PSG Ecommerce Grant Singapore: Up to 50% Funding for Online Stores

The Productivity Solutions Grant (PSG) is Singapore’s most accessible grant for e-commerce businesses. The PSG ecommerce grant covers up to 50% of pre-approved digital tools — from online store platforms and inventory systems to CRM, accounting, and cybersecurity. The annual cap is S$30,000, and the key rule is simple: choose a pre-approved vendor, submit on BGP, and wait for approval before paying.

This guide walks you through eligibility, all 29 pre-approved e-commerce vendors, the application process, and the mistakes that most commonly get applications rejected.

Key distinction: PSG ecommerce covers pre-approved digital tools only — not advertising spend, marketplace fees, or custom app development. For custom e-commerce projects exceeding S$30,000, use EDG.

Am I Eligible for the PSG Ecommerce Grant?

The PSG ecommerce grant is designed for Singapore SMEs. The eligibility criteria are straightforward, but the last point trips up more applicants than any other. You must meet all five conditions at the time of application — there are no exceptions or workarounds.

The ownership requirement catches some foreign-founded startups. If your company is majority foreign-owned, you will not qualify regardless of how long you have operated in Singapore. The last condition — no prior payment — is the single most common reason PSG ecommerce grant applications get rejected. Even a deposit or signed letter of intent before you submit your application will disqualify you.

What the PSG Ecommerce Grant Covers

The PSG ecommerce grant is not limited to online store platforms. It covers six categories of digital tools that together address the full operational stack of an e-commerce business. You can apply for solutions across multiple categories, as long as each solution is a separate pre-approved package.

Most e-commerce businesses start with an online store platform or inventory management system. If you are already selling on marketplaces but struggling with stock accuracy across channels, inventory and order management will give you the most immediate return. If you are still running your business off spreadsheets, cloud accounting is often the highest-impact first step.

How Much Funding Can You Get?

The PSG ecommerce grant reimburses up to 50% of the qualifying cost for each pre-approved solution you adopt. The annual cap is S$30,000 per company, calculated on a financial year basis from 1 April to 31 March.

You can apply for multiple PSG solutions within the same year, and each application is assessed independently. For example, you could apply for an e-commerce platform (S$5,000 package, S$2,500 funded) and an inventory management system (S$8,000 package, S$4,000 funded) in the same financial year, as long as the total funded amount stays under S$30,000.

Processing time is approximately six weeks from submission to Letter of Offer. During this period, you must not pay the vendor or sign any contracts. Some vendors are familiar with the PSG timeline and will hold your quotation during the approval window — ask upfront.

Worked Example

Scenario: Your online retail business adopts an e-commerce platform (S$6,000), inventory sync system (S$8,000), and CRM (S$5,000).

Processing Timeline

29 Pre-Approved E-Commerce Vendors

There are 29 pre-approved e-commerce solution vendors in the PSG catalogue, ranging from S$600 to S$18,600. Prices reflect the full cost before PSG funding — your out-of-pocket cost will be roughly half. We compare all 29 options in our full vendor comparison, with detailed descriptions of each solution.

Here are selected picks by budget tier:

Budget-friendly options like Fairmart work well for businesses that need basic multi-channel presence without heavy customization. Mid-range solutions from vendors like Verz Design and OOm include professional design, SEO setup, and marketing integrations. Premium solutions like Eurostop suit retailers who need tight integration between physical stores and their online channel.

See all 29 vendors with full descriptions —>

How to Apply for the PSG Ecommerce Grant

Step 1: Check Eligibility

Confirm you meet all five criteria listed above. The most important check: make sure you have not paid any vendor or signed any agreement for the solution you plan to apply for. If you have already committed to a vendor, your PSG ecommerce grant application will be automatically rejected.

Step 2: Find Your Pre-Approved Solution

Browse our vendor comparison or use the search below to find solutions that match your needs. Filter by category (e-commerce, inventory management, CRM, accounting) and compare pricing across vendors. Every solution listed in the catalogue is pre-approved — you do not need to justify the solution choice in your application.

Step 3: Get Vendor Quotation

Contact two to three vendors and request a PSG-compliant quotation. The quote must match the pre-approved package exactly as listed in the PSG catalogue (referred to as Annex 3). Make sure the vendor addresses the quotation to your ACRA-registered company name — not your trading name, brand name, or any abbreviation. A name mismatch between your quote and your ACRA registration will get your application rejected.

