What's Inside?
E-commerce Outsourcing Singapore: How Retailers Are Navigating Growth
Written by Aljon Tope October 22, 2025
With Singapore’s e-commerce market projected to reach S$37.5 billion (US$28.92 billion) by 2030, local retailers are under immense pressure to meet rising consumer demand. This rapid expansion, reported by Worldpay’s 2025 Global Payments Report, is accelerating digital adoption and reshaping the retail industry.
The pandemic accelerated digital adoption, pushing consumers towards online shopping for their daily needs and reshaping the retail industry in the process. Retailers now face challenges ranging from operational inefficiencies to high customer expectations, all while navigating intense competition and evolving regulations.
Outsourcing has emerged as a strategic solution, enabling Singaporean retailers to stay agile, cost-efficient, and focused on growth. As highlighted in offshoring trends, businesses worldwide are increasingly leveraging outsourcing to stay competitive in evolving markets like Singapore.
Key Takeaways
- A Strategic Solution to High Costs and Competition: For Singaporean retailers, outsourcing e-commerce operations is a key strategy to combat the country’s extremely high operational costs, navigate a fiercely competitive market, and meet rising consumer demands for 24/7, high-quality service.
- Philippines Offers Both Cost Efficiency and High-Value Skills: Outsourcing to the Philippines provides a powerful combination of significant cost savings (over 59% in the case study) and access to a skilled talent pool. This allows retailers to outsource a wide range of roles, from Fulfillment Coordinators to specialized E-commerce Managers, UI/UX Designers, and Data Analysts.
- Operational Excellence is Key to Profitability: In e-commerce, operational excellence (such as fast delivery, accurate inventory, and responsive customer support) is not just a goal—it is essential for customer retention, scalability, and profitability. Outsourcing is a direct method to achieve this excellence by delegating functions to specialized experts.
- AI is Enhancing Outsourced Roles, Not Replacing Them: The integration of AI is not eliminating the need for e-commerce outsourcing. Instead, it sharpens the focus, with AI handling routine tasks and creating a greater need for skilled outsourced professionals to manage the technology, analyze its output, and handle high-value human interactions like complex client support.
What is E-commerce Outsourcing?
E-commerce outsourcing is the strategic process of hiring a third-party service provider to manage some or all of the tasks associated with running an online store. Instead of building and managing every department in-house, retailers delegate specific functions to specialists.
This can include everything from customer service and back-office support to highly technical roles like website development, digital marketing, and supply chain management. The primary goal is to leverage expert talent, reduce operational costs, and free up the core team to focus on growth, branding, and product strategy.
The Unique Challenges Singaporean Retailers Face
- High Operational Costs
Operating a retail business in Singapore comes with high costs, including labor, warehousing, and logistics. The city-state’s premium real estate and wages make scaling in-house operations a financial burden, especially for small-to-medium businesses. Outsourcing roles to regions like the Philippines can significantly alleviate these economic pressures, as detailed in the benefits of offshore staffing, highlighting how companies can reduce costs while maintaining quality operations.
- Fast-Changing Consumer Preferences
Consumers in Singapore demand fast, personalized, and seamless shopping experiences. They expect 24/7 customer support, accurate inventory, and quick delivery. Failing to meet these expectations can lead to poor customer retention, a critical issue in today’s competitive market. According to a 2025 Zendesk report, 73% of consumers will switch to a competitor after multiple bad experiences, and over half will switch after just one. This emphasizes the critical need for consistent, 24/7, high-quality support to protect customer retention.
- Intense Competition
Singapore’s position as a regional hub has attracted international players, increasing competition for both customers and market share. Retailers not only compete with regional giants like Lazada and Shopee but also global leaders like Amazon, further raising the bar for service quality and operational efficiency.
- Regulatory Complexities
E-commerce businesses must navigate complex regulatory landscapes, including import/export restrictions and stringent data privacy laws. These regulations require specialized knowledge and resources, adding an extra layer of operational challenges.
- Impact of Digital Transformation
The shift towards omnichannel retail and the integration of AI, data analytics, and automation tools have made operations more complex. While these technologies improve efficiency, they require significant investments in expertise and infrastructure, further straining resources.
Why Operational Excellence Matters in E-commerce
Operational excellence directly impacts a retailer’s customer experience, scalability, and profitability. In the highly competitive e-commerce landscape, inefficiencies can hinder growth and damage a brand’s reputation.
- Customer Experience
Consumers demand seamless experiences, from browsing products to receiving their orders. Operational failures like delayed deliveries, inaccurate stock information, or slow customer service can lead to dissatisfaction and churn. A Singapore Department of Statistics report noted that e-commerce revenue in the services sector reached S$393.9 billion in 2023, underscoring the massive and sustained demand that retailers must manage efficiently.
- Scalability
Retailers without streamlined processes struggle to scale operations during peak periods. For instance, sales events like Singles’ Day or holiday seasons often expose weaknesses in logistics and customer support systems, leading to operational bottlenecks.
- Profitability
Inefficient operations inflate costs and erode margins. For example, relying on manual inventory management increases the risk of errors and stockouts, which can result in lost sales and dissatisfied customers.
Operational excellence ensures businesses not only meet customer expectations but also maintain profitability and growth in a demanding market.
Solutions to Address E-commerce Challenges
Outsourcing offers practical and scalable solutions to overcome operational challenges:
- Streamlining Operations
- Delegating logistics to specialized providers ensures faster deliveries, efficient returns management, and optimized inventory tracking.
- Outsourced customer support teams handle inquiries round-the-clock, reducing wait times and enhancing satisfaction.
