10 years ago, the business environment is dominated by the big players: IBM, Exxonmobile. With the rise of the internet, the big guys are facing tremendous competition from millions of small businesses now. The internet has changed the way we conduct businesses in just a few years.

And I believe that we are only seeing the tip of the iceberg.

• Internet connection will improve and become faster in all parts of the world.
• Telecommuting and contract employment at home will bring down the cost of doing businesses.
• Online search technology will improve further, bringing more relevant and useful information for consumers.
• More efficient method and low cost of doing businesses will drive more products and services to be introduced online.

These factors will drive e-commerce even further.

And The internet has indeed changed the rule of the game:

• Online businesses enjoy the advantage of a low startup cost of as low as S$100.
• With just a web site, an online store can reach the international market, or the whole world.
• A web site can be started and maintained by only one man.
• Intermediaries like wholesalers, retailers becomes redundant. The cost of intermediaries is avoided in e-commerce.

What it takes to start an e-business

You may ask, "I am not an IT person though". If you are not IT savvy, it may cost more for you to start a business online. But from our experience, it is indeed possible that anyone with a computer and internet connection at home can start a proper business online with less than S$100. However, we shall caution you that like any offline business startups, it requires hard work to succeed online too. It makes sense that if you can be rich in a short time, millions of others will be rich then.

What can you sell online?

Anything can be sold online. However, services tend to sell better than physical products at the moment. Examples of virtual services include job matching, tuition agency, hotel booking etc.

However, we have also seen many stores which have succeeded selling physical products. Amazon and eBay are some of the successful examples.

The current climate for e-business in Singapore

With more than one year experience doing business online, we believe e-commerce in Singapore is still at its infant stage. Many local businesses have not tap on the benefits and vast opportunities offered by the internet.

However, local internet entrepreneur should bear in mind of the small market Singapore can offer. If your target customers are only local Singaporeans, It is necessary to understand if there is enough demand for your products or services.

Here is also an interesting article - Death of Retail

Article by Byon Ong, Singapore Business Resources for Entrepreneurs

January 2006

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