How to Start Dropshipping here in the Philippines?

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Are you wondering how to start your Dropshipping journey? Well, this is the best article for you. Today, I will try my best to explain to you what is Dropshipping and how to earn from it. I will give my basic knowledge on how to manage your online dropshipping here in the Philippines. So, without further ado, Let’s Go!

What is Dropshipping?

Dropshipping is a form of online selling where you don’t need to stock a product or have an investment to start with. Dropshipping is a connection between the reseller and the supplier, where the reseller sends the buyer’s information to the supplier, and then the supplier will process the ordered product from packaging to delivery.

In short, the store or the reseller doesn’t need to have a warehouse for their products to start a business or to start selling online, but instead they just need a trusted supplier who can process their online orders with ease.

Dropshipping Compared to Buy and Sale

The basic online selling is we do Buy and Sale, where we buy products at less price and we sell it for a higher price, in other words, we need an investment to start selling. This is the common strategy to start a business, but the problem of traditional selling is we need to buy many products in bulk to get a much higher discount from the reseller, and sometimes it leads to overstocks.

How to Start Drophipping?

Find a Trusted Supplier

Finding a trusted supplier for your products is not that easy, but if you found one, you can build your dropshipping business to a higher level. But the question is, what type of supplier you need to contact for your dropshipping business?

how to start dropshipping in the philippines

What to Look for a Supplier?

  • Trusted and Credible
  • Good Store Reviews and Feedbacks
  • High Quality and Authentic Products
  • Accepts Cash on Delivery
  • Ideal Reseller / Wholesaler Market Price
  • Flexible mode of Payments

Where to find a Supplier?

For you to able to contact or message a supplier, you need to find their contacts or social media accounts and try to message them and negotiate about the dropshipping you want to start with their business.

Here is the example on how you can contact supplier for your dropshipping business.

  • Facebook Page Owners
    The only thing you need to do is, message the Facebook Page about your intention to do dropshipping with their products, and hope you will get a good response regarding this matter. Just don’t be shy to express your good intention about their business.
  • Facebook Groups Inquiries
    There are so many Facebook groups out there who managed by mostly small business product suppliers who can cater drop shipping for their small business startups. The only thing you need to do is, join a certain Facebook group and just post about your interest to do dropshipping for such products, and I guarantee that you will get a lot of messages from business owners.
  • Shopee Direct Message
    Shopee is one of the best E-Commerce platforms today in the Philippines. There are so many business owners or suppliers selling their products on the Shopee. So, the only thing you need to do is, message them, and ask if they can accept drop shipping for their products outside Shopee and you can start doing the negotiation there. Take note, not all Shopee store owners accept dropshipping, so just try your best to find the supplier who can support your dropshipping business.
  • Local Stores
    Make it simple, this is one of the easiest to find a supplier for your dropshipping business. Just go to your nearest business stores and ask if they can do drop shipping, and discuss the benefits of the business. This is the best method you can try because it is much easier to negotiate the business because you discuss it personally, that’s the time you can create trust and connections.
How to Start Dropshipping here in the Philippines?

How to Start Selling with Dropshipping?

If you already have a supplier for dropshipping business, it’s now very easy to market and sell your products online. Here are my basic ideas for you to start, from paid to free marketing strategy.

  • Facebook ADS
    This is the most known strategy to market your product. Facebook Ads is very popular on Dropshipping because 80% of the dropshipping markets their products on Facebook. This method is very good because you just let Facebook promote your products to potential customers online with their online behavior or interest. But this method is not for Free, you need to invest and pay Facebook for your advertising strategy.
  • Shopee Store
    Create your own Shopee Account and start posting and selling your dropshipping products on Shopee. But wait, you need to confirm first if the supplier allows this method. Because some supplier doesn’t want you to post any products inside Shopee, especially I can do conflicts on their personal store.
  • Shopify / Website
    Shopify is the best website platform for all online stores or dropshipping businesses. This is the best way to publish your products online with Shopify, but it needs more knowledge on this platform for you to make it work and you need to pay for monthly subscriptions for your website to make it live.
  • Facebook Pages / Groups / Marketplace
    The most basic strategy to promote your products online, just to post them on Facebook and let somebody see your product offers. You can experiment with posting on your profile and share it to other pages or groups, you can also post on the marketplace where customers can message you directly for their inquiries of your products.
  • Youtube or Website Blogs
    The best way to promote our products is to be social and connect to people as many as possible. Creating online content via video blog or written articles can help you boosts your product sale with ease. The more people see your products, the more potential customers will contact you for their possible orders.

How to Process Dropshipping Orders?

If you already have an order, the best thing you need to do is get the buyer’s information details like name, contact, complete address, and the final orders and then pass it to your supplier. If your supplier confirms the information details they will automatically deliver the orders to your buyer’s address.

After this time, you just need to get the status updates about the delivery, if it’s failed or delivered successfully. If the orders made it to the final transaction, this is the time you will contact your supplier and ask for the transfer for your commission or profit thru GCASH or local banks. This only happens if the transaction is thru Cash on Delivery, where the supplier received the full payment of your orders.

But if the transaction is made via Payment First, the only thing you need to do is, order the products directly from your supplier and paid it. Your total payment will be the total reseller’s price + shipping fee of the products.

Example Calculation:
Reseller’s Price: P350, Selling Price: P850, Shipping Fee: P150
Total Customer Paid you: P1000 (Selling price + Shipping fee)
The total you Paid to your Supplier: P500 (Reseller’s price + shipping fee)
This means you have a profit of P500 for this transaction.

How to Start Dropshipping here in the Philippines?

What happens if my Orders Cancelled?

If the product was ordered via Cash on Delivery and got canceled, the products will just send back directly to your supplier warehouse but the supplier needs to pay for the canceled delivery. Well, depending on the supplier terms and conditions, some suppliers, split the payment to the resellers 50/50, for example, the delivery is P200 but it got canceled, you need to pay P100 to your supplier to handle that expenses. So better ask your supplier if what your liability if the orders got canceled.

Some good suppliers don’t mind paying the canceled deliveries on their behalf. So better ask and discuss these concerns with your supplier.

Is Dropshipping is Legal here in the Philippines?

Absolutely, Yes. It doesn’t matter if you sell your products over market price, it is still legal. Resellers are allowed to resell products as long as it has permission to the suppliers and other concerns product partners. You can do drop shipping online or just here locally, it doesn’t matter, as long as your products are not fake or smuggled.

Final Thoughts

Dropshipping is one of the best online sources of income without and investment or capital. Dropshipping has a very big potential to earn not just for an extra but to reach your financial goals. So, what are you waiting for? Start your dropshipping business journey today and find a good supplier that can help with your dropshipping business. A supplier that can help you to reach your business goals.

Are you interested to do Dropshipping with Beauty Products? Just Message here.