Starting a buy and sell business in the Philippines can be a great way to tap into the country’s growing economy and potentially earn a significant income.
However, starting any business can be daunting, and it’s important to have a solid plan in place.
In this blog post, we’ll discuss how to start a buy and sell business in the Philippines and provide 15 profitable ideas to consider.
From fashion and electronics to health and beauty products, there are plenty of options to choose from. So if you’re ready to launch your own business, read on to learn more.
What Is a Buy and Sell Business?
A buy and sell business is a type of business where the primary focus is on purchasing products from various sources and reselling them to customers for a profit. The products can be new or used, and the business can be run online or through a physical storefront.
Buy and sell businesses can be a good way to start a business with a low startup cost, as you don’t need to manufacture the products you’re selling.
Instead, you can focus on finding products that are in high demand and negotiating good prices with suppliers in order to maximize your profits.
How to Start a Buy and Sell Business in the Philippines?
Starting a buy and sell business in the Philippines can be a great way to become an entrepreneur and make a profit.
However, it’s important to understand the steps involved in starting such a business and to have a plan in place.
Here are some steps you can take to start a buy and sell business in the Philippines:
- Research Your Market: Before you start any kind of business, it’s important to research the products that are in demand and identify potential suppliers. You can do this by checking online discussion threads and forums related to your potential product. Look for products that are unique and have a high-profit margin.
- Create a Business Plan: Once you have identified a product or products to sell, create a business plan that outlines your goals, target market, and projected expenses. A business plan is important because this will help you stay organized and on track throughout your business journey.
- Register Your Business: In the Philippines, registering your online business is a requirement with the Department of Trade and Industry (DTI) for a business name certificate, and those businesses earning more than P250,000 a year are also required to register for VAT with the Bureau of Internal Revenue (BIR).
- Get a Business Permit: Get a business permit from your local government. The requirements vary depending on the location.
- Find a Supplier: Look for suppliers who can provide you with the products you want to sell at a reasonable price. I recommend you look for local suppliers, but you can also look for overseas suppliers, just make sure you understand the taxes and regulations.
- Create a Sales Channel: Decide how you want to sell your products. You can sell on Facebook Marketplace or eCommerce platforms like Lazada. Or avoid competition and sift through the crowd by creating your own website through an online store builder like Prosperna.
- Be Ready to Adapt: Running a buy and sell business means you need to be able to easily adapt to the ever-changing consumer behavior trends. Be prepared to adjust your product selection or sales strategies as needed to stay competitive.
- Keep Accurate Records: Keep accurate records of all transactions and expenses. This will help you track your profits and make tax time less complicated.
What Are the Best Buying and Selling Business Ideas in the Philippines?
1. Shoes
There is a huge market for shoes, both new and used. You can source shoes from online marketplaces, garage sales, thrift stores, and even directly from people who are looking to get rid of their unwanted footwear.
The key to success in this buy and sell business idea is to find a niche market and focus on it. For example, you could specialize in selling vintage shoes, performance shoes, or even shoes for specific occasions like weddings.
2. Clothes
One way to enter the clothing industry is through buying and selling second-hand clothes, or ukay-ukay as most Filipinos call them.
It is a popular buy and sell business idea in the Philippines because of its affordability. Also, many people see ukay-ukay as a great place to find unique and trendy clothing items.
It is known for its vintage items and sometimes rare and hard-to-find clothing and accessories.
Or you can ask your relatives abroad to send a few balikbayan boxes full of clothes. Branded products are offered at big discounts in US outlet stores.
For example, expensive labels like “The Gap” and “Banana Republic” can be purchased for US$15 or around Php800, which is less expensive than retail stores where these brands can cost up to Php6,500 per item.
3. Fitness Apparel
As people become more health-conscious, there is a growing demand for fitness apparel in the Philippines, such as workout clothes, athletic shoes, and accessories.
You can even specialize in eco-friendly and sustainable fitness apparel, catering to customers who want to make a more sustainable purchase. Or focus on a specific type of apparel, such as yoga wear, to differentiate from the competition.
4. Jewelry
The Philippines has a growing middle class that is increasingly interested in luxury goods, making it an attractive market for buying and selling jewelry.
Hong Kong and, of course, China are excellent places to find affordable jewelry of excellent quality. Some business owners travel to China to buy jewelry in large quantities to sell in the Philippines.
