Dropshipping is an E-commerce service that is gaining popularity among Filipinos who want to venture into online retail. Budding merchants consider this as a swift way to break into the market. One reason for this is that dropshipping does not require them to physically have or own the products that they’re selling.
Essentially, a dropshipper in the Philippines partners with different suppliers who take care of the stocks, packaging, and shipment when orders come in. It is a simple business model that is easy to manage and understand.
While first hand experience is the best way to learn, there’s still advice that’s helpful to know before you start. Here are six reminders that every budding dropshipper in the Philippines should know to better navigate this type of business.
Minimal to no capital needed
One of the main reasons behind the rise of dropshippers in the Philippines is because of how this business model doesn’t require them to invest in products physically. Setting up an online shop on social media and digital marketplaces also requires minimal to no budget at all. Thus, this E-commerce service helps sellers use their funds on other things like marketing and promotions.
Study the market and have a niche
Online retail has significantly grown over the past few years. Almost all products that one can think of are already being sold. A dropshipper in the Philippines can use this as an advantage and study the local market. This allows them to find a niche or specific audience to serve. They should then identify products that would appeal to their market most, and maximize opportunities.
Find suppliers and set agreements
Dropshipping as an E-commerce service is all about what happens behind the scenes. In the Philippines, a dropshipper needs to find suppliers who would be amenable to this kind of arrangement. Merchants can either buy stocks or coordinate orders directly to suppliers that take care of the packaging and fulfillment.
Setting terms and agreements is also important. This protects both the seller and the customer while keeping suppliers accountable, especially when challenges arise during the purchase journey.
Constant communication is key
Merchants interested in being a dropshipper in the Philippines need to know that communication is vital in running a dropshipping business. As they have the opportunity to offer any product they want, sellers must communicate constantly with suppliers. They have to make sure that their stocks are available, in top condition, and orders are managed properly.
Be ready for potential crises
A flaw of dropshipping is that a dropshipper in the Philippines doesn’t have direct control or visibility over their products. Merchants can’t oversee their product’s handling, packaging, and delivery. Damaged goods, mishandling of packages, and delayed deliveries are just some of the potential issues that a merchant may encounter.
This is why supplier agreements are important. Likewise, sellers also need to be prepared for service recovery such as free replacements, refunds, and discounts. These things are valuable when it comes to saving their relationship with the customer.
Focus on other aspects of the business
While suppliers handle most of the work for this E-commerce service, dropshipping allows merchants to manage other aspects of the business. They can communicate with customers, offer bundles, promos and discounts, or market on different platforms. These are just some of the activities that a dropshipper in the Philippines can do to drive more traffic to their online store.
Dropshipping is a fairly easy business to put up as long as merchants do their research. It’s important for dropshippers to find ways to maximize market opportunities. One way of doing that is by partnering with an E-commerce enabler that can assist them, like Payo!
Payo, the country’s leading E-commerce enabler, offers solutions that can help merchants, including dropshippers, break into the Philippine market. These include Marketplace Optimization, Fulfillment and Last Mile Management, Live Customer Support, and Cash-on-Delivery Integration. These services are key to running a dropshipping business.
Want to become a dropshipper in the Philippines? Sign up with Payo today or send us a message at [email protected]. Start your dropshipping journey now!