Using PSG Grant for E-Commerce: Build Your Online Store with Subsidies in 2026

Selling online is no longer a “nice to have” for Singapore businesses — it is a competitive necessity. Whether you are a retail shop expanding beyond your physical location, an F&B business adding delivery ordering, or a B2B supplier enabling online procurement, an e-commerce platform opens new revenue channels and improves customer convenience. The Productivity Solutions Grant (PSG) makes this transition significantly more affordable by subsidising up to 50% of the cost of pre-approved e-commerce solutions.

Singapore has seen accelerated e-commerce adoption over recent years, with online retail penetration continuing to grow. SMEs that have not yet established an online selling capability risk losing market share to competitors who have. The PSG was designed precisely to help smaller businesses adopt digital solutions that improve productivity and competitiveness — and e-commerce platforms are among the most impactful digital investments an SME can make.

This guide covers everything you need to know about using the PSG Grant for e-commerce in 2026 — which platforms are eligible, what features are subsidised, how Shopify and WooCommerce solutions compare, the application process step by step, and realistic cost examples. If you are ready to build or upgrade your online store with government support, this article provides the practical roadmap you need.

How PSG Supports E-Commerce Adoption

The Productivity Solutions Grant encourages SMEs to adopt technology solutions that improve business efficiency and competitiveness. E-commerce platforms fall squarely within this mandate — they enable businesses to sell products and services online, reach customers beyond their physical location, automate order processing, and operate around the clock without proportional increases in staffing costs.

Under the PSG, e-commerce solutions are categorised within the digital commerce or web development categories on the GoBusiness grants portal. Pre-approved vendors offer packaged solutions that include everything needed to launch and operate an online store — from website design and development to payment gateway integration, product catalogue setup, and staff training.

The current subsidy level is up to 50% of qualifying costs, subject to a grant cap per solution category. This means that an e-commerce solution costing $15,000 could be subsidised by up to $7,500, leaving you with a nett investment of $7,500 for a fully functional online store. For many SMEs, this subsidy is the difference between launching online and continuing to operate offline only.

Importantly, the PSG funds the platform setup and initial configuration — not ongoing subscription fees, transaction fees, or advertising spend. Your ongoing operational costs for the online store remain your responsibility after the initial PSG-funded project is completed. Plan your budget to account for both the subsidised setup and the ongoing costs of running an online business.

Eligible E-Commerce Platforms Under PSG

Pre-approved PSG e-commerce solutions are built on established platforms that have proven track records for reliability, scalability, and ease of use. The most common platforms available through PSG vendors include:

WooCommerce (WordPress): WooCommerce is an open-source e-commerce plugin for WordPress, making it the most flexible and customisable option. It is ideal for businesses that want full control over their store’s design, functionality, and hosting. WooCommerce supports unlimited products, extensive plugin ecosystems, and deep customisation. However, it requires more ongoing technical maintenance than hosted solutions.

Shopify: Shopify is a hosted e-commerce platform known for its ease of use and reliability. It handles hosting, security, and software updates automatically, making it suitable for businesses that prefer a low-maintenance solution. Shopify offers a large app ecosystem, built-in payment processing (Shopify Payments), and seamless integration with major marketplaces and social selling channels.

Other platforms: Some pre-approved solutions may use other platforms such as Magento (now Adobe Commerce), BigCommerce, or custom-built solutions. These are less common in the PSG ecosystem but may be available for businesses with specific requirements. Check the GoBusiness portal for the full list of available solutions and their underlying platforms.

When selecting a platform, consider your business’s long-term needs, not just the immediate setup. Think about how many products you will sell, whether you need B2B ordering capabilities, whether you want marketplace integration (Shopee, Lazada), and how much technical control you need over your store’s functionality.

