar to your chosen name.

However, if you find that it’s too difficult coming up with a name all by yourself, we offer a name generator tool here at East river as well. All you have to do is to type in any word such as one that relates to your business activities or simply a word that you like and choose from a variety of unique names in several fonts specially created for you.

Examples Of Successful Company Names

Some company names in Singapore immediately link you to the product they are selling or the service they provide. Here are some examples.

• Carousell - an e-commerce platform for the average person to sell on
• BreadTalk - a bakery that sells bread
• Flextronics - a manufacturing company that sells electronic equipment
• Grab - a service platform that you can grab food, transport rides and anything else
• Koufu - a food court chain
• Scoot - an airline transportation company that scoots you around the world

Well, What’s Next?

Once you have your chosen name, checked that it is not similar to any other company, and applied for the exclusive use of the name with ACRA, you’ll need to register and incorporate your company.

Of course, at East river, we have a group of dedicated professionals that help you with company incorporation in Singapore online. If you need a company secretary in Singapore or a nominee director, East river is here to guide you on all matters of your business. Simply drop us a message for an instant callback!

Today, cryptocurrency is starting to be accepted as a payment method or digital currency. Since the first cryptocurrency inception, as of January 2021, there are more than 4,000 cryptocurrencies that exist. Before you jump on the bandwagon, assess whether cryptocurrencies are suitable to be used in your business.

By the way, if you are an e-commerce company or sell digital products, you might want to keep track of your transactions, even those made using cryptocurrencies. Keeping track of these would help you get a hold of where your expenses and revenue comes in to get a good hold on your finances. If you need advice from experienced accountants in e-commerce, look no further and chat with us!

What Is Cryptocurrency?

Cryptocurrency is a digital asset or money that is mainly used to buy, sell, and invest. A cryptocurrency could be created by individuals or companies, to serve a particular purpose and has no standard value. Bitcoin, for example, is priced at USD $32,641 at the time of writing, while Dogecoin is priced at USD $0.81. The value of cryptocurrencies is determined by their coins’ availability, desirability, and usability.

The main difference between cryptocurrencies and fiat money is that they are decentralized and are not regulated by any governments or central authorities.

Cryptocurrencies run on blockchain technology, which are digital databases consisting of blocks which in turn, are made up of transactions. These transactions are encrypted for security and recorded on public ledgers. Every transaction involves two public keys and the sender’s private key.

Sending of a digital coin from one person to another must be confirmed by miners. Miners audit cryptocurrency transactions by verifying the legitimacy of these transactions. A group of miner-approved transactions are called blocks.

Miners are compensated for verifying the transactions and by solving advanced mathematical problems using supercomputers. This is called hashing. As such, it is possible to transfer assets between two parties without a central authority that facilitates the exchange. Digital coins received could then be stored in digital wallets, or used to sell, trade, or invest in other coins, or even used to buy physical goods and services.

What Are the Risks of Cryptocurrency for Business Owners?

A new business owner should be cautious before accepting cryptocurrency as payment due to the volatile nature of cryptocurrency. The value of a cryptocurrency changes quickly even within a day of trading. It could even halve in value from one hour to the next. This is because cryptocurrencies are not regulated and are anonymous.

Businesses also risk their reputations if their customers’ digital wallets are hacked and their digital tokens were to be stolen. Although cryptocurrency wallet companies are trying their best to enhance security, blockchain technology is not 100% safe from hackers. There is still a risk of being hacked into where hackers could gain illegal access and spend from a customer’s digital wallet.

Advantages and Disadvantages of Accepting Payments in Cryptocurrency

As a business owner, you may consider accepting cryptocurrency payments for your products and services due to the fast processing speed of the transaction. While credit card systems take days to process and batch out, cryptocurrency is processed immediately, streamlining your business’ cash flow.

On top of that, there are more benefits of accepting cryptocurrency payments:

1. Reduced Transaction Fees

Small businesses are usually charged between 25-30 cents plus 2%-4% of the total transaction for each credit card swipe. Fees for cryptocurrency payments vary depending on whether you receive your digital coins in your personal wallet or through third-party wallets like Coinbase, but they are definitely less expensive than PayPal or credit card providers. There is no middleman collecting fees to facilitate the exchange.

2. No Chargebacks for Merchants

As cryptocurrency transactions are quite similar to cash, that is, no third party could reverse the transactions and they are final, businesses are protected from fraudulent chargebacks. The blockchain system serves as a peer-to-peer objective ledger, which means chargebacks could not occur. If a consumer demands a refund, there is no bank or card network to appeal to, and only you as the merchant could decide to reverse the transaction if he chooses to do so.

3. Broader Market

Accepting cryptocurrency would open doors to a new market of mostly tech-savvy customers, often internationally. For example, a small electronics retailer reportedly sold $300,000 worth of products to customers in almost 40 countries when he started to accept cryptocurrency.

4. Responding to Consumer Demands

Cryptocurrency is increasingly growing in acceptance and legitimacy, and there are more people who hold them and want to spend using them. From a business owner’s POV, accepting cryptocurrency would offer your customers another option to pay, especially to customers who value privacy and anonymity. This would gain you an advantage over other retailers who do not accept them.

However, dealing with cryptocurrency requires a certain level of technological know-how. There is quite a steep learning curve to understand cryptocurrency.

Accepting payments in cryptocurrency involves maintaining a digital wallet on digital currency exchanges and requires the user to have a certain level of familiarity with the cryptocurrency market.

On the other hand, the disadvantages of accepting cryptocurrency payments include:

1. Price Volatility

Business owners need to convert cryptocurrency prices quickly and regularly due to its volatility. Ethereum, a cryptocurrency coin, started at around USD $1 initially during the first months it launched, and today, it is priced at USD $1,976.

Startups and businesses could use services provided by BitPay or Coinbase to protect against volatility. These services immediately convert digital currency to its value in cash in real-time when payment is made. Holding on to cryptocurrency might amount to speculative investment and could possibly risk your revenue stream.

2. Security

Currently, cryptocurrency transactions are not 100% secured and there is no complete guarantee or security against cyber criminals from getting access to customers’ digital wallets. There is an average of USD $2.7 million of cryptocurrency assets stolen every day in 2018. To cover these risks, there are now insurers dedicated to insuring cryptocurrency risks such as Nexus Mutual, Bridge Mutual, Coincover, and Etherisc. The cryptocurrency exchange platform Coinbase, for example, keeps less than 2% of its customers’ assets online.

Regularly back up your data, keep your private keys safe, and turn on multi-factor authentication when logging onto your digital wallets. Some digital wallet companies such as Optherium also incorporate biometric face verification before granting users access to their digital wallets for added security.

3. Regulatory Uncertainty

There is no universal law governing cryptocurrency since it is fairly new. Each country has different laws, and almost have no regulations concerning cryptocurrency.

Bitcoin, for instance, is recognized in Japan as a legal payment method. Business owners would need to be adaptable if they adopt cryptocurrencies as a payment method as rules and regulations are still evolving. They need to be up-to-date with laws concerning reporting gains and losses and taxation if cryptocurrency faces regulation in their countries.

3 Ways To Use Cryptocurrency in Your Business

So how might you use cryptocurrency in your business if you’re sold on the advantages of it?

Here are 3 suggestions that we have. You might think of more ways as you grow your business and experiment.

Paying Employees’ Salaries in Cryptocurrency:

Setting Fiat-Cryptocurrency Conversion Rate and Ratio

Companies considering paying their employees’ salaries in cryptocurrency could decide on a recurring date each month to set the fiat-crypto conversion rate. They could freeze this rate as the conversion rate for their employees’ payroll, even if the actual disbursement of salary is done at a later date. The market rate of cryptocurrency could be used as the conversion rate.

Business owners should consult their staff on the ratio of fiat to cryptocurrency that the latter prefer to receive. As different employees have different financial obligations, it would be more equitable than the employees have a say in deciding how much salary they would like to receive in cash and in cryptocurrency. Employees with a bigger risk appetite would perhaps agree to receive half of their pay in cryptocurrency, while others might take between 10%-20% of their net pay in cryptocurrency.

Choice of Cryptocurrency

Business owners could offer several types of cryptocurrencies for their employees to receive their salaries. They could provide options of the most popular cryptocurrencies (like Bitcoin, Ethereum), alongside their company’s own coin, if they own such cryptocurrency. Business owners should find a coin that suits their employees’ risk profiles. The employees could then keep the coins in their digital wallets or use different tools (for example MakerCDP) to liquidate their cryptocurrency.

Paying Suppliers in Cryptocurrency

One of the benefits of paying suppliers in cryptocurrency for new business owners is the speed at which cross-border payments take place. It usually takes a few minutes compared to several days using credit card payments, for example. Cutting out the middleman such as banks and credit card companies also mean lesser fees paid by business owners.

Furthermore, cryptocurrencies would offer greater liquidity than illiquid or exotic currencies. This is especially true in foreign markets that curtail the cost-effective flow of their own currencies internationally. To illustrate, it is much easier and faster for a business owner to pay his Estonian supplier in cryptocurrency rather than the Estonian Kroon.

The challenges that business owners might face in paying their suppliers in cryptocurrency could be from their own banks. Traditional banks have invested billions in building their cross-border payment infrastructure (such as the SWIFT network). These banks would be more inclined to maintain their relevance through their legacy (old, but still in use) payment systems. They might compete with the adoption of cryptocurrency payments by offering business owners faster processing times or lower foreign exchange rates when businesses pay their suppliers.

Cryptocurrency is also still trying to shed its bad image of being used for a wide range of illicit activities, which might affect the readiness to accept cryptocurrency payments among suppliers. Cryptocurrency and its blockchain technology have also yet to achieve scalability for cross-border payments due to their lack of liquidity, and the fact that they are privately run and not government-backed. They have yet to achieve the scale of the trusted payment systems of today such as ACH, FedWire and U.K. 's CHAP system, which are distinguished by their large payment volumes, established operating rules, known costs, security, and deep liquidity pools.

Issuing Cryptocurrency As Dividend

Is It Possible for Fiat-Based Companies To Issue Cryptocurrency-Denominated Dividends?