Step 4: Prepare Documents

Gather the following before you start the online application:

• ACRA business profile (BizFile extract, not older than 3 months)
• Financial statements for the last three years (or since incorporation if newer)
• Vendor quotation that matches the Annex 3 package specification
• Brief description of how the solution will benefit your business operations

Step 5: Submit on Business Grants Portal

Log in to the Business Grants Portal (BGP) using your Corppass credentials. Complete the application form, upload all documents, and submit. Approval takes approximately six weeks. Do not pay the vendor or sign any contract until you receive the Letter of Offer. Once you have the Letter of Offer, you typically have a defined period to procure and implement the solution.

Best PSG Solutions by E-Commerce Pain Point

Inventory & Order Management

If you sell on multiple channels — your own website plus Shopee, Lazada, or Amazon — inventory sync is probably your biggest operational headache. PSG-approved inventory management solutions connect all your sales channels and update stock levels in real time. This eliminates overselling, reduces manual stock checks, and automates order routing to your fulfilment workflow. Look for solutions that support barcode/SKU management and low-stock alerts. Funding covers up to 50% of the solution cost under the PSG ecommerce grant. Browse all inventory management solutions in our PSG directory.

E-commerce Platform & Website

For businesses that do not yet have an online store, or are running one on a basic free template, PSG-approved e-commerce platforms provide a professional storefront with integrated payment gateways (PayNow, credit cards, PayPal), mobile-responsive design, and product management tools. Most PSG-approved vendors build on Shopify or WooCommerce, both of which are well-supported platforms with large plugin ecosystems. Browse the e-commerce category for all available options.

CRM & Marketing Automation

Acquiring a customer is expensive. Retaining them is where the profit is. PSG-funded CRM solutions help you build a customer database, segment buyers by behaviour, and run automated campaigns — abandoned cart emails, post-purchase follow-ups, loyalty rewards. If your repeat purchase rate is low, CRM should be your first PSG ecommerce grant application. Browse all CRM solutions in our PSG directory.

Cloud Accounting

E-commerce generates high transaction volumes that quickly overwhelm manual bookkeeping. PSG-approved cloud accounting solutions integrate directly with your bank accounts and payment gateways to auto-reconcile transactions. They handle multi-currency (useful if you sell cross-border), generate GST-ready reports, and simplify year-end filing. Popular pre-approved options include Xero and QuickBooks-based packages. Browse all accounting solutions in our PSG directory.

Cybersecurity

Any business that collects customer data or processes payments needs proper cybersecurity. Under the PSG ecommerce grant, you can fund endpoint security, managed detection and response, vulnerability assessments, and data loss prevention tools. This is particularly relevant after Singapore’s strengthened PDPA enforcement — a data breach can result in fines up to S$1 million. Browse all cybersecurity solutions in our PSG directory.

HR & Payroll

Once your e-commerce operation grows beyond a few staff — warehouse packers, customer service reps, admin — payroll and HR management becomes a real time sink. PSG-approved HR/payroll systems handle CPF auto-computation and submission, leave management, attendance tracking, and IR8A preparation. The automation pays for itself within months for teams of five or more. Browse all HR and payroll solutions in our PSG directory.

What Mistakes Get PSG Ecommerce Applications Rejected?

1. Paying the vendor before approval. This is the number one reason PSG ecommerce grant applications fail. Any payment, deposit, or signed contract before your application is submitted will disqualify you. No exceptions, no appeals. Wait for the Letter of Offer.

2. Choosing a solution that is not in the PSG catalogue. PSG only covers pre-approved solutions. You cannot claim funding for any software, plugin, or service that is not explicitly listed in the GoBusiness PSG catalogue. If the tool you want is not listed, consider the Enterprise Development Grant (EDG) for custom solutions.

3. Getting a quote that does not match Annex 3. Every pre-approved solution has a specific package specification (Annex 3) in the PSG catalogue. Your vendor’s quotation must match this specification exactly — same features, same scope, same package name. A generic quote will be rejected.

4. Wrong company name on the quotation. The vendor quote must be addressed to your exact ACRA-registered company name. Not your trading name, not a shortened version, not your brand name. Check your BizFile extract and ensure the vendor uses that exact name.

