Ecommerce Booster Package – which is the best platform?

Launched by Enterprise SG in 2nd April 2020 to help local SMEs migrate their business online, the Ecommerce Booster Package allows you set up shop on one of the four participating e-commerce platforms.

So…

Which is the best e-commerce platform for the E-commerce Booster Package?

Ultimately, your choice should depend on the preference of your target audience.

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If you are looking to take advantage of the package, you have the option of working with one of the following platforms: Amazon, Lazada, Qoo10 or Shopee.

Some statistics to consider

According to iPrice, here’s the monthly web visitors of each platform (data from Q1 2020):

• Amazon: 2,833,300
• Lazada: 7,786,700
• Qoo10: 6,646,700
• Shopee: 5,963,300

According to Singapore Business review, Lazada and Shopee are the most popular e-commerce platforms in South East Asia.

What to expect in the package?

Participating platforms are offering special programs that allows SME retailers to make use of the E-commerce Booster package to start selling online.

As such, their programs tend to include the following:

• content creation services (i.e. photography, product listing, copywriting),
• marketing credits,
• shipping credits,
• platform usage training,
• and more.

Here’s a detailed comparison table of the programs offered by participating e-commerce platforms:

Lazada vs Shopee vs Qoo10 vs Amazon

	Lazada	Shopee	Qoo10	Amazon
Packages offered	3 packages to choose from. [see here] Cost starts from $500 after subsidy.	2 packages to choose from. [see here] Cost starts from $153 after subsidy.	2 packages to choose from. [see here] Cost starts from $300 after subsidy.	Only applicable for their Professional Seller Plan
Onboarding	Yes	Yes	Yes	Yes
Content Production	Yes Basic tier includes content production for 20 SKUs.	No	Yes Basic tier includes content production for 50 SKUs.	Yes
Marketing	Yes. Basic tier includes $2500 worth of marketing credits.	Yes. Basic tier includes $150 worth of Shopee MyAds, $1200 worth of Seller Ads and $30 worth of Flash Deals promotion. Packages also include ‘exposure on microsites’ and ‘social media marketing’.	Yes. Packages come with $500 marketing credits.	Yes. Free Marketing to Amazon Singapore’s marketing spaces and external channels that link back to your Amazon.sg store.
Registration fee	Nil	Nil	$100 for seller account. $500 for Qstore.	Waived till 31st Dec 2020.
Subscription Fee	Nil	Nil	Nil	S$29.95 monthly (before GST). Waived till 31st December 2020.
Commission Fees	Lazada Seller: No fees LazMall Sellers: Tiered rates (LazMall is for brand owners or authorised distributors) (*Read here)	Nil	7% - 12%, depending on Seller Grade and Item Price. (*Read here)	Based on category of items. (*Read here)
Transaction Fees	2%	2.14%	Nil	Nil
Other Fees	Nil	Nil	Nil	Refund administration fee: S$5.35 or 20% of referral fee with GST, whichever lower. Closing Fee: S$1.07 (for media items only)
Shipping Options	SingPost, Ninja Van or Fulfilment by Lazada	Speedpost Economy, Ninja Van	Qxpress	Handled by merchant or Fulfilment by Amazon (FBA)
Shipping Fees	SingPost and Ninja Van shipping: S$2.49 Flat Rate (On top of what customer pays). Fulfilment by Lazada: Separate payment tiers. (*Read here.)	Shipping rates are dependent on providers and product weight. (*Read here). Shopee's fulfilment service is priced at 5% of sales.	Not sure of exact charges. You can top up S$50 for S$500 Qxpress Shipping Credits.	Depends on your delivery service provider. FBA: Flat fulfilment fee based on product type, dimension and weight. (*Read here) Storage Fee: S$12.84 per cubic metre, per month
Seller Grading System	Unsure. However, Lazada imposes penalties on late shipments.	Shopee tracks your Late Fulfilment Rate and Non Fulfilment Rate. Penalty points are allocated accordingly. (*Read here)	Qoo10 uses a point system to manage their sellers. (*Read here)	Unsure
More Information	Sell on Lazada	Shopee	Qoo10 Retailers	Amazon Ecommerce Booster Package

Our two cents

Lazada and Qoo10 are the strongest contenders in my opinion.

Lazada has the highest traffic out of the four platforms which means you could potentially enjoy a greater reach. On the flip side, this could mean that you may have to deal with greater competition on the platform.

Qoo10 has the 2nd highest monthly web traffic and provides a rather well-rounded packages, even at for its cheaper option.

The downside to Qoo10 is that its audience seems to be coupon hunters who are looking for the best deals in town. This may not be inline with your brand.

If you’re looking to get onto Amazon, I’d be cautious as there is very little information available on their landing page. You’ll also want to note that there’ll be a monthly subscription from 2021.