- Adopting Technology
- Partnering with tech-enabled outsourcing providers helps integrate AI, automation, and data analytics, which improve accuracy and speed in logistics and customer service.
- Leveraging Global Talent
- Outsourcing to regions like the Philippines provides access to a skilled, cost-effective workforce adept in customer support, marketing, and IT services.
Roles Available in the Philippines and Cost Comparison
Here’s a list of e-commerce roles you can outsource to the Philippines, along with their estimated cost comparison to in-house hires in Singapore. The data illustrates the significant cost savings available without sacrificing talent.
E-Commerce Manager
Oversees the online sales strategy and operations of an e-commerce platform.
| Philippine Annual Salary: | SGD 32,900 |
| Singapore Annual Salary: | SGD 135,000 |
Ul/UX Designer
Designs user-friendly interfaces and experiences for websites and apps.
| Philippine Annual Salary: | SGD 30,500 |
| Singapore Annual Salary: | SGD 52,300 |
Product Manager
Manages the lifecycle of a product, from ideation to launch.
| Philippine Annual Salary: | SGD 29,800 |
| Singapore Annual Salary: | SGD 80,500 |
Logistics and Supply Chain Manager
Plans, implements, and oversees the movement and storage of goods.
| Philippine Annual Salary: | SGD 40,100 |
| Singapore Annual Salary: | SGD 68,500 |
Content Creator
Develops engaging content across text, video, and graphics.
| Philippine Annual Salary: | SGD 25,400 |
| Singapore Annual Salary: | SGD 47,500 |
Fulfillment Coordinator
Manages the order fulfillment process, ensuring inventory accuracy and timely shipping.
| Philippine Annual Salary: | SGD 23,700 |
| Singapore Annual Salary: | SGD 36,600 |
Shopify Specialist
Builds, customizes, and optimizes Shopify stores to improve sales.
| Philippine Annual Salary: | SGD 32,900 |
| Singapore Annual Salary: | SGD 60,000 |
Data Analyst
Collects and interprets e-commerce data to identify trends and optimize strategies.
| Philippine Annual Salary: | SGD 28,800 |
| Singapore Annual Salary: | SGD 67,800 |
Social Media Manager
Plans and executes social media strategies to boost brand engagement.
| Philippine Annual Salary: | SGD 21,300 |
| Singapore Annual Salary: | SGD 49,300 |
Digital Marketing Specialist
Executes online marketing strategies across SEO, social media, and paid advertising.
| Philippine Annual Salary: | SGD 21,100 |
| United States Annual Salary: | SGD 49,800 |
What is the Most Used E-commerce Platform in Singapore?
For Singaporean retailers, choosing the right platform is critical. While local marketplaces like Shopee and Lazada dominate in terms of consumer traffic and brand recognition, Shopify is the most popular platform for businesses looking to build and control their own independent online store.
According to 2025 analysis from Airwallex, Shopify is favored for its user-friendly interface, scalability, and extensive ecosystem of apps. Other platforms like WooCommerce (a plugin for WordPress) are also widely used by businesses that want deep customization and control over their website’s hosting and data.
Penbrothers’ Success Story
How PS.Cafe Achieved 24/7 Customer Support and Saved 59% in Staffing Costs
PS.Cafe, a renowned hospitality brand with 12 locations in Singapore and two in Shanghai, faced challenges in scaling its workforce, managing high local hiring costs, and providing 24/7 customer support. These issues threatened their ability to expand efficiently while maintaining their high service standards.
Partnering with Penbrothers, PS.Cafe reduced staffing costs by 59%, from SGD 134,310 to SGD 55,578 annually, by outsourcing skilled reservation officers from the Philippines. Penbrothers also ensured seamless integration, customized 24/7 work schedules, and operational efficiency through on-the-ground support.
As a result, PS.Cafe scaled successfully, minimized disruptions, and maintained exceptional service while opening new branches. With Penbrothers’ strategic support, PS.Cafe is poised for continued growth in the competitive hospitality sector.
Why Outsourcing is a Strategic Move in Retailing
Outsourcing has become an indispensable tool for Singaporean retailers navigating the complexities of e-commerce. It provides the agility and efficiency needed to compete in a dynamic market, enabling businesses to focus on what matters most—growing their brand.
Are you ready to transform your e-commerce operations?
Discover how Penbrothers’ tailored outsourcing solutions can help you thrive in Singapore’s competitive retail landscape. Contact us today to learn more.
Frequently Asked Questions
They are outsourcing primarily to address three major challenges: the extremely high operational and labor costs in Singapore, the intense competition from both local and global e-commerce giants, and the high consumer demand for 24/7, personalized customer service.
A wide variety of roles across the entire e-commerce operation can be outsourced. This includes Social Media Managers, Content Creators, Data Analysts, UI/UX Designers, Shopify Specialists, and E-commerce Managers.
The cost savings are substantial. For example, the approximate annual salary for an E-commerce Manager in the Philippines is SGD 32,900, compared to SGD 135,000 in Singapore. A Social Media Manager costs around SGD 21,300 annually, versus SGD 49,300 in Singapore.
While marketplaces like Shopee and Lazada dominate consumer traffic, Shopify is the most popular platform for businesses that want to build and have full control over their own independent online store, due to its ease of use and scalability.
Outsourcing provides critical scalability and flexibility. It allows a retailer to quickly add staff for customer support or order fulfillment during peak seasons (like holidays or major sales) and then scale back down without the cost, risk, and administrative burden of hiring and firing a permanent in-house team.
*This article was crafted with the support of AI technology and refined by a human editor.
