Amazon FBA Singapore: What should you know?

If you’re new to Amazon, or an existing Amazon seller looking to expand into the Singapore market, you may be wondering how Amazon FBA (Fulfilled By Amazon) works in Singapore.

This guide covers all you need to know including an overview of the current online shopping market in Singapore, how Amazon FBA works, and what fees you’ll need to think about before you get started.

We’ll also introduce the Wise multi-currency account as a smart way to get paid when using Amazon’s international services. Withdraw your Amazon funds to Wise, and switch to the currency you need online for a low, transparent fee, using the real mid-market exchange rate. That’s the same rate you’ll find on Google - and means you can save significantly on currency conversion costs.

Learn more 📖

Amazon FBA in Singapore

Firstly, let’s talk about why selling on Amazon in Singapore may be a good move for your business.

Singapore has extremely high internet penetration, at 88% in January 2020, and growing. There are also a very high number of mobile users, with almost 1.5 mobile connections per person in Singapore in 2020¹. It’s no surprise, that in a country where life moves fast and everyone is already online, that ecommerce is big business.

However, Amazon is not the biggest ecommerce platform in Singapore. In the second quarter of 2020 Amazon was only the 4th biggest platform by visit frequency, after the marketplace services which have come to dominate the Asian market, such as Shopee and Lazada.

Here’s the rundown of the 10 biggest ecommerce sites in Singapore by visit frequency (including the monthly number of visits, in millions):²

• Shopee - 10.88
• Lazada - 8.57
• Qoo10 - 7.45
• Amazon - 3.65
• EZBuy - 1.68
• Courts - 1.17
• Zalora - 0.94
• eBay - 0.87
• Forty Two - 0.33
• Reebonz - 0.33

So, why the interest in Amazon?

The answer here is simple. Amazon only launched in October 2019³, so the figures above represent less than a year of presence in Singapore. Lazada, on the other hand, was founded in 2012, and Shopee in 2015. Given their headstart, Amazon is making swift progress against its competitors.

Opening an Amazon store in Singapore makes good sense as it’s a growing platform. Getting in early will reap rewards as the customer numbers continue to go up. And once you’re established, you can use the Amazon FBA service to expand beyond Singapore to other markets served by Amazon.

Over 60% of consumers in key ecommerce markets globally start their product search on Amazon rather than using a search engine⁴. That means a simple, and early way to connect with new customers around the world. What’s not to love?

Amazon FBA fees in Singapore

The fees you pay to use Amazon FBA will depend on where in the world you're selling. If you’re based in Singapore and using FBA to reach the US market, for example, you'll need to check the Amazon US fee schedule⁶ - and if you’re looking to sell from the US to Singapore, you’ll need the Singapore price list⁷.

There’s a helpful calculator on the Amazon website which lets you estimate the fees for using the services you need from FBA, which is a good place to start.

As an example, let’s take a look at some of the key fees for using Amazon FBA to fulfil orders here in Singapore:⁷

Use Wise to cut currency conversion fees when you sell on Amazon

If you’re selling to customers around the world, you need a smart way to accept payments in different currencies. Opening a Wise multi-currency account can help you save money on currency conversion costs, connect with more customers, and improve your profits.

Open a Wise account online, and you’ll get your own unique local bank details for a range of countries and currencies, including Singapore, US and Australian dollars, euros and British pounds. Sell on Amazon using these currencies, and you can then use your bank details to withdraw your balance to your Wise account for free. Hold or spend your money, or convert it back to the currency you need using the mid-market exchange rate. You’ll only ever pay a low transparent fee, which can mean you make significant savings.

See if you can save money, and build a better Amazon business, with Wise.

How does Amazon FBA work

Here’s a simple look at FBA works and how to get started:⁸

• Set up your Amazon account and create product listings, showing your goods to their best advantage
• Make sure your products are ready to be received by customers
• Send all your goods to the Amazon fulfilment centre you’re using
• Amazon picks, packs and delivers items on your behalf as sales come in
• You’ll also benefit from Amazon’s customer service support, 24/7, to keep your clients happy

Amazon FBA is a great way to sell online if you don’t have the space - or don’t want the hassle - of storing your own items. You don’t need to worry about packing products and getting them to the post office, either. Because you can use the FBA service around the world, this is a smart way to get into a new market hassle-free. ⁹Learn more about how dropshipping with Amazon can work, here.

As an extra bonus, Amazon FBA sellers can access the 2-day delivery service for free, which may also be a great selling point for your products versus competitors.

Depending on where in the world you’re selling you might even be able to use Amazon FBA to fulfil orders placed through other channels. For US sales, for example, you can have Amazon pick, pack and send orders placed via a range of different platforms, thanks to multi-channel fulfillment.¹⁰

Amazon is a growing platform in Singapore, with an established presence already in many other markets. Whether you’re in Singapore and looking to use Amazon to sell locally or abroad - or are considering expanding your existing Amazon business into Singapore - using FBA could be a solid choice. You’ll reduce the administration associated with selling online significantly, which gives you more time to spend focusing on growing your business. You’ll also be able to rest easy knowing that FBA is keeping your customers happy, with fast fulfilment and service support.

Of course, if you’re thinking of using FBA you need to think about the costs involved to make sure you can protect your profit margins. Take a look at the small print, and also consider using a Wise multi-currency account as a smart way to cut the costs of selling internationally, and allow you to target new markets around the world without the high costs.