Shopify vs WooCommerce: Comparing PSG Solutions

The choice between Shopify and WooCommerce is the most common decision for SMEs using PSG for e-commerce. Here is a practical comparison to help you decide:

Ease of use: Shopify wins for simplicity. Its drag-and-drop interface and intuitive admin panel make it accessible for non-technical business owners. WooCommerce has a steeper learning curve, as it sits within the WordPress environment, but it offers greater flexibility once mastered.

Customisation: WooCommerce offers more extensive customisation options. Because it is open-source, developers can modify virtually any aspect of the store. Shopify provides customisation through its theme editor and app ecosystem, but deep structural changes require Shopify’s proprietary Liquid coding language.

Ongoing costs: Shopify charges a monthly subscription fee ($29 to $399+ per month depending on the plan) plus transaction fees. WooCommerce itself is free, but you pay for hosting ($20 to $100+ per month), premium plugins, and SSL certificates. For small catalogues, WooCommerce can be cheaper; for larger operations, the cost difference narrows.

SEO capabilities: Both platforms support SEO, but WooCommerce (on WordPress) offers more granular control over URL structures, meta data, schema markup, and site architecture. Shopify has improved its SEO features significantly but still has some limitations around URL structures and custom page templates.

Payment integration: Both platforms support Singapore payment gateways. Shopify offers its own Shopify Payments (powered by Stripe) as well as third-party gateways. WooCommerce integrates with PayNow, Stripe, PayPal, and numerous other gateways through plugins. Ensure your chosen PSG package includes integration with the payment methods your customers prefer.

Scalability: Shopify handles scaling automatically through its hosted infrastructure — as your traffic and orders grow, the platform scales without requiring you to upgrade servers. WooCommerce scaling depends on your hosting environment; you may need to upgrade hosting plans as your store grows, but this also means you have control over your server performance.

There is no universally correct choice. Shopify suits business owners who want a managed, low-maintenance solution. WooCommerce suits those who want maximum flexibility and control. Your PSG vendor should help you assess which platform best fits your specific business requirements and technical capabilities.

E-Commerce Features Covered by PSG

Pre-approved PSG e-commerce solutions typically include the following features and services:

Core store functionality:

Product catalogue with categories, descriptions, images, and variants (size, colour, etc.)
Shopping cart and checkout process
Payment gateway integration (credit cards, PayNow, GrabPay)
Order management and notification system
Customer account creation and management
Inventory tracking and stock management
Shipping configuration and rate calculation
Tax calculation for GST compliance

Design and user experience:

Professional store design with responsive layout for mobile, tablet, and desktop
Product search and filtering functionality
Product image galleries with zoom capability
Related products and cross-selling recommendations

Marketing and SEO:

On-page SEO optimisation for product and category pages
Google Analytics 4 integration with e-commerce tracking
Google Search Console setup
이메일 마케팅 integration for order confirmations and promotions
Discount code and promotion management
Social media sharing buttons and feed integration

Training and handover:

Staff training on product management, order processing, and store administration
Documentation on how to update products, manage inventory, and process orders
Basic SEO and content management training

Features not typically covered by PSG include ongoing platform subscription fees (for Shopify), premium theme purchases beyond the initial setup, custom app development, marketplace integration (Shopee, Lazada, Amazon), advanced marketing automation, and professional product photography.

Eligibility Criteria for PSG E-Commerce Grants

The standard PSG eligibility requirements apply for e-commerce solutions:

Singapore registration: Your business must be registered and operating in Singapore with a valid UEN
SME classification: Group annual sales turnover not exceeding $100 million, or group employment size not exceeding 200 employees
Local ownership: At least 30% shareholding by Singapore citizens or permanent residents
No prior purchase: You must not have signed a contract or made any payment before PSG approval
Singapore deployment: The e-commerce solution must be used for business in Singapore

Businesses across all industries are eligible. Whether you sell fashion, electronics, food products, health supplements, home goods, or professional services, you can apply for PSG e-commerce funding as long as you meet the SME criteria. Sole proprietorships, partnerships, LLPs, and companies are all eligible entity types.