5. Trying to claim marketing or advertising spend. PSG covers productivity software and digital tools. It does not cover ad spend, social media advertising, influencer campaigns, or any form of marketing execution costs. The Double Tax Deduction for Internationalisation (DTD) scheme covers overseas marketing expenses instead.

What PSG Does NOT Cover for E-Commerce

• Advertising and marketing spend — Google Ads, Facebook Ads, influencer fees, sponsored content
• Custom software development — bespoke e-commerce platforms or apps (use EDG instead)
• Marketplace platform fees — Shopee, Lazada, or Amazon seller subscriptions and commissions
• Standard IT hardware — laptops, desktops, smartphones (some specialised equipment may qualify under other schemes)
• Training beyond the vendor package — additional workshops or courses outside the pre-approved scope

For custom e-commerce projects or costs exceeding S$30,000, consider the Enterprise Development Grant (EDG).

What Should You Do Next?

1. Browse our vendor comparison — compare all 29 pre-approved e-commerce vendors
2. Check your eligibility — confirm all five criteria above, especially the no-payment rule
3. Get 2–3 vendor quotations — request PSG-compliant quotes matching Annex 3 exactly
4. Prepare your documents — ACRA profile, 3-year financials, vendor quotation
5. Submit on BGP before paying any vendor — pre-payment disqualifies automatically

Running an F&B business? See our F&B kitchen automation guide or AI restaurant management guide.

Frequently Asked Questions

What is the PSG ecommerce grant and how much can I get?

The PSG ecommerce grant is part of Singapore’s Productivity Solutions Grant, specifically covering digital tools for online businesses. You can get up to 50% funding (capped at S$30,000 per year) for pre-approved e-commerce platforms, inventory systems, CRM, accounting, cybersecurity, and HR tools. Processing takes approximately six weeks.

Which PSG ecommerce vendors are pre-approved?

Grantla tracks 29 pre-approved e-commerce vendors and related packages, including budget, mid-range, and premium online store options. Always cross-check the final vendor and package in the official GoBusiness catalogue before requesting a quotation or submitting on BGP.

How do I apply for a PSG ecommerce solution on BGP?

Shortlist a pre-approved e-commerce vendor, request a PSG-compliant quotation, prepare your ACRA profile and financial statements, then submit the application through BGP before making any payment. After approval, accept the Letter of Offer and only then sign the vendor contract.

How much funding does PSG provide for e-commerce?

PSG reimburses up to 50% of the qualifying cost for each pre-approved solution. The annual cap is S$30,000 per company, calculated from 1 April to 31 March. You can apply for multiple solutions within the same year.

Can I use PSG for Shopify or WooCommerce?

Yes, but only through a pre-approved vendor. You cannot claim PSG funding for a Shopify subscription you set up yourself. You need to go through one of the 29 pre-approved e-commerce vendors who will set up and configure the platform as part of their PSG-approved package. Several vendors offer Shopify-based and WooCommerce-based solutions.

How long does PSG approval take?

Approximately six weeks from submission to Letter of Offer. During this time, do not pay the vendor or sign any contract. Some vendors will hold your quotation during the approval period — confirm this upfront.

Can I apply for multiple PSG solutions?

Yes. You can apply for an e-commerce platform, inventory management system, CRM, and cloud accounting solution all in the same year. Each application is assessed independently. The only constraint is the S$30,000 annual funding cap across all PSG solutions.

Is PSG only for new businesses?

No. The PSG ecommerce grant is available to any eligible Singapore SME, whether you are a new startup or an established business looking to digitise operations. The key requirements are Singapore registration, at least 30% local ownership, and annual turnover under S$100 million.

Do I need to use all the features in the PSG package?

You are expected to implement the solution as described in the pre-approved package. While there is no enforcement of daily usage, the solution must be deployed and operational in Singapore. Purchasing a PSG package purely for the subsidy without genuine intent to use it would be considered grant misuse.

Related Guides

• PSG E-Commerce Vendor Directory — All 29 vendors compared with descriptions and pricing
• PSG Grant Explained — Full PSG guide covering all categories
• PSG Pre-Approved Solutions — How to navigate the catalogue
• PSG Quick-Start Checklist — Step-by-step application guide
• Grant Pitfalls Guide — Common mistakes to avoid across all grants
• PSG Solutions for All Industries — full directory of PSG solutions across every sector

Official Links

• Business Grants Portal (BGP)
• GoBusiness PSG Catalogue
• PSG: Enterprise Singapore