Yes, fiat-based companies could issue cryptocurrency-denominated dividends only if they mint their own digital currency and issue investors with cryptocurrency coins. They could not issue Bitcoin- or Ethereum-denominated dividends for instance, but could issue their own companies’ dividends when they mint their own cryptocurrencies.

Can Companies Create Their Own Cryptocurrency?

Yes, they can. Most companies or startups build their own cryptocurrency using Ethereum’s technology. The startups then raise funds through initial coin offerings (ICOs), which is the IPO of a blockchain-based company. In return for the money, the startups reward investors with cryptocurrency, either as a share of profits or as dividends. However, for a company’s cryptocurrency to take off and be successful, it needs to have a strong use case, i.e. actual use or application besides paying for goods and services.

Taxes on Cryptocurrency in Singapore

According to the Inland Revenue Authority of Singapore (IRAS), businesses that accept cryptocurrency for their remuneration or revenue are liable to normal income tax rules. Income derived from or received in Singapore would be taxed. Tax deductions could be applied too if applicable.

These are some of the guidelines from the IRAS regarding cryptocurrency:

• If your business accepts cryptocurrency payments in exchange for goods or services, the value of that cryptocurrency must be recorded in Singapore dollars as part of your ordinary income.
• If a business pays an employee in cryptocurrency, the payment is treated as a normal salary or wages and is taxable.
• If you mine bitcoins, any profits you make must be declared as assessable income.
• As there is no capital gains tax in Singapore, profits from the disposal of cryptocurrencies are not subject to taxes.

As an e-commerce merchant, many payment options allow you to accept credit cards and other types of payments online. But how do you choose which online payment processing method to include on your website? Read on.

When you’re growing your e-commerce business there are so many factors that you can experiment with to increase your sales. You wouldn’t want to spend any of your time on boring and routine paperwork like accounting. That’s when you can turn to our e-commerce accountants. Drop us a line to find out more, otherwise, do read on!

How To Choose an Online Payment Processing Method That’s Best For Your Business?

Payment gateways or merchant accounts are the ones that offer online payment processing solutions.  

A payment gateway is the technology behind processing payments online, acting as the middleman between the buyer and seller. Payment gateways encrypt sensitive card details, ensures the funds are available in the customer’s bank, and allows the merchants to get paid. Examples of payment gateways in Singapore include Square, Paypal, GrabPay, DBS PayLah!

A merchant account, on the other hand, is a traditional bank offering online payment processing solutions. They help you accept credit card payments from your customers. Many merchant accounts are also payment gateways. In Singapore, banks like Standard Chartered and DBS offer merchant accounts to online sellers.

Before we go on to list all the available payments options online for you as an e-commerce seller, these are some tips to consider when choosing payment gateways and merchant accounts:

• Be wary of tiered pricing. Some payment gateways charge different rates and fees for different card types. Tiered pricing is usually the most expensive and ambiguous option for online sellers or merchants.
• Confirm the monthly fee rate. While you might be sold on the low per-transaction fee, the payment gateway or merchant account’s monthly fees might be high.
• Figure in setup time and fees. There is an approval process if you opt for a traditional merchant account which takes a longer time as compared to other payment gateways, especially when you are a new business owner.
• Read the fine print. Some payment solution service providers include in their requirements or contracts that you must engage them for at least a year, others have minimum monthly transactions for you to meet.
• Verify compatibility. Confirm that the service providers’ plugins, software, etc. are compatible with your website or online store’s.

7 Ways To Accept Payment For Your E-commerce in 2021

1. Debit and Credit Cards

According to Statista, 77% of respondents in a survey among online shoppers in Singapore in 2019 paid by credit card when making a purchase. Credit and debit cards remain one of the most popular payment options despite the increasing adoption and use of mobile or digital wallets. Accepting card payments online is the starting point. You could add on more payment options if you wish.

Top Credit And Debit Cards Used In Singapore

• Visa

In 2019, Visa processed USD $8.8 trillion in payments volume and generated USD $23 billion in total revenue. As of 2018, it has 3.3 billion cards in circulation worldwide. It is widely accepted both in brick-and-mortar and online stores in Singapore.

• MasterCard

In 2019, MasterCard had a payment volume of USD $6.5 trillion and its total revenue was USD $16.9 billion. As of 2020, there are 2.3 billion MasterCards in circulation globally. While Visa surpasses MasterCard in terms of transactions, purchase volume and cards in circulation, both are almost always accepted together among merchants internationally.

Both Visa and MasterCard mainly earn from service and data processing fees. However, they classify these fees differently and have distinct fee structures. Service fees are based on card volume and charged to the issuing bank. For data processing fees, Visa and MasterCard also charge them to the issuer, who pass them on to merchants who collect a per-transaction fee. They are the fees charged for the sharing of transactional information over Visa and MasterCard’s networks with merchants.

Some of the popular banks and debit cards issued in Singapore are the PAssion POSB Debit Card, DBS Visa Debit Card, HSBC Debit Card, OCBC Plus! Visa Debit Card, UOB Debit Card, Citibank Debit Mastercard, and Maybank Platinum Debit Card.

For retail and e-commerce payments, all of these banks offer merchant accounts to business owners for online payments processing.

2. Digital and Mobile Wallets

A mobile, digital or e-wallet is a virtual wallet where users store, send, and receive money and pay for purchases made online. Mobile service providers, smartphone e-payment solutions, and financial institutions or banks are the ones who usually offer digital wallet services, e.g. SingTel, Apple Pay, Google Pay, Samsung Pay, DBS PayLah! Etc.

Top Digital And Mobile Wallets Used In Singapore

• GrabPay. Online shopping aggregator iPrice and analytics platform App Annie reported in a 2019 study that GrabPay has the most number of active users and downloads per month. Grab’s own Social Impact Report 2018/2019 found that cashless transactions on the Grab app are also 9 times higher than Singapore’s average cashless usage.
• DBS PayLah! by DBS bank. DBS PayLah! is a mobile wallet that allows you to perform fund transfers and bill payments via a mobile number. The main selling point of PayLah! is its rewards and cashback programs. It is widely accepted at 80,000 locations islandwide and could be used by non-DBS account holders too.
• Fave. Fave earns the third spot, perhaps due to its strategic partnerships with the first two in the list, GrabPay and PayLah! When you activate FavePay as a payment method for your online store, you could access Fave’s pool of 6.1 million users (both in Singapore and Malaysia) and FaveBiz, a business dashboard that presents customer and business performance data and insights relevant to you. Although technically not an e-wallet because it does not store money, it serves many functions as an e-wallet: FavePay stores credit, debit, and loyalty card details on a smartphone and processes payments.
• Other digital wallets used in Singapore include EZ-Link, Singtel Dash, AliPay, Google Pay, PayNow, Shopee Pay and Apple Pay.

3. Bank Debits

Bank debits deduct the amount spent by a customer from his bank account directly to yours. Customers give their bank account information for a merchant to deduct automatically from the customers’ bank accounts at a specific time weekly, monthly, yearly, etc. Merchants or online sellers would usually send a confirmation message or email to customers of the amount deducted at the time of deduction even though customers have pre-authorized the debits.

Direct debit is suitable for subscriptions like memberships or software, recurring payments like bills, instalment payments and rent collection.

In Singapore, the most prominent direct debit payment is called GIRO. GIRO was set up in 1984 and used mostly to pay bills to government agencies, but there are also private sectors that provide GIRO payment options. Customers opting for GIRO fill in a GIRO Direct Debit Authorisation form. Bills and fees which are regular and of a fixed amount are most suitable with GIRO.

4. Bank Redirects

Bank redirects are payment gateways that have an additional step of verification to complete a bank debit payment. At checkout, instead of entering bank account information directly, users are redirected to their online banking or payment gateway login page to authorize the payment.

These are some of the main types of bank redirects or online payment gateways:

1. Hosted payment gateways. They direct customers away from your website’s checkout page to the Payment Service Provider’s (PSP) page where they confirm their payment details. When the purchase is paid, customers are redirected back to your website. PayPal is an example of a hosted payment gateway.

Pros: Secure, simple, and easy-to-setup. Transactions are Payment Card Industry (PCI)-compliant and protected against fraud.

Cons: Merchants do not have control over the whole user experience as hosted payment gateways are external operators.

2. Self-hosted payment gateways.Payments are made on the merchants’ websites themselves. Customers enter their payment details which are collected and sent to the payment gateway’s URL. Examples of self-hosted payment gateways are Stripe-powered Shopify Payments and Quickbooks Commerce B2B Payments.

Pros: Merchants control the whole payment experience as all parts of the transactions are completed on the same website.

Cons: If you are operating the website on your own, you would need to have some technical know-how if there are any hiccups on the payment system. This is because technical support might not be available for self-hosted gateways, or you might need to hire technical support help for your website’s payment gateway.

3. API-hosted payment gateways. Payments are processed using an API (Application Programming Interface) or HTTPS queries after customers enter directly their credit or debit card information on the merchant's checkout page. Stripe API and Square API are examples of API-hosted payment gateways.

Pros: Can be integrated with mobile, tablets, laptops and PCs for a smooth user experience. API gateways also give merchants full control over the user interface and the customer’s shopping experience.

Cons: Additional PCI DSS compliance and purchasing SSL certification requirements for merchants.

4. Local-bank integration payment gatewaysCustomers are redirected to the payment gateway’s website (the bank’s website) where they enter their payment details. Upon successful payment, the customer is redirected back to the merchant's website and notified with a payment confirmation. For example, eNets in Singapore.

Pros: Quick and easy-to-set up, most ideal for one-time payments.

Cons: User experience is not customizable and usually, local bank gateways offer basic features without the option for returns or recurring payments.

Top Bank Redirects Used In Singapore:

• eNets

eNets is a Singaporean payment gateway that offers local and international debit and credit card online payment processing. For merchants, eNets offers them a reporting system with daily transaction updates and historical sales records besides an integrated multiple payments solution. It offers loyalty programs and cashback services.

• PayPal

Synonymous with payment gateways, and most accessible to all, PayPal is one of the most technologically advanced payment gateways. It boasts a 377 million strong base of active users and merchants. In a 2020 PayPal-commissioned Nielsen research of U.S. based merchants, PayPal’s customers convert 2.8x more when shopping with merchants who offer PayPal as a payment option. Customers trust PayPal as a secure payment option for them.

