When looking at what dropshipping means in the Philippines, you will most likely have many questions, but one of the most common questions is how to start dropshipping in the Philippines, and is it profitable?
What Is A Dropshipping Business In The Philippines?
The dropshipping meaning Is straightforward. A dropshipping business is where you sell items that are not your own. The price on your website is higher than the price you are buying it for, which means you are making a profit. Take a look at the dropshipping model by Oberlo.
Once an order has been made on your website, you Input the customer’s details into your supplier’s website. From there, your suppliers will ship the order directly to your customers. In other words, you do not need to stock and hold any orders at a warehouse or at your home.
How To Start Dropshipping In The Philippines?
1. Choose Your Business Niche
The most crucial step when looking at how to start dropshipping in the Philippines is to choose your business niche. A business niche is something particular and not a general category.
For instance, selling sports clothes is not a niche; selling sports clothes to women who do yoga is a specific niche.
The Internet has come a long way over the last 10 years. But this does not mean that you will be unsuccessful if you choose a general term or topic. Still, you stand a higher chance of success if you can select a smaller niche.
“The benefit of niche marketing is that because you are confined to a specific person and a specific need, less focus is required on digging into your data to understand and keep up with their needs. You will also be doing less trial and error with your methods, which also can be resource-heavy.”Thrive Hive
2. Build Your Dropshipping Plan
The next important part when starting a dropshipping business in the Philippines is to build your drop shipping plan.
Here at Filipino wealth, we have a free business template that you can download by clicking on the tools button at the top of this page; however, remember to include some of the following points if you choose to build your plan alone.
- What Items Will I Be Selling?
- What Is My Profit Margin?
- How Much Do I Need To Sell Per Month?
- How Much Is This Going To Cost Me?
- Am I Fully Aware Of The Drop Shipping Meaning And All Its Different Terms?
- Who Is The Competition And How Can I Beat Them?
- Am I Doing This Alone Or Are Other People Helping Me?
- Are My Customers Filipinos Or Will They Be Based Overseas?
- Can I Design A Website Or Do I Need To Pay Someone To Design It?
- What Are The Businesses Strengths, Weaknesses, Opportunities, And Threats?
Once you have your dropshipping plan and an idea of the direction you will take your business, the next important thing is finding your suppliers.
3. Find Dropshipping Supplier For The Philippines
When looking at dropshipping suppliers for the Philippines, there are plenty of options. Here are some of the most popular options.
China brands is a business that has been around for many years and is often used by the Chinese and by Filipinos. There are some great products to be had, and many suppliers openly work with drop shippers. The only restriction is that you will not see the list of suppliers until you sign up (this is likely to change shortly).
Aliexpress is another Chinese online marketplace that has lots of suppliers. However, unlike China brands, you can search and speak to Aliexpress suppliers directly on their platform without a sign-up (currently).
Some suppliers do not always include the added costs; for example, sometimes there is customs and import tax, which is not included, so it’s recommended to obtain a full price before making any payment.
Lazada is known in the Philippines; indeed, Lazada has reached many parts of Asia, and it looks to grow as we look over the next five years, which makes it a great dropshipping supplier for the Philippines.
Many people go onto Lazada to find cheap and unique items. Still, many customers outside of Asia are not aware of this marketplace, which means they can be an outstanding supplier if you are selling overseas.
Another excellent option for dropshipping suppliers in the Philippines is Alibaba. This network is mainly for business-to-business customers.
However, if you’re drop shipping business is selling multiple units. For example, instead of 1 pen, you sell 1000 pens; Alibaba can be a great dropshipping supplier.
Like Aliexpress and other Chinese platforms, getting the final fees before handing over any money is always essential. Also, remember an import tax and delivery charge, which are not included in many listings.
4. Building Your Platform
Once you have your dropshipping suppliers for the Philippines, we now move on to stage 4, which is to build a unique and user-friendly platform.
I run several online shops and many blogs, and in my experience, I can tell you that one of the best ways to influence buying decisions is to make your site super fast and easy.
Sometimes the most straightforward designs work the best. The platforms we have suggested above all have a standard and premium template, which means you can purchase or choose a standard template for your website. In other words, everything is imported. You do not need to do anything and require any technical skill!
Alternatively, as a dropshipping business in the Philippines, you can outsource this work, but this can sometimes be costly. There are also many services on Fiverr which can help you at this stage of your dropshipping business.