If you have previously claimed PSG for a basic corporate website, you may still be eligible for an e-commerce solution if it falls under a different solution category. Verify this with Enterprise Singapore or your PSG vendor before applying.

Application Process Step by Step

Here is the complete process for applying for PSG funding for your e-commerce store:

Step 1 — Define your e-commerce requirements: Document what you need from your online store. How many products will you sell? What payment methods do your customers prefer? Do you need delivery integration? Will you sell locally or internationally? What level of customisation do you require? Clear requirements help you select the right PSG solution.

Step 2 — Research pre-approved solutions: Visit the GoBusiness grants portal and browse e-commerce solutions under the relevant category. Compare vendors based on platform (Shopify vs WooCommerce), package inclusions, pricing, and portfolio. Shortlist three to four vendors for deeper evaluation.

Step 3 — Evaluate vendors and get quotations: Contact shortlisted vendors for detailed discussions and quotations. Review their past e-commerce projects, ask for client references, and request a demonstration of their platform. Ensure quotations clearly itemise all inclusions and state the PSG-eligible amount.

Step 4 — Select your vendor: Choose the vendor that best matches your requirements, budget, and quality expectations. Consider not just the initial build but also the ongoing support and platform suitability for your long-term growth.

Step 5 — Submit PSG application: Log in to the Business Grants Portal (BGP) via Corppass. Complete the application form, upload the vendor quotation, and submit. Do not sign any contract or make any payment at this stage.

Step 6 — Await approval: Processing typically takes four to six weeks. Respond promptly to any requests for additional information to avoid delays.

Step 7 — Build your online store: Upon approval, engage the vendor formally and commence the e-commerce development. Be active in the process — provide product information, images, descriptions, and feedback promptly to keep the project on track. Most PSG e-commerce projects take six to sixteen weeks depending on complexity.

Step 8 — Launch and claim: After your online store is live, tested, and fully functional, and you have completed payment to the vendor, submit your grant claim on the BGP with all supporting documents. The subsidy will be disbursed to your business bank account.

Cost Examples and Subsidy Calculations

Here are realistic cost scenarios for PSG-funded e-commerce projects:

Scenario 1 — Basic online store ($8,000):

WooCommerce store with up to 50 products, standard design template, PayNow and credit card integration, basic shipping setup, Google Analytics, staff training
PSG subsidy (50%): $4,000
Nett cost to business: $4,000
Ongoing costs: Hosting ($30–$60/month), domain renewal ($30–$50/year)

Scenario 2 — Professional e-commerce store ($14,000):

Shopify or WooCommerce store with custom design, up to 200 products, advanced filtering, multiple payment gateways, shipping integration with local couriers, SEO optimisation, email marketing setup, discount/promotion tools, comprehensive training
PSG subsidy (50%): $7,000
Nett cost to business: $7,000
Ongoing costs: Platform subscription ($29–$79/month for Shopify) or hosting ($50–$100/month for WooCommerce), plus transaction fees

Scenario 3 — Advanced e-commerce platform ($22,000):

Custom-designed store with up to 500 products, B2B and B2C functionality, multi-currency support, advanced inventory management, CRM integration, marketing automation, abandoned cart recovery, loyalty programme, multilingual support (English/Chinese/Malay), comprehensive training programme
PSG subsidy (50%): $11,000 (subject to grant cap)
Nett cost to business: $11,000
Ongoing costs: Platform and hosting ($100–$300/month), maintenance ($100–$200/month)

Remember that PSG grants have maximum claimable amounts per category. If your solution exceeds the cap, the subsidy applies up to the maximum only. Budget planning should account for both the subsidised setup cost and the ongoing operational expenses of running your online store.