5. Buy Now, Pay Later

Buy now, pay later (BNPL) is a buying on credit payment option for online or in-store shoppers. Payments are split into instalments, usually interest-free unless not paid on time. Where previously the BNPL model was more commonly offered for big-ticket purchases, nowadays retailers are offering this credit payment option for small purchases like cosmetics and apparel too.

Top BNPL Providers In Singapore:

• Hoolah

With Hoolah, customers pay one-third of the item’s price upfront and the rest through interest-free instalment plans. Merchants, however, receive the full payment within 4 days. They could integrate Hoolah on their online stores, e.g. those powered by Shopify, or retail outlets easily.

• Rely

Rely is a BNPL service offered as a payment option on online stores like Qoo10 and Zalora. For most merchants, there are no interest or fees charged but a one-time administrative fee may be charged for selected merchants. Customers pay a third or a quarter of the full price and the rest in instalments which must be paid for 4 fortnights or over a period of 3 months.

6. Cash-Based Vouchers

According to Statista, 98% of Singaporeans have a bank account. Furthermore, a 2020 Google survey revealed that one in five adults have a digital-only bank. Although making payments using cash-based vouchers online is not really popular in Singapore as most people have bank accounts, one of the e-commerce websites available here, Qoo10.com, provides cash-based vouchers as an online payment solution.  

Cash-based vouchers allow customers to pay in cash (or card, if they wish) to the ATM, bank, convenience store, or supermarket to complete the payment in cash. Online merchants issue a transaction reference number and/or a scannable voucher that customers use to pay for their purchases in person.

Top Cash-based Payment Option In Singapore:

• Qoo10

Purchases on Qoo10 could be made via 7-Eleven convenience stores, AXS machines, and ATM machines. For purchases to be paid in 7-Eleven, a barcode will be issued, and customers would need to scan the barcode to complete their payments there.

7. Cryptocurrencies

Cryptocurrencies are digital tokens, they are not physical coins or cash. It is a decentralised digital currency, with no central authority or government regulating it. Cryptocurrencies are encrypted and secure, and run on peer-to-peer blockchain technology and could be used to buy goods and services or even traded. There is no standard value for cryptocurrencies and the price is set by the market’s demand and supply.

Top Cryptocurrency Payment Gateway In Singapore:

• Triple A

Triple A is a cryptocurrency payment gateway that would get merchants access to 200 million new customers worldwide. Triple A is compliant with the Monetary Authority of Singapore with no chargeback and no risk of fraud. Customers could pay in crypto or their local currency and it is compatible with all crypto wallets. Triple A is easy to integrate with platform plugins or APIs.

What Are the Fees Involved?

Costs of accepting payments online vary between different online gateway providers. There are many fees associated with accepting cards and other payment types online. Most payment gateways and merchant accounts charge per transaction, on top of setup fees, monthly and annual fees, minimum transactions fee, and processing fee, among others. The standard transaction fee for online payments could be cheaper for merchants with volume discounts.

In Singapore for example,

• GrabPay merchants pay a 1% fee on all transactions, plus a 7% Goods and Services Tax (GST).
• DBS PayLah! charges a 3% transaction fee for credit and debit cards and 2% - 4% for instalment plans. There is also a one-time setup fee of SGD $800 + GST and an annual fee of SGD $1,000 + GST.
• Singapore-based PayPal merchants accepting payments locally will be charged 3.90% of the total transaction as well as SGD $0.50 fixed fee.

Do check out each payment gateway’s website for more details regarding merchant fees.

With this comprehensive guide, we hope that we have laid out all that you need to know on accepting card payments in Singapore, and all other payment options possible on top of it. Keep track of all your payments and invoices with East river’s accounting for SMEs in Singapore. Contact us for a no-obligation consultation.

Every e-commerce business likes new customers. However, it’s even better when the same customer returns.

Existing customers help in creating a solid foundation of your business that provides a steady revenue stream that costs less than the costs of acquiring new customers. Research shows that return customers account for about 15% of all transactions and spend an average of three times as much as new customers.

Instead of retaining new customers, some customers focus on acquiring new ones. However, not taking the necessary steps to retain new customers can lead to revenue loss and a decline in growth which you do not want.

By the way, as your e-commerce business grows, you might overlook the boring but necessary work of keeping your books in order. That’s when we can help. Our e-commerce accountants, who know how e-commerce business works, can help you with sorting that out. Talk to us to know more, otherwise, do read on.

What Is Customer Retention?

Customer retention is a skill of retaining customers. The strategy of retaining customers is different for every industry and also differs from company to company. Still, the important part is to provide a great customer experience to keep your customers coming back. You can start by giving a positive buyer journey through check out and beyond that will help in improving the loyalty and affinity for your brand.  So, how can you calculate customer retention?

How To Calculate Customer Retention?

You can calculate customer retention by:

• Choosing a period like a onth or year.
• Subtract the number of new customers (N) acquired in that time frame from the total number of customers (E) remaining.
• Divide this number by the number of customers at the start of the period (S).
• To get a percentage, multiply it by 100.

(CRR=((E-N)/S)*100)

For example, let’s say you want to calculate the retention rate for a particular month. You see that you had 105 customers at the start of the month (S) and that you acquired an additional ten customers (N) during that month. At the end of the month, you lost 30 customers, leaving you with 75 existing ones (E).  Following our formula, we would subtract 10 from 75 for a total of 65 customers. Divide this number by 105 to give you a retention rate of .62. (Multiplying by 100 will provide you with a percentage - in this case, 62%).  

In other words, the higher your customer retention rate, the better your position in the marketplace.

Why Is Customer Retention Important?

Apart from the fact that acquiring new customers is more expensive than keeping existing customers, other reasons make customer retention important.

Retaining customers can use your services 50% more than a new customer. They also tend to spend 33% more than new customers and help in reducing your marketing costs. So you see, retaining existing customers is more profitable than just acquiring new customers.

Retained customers are more likely to send referrals your way. They tell their friends and family, thus contributing to the word of mouth advertising. It has been seen that word-of-mouth advertising drives five times more sales than paid advertising.

This results in more happy customers who drive more sales your way, thus saving your money by decreasing the advertising costs.

Benefits Of Focusing On Building Customer Retention

Let’s see why focusing on customer retention is beneficial for your business.

1. Customer Retention Is Cheaper Than Customer Acquisition

As mentioned earlier, focusing on existing customers is less costly than acquiring new customers.

Acquiring new customers always takes lots of time, money, and effort. You’ll have to create strategies, target your primary audience, publish ads and promote your brand endlessly. It doesn’t need this much effort regarding existing customers as they already know about your brand and what it does.

To acquire new customers, you’ll have to spend five times more than to keep the existing customers. Also, there’s only a 5-20% chance of making a sale with new customers. The percentage increases to about 60-70 when it comes to selling products to existing customers.  This means that by focusing on existing customers, you can generate revenue and grow your business.

2. Valuable, Genuine Feedback

By purchasing a product from your company, new customers don’t send any specific message about your products. However, existing customers send a clear message through their purchase behaviours. The products they buy regularly can show quality and popularity while items that are only purchased can showcase some problems. Also, repeat customers give you their feedback and suggestions as they show genuine interest in your store and products.

3. Increased Word-of-mouth Advertising

Word of mouth advertising is a popular form of promotion that never fades away. Since times have changed, online reviews are an important part of the purchasing process. Many customers focus on reviews of the brand before making any purchase. That’s why review sites like Yelp! and Google’s review platform play an important role in the buying decision.

If they are happy with your products, existing customers will leave a positive review as compared to new customers. These positive reviews will help in acquiring new customers in return.

8 Customer Retention Strategies For Online Businesses

Around 67% of customers have said that they support small and local businesses. But in today’s marketplace, how can you set yourself apart from other famous e-commerce stores?

This can be solved by creating a loyal local customer base that will help you establish a strong business. Here are some ways that can help you to develop strong customer retention strategies to grow your business.

1. Create A Customer Loyalty And Referral Program

With so much competition around, you will have to prompt your customers to keep using your services repeatedly. This can be done by creating a:

Loyalty Program

Developing a loyalty program can encourage customers to use your services in the future. Usually, loyalty programs issue points to customers for every purchase that they make. These points can be exchanged for free samples, products or discounts. As loyalty programs are based on how much your customers spend with your business, they drive up the average order value.

Referral Program

A referral program awards customers for sending more customers your way. According to GWI, "41% of internet users mention that rewards are one of the top things that motivate them to promote their favourite brand online."

The Shopify App Store has various types of referral program apps that encourage customers to refer people through social media via a personalised link, text, email and more.

People who like your brand refer your services to their friends and family, and in return, they get discounts or other rewards; it's usually a win-win situation for both; you get to boost sales and increase your customer base.

2. Stand Up For Causes

Many people like to use services for those companies that share their values and stand for any cause.

According to GWI, "46% of internet users globally want brands to be eco-friendly, 44% want brands to be socially responsible, and 28% want brands to support charities."

For example, if you want to support environmental causes, you can use eco-friendly products promoting that you are actively trying to reduce your company's carbon footprints. Or you can donate a portion of your profits to organisations that clean up the environment. You can also share some of your profits with non-profits that fight for hunger.

3. Continue Building Relationships After The Sale

Show your customers that you care about them by communicating with them regularly. Here are some ways to develop relationships with your customers.

Use Push Notifications

Your real relationship with your customers begins after checkout. You can start creating a funnel to a better post-purchase experience that can help with your repeat sales. Your shop app notification should deliver order status and delivery tracking updates to your customer's phone and inform them about every touchpoint after checkout.

Aspired by push notification, customers can find recommendations from your store every time they use your app or check out your newsletter. This means that you are helping them to decide on your next purchase even before their last order has arrived.

Send Post-purchase Emails

Make the best use of email marketing. This means that you can keep the conversation going after visiting your website or making a purchase.

According to GWI, "sharing helpful information is one of the top motivations for brand advocacy—globally, 32% of internet users reported they are more likely to promote their favourite brand online when something is relevant to their own interests."

