Adding e-commerce to your retail business isn't about replacing your physical store—it's about extending your reach. Done right, your online and offline channels reinforce each other, creating a flywheel effect that grows both.
The Cannibalization Myth
Many retailers fear online will steal from physical store sales. Research shows the opposite:
- Omnichannel customers spend 4x more than single-channel customers
- 73% of shoppers use multiple channels during their purchase journey
- Having an online presence increases physical store credibility
- E-commerce opens entirely new geographic markets
Platform Selection Guide
Marketplaces (Fastest Launch)
Best for: Testing demand, reaching new customers, quick start
| Platform | Fees | Best For |
|---|---|---|
| Shopee | 2-5% + payment fees | Mass market, flash sales |
| Lazada | 2-5% + payment fees | Electronics, branded goods |
| Carousell | Free listing, optional promos | Pre-loved, local deals |
| Amazon SG | 8-15% referral | Premium positioning |
Owned E-commerce (Full Control)
Best for: Brand building, customer data ownership, higher margins
| Platform | Cost | Technical Level |
|---|---|---|
| Shopify | $29-299/mo | Low - drag & drop |
| WooCommerce | $0 + hosting | Medium - WordPress knowledge |
| Magento | $0 + dev costs | High - developer required |
| Custom Build | $20k+ | Full customization |
Setting Up Your Online Store
Step 1: Product Catalog
- Start small: Launch with your top 20-50 products, not everything
- Product photography: Consistent, high-quality images (minimum 1000x1000px)
- Descriptions: Focus on benefits, include specifications
- SKU system: Consistent codes across online and physical inventory
Step 2: Pricing Strategy
- Price parity: Same price online and offline builds trust
- Channel-exclusive products: Certain items only available online
- Bundle differently: Different bundles for different channels
- Factor in shipping: Consider "free shipping over $X" thresholds
Step 3: Inventory Integration
- Real-time sync between POS and e-commerce
- Safety stock buffer (10-20% reserved for walk-ins)
- Clear "low stock" and "out of stock" displays
- Back-in-stock notifications for interested customers
Step 4: Fulfillment Setup
Options for Singapore retailers:
- Ship from store: Use existing stock, daily courier pickup
- Click & Collect: Customer picks up, no shipping cost
- 3PL partner: Ninja Van, J&T, or SingPost for volume
- Marketplace fulfillment: Shopee/Lazada warehouse for their orders
Integration Architecture
Basic Setup
[POS System] ←→ [Inventory Manager] ←→ [E-commerce Platform]
↓
[Order Management]
↓
[Shipping/Fulfillment]
Recommended Integrations
- POS to E-commerce: Vend + Shopify, Square Online
- Multi-marketplace: SiteGiant, Unicart, or Anchanto
- Shipping: EasyParcel, Shippit, or direct carrier integration
- Accounting: Xero or QuickBooks with e-commerce connectors
Marketing Your Online Store
Leverage Existing Customers
- Email announcement to customer database
- In-store signage promoting online shop
- Receipt messaging with website URL
- Staff training to mention online options
Digital Marketing Essentials
- SEO: Optimize for "buy [product] Singapore"
- Google Shopping: Product listings in search results
- Retargeting: Bring back website visitors with ads
- Email marketing: Automated flows for cart abandonment, welcome series
Handling Operations
Customer Service
- Unified inbox for all channels (Freshdesk, Zendesk)
- FAQ page addressing common questions
- Live chat during business hours
- Clear return and exchange policies
Returns Processing
- Accept online returns at physical store (preferred by 62% of customers)
- Prepaid return labels for mail returns
- Quick refund processing (3-5 business days max)
Success Metrics
Track these KPIs monthly:
- Online revenue: Target 10-20% of total revenue in year 1
- Conversion rate: E-commerce average is 2-3%
- Average order value: Compare to in-store transactions
- Customer acquisition cost: By channel
- Return rate: Keep under 10%
Common Mistakes to Avoid
- Launching with full catalog: Start focused, expand based on demand
- Ignoring mobile: 70%+ of traffic is mobile
- Complex checkout: Aim for 3 steps or less
- Slow shipping: Customers expect 2-3 day delivery
- No promotion plan: Build it and they won't come without marketing
Next Steps
Ready to launch your e-commerce channel? Start with a marketplace to test demand, then build your own store for long-term brand building. The investment pays dividends through expanded reach and customer convenience.