Do reach out to a representative for help. (You can contact them at amazonsellersg@amazon.sg)

Ecommerce Booster Packages as offered by platforms

Each e-commerce platform is offering packages to interested companies, here’re screenshots of the packages for your ease of comparison. (with exception to Amazon which doesn’t seem to provide much information)

Disclaimer: We do not own any of the images below.

Lazada’s E-commerce Booster Package

Shopee’s E-commerce Booster Package

Qoo10’s E-commerce Booster Package

Should I sell on e-commerce platforms or create my own e-commerce website?

There are pros and cons to both options, we do our best to provide a comprehensive coverage in this section.

Our preference leans towards building and owning an e-commerce website, if you are committed to creating a long-term sales channel online.

Having ownership and control over your e-commerce website gives you the flexibility to:

• Have fully control over the branding of your website,
• Strategise, test and run custom marketing campaigns,
• Build an email list of leads and customers to which you can re-market to,
• Build customer loyalty to your brand,
• Avoid the need to compete with direct competitors on the same platform (and screen space),
• so much more.

offer a shorter implementation window. The e-commerce booster packages provide a great taster for businesses who want to dip their toes into online sales.

You may need to pay for advertising and promotion slots after the E-commerce Booster Package period, if you want to keep up the sales.

I’ve put together this table for a comprehensive comparison:

Selling on E-commerce platforms vs your own e-commerce website

	E-commerce Platform	Own E-commerce Website
Set up cost	Between $153 to $1000 with E-commerce Booster Package.	~$300, does not include fee for hiring web developers or designers.
Running Cost	Some platforms may charge a monthly fee or a product listing fee.	~$10 to 45 per annum for domain name ~ $200 to $300 per annum for web hosting. ~USD$348 per annum (if you’re using Shopify)
Transaction fees	Depends on fees imposed by platforms.	~3% on items sold for credit card transactions. ~0.8 to 1.8% for NETS transactions.
Shipping Rates	Varies with platforms.	Dependent on your shipping and delivery partner.
Store Design / Branding	Template designs from platform with limited customisation.	Fully customisable.
Set up cost	Limited to media that the platform accepts.	Fully customisable.
Ease of set up	Relatively easier to register, set up and list products. Trainings provided by platform.	Depends on your choice of e-commerce service provider or Content Management System.
Competition	Compete against other sellers on the same platform.	Own your branding within your website
Market Reach	Access to platform users. You may need to access paid promotions and advertising options for your products stand out.	You'll need to run marketing campaigns to increase reach.
Trust	Users generally trust the e-commerce platform they buy from.	You’ll need to build trust and customer loyalty to your brand.
Payment options and gateways	Provided by platforms.	Select and set up your payment gateway(s).
Control over traffic source	Nil	Full control.
Access to customers	Limited to features of platform.	Full access to customers. You have the option to build an email list and to run retargeting ads too.
Technical Support	Available	Available from various service provider. Or, from your web developer.

If you need help with launching your e-commerce website, check out this E-commerce Launcher Package.

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What is the E-commerce Booster Package?

The E-commerce Booster Package was created to help brick and mortar businesses in Singapore to take their business online.

Eligible local retailers can receive a one-time support of up to $9000, to defray 90% of your costs for up to 6 months. It is available for sign up from now till 30^th September 2020.

There are 3 components to this package:

1. Local E-commerce setup
2. Overseas E-commerce setup
3. Digital Marketing Capabilities

Retailers can also apply for additional manpower support (covers one-time support of up to 90% of qualifying manpower cost) for one of the above components.

Are you eligible for the E-commerce Booster Package?

Companies should meet these criteria:

• Incorporated or registered in Singapore,
• Have a minimum of 30% local shareholding AND,
• Company’s annual turnover not exceeding S$100 million per annum (based on most recent audited report) OR group employment not exceeding 200 employees

If you’re still unsure if you qualify, here’s a quick SME Eligibility Test (4 to 6 questions) to help you.

You’ll also want to note that:

• you can only apply for the E-commerce Booster Package once AND
• you must not have an existing account with your selected e-commerce platform before 1 April 2020.

How to apply for the E-commerce Booster Package?

Unlike most SME grants, you’ll not need to apply through a government agency. Instead, you can apply for the e-commerce booster package through one of the participating platforms:

• Lazada Singapore
• Shopee
• Qoo10
• Amazon

Applications will be assessed by the e-commerce platform providers.

With exception to Amazon*, the E-commerce Booster Package works as a subsidy to your fees.

*Retailers who are signing up for the package under Amazon should note that you’ll need to pay the fees upfront and claim a reimbursement with Amazon later.

You’ll need to pay the remaining 10% of costs, up to S$1000.

Want more information on the E-commerce Booster Package?

Visit the official website at Enterprise SG.

You may find also find the following helpful:

• Frequently Asked Questions [PDF]
• List of participating e-commerce platforms [PDF]
• All latest press / media releases

We’ve tried to give a complete overview of the E-commerce Booster Package, the participating e-commerce platforms and their offerings.