5. Reaching Your Customers
The next part of setting up a dropshipping business in the Philippines is reaching those customers and earning pesos!
There are many ways to reach your customers online. Here are a few examples.
- By Creating A Blog
- By Recycling Content On Other Platforms Such As Youtube
- Releasing Powerful PR
- Sponsoring Events And Other Businesses
- Through Gathering Emails And Subscriptions
- Through Paid Advertisements
- Through Search Engine Optimization
- Through Social Media
- Working With Affiliates And Resellers
There are many different ways to reach your customers, and some methods will take longer than others. For instance, a paid advertisement will be shown to your customers within a few hours; however, search engine optimization can sometimes take many months, so many dropshipping businesses in the Philippines decide to take multiple roots.
6. Building Your Dropshipping Business
The last stage of setting up a dropshipping business in the Philippines is to build your business. At this stage, you will successfully have a dropshipping business, a supplier, and are making some good sales, but what’s next?
Growth is significant in any business, and there will be a stage in which you cannot do everything alone, so you may need to hire some support, may need to work with other businesses, or decide to sell a different type of product.
Dropshipping In The Philippines Tips
- Reliable suppliers are arguably one of the most important things about starting a dropshipping business in the Philippines, so extra care and consideration should be made at this stage.
- Your audience is the key. What product do they want, how do they want it, when do they want it, and most importantly what added value can you add to your business?
- Start small. There is a law in psychology that states the more choice we have, the harder it is to choose; remember this when building your online business.
- Creating a blog on a YouTube channel is a great way to increase your search engine optimization and reach more customers, says BlogSchool.PH
Dropshipping In The Philippines Warnings
- Dropshipping can be very costly. In some cases, business owners can lose money; however, unlike other businesses, dropshipping has very little cost as you do not need to buy the products.
- One error many dropshipping owners make is not calculating the mathematics of the business. Is there any import tax that you need to pay, or are there any added extras you need to make your customer aware of?
- Unfortunately, as dropshipping can be started relatively quickly, many businesses have set up, building competition in many industries.
Is Dropshipping In The Philippines Profitable?
Dropshipping in the Philippines can be very profitable if you choose the right product, customer, and price. Remember, in business, you make your money when you buy, not when you sell. In other words, it’s essential that your purchasing price is as low as possible and your selling price is as high as it can be without misleading your customer.
Many drop shippers also bundle different items together to sell a big family pack at a discounted price, but they can make a significant profit due to each item’s cost. There are many ways to start a dropshipping business in the Philippines and successfully grow, but it depends upon the product and the audience; therefore, market research is critical at the very beginning.
Is Dropshipping Worth It In The Philippines?
Dropshipping is worth it for many individuals who have free time on their hands and are looking to start an online business that is relatively straightforward. However, it’s not always the easiest, and as mentioned before, the competition is very high; therefore, you will often need to stand out from the crowd and be unique. So, what is your dropshipping business’s unique selling point?
Thanks to technology, dropshipping has become straightforward. Many systems are now automated, and you can send orders from one supplier to your customer with a short click of a button.
Dropshipping as a whole is worth it if you can make it. Unfortunately, many drop shippers are not successful. However, some become incredibly successful and earn thousands and even millions of pesos.
Those who grow a successful dropshipping business in the Philippines have one thing in common they are all unique. In the industry of dropshipping, sometimes you have to go against the crowd and do things that other people are not doing to stand out and be successful.
Whether dropshipping is worth it or not for you typically depends on your current lifestyle, business ambitions, and goals.
How To Start Dropshipping In The Philippines: Take Away
- Dropshipping meaning in the Philippines is merely selling an item of another company (supplier). Once an order has been made, you notify your supplier who ships the order directly to the customer.
- The business’s financial tasks are among the most critical areas to focus on when setting up a dropshipping business in the Philippines.
- Dropshipping is a fairly straightforward business to set up, and because of this, competition is fierce.
- Dropshipping can be profitable in the Philippines if you can find the right product at the right price and the right customer.
- When finding products to sell, remember added extras such as import tax or delivery charges that have not been included.
- Filipino wealth has a unique business plan, which you can download for free by clicking on the Tools tab at the top of this page.
More Dropshipping Guides
- Aliexpress To Philippines Beginners Guide
- Best Dropshipping Suppliers Philippines
- How To Dropship In Lazada Philippines
- How To Find Suppliers In The Philippines
- How To Start Dropshipping Philippines 2022