Singapore SMEs to gain from clearer e-commerce rules

The guidelines should boost the confidence of merchants on large platforms.

Small and medium enterprises (SME) in Singapore stand to gain the most from updated e-commerce rules that aim to give clearer, more practical direction on how to operate in increasingly complex online marketplaces, analysts said.

The revised guidelines set clear rules for fair online retail, helping smaller businesses manage limited staff and time, Ng Ee Kia, assistant chief executive at the Competition and Consumer Commission of Singapore (CCCS), told Retail Asia.

“SMEs may benefit more from clearer guidance because they tend to have limited resources,” Ng said. Many smaller merchants, she said, struggle to balance daily operations with the need to understand and comply with evolving rules.

“The common feedback is that they are fighting day-to-day operations,” she said via Zoom. “They have less time and capacity to fully understand all the rules and are trying to make sense of what they need to do.”

First introduced in 2020 to support businesses moving online during the pandemic, the e-commerce rules have been updated to reflect how online retail has grown more complex. It now includes many product listings, frequent price changes, paid placements, and overlapping promotions that can confuse sellers and shoppers.

The update was led by Enterprise Singapore through the Singapore Standards Council, with inputs from major platforms such as Shopee, Lazada, and FairPrice, as well as trade groups, consumer bodies, CCCS, and the Ministry of Home Affairs.

The updated rules cover platforms and sellers across e-commerce and require genuine discounts, clear terms, and greater transparency on rankings and sponsored listings to curb misleading practices and build consumer trust.

Ng said the clearer rules should give merchants more confidence when operating on large platforms. “Hopefully, especially on bigger platforms, they have a better sense of what they should or should not do,” she added.

Winnie Ching, group director for legal and enforcement at CCCS, said the update focuses on practices that businesses could realistically apply. Major platforms and trade associations were involved to ensure the guidelines don’t disrupt daily operations.

A key update extends dispute channels to cover merchant–platform issues, giving SMEs clearer recourse over problems like late payments or unfair listings.

Samer Elhajjar, a senior marketing lecturer at the National University of Singapore, said clearer rules push competition toward quality, service, and long-term value, not heavy promotions.

“In the long run, small merchants benefit because trust works in their favour,” he said in a Zoom interview, adding that transparent listings encourage repeat purchases and brand building.

The update also tightens safeguards against e-commerce fraud, requiring stricter merchant checks, faster account suspensions, and better records.

Ching said the rules lower the risk of breaching competition and consumer protection laws, creating a more predictable environment for businesses.

Ng said the guidelines would continue to evolve alongside technology and market practices, with future updates likely to address tools—including artificial intelligence—that are shaping online retail.