You can send out informative newsletters to your subscribers. It's a great way to show-tell about different products they might like based on their purchase behaviour.

4. Give your customers a seamless online to offline shopping

By providing different choices to shop and buy across various channels, including in-store and online, you can provide an omnichannel experience which many people like.

Here are some ways on putting a great omnichannel channel experience for your customers:

Offer (BOPIS) - Buy Online, Pick Up In-Store

BOPIS is also known as click and collect or curbside pickup. During the pandemic, it has gained a lot of traction. Now, customers can buy online and go to pick up a delivery. This saves their time, can quickly return items, and avoid long delivery times.

Sell your stuff on social media

Many customers use social media to find out more information about a business or brand. This also prompts them to do social shopping, allowing them to make purchases directly through social media. Commonly, popular social media platforms like Facebook, Tik Tok, and Instagram allow companies to sell directly through their platforms. "GWI research shows that 25% of Instagram users, 22% of Facebook users, and 22% of TikTok users have clicked on a sponsored or promoted post in the last month."

Let Customers Buy In-store, And Ship To A Home

About 28% of buyers said that next-day delivery would increase the chances of buying a product online. Then, why don't you use the same ideas for your in-store order fulfilment strategy?

Offering local delivery to your customers is a good solution if your company has a (virtual) showroom or offers customisable products. This gives your customers an easy way to purchase what they want which isn't available in your area.

5. Streamline Customer Service Across All Channels

About 16 hours a day is spent making online purchases by the average US adult. The data have increased slightly since the pandemic of about 12:24 hours which is still high.

As people are spending more time online, their expectations from the business have also increased. This also included a regular customer support experience across all platforms.

Customer success is about forming a long-lasting relationship with your customers. This means delivering steady customer service on all channels like phone, email, live chat, social media, etc.

Suppose a customer leaves a comment on one of your social media posts asking for more information about your products. In that case, you can respond directly in the comment section or send them a direct message to solve their queries. You can also provide your contact details in your DM, letting them know that they can reach you directly if they have any further questions.

On your website, you can use live chat to engage with site visitors. Live chat helps in improving the conversion rate and customer experience by solving all your customer queries, guiding them in their shopping spree, or booking an appointment.

Using all these customer service strategies contributes to boosting brand loyalty, brings up repeat customers, and increases customer loyalty.

6. Offer Value-added Services Along With Your Products

People don't only look for items to buy, but they also look for an experience that makes their lives easier. To improve your customers' lives, you can provide value-added services along with your products. This also strengthens the bond between your customers and your brand. Some value-added services include:

• Personal shopping. Personal shopping can be done online (by sending product recommendations to your customers based on their shopping behaviour) and in-store or through virtual appointments.
• Subscription boxes. Subscription boxes allow you to curate experiences for your customers. This also prompts them to go shopping again.
• Free gifts with purchase. You can show your customers that you care about them by giving them a small freebie with the purchase and making them familiar with new products that they will want to buy again.

7. Create a shopping experience versus a purchase transaction

When customers go shopping, they expect more than just an item they purchased; they look for a shopping experience. You should get creative and brainstorm some ideas to create a unique experience for your customers.

For example, if you have a boutique store, you can offer various stylist services. You can think about different ideas to make your customers' lives easier when providing products and services and implement those services into your customer retention strategy.

8. Leverage technology creatively

There are many different technologies through which you can build a local, loyal customer base. You can create a consistent brand experience between online shopping and personal store by using other apps.

There's a popular app called Experiences which lets you host classes, tours, events in your physical location through your online store. When your customers are in your store, they can book or check out new experiences through your app.

Summary: How to Retain Customers in 2021

As mentioned earlier, many brands focus on acquiring new customers rather than focusing on keeping existing customers. Keeping an existing base is as important as attracting a new customer base. So, try to put some effort into building relationships with current/past customers. As these people already know about you and your brand, it'd be easy to retain them. And you can even get referrals from them. Some of the customer retention you can follow:

1. Set realistic expectations early.
2. Develop a loyalty program.
3. Pay attention to customers’ questions.
4. Dig into the complaints.
5. Be active on social networks.
6. Target past customers based on their activity.
7. Use email to nurture relationships.
8. Market to customers’ interests.
9. Engage in social responsibility.
10. Be honest and transparent.

For a business to run smoothly, the payroll process must be streamlined and error-free.It is easy to streamline and optimize your payroll and other back-office processes within your SMB. Did you know that this can improve your cash flow?

Despite the fact that payroll involves money paid out by an organization, it is viewed as distinct from accounts payable because it involves both expenses and liabilities.

Although payroll is separate from accounts payable, you can use payroll to boost your cash flow just as you can by streamlining your accounts payable process. If you need further advice from a trusted accountant in Singapore on improving your payroll process, have a chat with us. Otherwise, do read on for our top 5 tips to handle your business’s payroll accurately and efficiently.

1. Be Aware of The Singapore Payroll Process

Make your payroll process a breeze by familiarising yourself with Singapore’s payroll management. This is what you need to know:

Wages Must Be Paid At Least Once A Month

Your employees’ wages include basic pay and allowances for work done under a contract of service. It does not include housing, food, travel allowances, pension, or retrenchment benefits.

Employees must be paid at least once a month, but employers can also choose to pay salaries at shorter intervals. Non-payment of wages is an offence in Singapore, and employees' wages will have to be made within 7 days after the salary period's end date.

Itemised Pay Slips Should Be Issued to All Employees

Under the Employment Act, all employers are required to issue their employees itemised payslips. This should include essential details including the date of payment, basic salary, overtime pay, allowance, salary period, and all deductions made. Hard or soft copies are acceptable, and failure to do so will lead to a fine.

Pro-Rate Your Employees’ Annual Leave and Salary

For incomplete work months, your employee’s wage and annual leave should be pro-rated in accordance with the contract. This means that your employee will only be eligible for the pro-rated portion of his wage for that part of the month that he worked.

Calculate Your Employees’ Overtime Pay

Overtime work is defined as any work done outside the normal working hours (excluding breaks). For overtime work, you will have to pay at least 1.5 to 2 times the hourly basic rate of pay. Your employees can only work up to 72 overtime hours in a month, and payment for overtime work should be made within 14 days after the salary period's end date.

Maintain Employment Records

You are expected to maintain two years of detailed employment and salary records for all your employees for tax purposes. For ex-employees, their records should still be kept for a year after their departure from your company.

Be Aware of Mandatory Contributions, Levies and Statutory Requirements

Stay compliant with the law by adhering to the necessary contributions, levies and statutory requirements. Other than Central Provident Fund (CPF) contributions, you will also have to make these monthly contributions:

• Skills Development Levy (SDL) that provides you with training grants when you send your employees for work-related training
• Ethnic funds to help the less privileged in the respective ethnic communities, such as CDAC, ECF, MBMF and SINDA
• CPF contributions for National Servicemen. This is applicable even when they undergo NS training periodically. However, employers are not required to pay NS men for the days they are away.
• Monthly levies for foreign workers with Work Permits

Comply with Statutory Reporting Requirement

Starting from the Year of Assessment 2017, the Inland Revenue Authority of Singapore (IRAS) requires employers to submit their employees’ income (IR8A) information to IRAS electronically by 1 March every year if they have:

• 10 or more employees under their employment during the entire year
• received notice to file their employment income electronically

Additionally, if you have foreign employees, you are required to seek tax clearance for your foreign employees by filing Form IR21 at least a month before your employee ends their employment, start an overseas posting, or depart from Singapore for three months or more.

In a nutshell, the payroll processing steps involve the following:

1. Setup of payroll
2. Processing payroll
3. Payroll payslip
4. Statutory submission
5. Filing annual report for individual income tax
6. Maintenance of employee payroll data
7. Year-end payments such as bonuses and the like

2. Set Up a Payroll Calendar

Having a payroll calendar in place allows your employees to understand when they will receive their salary. Additionally, it helps your payroll employees with the planning and execution of payroll tasks. You can take your pick from the payroll calendars available online, or simply create a spreadsheet or use an Office Suite program to make your own.

Some handy tips before you create your calendar:

• Base your payroll calendar on a regular calendar to act as your guide for certain periods in the year that you may need more lead time for payroll processing
• Use colours to differentiate dates including early time card deadlines as a result of a holiday
• Disseminate a copy of the payroll calendar to your managers and supervisors so they can pass it on to their staff

All fiscal year pay dates should be reflected in the payroll calendar, which makes processing of payment easier and eliminates your employee’s confusion on when they will get their salary. After you have created a calendar template, remember to save it in your cloud space or hard drive for updating as and when necessary.

3. Document Your Payroll Processing Procedures

Recording your payroll process is a crucial step in managing payroll. Since every step is being documented, it is easier for you to analyse and audit your payroll procedure and identify weak areas in the process. Once you have figured out a payroll procedure that works best for your company, document the steps and share them with your payroll staff to ensure that everyone is on the same page.

Upkeep a standard operating procedure for your payroll processing. This manual should detail all the steps in payroll processing, including the reporting and check handling procedures. It will also be beneficial for you to include instructions on ways to process payroll manually in the event of an emergency.

4. Make Use of Modern Technology and Automate Your Payroll

With the prevalence of modern technology, you can make use of available tools to manage your payroll processing procedures more efficiently. With a variety of payroll management software in the market, you can choose one that is most ideal to help you optimise your payroll functions.

Processing payroll requires a lot of time and money, and when executed manually, is easily prone to errors that can lead to severe penalties. Investing in a payroll software can help to automate the entire process for you, factoring in tax calculations, generating employees’ payslips, complying with legislation and giving you up-to-date information for end-of-year tax returns. Remember to streamline your payroll management process by using the latest software for higher accuracy.

5. Outsource Your Payroll

Tasks When it comes to running your own business, it is not easy to juggle everything from marketing to payroll management – we get it. Fortunately, you don’t have to struggle with everything on your own! We help automate administrative, accounting, payroll and tax-related work that all business owners have to deal with.

Instead of scrambling at the last minute, consider outsourcing to a trusted partner who will take care of your back-end administrative work. Details are important to us — only by paying attention and precisely following the process, can we see the bigger picture and spot opportunities to improve. Let our e-commerce accounting experts in Singapore handle everything from payroll, invoices, reports, and taxes while you grow your business.