Setting Your Online Store Up for Success

Launching your PSG-funded online store is the beginning, not the end. Here is how to turn your subsidised e-commerce platform into a thriving sales channel:

Invest in product content: High-quality product photographs, detailed descriptions, and compelling copy are essential for online sales. If your PSG package does not include product photography and copywriting, budget for these separately. Products with poor images and thin descriptions simply do not sell online.

Drive traffic from day one: Your online store needs visitors to generate sales. Launch with a traffic acquisition plan that includes Google 광고 for immediate visibility, SEO for long-term organic traffic, social media promotion, and email marketing to your existing customer base. Do not wait for customers to find you organically — actively drive traffic from launch.

Optimise for conversions: Monitor your store analytics closely. Track metrics including conversion rate, cart abandonment rate, average order value, and bounce rate. Test different product page layouts, checkout flows, and promotional strategies to improve performance. Even small improvements in conversion rate can significantly impact revenue.

Build customer relationships: E-commerce success depends on repeat customers. Set up automated email sequences for post-purchase follow-ups, product reviews, and promotional offers. Consider a loyalty programme to reward repeat buyers. Excellent customer service — responsive communication, easy returns, fast delivery — builds the trust that drives repeat purchases.

Expand your channels: Once your own store is established, consider expanding to marketplaces (Shopee, Lazada, Amazon) and social commerce channels (Instagram Shopping, Facebook Shop, TikTok Shop). Multi-channel selling increases your reach and diversifies your revenue sources. Some digital marketing agencies can help you manage a multi-channel e-commerce strategy effectively.

Plan for growth: As your online sales grow, you may need to upgrade your hosting, add new features, integrate with warehouse management systems, or expand to international markets. Choose a platform and vendor that can support your growth trajectory, not just your current needs.

자주 묻는 질문

Can I use PSG to build a Shopify store?

Yes, provided you select a pre-approved PSG vendor that offers Shopify-based e-commerce solutions. Several PSG vendors offer Shopify packages that include store design, product setup, payment integration, and training. Check the GoBusiness grants portal for current Shopify-based solutions and their specific inclusions.

Does the PSG cover ongoing Shopify subscription fees?

The PSG may cover an initial subscription period (typically 6 to 12 months) as part of the pre-approved solution package. After this initial period, the monthly Shopify subscription fee becomes your responsibility. Factor these ongoing costs into your budget when deciding between Shopify (ongoing subscription) and WooCommerce (hosting costs only).

How many products can I list with a PSG e-commerce package?

This depends on the specific pre-approved package you select. Basic packages typically support 50 to 100 products, while more comprehensive solutions support 200 to 500 or more. If you have a large product catalogue, choose a package that accommodates your full inventory. Some platforms like Shopify and WooCommerce support unlimited products technically, but the PSG package may specify a setup limit for how many products the vendor will upload and configure for you.

Can I use PSG for e-commerce if I already have a website?

Yes. You can use PSG to add e-commerce functionality to an existing website, or to build a completely new e-commerce platform. If you have a corporate website without online selling capability, a PSG e-commerce package can add that functionality. Some vendors offer e-commerce migration packages that move your existing content to a new platform with added shopping features.

What payment gateways are supported in PSG e-commerce packages?

Most PSG e-commerce packages support Singapore’s commonly used payment methods including credit/debit cards (Visa, Mastercard, AMEX), PayNow, GrabPay, and PayPal. Some packages also support buy-now-pay-later options (Atome, Pace) and bank transfer. Confirm which payment gateways are included in your chosen package and whether there are additional costs for integrating specific payment methods.

Can I combine the PSG e-commerce grant with other grants?

You cannot use multiple grants to fund the same cost item. However, you can use PSG for your e-commerce platform setup and apply for other grants — such as the Enterprise Development Grant (EDG) — for separate aspects of your digital transformation, such as a comprehensive digital marketing strategy or business process re-engineering. Ensure there is no overlap in the costs claimed under each grant.

Using PSG Grant for E-Commerce: Build Your Online Store with Subsidies in 2026