How to Start Dropshipping in the Philippines 2024

How to Start Dropshipping in the Philippines 2024

**Note: This is Part 1 of 3 of my series on How To Earn Through The Internet without Too Much Skills or Knowledge.

To head to Part 2, click on this link: Drop Servicing Business: How to Start

Part 3, click here: What is Print On Demand? How To Start A Print On Demand Business?

How do you start a Dropshipping Business in the Philippines? If there’s another job or business you can do online without leaving the four corners of your home, it is definitely Dropshipping.

What is Dropshipping in the Philippines?

Dropshipping is one of the most trending jobs online over the past 15 years. And to think that my husband and I just discovered this recently! If you haven’t gotten a clue about what this is then that’s alright. It’s not too late for you to learn and make money from it.

Dropshipping is basically an order fulfillment method. By now, you may think that you need products on hand and sell it online, but it’s not like that.

This is a type of order fulfillment business that:

• will not require you to keep product stocks or inventory;
• allows entrepreneurs to start an online business and sell products without the actual items;
• it allows you to purchase an item from a direct supplier, and that supplier will send the item directly to the customer.

If my explanation above is kind of hard to grasp, here’s a Dropshipping Model I created:

Here is a simple enumeration of the process:

• You receive an order

• Then you forward it to the supplier

• The supplier will fulfill the order

So your main job is to MAKE SALES by attracting customers to buy your products. Then the supplier will take care of the delivery or fulfillment. LAWAY lang talaga ang puhunan!

Basically, you will earn money by selling the product at a higher price and the supplier will handle all of your product fulfillment needs. If you’re familiar with a middle man, it goes like that. Every time you get an order, you need to notify your supplier to ship that specific item directly to the customer on your behalf. There will be zero upfront cost to start a dropshipping store online. Though it may sound like easy money, the day-to-day management won’t always run smoothly. However, if you know how to deal with it the right way, you can still build a successful business through this scheme.

***Note: As far as I know, in some instances, you don’t really need to inform the supplier that you intend to dropship his products. You can just sell his products right away in a different platform/marketplace at a higher price, without his knowledge.

When a buyer places an order with you, just place an order with your supplier like you would normally do. But instead of sending your name and address details to your supplier, you should provide your BUYER’S DETAILS instead.In my experience, I always inform the supplier that I intend to dropship their products. But with the case above, I don’t see any harm nor anything illegal in trying. If you have tried this, please let me know through the comments below how did your business go.

Advantages and Disadvantages of Dropshipping in the Philippines

Of course, you can’t just delve into dropshipping without knowing what you’re getting yourself into. Read and understand the pros and cons below carefully to increase your chances of being successful in this venture.

 a. Advantages of Dropshipping in the Philippines

• Low Startup Costs

Everyone knows that stocks and a warehouse tend to eat all of the capital for businesses. But with dropshipping, you can eliminate the risk of spending a lot of money for a warehouse and stocks. This is the biggest edge of dropshipping among other businesses.

• Low Fulfillment Costs

Dropshipping allows you to avoid high costs of warehouse stocks that may end up with obsolete inventory, which will eventually force you to find ways on how to reduce your stocks. This is where many businesses lose revenue.

• Work Online or Homebased

Dropshipping is like having a virtual business without any physical location, therefore, you don’t need to go outside just to make your business work. All you need is communication devices and proper platforms to keep your business on track.

• No employees

You don’t need to hire staff or employees to fulfill your client’s orders. The supplier will serve as your staff, and they will take care of the process.

b. Disadvantages of Dropshipping in the Philippines

• Less Control

You will be the one to pay for dissatisfied customers. The manufactures or suppliers you do business with are only responsible for managing and shipping your stock. So make sure to work with trusted suppliers with high-quality products.

• No Bulk Discounts

The supplier cannot give you huge discounts or a whole sale price because you are buying one at a time. There is no way to get bulk order and have it on hand, because dropshipping is not about handling actual products.

• High Competition

The low capital for this business attracts a heavy competition to everyone. So, you need to have the best and most wanted products online.

You also need to look for the supplier who has the lowest price so you can provide a lower price too. Business competition is mostly about quality and price of the product.

What products can you start dropshipping in the Philippines?

Actually, you can almost sell everything that people need. But in order to find the right products, you need to use some application or platform which can give you a list of the most popular and in-demand products you can sell through dropshipping.

Some of these products are:

• Bluetooth Speakers
• Smart Watches
• Fitness Trackers
• USB Charging Dock
• Baby Carrier
• Smoothie Blender
• Bluetooth Headphones
• Organic Products
• Security Camera
• Yoga Leggings
• Trendy Outfits
• E-Cigarettes
• Masks
• Alchohol
• Bags
• Shoes
• Anti-aging cream
• Grooming Products
• Led Lamp
• Kids Tent
• Kids Toys
• Organizers

Selling Services

Did you know that aside from the products listed above, you can also sell SERVICES? It is similar to Dropshipping but instead of physical products being sold, you are actually selling services. This is called Drop servicing wherein you sell a “service” (e.g. graphic design or bookkeeping), produced and delivered by a third party to another party (client).

Think of outsourcing where you provide the service to your client while you outsource the labor of that service to freelancers. Now if you’re wondering what type of services can you outsource then head on to our list of the 16 Drop Servicing Ideas (Zero Investment & Easy!) in the Philippines.

Best Dropshipping Platforms in the Philippines 2024

There are several platforms you can use to start dropshipping. If you will learn how to navigate these platforms, it will become easy for you to manage your dropshipping store. These are some the most popular platforms for dropshipping in the Philippines:

• WooCommerce
• Shopee
• Shopify
• Aliexpress
• Alibaba
• Lazada
• Oberlo

Is Dropshipping Profitable in the Philippines?

Any type of business requires effort, and you’ll never know if it’s worth it until you see the outcome. If you are looking for a legal and less capital business online, dropshipping is a great way to start. There are a lot of money-making schemes online, but dropshipping tends to be one of the most decent ones. Managing a business like this is not that hard, unlike other businesses. I mean, yes, you can do it online while on your couch, bed, or even outside – but remember, you still need to work hard for it.

Tips for Dropshipping in the Philippines

In order to earn with this type of business:

• You need to attract people to buy your product.
• You also need to look for a trusted supplier that produces exceptional products.
• Unlike any other business, you don’t need to have a physical store location, no need to hire people, no need to stock products and worry if it’s going to be sold. In short, you only need to invest a very small capital to start with dropshipping.
• You don’t need to be techie in order to start with this business, as long as you understand the main goal and the process, everything will go smooth.

If you want to try dropshipping now, make sure to equip yourself with the proper knowledge first. I hope you found this post informative. For more related posts about business, check out our articles below:

• 14 Time-tested Tips for Online Selling in the Philippines
• How To Find A Business Partner Online In The Philippines
• 50 Best Business Ideas for Women Philippines
• 16 Drop Servicing Ideas (Zero Investment & Easy!) Philippines
• 100 Best Products to Sell Online in the Philippines
• 20 Ways to Promote & Market Your Business in the Philippines

REMINDER: To head to Part 2 of 3 of my series on How To Earn Through The Internet without Too Much Skills or Knowledge, click on this link: Drop Servicing Business: How to Start

Part 3, click here: What is Print On Demand? How To Start A Print On Demand Business?

How to Start Dropshipping in the Philippines 2024