Types of E-Commerce Business Models in Singapore | Bestar Services

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Types of E-Commerce Business Models in Singapore
Bestar Services Pte. Ltd
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Types of E-Commerce Business Models in Singapore
Tax Planning While Being In Singapore

• Post-Pandemic consumers primarily prefer online
  shopping platforms, which has moved sellers and
  businesses to take their business online on
  E-Commerce platforms, which has cashed them
  significant revenues. This has inspired and
  motivated new E-Commerce business ventures and
  entrepreneurs to earn substantial profits.
• If you are thinking of starting your E-Commerce
  business or taking your seasoned business to
  diversify your business into E-Commerce, 2023 is
  the best time.
• However, various questions arise regarding how to
  start your E-Commerce business, types of
  E-Commerce business models, and related
  questions. In this blog, we will walk you through
  the types of E-Commerce business models in
  Singapore.

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Types of E-Commerce Business Models in Singapore
Tax Planning While Being In Singapore

• Primary Categories of E-Commerce Models
• There are various categories of E-Commerce Models
  in the modern day. However, there are four
  primary traditional
• Categories of E-Commerce Models

1. Business to Business (B2B) Any transaction
made between two businesses. It can be a
wholesale business, manufacturer, or distributor.
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Types of E-Commerce Business Models in Singapore
Tax Planning While Being In Singapore

• 2. Business to Consumer (B2C)
• Most popular E-Commerce model. It involves
  businesses selling their products to consumers
  (the general public). It is direct selling and
  buying without any third-party involved.

• 3. Consumer to Business (C2B)
• It involves websites platforms for individuals
  to sell their products/services to other
  businesses. The most common example is
  freelancers, such as graphic designers, content
  writers, and software designers. C2B common
  platforms are Amazon Upwork Inc.

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Types of E-Commerce Business Models in Singapore
Tax Planning While Being In Singapore

• 4. Consumer to Consumer (C2C)
• It involves consumers selling buying from other
  consumers through a website. Common examples are
  eBay, Amazon Marketplace, and Etsy.

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Types of E-Commerce Business Models in Singapore
Tax Planning While Being In Singapore
Types of E-Commerce Models

• 1. Wholesale
• Wholesale involves B2B, where one business will
  manufacture its products sell them to other
  businesses at wholesale prices. Products
  Services are sold in bulk quantities at a
  discounted pricing.
• It doesnt involve any middleman or a third
  party. The businesses selling the products
  services help the manufacturer market their
  products services.

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Types of E-Commerce Business Models in Singapore
Tax Planning While Being In Singapore

• 2. Subscription-based Model
• Subscription-based E-Commerce business model
  involves offering products or services to
  consumers that are automatically renewed
  monthly/quarterly/annually, or ordered often.
  Consumers have the option to renew/cancel their
  subscription anytime.
• A common example is Amazon, which offers free
  delivery, cashback, and additional discount with
  its Amazon Prime subscription to its users.

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Types of E-Commerce Business Models in Singapore
Tax Planning While Being In Singapore

• 3. Advertising Revenue Model
• This model allows companies to advertise
  products/services on websites, social media
  platforms, blogs, in-app advertising, and various
  ways. Users clicking on the ads get directed to
  the product/service page.
• It is primarily seen on Google websites,
  Facebook, and Instagram. Companies using this
  model charge a flat fee for advertising on a
  pay-per-click (PPC) basis.

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Types of E-Commerce Business Models in Singapore
Tax Planning While Being In Singapore

• 4. Affiliate Revenue Model
• This is one of the most come-across business
  models involving articles or blog posts
  containing affiliate links. It means businesses
  earn revenues through promoting and selling
  another companys or individuals product/service
  on their website. This concept is called
  affiliate marketing, which is based on the
  revenue-sharing principle.

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Types of E-Commerce Business Models in Singapore
Tax Planning While Being In Singapore

• 5. Subscription Revenue
• In this model, the revenue stream generates from
  subscription fees, which are monthly, quarterly,
  half-yearly, or yearly depending on the
  subscription package offered by the seller and
  purchased by the consumer.
• Common examples are Spotify, Netflix, Apple TV.
  It also involves E-Commerce Businesses selling
  subscription boxes such as books, gifts, and
  snacks.

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Types of E-Commerce Business Models in Singapore
Tax Planning While Being In Singapore

• 6. Transaction Fee Model
• This revenue model involves a fee charged
  whenever a transaction is made through their
  payment platforms. This fee serves as the revenue
  for the businesses. Even though the fee is
  minimal, the overall revenues are significant for
  making payments. A common example is PayPal.

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Types of E-Commerce Business Models in Singapore
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• 7. Dropshipping
• This model format is similar to B2C, where a
  business sells the product/service to the
  consumer, but the business fulfills the order. It
  is the supplier who fulfills the order.
• Common examples are Amazon eBay, where sellers
  store their products at E-Commerce platform
  warehouses and dont have to worry about
  renting/owning a warehouse for storing their
  products.
• Though this business model is popular, its
  biggest disadvantage is that you are not in
  control of the order fulfillment. Businesses are
  unsure whether goods have been delivered to the
  customers or not.

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Types of E-Commerce Business Models in Singapore
Tax Planning While Being In Singapore

• 8. White-Label
• Another most popular E-Commerce Business Model is
  White-Label. It involves mass manufacturing a
  generic product, which is rebranded and sold
  under another brand name.
• A third-party company does the manufacturing, and
  the seller rebrands it to their brand/company
  logo and name. These products are manufactured in
  bulk quantities and can be bulk ordered or drop
  shipped.
• It is one of the most cost-effective business
  models, as the seller doesnt have to make a
  massive investment to manufacture the products.
  They can simply purchase from the manufacturer
  and rebrand it under their name logo for
  selling to consumers.

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Types of E-Commerce Business Models in Singapore
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• 9. Sales Revenue Model
• Last but the most ordinary used E-Commerce
  Business Model is Sales Revenue Model, which
  involves a straightforward revenue stream. When a
  consumer purchases a product/service online, the
  seller earns revenue from the consumers online
  transaction.
• Note If you want to start your new E-Commerce
  Business Venture or take existing offline
  Business online, we recommend outsourcing your
  Accounting Bookkeeping Services. It will help
  you utilize the saved time, resources, and cost
  in your core business activities to grow your
  online Business.
• At Bestar Services, we provide comprehensive
  Account and Bookkeeping Services. Being one of
  the leading Accounting Outsourcing Service
  Providers in Singapore, we provide timely reports
  to ensure you have all the required reports at
  your access.

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How to Start an Online Business in Singapore in 7
Easy Steps
Tax Planning While Being In Singapore
Conclusion

• After reading the blog, you will have a
  comprehensive understanding of the categories of
  E-Commerce Models and types of E-Commerce
  Business Models in Singapore.
• However, if you have any questions regarding
  which E-Commerce Business Model or need Business
  Advisory Consultation, feel free to contact us.
• At Bestar Services, we provide comprehensive
  business services related to HR Payroll,
  Accounting Bookkeeping, Financial Audit
  Assurance, GST Registration, Business Advisory,
  Tax Advisory Compliance, and more.
• We also provide comprehensive Company
  Registration Services to help you set up your
  company Business in Singapore. For any
  questions regarding our outsourcing Accounting
  services to us and quotation, contact us at 65
  62994730 or email at admin_at_bestar.asia.

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