From 22 July 2021, Singapore has reverted to Phase 2 (Heightened Alert), which means that many companies set up in Singapore will inevitably be affected. Fortunately, the Singapore Government will be cushioning the impacts of the harsher COVID-19 restrictions with a $1.1 billion support package.

Summary of Phase 2 Heightened Alert Support Package for SMEs

1. The Jobs Support Scheme (JSS) will provide enhanced wage subsidies to relevant sectors.
2. Privately-owned commercial properties will have their rent offset for half the duration of Phase 2 (Heightened Alert).
3. Extended temporary COVID-19 Recovery Grant for workers on involuntary no-pay leave
4. A part of food delivery costs through third-party logistics partners and food delivery platforms to be offset through a Food Delivery Booster Package.
5. Retailers will receive a one-off 80% support on qualifying service fee costs imposed by platforms including Shopee, Qoo10 and Lazada, capped at $8,000 through an E-commerce Booster Package

1. Enhanced Jobs Support Scheme

From 22 July to 18 August 2021, the JSS will be enhanced for sectors that are affected.

From 19 to 31 August 2021, the JSS support will be reduced to 10%.

How Do I Apply For The Support?

Employers are not required to apply for the JSS. For eligible employers, the Inland Revenue Authority of Singapore (IRAS) will notify them by mail to inform them of the support tier and the JSS payout amount payable to them.

2. Rental Relief

Under the Rental Support Scheme, government-owned commercial property tenants will receive an additional four-week rental waiver. This means government-owned commercial properties will have their rent offset for the entire duration of Phase 2 (Heightened Alert).

On the other hand, owner-occupiers and qualifying tenant-occupiers of privately-owned commercial properties will receive an extra two-week rental relief cash payout. In other words, Privately-owned commercial properties will have their rent offset for half the duration of Phase 2 (Heightened Alert).

However, the Ministry of Finance (MOF) has noted that many tenants gave feedback about how their landlords were not forthcoming with rental support and are looking into how rental obligations can be fairly shared among landlords, qualifying tenants and the Government.

How Do I Apply For The Support?

The details are still pending, and the Ministry of Law will announce more about this scheme.

3. Food Delivery Booster Package

With the impact of the stricter measures implemented on the food and beverage sector, Enterprise Singapore (ESG) has reintroduced the Food Delivery Booster Package in a bid to offset a portion of food delivery costs through third-party logistics partners and food delivery platforms for transactions placed between 22 July to 18 August 2021.

How Do I Apply For The Support?

More details can be found on the ESG website.

4. E-commerce Booster Package

From now till 16 November 2021, local retailers will also be encouraged to get onboard local e-commerce platforms with grant support through the E-commerce Booster Package extension.

Retailers will receive a one-off 80% support on qualifying service fee costs imposed by platforms including Shopee, Qoo10 and Lazada, capped at $8,000.

How Do I Apply For The Support?

Retailers can reach out directly to eligible e-commerce platforms including Zalora, Lazada, Qoo10, Mummys Market, and Shopee. Each retailer is allowed to apply for just one e-commerce platform. More details can be found on the ESG website.

By the way, we also help E-commerce companies sort out their accounting through a simple chat platform and keeping documents online. Drop us a chat to find out how to get accounting for e-commerce businesses done by experts.

Is There Support For My Workers Too?

For other workers affected by the stricter COVID-19 measures, the Government has extended the temporary COVID-19 Recovery Grant. Under this grant, those who were put on an involuntary no-pay leave will receive a payout of up to $700, while those who lost at least half their salary for at least a month as a result of the stricter safe management measures since 16 May 2021 will get up to $500 payout.

Recipients who are currently under the grant and continue to need extra help can also apply for a second payout for support.

How Do My Workers Apply For Their Support?

Eligible workers can apply for support through the Ministry of Social and Family Development (MSF) website here.

Need A Helping Hand During This Crisis?

We know how tough this period can be, but hang tough for there is light at the end of the tunnel.

Stay focused on growing your business, so your company can emerge stronger. Leave your accounting pain points to us, because we know that preparing financial statements yourself is a chore.  

We do affordable online accounting for busy founders, with a human expert who has your back and works alongside you to ensure your business prospers while being compliant. Get in touch with us today!

Have you ever wondered who pays for the free shipping when you shop online? If you are thinking of setting up your e-commerce store on platforms such as Amazon, WeChat or Lazada, let us share with you some of the ways you can offer free shipping profitably to your online customers. Turns out, it is possible to offer free shipping and have a profit margin at the same time.

To grow as an e-commerce company, you also need your paperwork and accounts to be settled so that you can deal with daily operations with peace of mind. To avoid scrambling around when it’s time to file for your returns, find out how accountants who know e-commerce businesses can help you with just that.

Why Offer Free Shipping?

In a 2019 report by Clutch, 77% of 500 customers were more likely to order an item if there is free shipping, while only 43% would buy it if shipping costs US$2.99. That means, more than half of shoppers would abandon their carts if they had to pay more for shipping!

Offering free shipping not only decreases online cart abandonment which translates to more sales and revenue, but it could also increase customer loyalty. Since more people are selling online nowadays on various platforms like Amazon, Wish, Shopee, Taobao, Lazada, eBay, etc., offering free shipping would be a differentiating factor for your e-commerce business.

It could translate to repeat purchases, word-of-mouth recommendations and positive reviews on the online marketplaces that you sell -even though it does not necessarily mean that you fork out extra expenses for free shipping.

5 Things To Consider Before Offering Free Shipping

Of course, it is not prudent to offer free shipping all the time. Especially if the item that you are sending is bulky, or when you are shipping across borders. Therefore, you need to consider these 5 factors before offering free shipping:

1. Average Order Value: The total amount purchased by your customer.
2. Average Order Size: The number of items that need to be shipped.
3. Product Dimensions and Weights: Measurements of items’ width, length, height and weight.
4. Shipping Rates by Carrier: The cost of shipping you are charged by your delivery partner or provider.
5. Shipping Radius: The distance the orders need to travel to be delivered.

If the item that a customer buys from your Shopee store, for example, exceeds the average order value or dimensions, you might not be able to offer free shipping. Listing these variables would help you make the most rational decisions for your shipping strategy.

Furthermore, having good shipping management tools would speed up the order fulfilment process and shipping. Shipping management tools like EasyShip and ShipStation automates tedious and error-prone shipping tasks by organizing packing orders, automating picklists, creating packing slips and tracking shipment processes in real-time. They help you compare the best carrier options so that you always get the cheapest shipping rates available in the market.

11 Ways To Offer Free Shipping Profitably

Offering free shipping profitably sounds like an oxymoron. It is not something impossible though. Sometimes it would be you or your customers who are paying for it or sometimes, this would be split, but ultimately when your customers reach the checkout page on your Amazon store, they would see ‘free shipping’.

Let’s see how you could offer shipping at low or no cost without hurting your bottom line:

1. Set Minimum Order Value

Setting a minimum order value that is attainable to your customers would encourage them to shop more. Find a value that is not too high that your customers wouldn’t even try to reach, but not too low that you lose money when you offer free shipping.

Display clearly on your shopping cart:

• How much do they need to spend to get free shipping;
• How close they are to qualify for free shipping after they start adding items to their cart.

Prompting the shopper each time he adds an item onto his shopping cart how much more he needs to spend to get free shipping would encourage him to spend more.

2. Include Shipping in Listing Price

Bill D’Alessandro, of Rebel CEO, a consulting firm, ran a test for a skincare product to see how offering free shipping converts web page visitors to buyers.

When customers view two options:

Option 1: $30 product cost + $5 shipping, and

Option 2: $35 product cost with free shipping

The conversion rate for option 2 was twice of option 1.

Including shipping price in listing price works well for items that are unique and not sold across multiple sites. You will recoup the shipping costs by offering free shipping when you incorporate the shipping price in the listing price.

3. Flat-Rate Shipping

You can apply a single flat rate for shipping to every order. For example, $10 for orders sent within Singapore.

Or, you can offer flat rate shipping according to shipping box volume. This requires a bit of planning. Assess which items your customers habitually purchase, and which items they purchase together. Fill the commonly purchased items together in an average-sized box and see how much space you have. You could then fine-tune your offerings, upsell and adjust your free shipping threshold to fill that space.

4. Offer Bundles

When shopping online on Wish, Lazada or SHEIN we may have come across bundles, or an offering of items grouped, usually at a lower price than if they were bought separately. This is a way that e-commerce sellers use to sell more products than their customers intended to buy and thus increase their profits.

Suggest product bundles at the landing or shopping page and remind them again at the end of the checkout process. This encourages customers to reach the minimum order value to be eligible for free shipping.

To illustrate, if you are selling household products, and customers purchase laundry detergent, offer them a bundle with softener and dryer sheets as a package option. You would have considered the shipping price when you offer the bundles. Your customer would likely be persuaded to opt for the bundles, which would increase your revenue or profits.

5. Free Shipping With Memberships

The most popular (and replicable) e-commerce membership program is Amazon Prime. Customers pay monthly or yearly fees to get into the Amazon Prime loyalty program to get free delivery on Prime eligible items. This costs about SGD 2.99/month in Singapore).

In theory, the membership fee and repeat business would make up for the shipping costs. If you offer free shipping with membership, this would ‘lock in’ your customers to keep buying from your e-commerce store since they are paying a monthly fee.

6. Use Ground Shipping

Oftentimes, ground shipping is the cheapest option. Customers do not mind trading in longer waiting times for free shipping. In a 2017 consumer survey conducted by Internet Retailer and Bizrate Insights of 2,815 U.S. consumers out of 10 shoppers are willing to wait longer for a free shipment. While air cargo would be faster, it is more expensive. Ground shipping reduces shipping carrier costs and gives you better margins as trucks and vans are used instead of aeroplanes.

7. Restrict High-Margin Items Only for Free Shipping

To offer free shipping profitably, offer free shipping only on products where you know the shipping cost is low and the product margin is high. By doing so, you could offer free shipping for those items for the long term, and this method is fairly easy to implement too.

