How to Start DropShipping Business in the Philippines?

Drop Shipping: What does it mean?

Drop shipping, also known as drop shipping, is a highly ingenious supply chain management technique or a retail fulfillment method in which the seller does away with any physical stock. Instead, he or she moves the order information and the delivery information to a wholesaler or manufacturer who then ships the product to the client.

What is Drop Shipping Company’s Operation in PH?

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shopify dropshipping store set up

Imagine that you own a website in the Philippines where you promote and sell your products. You also have partners around the world. Client orders an item from you and pays $50 (PHP 2,500.00). You confirm the order and send it to your provider. The wholesale cost for the item is $35 (PHP 1750.00). You have only made $15 (PHP 750.00). The order will be fulfilled by your provider, who will then process and deliver the product to the customer. Drop shipping is exactly how it works!

Dropshipping in Ph: Benefits

Very low start-up costs
Everyone knows that stock and storage facilities can consume all the capital of organizations. Dropshipping can eliminate the need to invest large sums of money in storage facilities and stocks. Dropshipping offers the greatest advantage, just to name a few.

Fulfillment expenses are low

Dropshipping allows you to avoid high storage costs and stock that may be outdated. This will allow you to save money on storage space. Many companies lose their earnings due to this.

Work from home or online

Dropshipping is like having a virtual business with no physical location. You don’t need to travel outside to make dropshipping work. You only need to have the right platforms and interaction devices to keep your company in order.

No workers

To fulfill your customer’s order, you don’t need to be able to work with workers or personnel. They will act as your staff and will manage the entire process.


Dropshipping in Ph has its down sides

We have less control

Customers who are unhappy with your service will pay you. Your stock will be shipped by the providers or manufacturers you deal with. You should only deal with trusted providers that offer top-quality products.

No bulk discounts

Because you only purchase one item at a time, the provider cannot offer you significant discounts or a complete list price. Dropshipping does not involve dealing with real products and there is no way to bulk order without having it in stock.

High Competitors

This service is affordable and attracts many competitors. You need to be able to find the most sought-after items online.

Also, you need to find the lowest cost provider so that you can offer a lower rate. The quality and price of an item is what makes an organization competitive.

How do you start drop shipping in the Philippines?

Once you have made your selections and conducted a competitor research, it is time to find and partner with third-party suppliers or manufacturers who can fulfill orders.

Once you have established collaborations, it is time to create online and offline platforms that will allow your company to exist and do all the item marketing, promotion, and marketing. Your online platforms could include Facebook pages, well-designed websites, blogs, or sites that integrate your online shop. While your offline platforms may consist of direct promos to friends and loved ones, as well as hard copy promotions. You can even begin an online shop in simply a couple of clicks with Shopify, an e-commerce platform.

Dropshipping: How do you decide the price?

An online merchant can decide the rate at which he will sell his product. The Dropshipping company will always charge the shipping cost to the online merchant. He can make his own mark-up and still think about the shipping costs.

According to a study by IMARK Philippines, many customers don’t care about the sticker price. In the Philippines, clients, particularly in Metro Manila, don’t usually think about the price tag of the item. If the item is free of charge, clients don’t mind.

Customers hardly think before ordering products from online stores, that is the reason why the Dropshipping business in the Philippines is simpler to run.

Which market plans should you make?

Drop shipping requires a business website. A business website or website costs between P80,000 and P120,000 depending on the features.

IMARK Philippines offers a basic internet business site for as low as P30,000.

Once a site has been approved for action, the online seller advances the items through web-based networking media channels. For example, business pages on Instagram, Twitter and Facebook. Quora and Pinterest. There are also numerous discussion areas with remarks and strings that identify the items. These channels are very fruitful for any Dropshipping business.

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shopify dropshipping store set up

What are the potential earnings from Dropshipping in The Philippines?

According to the latest census data released by the Philippine Statistics Authority (PSA), there are more than 100 million people in the Philippines. 70% of the population uses the internet. 60% of Internet customers are online buyers, which is 42 million people in the Philippines who purchase online products. This market is huge compared to the Southeast Asian countries where there are just under 10 million online buyers.

Metro Manila has a population of approximately 13 million people. This is where the majority of online buyers are located due to their financial ability to purchase products online and spend their money. The type of products and the costs of each item are key factors in determining how much profit an online business website makes. For example, in Metro Manila, an average purchaser can spend as much as P2,000 per exchange. IMARK Philippines has at least 50 clients per week. These clients spend a minimum of P2,000 each. This is where revenue income is crucial.

An online vendor can receive around 200 requests for P400,000 in a month. This nets the online merchant a net profit of P100,000. The mark-up for each item is P1,000. P500 goes towards shipping, and P500 goes toward revenue.

Tips and Warnings

  • Trustworthy providers is perhaps among the most crucial aspects of beginning a dropshipping organization in the Philippines, so additional care and factor to consider ought to be made at this phase.
  • Your audience is your secret. Your audience is the key to unlocking your secrets.
  • Start small. Psychology has a law that says the more options we have, the harder it is to choose. This is what you should remember when building your online business.
  • Developing a blog site on a YouTube channel is an excellent method to increase your seo and reach more consumers, states BlogSchool.PH
  • Dropshipping can be very expensive. Dropshipping can be costly for companies. However, it is possible to lose money in many cases.
  • One mistake lots of dropshipping owners make is not determining the mathematics of business. Exists any import tax that you require to pay, or exist any included additionals you require to make your client knowledgeable about?
  • Dropshipping is a fast-growing business that can be established in a variety of markets.

Is Philippines Dropshipping Worth & Profitable?

Dropshipping in the Philippines can be extremely rewarding if you can select the best item, the ideal consumer, and the ideal rate. Remember that in company, your cash is earned when you buy, not when it’s offered. It is important that your receiving rate be as low as possible, and that your market price does not deceive your customer.

Drop shippers often bundle multiple products together to create a large household pack at a low cost. However, they can still make substantial revenues due to the individual product’s expense. Although there are many ways to start a dropshipping business in the Philippines, it all depends on the product and the target audience. Marketing research is essential at the beginning.

Dropshipping is a great option for those who have the time and desire to start an easy online business. It’s not always easy, and there are many competitors. This is why you will often need to stand out from the crowd and be unique. What is your dropshipping service’s special selling point?

Dropshipping is now possible thanks to modern technology. Many systems can now be automated and orders sent from one provider to another client can be done with just a click.

Dropshipping is a worthy endeavor if you are able to do so. Many drop shippers fail to be effective, which is a shame. Some drop shippers are extremely effective and can make thousands or even hundreds of pesos.

The people who build a successful dropshipping business in the Philippines share something in common. They are all different. Dropshipping is a competitive market. You need to stand out from the crowd and do things others are not doing in order to succeed.

Dropshipping is a business that you are comfortable with. It all depends on your current lifestyle, goals, and company vision.

It’s time to get started with Dropshipping in the Philippines

Many platforms offer web-based businesses and flexible applications that can be used to aid Filipino online merchants. There are many platforms available that can assist you in this area.

In case you are residing in the Philippines and are looking forward to starting a business that will require minimum efforts and money you can easily go for Dropshipping business.

Secret Takeaways

This company is the best for you.

  • To sell your product, you will need to get people to buy it.
  • Also, you need to find a reliable provider that makes exceptional products.
  • You don’t need a shop, have to deal with people, or stock items. In other words, you just require to invest an extremely little capital to start with dropshipping.
  • This organization does not require you to be tech-savvy to get started. As long as your understanding of the primary purpose and the process is clear, everything will go smoothly.