How to start a dropshipping business in the Philippines

In the world of E-commerce, you always have to be on the lookout for new trends. From the rise of online marketplaces to live selling, technology has made it convenient for merchants to be creative with how they sell their products. One E-commerce trend that has been gaining momentum in the Philippines is dropshipping. 

Dropshipping is a type of retail fulfillment where merchants do not personally store or have an inventory of the products they sell. Rather, they work with different third party suppliers. For instance, when a customer makes an order, the merchant purchases the product from a supplier or routes it to them and lets them handle the packaging and shipping. It’s that simple!

This business model has become popular among merchants because it allows them to offer a wide variety of products in different locations at minimal costs. They don’t have to worry about inventory, storage space, and even the shipments as these are already taken care of by partner suppliers.

Want to start your own dropshipping business in the Philippines? Here’s how you can do it.

Choose your products

A lot of merchants continue to explore dropshipping in the Philippines. You need to be mindful of this when choosing the products you want to sell. Do your research and find a specific market to cater to. If you already have your product preference, you can always level it up through different marketing techniques. This will help you stand out from your competition.

Find your suppliers

Apart from your products, you also have the freedom to select which suppliers you want to partner with. They can be established local brands, vendors on online marketplaces, or wholesalers and general merchandisers. You can also consider their locations to get an idea on which areas you can cater to when you start selling.

Set up supplier agreements

To ensure a smooth and seamless shopping experience for your customers, you need to set agreements with your partner suppliers. Since this is a dropshipping arrangement, they will be handling the products from packaging to shipment. These agreements will help you make sure that products are kept and packaged in their best quality, and that shipping is managed properly and efficiently.

Another way of going about dropshipping is purchasing the products and personally packing and shipping them once an order has been placed. In this case, your agreement with suppliers can be more focused on maintaining product quality and availability for easy access.

Build your shop and choose your platform

Now that you’ve ticked off your products and suppliers, you need to determine your brand’s identity like its name and logo. Once you’ve worked out those details, you must now select which platform you want to use for your online store.

You can choose to have a website which you can fully design, manage, and control. Not as tech-savvy? You can always go for online marketplaces like Shopee or Lazada where there are already templates to guide you. Social media is another platform that you can explore. It’s one of the easier platforms to manage because it’s quite similar to managing your personal social media accounts.

Bring out the best in your products

Since products sold through dropshipping may be similar among merchants, you have to unleash your creative side. Choose the best product photos in different angles and settings. It would also help to have people model your products and even add photos from other customers using your products. 

You can liven up these photos with punchy or witty descriptions to get the attention of customers. These are necessary for you to stand out from your competitors.

Create buzz through marketing

Once your business goes live, you also need to start on your marketing. This can be done through promotions on social media, online advertisements, or even through referrals or word of mouth. If you’re on Shopee or Lazada, you have a wide range of free and paid promotional features that can boost your visibility.

Keep communication lines open for feedback

Feedback matters to both you and your customers. You can utilize the chat functions of your platforms and also have a space where they can provide feedback. This will help you build rapport and also address any concerns that they may have with their purchase.

Prepare for potential service recovery

You may already have agreements with your partner suppliers, but since you don’t have direct visibility over the handling of products, it’s best to have service recovery plans in place. Should there be any disruptions on the delivery like delays, damages, and wrong addresses, you can offer discounts, free replacements, and refunds to help manage your customers. This will show them that you value and care for their experience.

Dropshipping in the Philippines may already sound easy enough, but you can always partner with Payo to make the process more seamless for you. Payo can help you thrive in E-commerce through different services like Fulfillment, Last Mile Management, Live Customer Support, and Marketplace Optimization.

Want to start your dropshipping journey in the Philippines? Sign up with Payo today or send us a message at [email protected]. We’ll be right with you!