Examples of high-margin low-cost products are fashion accessories and beauty products. They cost next to nothing when bought in bulk. Although this is not suitable for all e-commerce businesses, if you can get the items close to production prices, and set prices way above cost, you do not even need to charge for shipping but still gain profits. What you have to look out for instead are competitors selling the same items at lower costs.

8. Outsourcing Fulfillment and Shipping

Outsourcing fulfilment and shipping lets you concentrate on running your business instead of racing with time to pack and dispatch your customers’ orders. You do not need to set up your distribution centre if you outsource, saving costs for you.

By outsourcing, you can scale easily and quickly. Third-party logistics providers could offer you discounted shipping rates because they ship large volumes of orders. You could pass on these savings to your customers, and they could enjoy free shipping without cutting into your profit margins.

9. Offer Local Store or Drive-Thru Pickup

Another option where you and your customers would not have to bear shipping costs is working with local stores and provide curbside or drive-thru pickups as an option. This works best for e-commerce retailers who have brick-and-mortar shops, or even online sellers who sell from their warehouses or pop-up stores. The “buy online, pick up in store” (BOPIS) trend would only continue to grow as e-commerce grows. Signifyd reported that 43.7% of omnichannel retailers in Digital Commerce 360’s Top 500 offered curbside pickup in 2021, compared to just 7% at the end of 2019. Set the shipping rate automatically to ‘free’ if your customers select store pickups.

10. Limited-Time Free Shipping (e.g. Important Holidays)

Offer year-round free shipping only if you can afford to. If you can't, take advantage of the holiday seasons to boost sales and then return to paid shipping the rest of the year. Do consult our key e-commerce dates and events calendars for the UK., Singapore, and Hong Kong to see when to time your free shipping promotions.

11. Free Shipping for First Time Customers

Besides limiting the period for free shipping, you could limit the people who enjoy free shipping. Target first-time customers by creating a one-time use coupon code for them to shop on your online store. Shopee, for example, gives $10 off for a minimum spend of $20 for the first 250 new users signing up for an account between 6 June and 7 July 2021, combining this offer with the previous’.

Item Returns - Should They Be Free Too?

The caveat to giving free return shipping is that you would be likely to receive more returns. Thus, that might not be sustainable nor cost-effective for you as an e-commerce seller in the long run. What you could offer instead are either exact cost shipping or flat-rate return shipping. With exact cost shipping, customers pay the exact return fee, but it would add an extra step of verifying the price of return shipping. Flat-rate return shipping gives visibility to your customers on how much they need to pay when returning an item. It is also fairer for you because you would split the return cost with them.

Finally, continue to test these shipping strategies to see which works best for you. You could further work on these points too:

• Fine-tune your offerings and price points, compare with your competitors’.
• Evaluate whether your profit margins are healthy when you offer free shipping on low and high-profit margin products.
• Smoothen out your shipping processes to keep your costs low.
• Refine your target audience. Study your customers’ personas, get to know their interests, engage them, and take their opinions and feedback into consideration.
  Following these steps, besides being able to offer free shipping profitably, your business would most likely do well too.

ACRA will require you to submit your Register for Registrable Controllers by 30 June 2021. Previously companies just had to have the Register and update it regularly.

We explain what the Register for Registrable Controllers is and what a company needs to do to comply with the new rules. In case you need help of an experienced accountant in Singapore, drop us a chat.

What is happening?

By 30 June 2021, Singapore companies will have to submit the Register for Registrable Controllers to ACRA. Before, your company was only obliged to maintain it internally. The authorities had the right to request it and fine the company if something was wrong, but in reality that almost never happened. Now you will have to submit the Register to ACRA electronically and maintain it updated at all times.

Now you will have to submit the Register to ACRA electronically and maintain it updated at all times.

What is the Register for Registrable Controllers?

The Register for Registrable Controllers is a document listing all Controllers and Beneficial Owners of a company. It must contain all necessary information such as their names and ID details as well as information about their citizenship and places of registration for entities. All local and foreign companies as well as Limited Liability Partnerships must keep it.

Who are the Registrable Controllers of a company?

A Controller, is a person or a legal entity that has a “significant interest” or “significant control” over your company. The Controllers have an obligation to provide their data for the Register.

Controller with significant interest is a person or a company who

• has over 25% of the shares
• has over 25% of the total voting power
• has a right to over 25% of the capital or profits in a company without share capital

Controller with significant control is a person or a company who

• can appoint or remove directors with a majority of voting rights
• has over 25% of the voting rights
• has significant influence or control over the company

What information goes on the Register for Registrable Controllers?

For people

• Full name
• Aliases, if any
• Residential address
• Nationality
• ID or passport number
• Date of birth
• Date of becoming a Controller of the company
• Date of ceasing to be a Controller, if applicable

For business entities

• Name
• Unique entity number, if any
• Registered office address
• Where the company was registered and under which law
• Name of the authority that registered it
• ID given to the company by the registering authority
• Date of becoming a Controller of the company
• Date of ceasing to be a Controller, if applicable

When should I prepare and update the Register for Registrable Controllers?

Once you have incorporated, you have 30 days to prepare a Register for Registrable Controllers. If some data changes, you need to request the details from the controllers, and once you received them, you have just 2 business days to update the Register.

Does my company have to submit a Register for Registrable Controllers?

Most likely, yes. All Singapore companies, foreign companies and Limited Liability Partnerships (LLPs)  have to maintain a Register for Registrable Controllers, so everyone will have to submit it. That includes dormant companies and businesses going through winding up, striking off, receivership or judicial management.

Who is exempt from submitting the Register for Registrable Controllers?

In most cases, companies that have already provided this data are exempt:

• Public companies and LLPs listed on approved exchanges in Singapore and abroad
• Financial institutions
• Government-owned companies and LLPs
• LLPs where all partners are exempted
• Subsidiaries of the exempted companies

Will the information about the Registrable Controllers of my company now be public?

No, these records will not get public, your company and its Controllers are protected from that. But ACRA and other government agencies have a right to access it to administer or enforce related laws. For example, to investigate money laundering or financing of terrorism offence.

What if I don’t have all the details about the Controllers of the company?

According to the Companies Act, you are required to “take reasonable steps” to identify who the Controllers of your company are and get their details. It means that you have to send notices to:

• any person who is a known Controller;
• any person who is likely to be a Controller;
• any person who knows of a Controller or is likely to know.

ACRA has a specific format for the notices. You or your Corporate Secretary are supposed to send them out to directors and company members every year if any of the details on the Registrable Controllers of your company are missing.

The people receiving notices have obligations, too. The Controllers have to state their particulars and provide any data they have on other Controllers. People who know of Controllers have to state so and provide whatever data they have.

What if the Controllers don’t respond?

Make sure your Corporate Secretary keeps a track of all notices sent out as they prove your company took the necessary steps. If there is no answer, you don’t have to chase them. Add whatever details you have of the addressee and a note that he or she never confirmed them. You have to wait 30 days for a response then you have 2 business days to add the data.

Why are they changing the rules?

The idea behind the Register for Registrable Controllers initially belongs to the Financial Action Task Force (FATF), an organisation dedicated to fighting financial wrongdoing. Back in 2016, FATF urged Singapore to come up with a procedure to prevent money laundering and financial terrorism. As a result, ACRA adopted a new regulation requiring businesses to keep a track on all the controllers — people or companies that own or control the end money. The policy obliged Singapore companies to maintain Registers for Registrable Controllers and imposed a fine of S$5,000 on any entity that failed to do so. However, the document was an internal one and ACRA was not actively enforcing it.

Some of the companies just dropped the ball, others never followed up with their Corporate Secretaries to see if this was being handled. Then there are some that would prefer to keep this information obscure.

The new regulation requires Singapore companies to submit the Registers to ACRA. It will force every entity that has been ignoring the rules to comply.

Key Takeaways

• The Register for Registrable Controllers is a document listing all Controllers and Beneficial Owners of a company.
• Singapore companies, foreign companies and LLPs will now have to submit it the Registers to ACRA.
• The records will not be publicly available. However, government agencies will be able to access the information.

Singapore's Phase 2 and 3 periods of heightened alert have undoubtedly affected many businesses, especially Small- and Medium-sized Enterprises (SMEs). As such, Finance Minister Lawrence Wong has announced additional support measures for these Singapore-registered companies on 5 Jul 2021.

The Singapore government has acknowledged that access to credit can be critical to many SMEs to help them survive the crisis, and will thus be extending financing schemes. The Enhanced Enterprise Financing Scheme — Trade Loan and Temporary Bridging Loan programme will be extended for 6 more months, from 1 Oct 2021 to 31 March 2022.

For more customised advice in getting your company’s finances in order, talk to our experienced accountants in Singapore. We also assist companies with their e-commerce accounting tasks. Otherwise, do read on to find out more about the extended loan deadlines.

How Will These New Measures Affect Small- and Medium- Sized Enterprises?

There will be a six-month extension of the Enhanced Enterprise Financing Scheme - Trade Loan and Temporary Bridging Loan programmes from 1 October 2021 to 31 March 2022.

This sum will amount to S$1.2 billion, drawing from a reallocation of monies that were previously budgeted for. Half the sum will come from underutilised development expenditure as a result of delayed projects due to COVID-19, and the remaining will be borrowed from The Deep Tunnel Sewerage System and the North-South Corridor projects, capitalising their development expenditure from the fourth quarter of 2021. Since the start of 2021, these schemes overseen by Enterprise Singapore have supported more than S$22 billion in loans to over 25,000 enterprises -- with 99% being SMEs.

Enterprise Financing Scheme – Trade Loan (EFS-TL)

This scheme was previously known as the Loan Insurance Scheme Plus and supports businesses in need of financing for trading, especially in the current climate of longer payment cycles and slower business activities.

Enhanced in April 2020, this scheme adjusted its maximum loan quantum from $5 million to $10 million and increased Government risk-share from 80% to 90%. The enhancement will be applicable to new applications made from 8 Apr 2020 to 31 Mar 2021. For applications pending approval from Private Finance Initiative (PFIs), organisations are advised to reach out to their PFIs to check on eligibility.

On 12 Oct 2020, it was announced that the EFS-TL will be extended from 1 Apr 2021 to 30 Sep 2021. Under this extension, the Singapore Government’s risk-share will be lowered from 90% to 70%, with the maximum loan quantum remaining at S$10 million.

On 5 Jul 2021, it was announced that the EFS-TL will be further extended for six months, from 1 Oct 2021 to 31 Mar 2022, under the same framework.

Temporary Bridging Loan Programme (TBLP)

Introduced in Budget 2020, the Temporary Bridging Loan Programme (TBLP) provides businesses with additional working capital. This scheme was previously extended for an additional six months, from 1 April to 30 September 2021.

Enhanced in April 2020, this scheme adjusted the Government risk-share to 90%. The enhancement will be applicable to new applications made from 8 Apr 2020 to 31 Mar 2021. For applications pending approval from Private Finance Initiative (PFIs), organisations are advised to reach out to their PFIs to check on eligibility.

On 12 Oct 2020, it was announced that the TBLP will be extended from 1 Apr 2021 to 30 Sep 2021. Under this extension, the Singapore Government’s risk-share will be lowered from 90% to 70%, with the maximum loan quantum lowered from S$5 million to S$3 million in a bid to calibrate support extended to businesses as the economy progressively recovers.

On 5 Jul 2021, it was announced that the TBLP will be further extended for six months, from 1 Oct 2021 to 31 Mar 2022, under the same framework.

Emerge Stronger From The COVID-19 Crisis

Focus your energy on growing your business, so your company can emerge stronger.

Client: Clickshare Media Ventures (CSMV)

Name: Dowan Kim

Business Name: Clickshare Media Ventures (CSMV)

Line of Work: E-commerce

East river Package: Accounting & Tax - Unicorn, Unlimited Corporate Secretary

Member Since: 1 August 2019

Helmed by Dowan Kim, Clickshare Media Ventures (CSMV) is one of the fastest-growing e-commerce companies in Southeast Asia. In just 3 years, CSMV has built itself into a powerhouse 7-figure business with a global portfolio of direct-to-consumer e-commerce brands, with offices in Singapore, Philippines, and the United States.

Through the years, CSMV has built a vertically integrated e-commerce operation that covers manufacturing, logistics, distribution, and sales.

By providing a seamless discovery and purchase experience for users, CSMV has registered three consecutive years of triple-digit growth and is a market leader in each of the segments in which it operates.

Today, CSMV has 3,000,000+ touch points with customers in key markets across the United States, Canada, the United Kingdom, Australia and New Zealand every month.

By providing a seamless discovery and purchase experience for users across a comprehensive line of products, CSMV has registered three consecutive years of triple-digit growth and is a market leader in each segment it operates.

From Working at Google to E-commerce Entrepreneur

Dowan Kim started CSMV as a side-project in 2018, while working full time as a tech executive at Google. In his role in advising small businesses on their business strategy, he saw that he too could fulfill his dreams of being an entrepreneur. He noticed the macro shifts in consumer purchasing behavior from traditional brick and mortar shopping to progressively more online shopping and saw his opportunity to carve out a niche in the industry.

Today, CSMV has grown to be one of the largest advertising clients for Google and Facebook in Southeast Asia. Due to their relentless focus on value and customer experience, the industry quickly took notice. It wasn’t long before major publication networks such as Good Morning America, NY Post, TMZ, and Mashable came knocking to feature their products.

When Juggling Operations Took a Toll

While working full time and starting a business was extremely gratifying, Kim was starting to feel the stresses of building his dream.

“I was trying to stay on top of everything but it took a toll on me. My side-hustle was scaling quickly and on top of that, I had a demanding full-time job. I overstressed my body, and ended up in the hospital with heart damage,” recalls Kim.

“To grow sustainably, I realised I needed systems and processes in place. Even as the organization grew to 17 employees, we felt we didn’t have the critical infrastructure to scale. Having a committed partner to handle tasks like accounting was important, and I needed to be assured that the work would get completed on time, but most importantly without error. That’s when we found East river. While the journey hasn’t been without its issues, they take feedback remarkably well and the leadership is quick to take action.”

According to Kim, using East river has saved him a whopping 40h a week. What Kim appreciates the most is that East river allows him to save time and remove manual paperwork; while having the ability to connect with a dedicated specialist when he has a specific question.

Advice for All Entrepreneurs

Kim knows that being an entrepreneur can be a lonely path to take so he had this to share with those who have been thinking of jumping into entrepreneurship.

“Take the first step. Objects in motion stay in motion. Too many entrepreneurs get bogged down in the details and try to perfect their idea or product before launching. In my journey, even when I thought I had the best plans in place, I’d have to regularly pivot and adapt to market needs. Rarely do you get it right the first time. Take a step every day, and look for progress, not perfection. There’s no question that you’ll mess up, but mess up in a strategic way and take away the hard-fought lessons, and apply them in a disciplined, structured way.”

Starting your own e-commerce business can be both daunting and exciting. On top of developing your own branding, building your online store and marketing, one of the most crucial tasks you need to settle is to choose an online payment gateway.

Although this may sound like an insignificant step, your choice of a payment gateway can turn out to be a game-changer. The growth of online payment gateways has been fuelled by reasonably-priced smartphones, a substantial population of tech-savvy young adults, as well as the Singapore government and telco operators’ efforts to expand and enhance high-speed wireless networks.

In fact, a lack of means to pay can be costly, as your digitally savvy customers may cancel their purchases in the event their preferred mode of payment is not available. For e-commerce business owners who understand today’s connected consumer, your choice of a payment gateway can help you stay ahead of the competition. Before we begin telling you how to do it all by yourself, if you want to save some time, you can always call on us for our financial and accounting services!

Read on to find out how you can make payments easy for your online customers.

What Is An e-Commerce Payment Gateway?

Think of payment gateways as how to collect payment from customers online. Simply put, the point-of-sale terminal at your physical retail store, only better. It can authenticate and authorise payment between your online store and your shoppers, using front-end technology to convey shopper information to your merchant-acquiring bank to process the transaction. Your shoppers can pay via credit cards, debit cards and other modes of payment in a fast and secure manner.

Before you select your preferred online payment gateway, ask yourself if you would prefer to use your own merchant account or utilise a payment gateway account through a third-party merchant.

What Is A Merchant Account?

A merchant account is where your money is deposited after your shopper has successfully completed an online transaction. However, a standalone merchant account is not enough to complete online transactions and will have to be complemented with a compatible payment processor to enable credit card payments. Take, for example, if you create a merchant account with DBS Bank, you will have to pair it with a payment gateway like eNETS.

What Is A Third-Party Merchant?

A third-party merchant acts as a payment gateway with a merchant account built-in, which means that you are not required to create one yourself. In other words, a third-party merchant allows you to receive your online payments without the need for a merchant account with a local bank. Third-party merchants also offer competitive rates and can be especially useful for your small business if resources are limited.

Should I Set Up a Merchant Account Or Go For A Third-Party Merchant?

As e-commerce continues to grow, many businesses are choosing to use third-party merchants over merchant accounts to handle their online payments.

Top 10 Payment Gateways to Consider

1. eNETS

For merchant accounts to be paired with a payment gateway, eNETS is one option. Since this payment gateway will need a bank account under your business’s name, you are required to create a merchant account where your shoppers’ payments get deposited.

While creating a merchant account can lower transaction fees, it might be challenging to integrate into your e-commerce store and may require higher implementation costs as a result of monthly fees and setup. Furthermore, creating a merchant account also requires a longer lead time to implement and could take between two to six weeks to completely integrate with your online store.

eNETS is one of Singapore’s most trusted and leading payment gateways, known for its relatively competitive transaction fees in comparison to other service providers.

2. PayPal

This reputable global payment gateway should be a familiar name by now and is supported by popular e-commerce platforms including Shopify and Woo-commerce. With nearly 400 million worldwide active accounts, this global leader accepts a variety of credit cards and debit cards, along with seller protection, 24/7 fraud monitoring and even two-factor authentication. The two common options include PayPal Standard and PayPal Express.

PayPal Standard is your usual checkout process that requires your shoppers to input their information on your site before they get redirected to PayPal for their credit card payment. On the other hand, PayPal Express makes the checkout process a lot breezier by enabling shoppers to simply log in with their existing PayPal account, eliminating the need for shoppers to key in their shipping or billing information.

PayPal is a great option for those thinking of an international expansion since it supports 25 currencies and is available in over 200 countries. However, take note that PayPal charges high transaction fees of 3.99% plus a $0.50 fixed transaction fee, for monthly sales of up to $5000. International sales will have a 4.4% incurred, plus a fixed fee.

3. PayLah

One of Singapore’s most well-received local payment applications, DBS PayLah! can help you reach out to more local customers. This platform debits the payment directly from your shopper’s DBS account, resulting in quick, fuss-free payments. It can be easily integrated into your e-commerce platform and allows for omnichannel payments. However, this option can be costly, with a one-time setup fee of $800, 3% fee on credit card and debit card transactions, as well as an annual fee of $1,000.

4. hoolah

With the buy now, pay later mode of payment gaining popularity in Singapore, hoolah allows shoppers to pay one-third of the full cost upfront, while the rest are paid via interest-free instalment plans. However, merchants can receive the full transaction amount within four days, making this option perfect for new e-commerce business owners. Credit card and debit card payments are accepted, and hoolah can be easily integrated into your e-commerce website.

5. Stripe

A relatively new player in the Singapore e-commerce landscape, Stripe was launched on 20 September 2016. However, it is known to be trustworthy and highly flexible, used by bigwigs including Grab, Deliveroo and Kickstarter. Stripe is also appropriate for startups and small businesses, with a transaction fee of 3.4% on the total amount of sale, plus a $0.50 fixed transaction fee. Stripe provides both one-time payment and recurring payment options, and can even support more complex billing models depending on your business needs.

6. GrabPay

Southeast Asia’s popular ride-hailing app offers a proprietary online payment gateway in Singapore -- GrabPay. In order to use GrabPay, you will be required to integrate this with your Shopify store via the third-party payment processing system Strip.

GrabPay provides an incentive for your shoppers to make payments via credit cards associated with their Grab account to earn Grab Points. Alternatively, your shoppers can also pay via Grab Points. GrabPay is ideal for new business owners since it sends payments instantly, allows for easy checking of transaction details, and offers full encryption.

7. Braintree

Braintree is part of the PayPal family, so you can leverage the PayPal network and next-generation technology to reach more buyers. Braintree offers a modernised and optimised payment experience to drive higher conversion. Similar to Stripe, Braintree provides both one-time and recurring payment options, at no additional cost on top of its standard pricing. Transaction fees are 3.4% on the total amount of sale, plus a $0.50 fixed transaction fee.

8. SmoovPay

This local payment gateway offers very competitive rates, with a transaction fee of 2.9% on the total amount of sale, plus a $0.25 fixed transaction fee. If Singaporean shoppers are your target audience, this option could be feasible for you. Additionally, site integration is a fuss-free process and can be settled in as quickly as 15 minutes with SmoovPay’s plug-ins and customised tools.

9. WorldPay

This versatile payment processing service offers competitive rates at as low as $35 a month for a basic Gateway Standard account. WorldPay supports recurring billings, as well as a range of credit cards and debit cards at a transaction fee of 2.75% on the total amount of sale, plus $0.37 fixed transaction fee.

10. eWay

More than 26,000 companies use eWay, and it is unsurprising given that this payment gateway allows for easy site integration and accepts a range of credit cards and debit cards at a transaction fee of 3.4% on the total amount of sale, plus a $0.40 fixed transaction fee. Moreover, it provides 24/7 technical support, which is especially helpful for new e-commerce business owners.

Checklist For Choosing A Payment Gateway In Singapore

Choosing a payment gateway can eventually affect your online store’s sales, so here are some considerations:

Need additional support?

If the payment gateway selection process already sounds overwhelming to you, save yourself the headache when it comes to paperwork so that you can grow your business.  

Bid your accounting woes goodbye and leave it to our e-commerce accounting experts. We show the profitability of every line & channel by consolidating numbers for each SKU, product group, and market, and show you where your money comes from.

Furthermore, we know how to read documents from any platform including Amazon, Stripe, and any other platform’s statements, automatically convert them into books, and produce reports and tax returns.

We know you can do it all on your own, but you simply don’t have to!

As the pandemic gradually transitions to an endemic, the Monetary Authority of Singapore (MAS) has announced the 'final extension' of relief measures for small and medium-sized enterprises registered in Singapore affected by the COVID-19 situation to resume full loan repayments.

This extension is catered to those who continue to struggle with cash flow.

Relief Measures SMEs Can Apply For

The initial deadline to apply for these reliefs was 30 Jun 2021. The application window is now extended to 30 Sep 2021.

The available relief measures include:

• SME business loan tenures for debt consolidation plans to be extended up to 5 years
• Outstanding balances can now be converted to term loans at a reduced interest rate
• Mortgage instalment repayment plans can now be reduced

SME Loan Deferment

From now till 30 Sep 2021, eligible SMEs under the following schemes can have the option to defer principal payments on secured loans by up to 80 per cent:

• Extended Support Scheme - Standardised
• Temporary Bridging Loan Programme
• Enterprise Singapore’s Enhanced Working Capital Loan Scheme

Eligible SMEs are those in the Tiers 1 and 2 sectors, including:

• Aviation and aerospace
• Hospitality
• Tourism
• Built environment
• Conventions and exhibitions
• Qualifying retail outlets
• Licensed food shops and stalls
• Land transport
• Arts and entertainment
• Marine and offshore

From 1 Jul to 30 Sep 2021, SMEs in the Tiers 1 and 2 sectors that are not currently involved in the scheme can apply to do so.

For SME borrowers with more than one lender, they will be granted a 6-month extension to apply for the Extended Support Scheme - Customised. This scheme facilitates the restructuring of a borrower’s loans over several financial institutions. With the extension from the current 30 Jun deadline, borrowers will have until 31 Dec 2021.

According to the MAS, this is expected to be the last extension of the government support for SME.

Work Out Longer Term Repayment Solutions

If you think you are unable to return to full loan instalment repayments by the end of the relief periods, you should speak to your lender in advance to work out longer term repayment solutions. If you need help or advice, do not hesitate to ask us.

Photography may not spring to mind when one thinks of business but it can be a powerful way to accelerate your online sales. In this article, we’ll share some top tips for e-commerce photography that could have a direct business impact for entrepreneurs - whether you want to set up an online shop or bolster an existing one.

By the way, did you know that there are benefits to registering a company in Singapore before setting up your e-commerce business? Talk to us to find out if you need to formalise your company.

Cater to the Right Audience Mindset

Before we dive into tips and technicalities, let’s start with what keeps your business in business: Your customers.

E-commerce photo editing plays an important role for two distinct online audiences, which we’ll represent with 2 characters:

Limited time & intent-driven Lauren

Lauren goes online when she has a mission that your product could help them solve. The role of photography for someone like her is to offer clarity, detail and practical info that gives her the most direct route to that checkout button.

Unlimited time & escape-driven Danny

Danny’s a “window shopper” who browses the virtual halls of whatever strikes their fancy whenever inspiration strikes, often jumping between categories. For him, photography should entice, persuade, or convince him to stop browsing and click “Buy”.

Tip #1: The Best Camera for E-commerce Pics

Your equipment is a tool to showcase your products. It’s an extension of your brand so be willing to pay for a quality camera (or even a photographer) who shoots with one. There’s also a wealth of extremely proficient phone cameras out there, which are just as effective for e-commerce photography if you apply the right techniques.

While you plan the setup of your storefront, our expert team can handle accounting, taxes and reports for your e-commerce business.

Tip #2: Apps & E-Commerce Photography Editing Software

You know your business best, so don’t be a Danny in this case. Decide what necessary editing could serve to improve your bottom line and then seek the software that specialises in that. Some require a subscription fee or are limited to specific operating systems, but lots are free.

Here are just a few free options at a glance:

• Snapseed
• BeFunky
• Photoshop Express
• Lightroom
• Canva
• STORE Camera
• iPiccy
• VSCO
• Pixlr

Tip #3: Shoot Smart Photos from the Start

Update or photograph as many e-commerce products as possible in one go. Doing it in batches could reduce your shoot budget and mean the images (and their differences) are less likely to be jarring to Danny who’s meandering through your product catalogue.

If you’re pressed for budget or time restrictions, you could approach the image overhaul of products on a category-specific or themed-basis. That way, you can work through each according to your wallet and timeline (while you work your photography magic behind the scenes).

Tip #4: A Balance of Looks & Logic

Make what you’re selling be the hero. Don’t let filters, effects or app extras detract from the focal item. Remember, a lawnmower may not scream visual appeal or Pinterest board goals, but for someone like Lauren who’s looking for something specific, it’s all she wants to see. Give yourself permission to lose the fluff where it matters.

Here are a few things to keep in mind to give your e-commerce photography a sense of relative consistency:

• Contextual size anchor (i.e an object next to it)
• Not too many props or scenic cues that the utility is lost or focus detracted
• Lighting source and shadows not to hinder features
• Editing enhancements (contrast / brightness / highlights/ colour distortion etc)
• If you’re using a tripod, keep it at the same height
• Stick to a couple of key angles (eye-level, top-down, slanted, low angle)
• Rely on presets that enhance what you’re showing

Tip #5: E-commerce Image Galleries

Here are a few considerations to enhance the way Danny and Lauren scroll through your e-commerce product galleries:

• Number of images: It’s common practice for most e-commerce platforms to allow for single product galleries with between 5 - 10 images or photos.
• Arrangement of images: Plan the order of your photos when you upload so it makes sense (i.e before close-ups of textures or materials start with a full view)
• Selection of images: Use your discretion to add the must-haves for Lauren and the nice-to-haves for Danny.
• Quality of images: If something tactile like upholstery or even paint, ensure your gallery pics are easy to zoom in on or even feature close up of NB features. Shoot high res, then crop.

Tip #6: Considering Context and Photo Crops

Building on tip 4, let’s look at how the context you provide in each pic adds functional value. Before you hit upload, use the list below as a guide to making sure you’re appealing to the Dannys and the Laurens out there and helping them imagine how what you’re offering can fit into their homes, lives or lifestyles:

• Show item in the right context: A kitchen knife shouldn’t be shot on the beach but it could be a useful shot on a cutting board.
• Humanise it: It’s not imperative but showing the product with a person, on a person or relative to a lifestyle setting is an effective way for e-commerce to resonate with it.
• Support with specs: Fashion e-commerce that relies on models should be supported by written descriptions (i.e model wears size Large, model wears size 38) so the shopper can consider it relative to their needs.
• Crop comfortably: Image gallery sizes may vary across platforms and even display differently across devices. To stay safe and avoid pics getting cut off, allow a “safe zone” around your image.

Tip #7: Update, Optimise, Evolve (and Repeat)

Whether your product catalogues are updated, expanded or streamlined toward a niche, all e-commerce business owners should be open to maintenance. This doesn’t need to be complicated or even require new product photos. Consider updating the product title or even adding a disclaimer to the item description.

Some examples of instances where this is useful:

• When a specific colour is no longer in production (featured for reference only)
• When a new item has been added to an existing range
• When a product that’s discontinued appears alongside others still available
• When items are on sale or discounted

This helps manage Lauren’s expectations so she doesn’t land up frustrated or click on a search result that leads to a dead end. It also allows Danny to easily spot visual cues that could sway a final decision or catch his attention during his retail therapy session.

Tip #8: Mobile-first Photography Principles

Most people shop on their phones. It’s not a surprise. It’s second-nature. Anticipate the need for responsive layouts (across devices) but try to cater to mobile-centric design principles from the start, such as:

• Allow easy “pinch to zoom” functionality
• Make it easy to toggle or swipe through pics
• Make it clear how many pics are available to view
• Allow your photos to scale appropriately without losing context

A Little Less “New” and a Little More “Normal”

Our post-covid business world that’s seen a meteoric rise in digital commerce and as the numbers increase in this competitive landscape, customer expectations also soar. Finding the right camera to shoot e-commerce product photos, knowing what software to use and keeping everyone from Danny to Lauren top of mind is sure to enhance your virtual storefront to stand out in this “new normal”.