5. Indigenous Products
The Philippines is home to a diverse range of cultures and communities, each with its own traditional crafts and products. These include handwoven textiles, traditional jewelry, upcycled footwear, and other items made from natural materials.
Selling these products can help support local artisans and communities while also providing consumers with unique and authentic items.
Additionally, the Philippine government is promoting traditional industry and local products, so this is an opportunity for entrepreneurs to tap into this market.
Plus, there is a growing trend among people in the Philippines and all over the world to buy locally-made products—#supportlocal—which will increase the demand for indigenous products.
6. Children’s Toys
The market for children’s toys tends to be stable. It is anticipated to reach US$3.00 billion by 2027, with revenue predicted to expand at a 13.45% CAGR from 2023 to 2027.
This means that it is less likely to be affected by economic downturns than other industries.
There is a wide variety of toys to choose from, be they educational and developmental toys or dolls and action figures, which allows you to cater to a diverse customer base.
Plus, it can also be sold online, which expands the reach and accessibility of your buy and sell business and reduces the rental cost of a physical store.
It’s also worth noting that there are regulations in the Philippines regarding toy safety and certification, so it’s important to make sure that the toys you sell comply with these regulations and are safe for children to use.
7. Trading Cards
One of the main advantages of trading cards as a buy and sell business in the Philippines is that it has a relatively low startup cost and a high-profit margin. There is a strong market for collectible trading cards such as Magic the Gathering, Pokemon, Yu-Gi-Oh, and many more.
The cards can be sourced from various suppliers, and they also have a long shelf life. However, it’s important to note that trading cards, like other collectibles, can fluctuate in value.
As a seller, it’s important to keep an eye on the current market values and trends so you can price your cards accordingly and have a good idea of what cards will sell well.
Trading cards can be a fun and unique way to buy from and sell to others, which is why they are becoming popular among people of all ages.
8. Mobile Devices
With more and more people using smartphones and tablets, there’s a growing market for buying and selling mobile devices. In fact, in the Philippines, there are more mobile devices than people (140 million mobile devices vs. 110.4 million Filipinos).
So, if you’re looking for a buy and sell business idea with good potential and a large market to tap into, mobile devices could be a great option.
You can source stock either from online retailers or from people who are upgrading their devices. Then decide on a pricing strategy—whether you’ll offer competitive prices or focus on providing a premium service.
9. Computers
With the increasing use of technology in the personal and professional lives of Filipinos, there is a high demand for computers.
And given the rate at which technology is developing, computer prices decrease by 1 ½ from their original value for every new computer technology that enters the market after a year.
The call center industry or the Internet stores that have been popping up in neighborhoods are the immediate target markets for this business idea.
It’s important to stay updated on the latest technology, trends, and models to be able to provide the best options to your clients.
Additionally, you can also offer repair services for computers and provide accessories and peripherals related to computers to generate extra income
10. Supplements
Selling supplements can be a great buy and sell business idea in the Philippines, as there is a growing interest in health and wellness among Filipinos, particularly in the form of dietary supplements.
The market for supplements is diverse and includes vitamins, minerals, herbal supplements, protein powders, etc.; they can be found and sourced from a variety of suppliers, which makes them a versatile option for buying.
However, it is important to note that supplements are regulated by the Food and Drug Administration (FDA) in the Philippines, so it is necessary to obtain a license to sell them and make sure that the products you sell are safe and meet the FDA’s requirements.
11. Musical Instruments
The Philippines has a rich tradition of music, both Western and traditional, and many Filipinos have a strong interest in music, making it an attractive market for buying and selling musical instruments.
You can specialize in certain niche markets, such as traditional musical instruments that showcase the Filipino culture, and tap into the growing market of customers who prefer to buy locally-made instruments.
12. Real Estate
This is probably the most popular buy and sell business idea since real estate increases in value over time.
This can be done by “flipping” properties, where an investor quickly buys and sells a property for a profit, or by holding onto a property for a longer period of time and reselling it when the value has appreciated.
The Philippines is an attractive market for real estate investment, thanks to the growing middle-class population and the sustained remittances coming from overseas Filipino workers (OFWs), as well as the government’s initiatives for more infrastructure and industrial developments, which make it more attractive for people to invest in these areas.
13. Furniture
You can buy and sell unique furniture pieces that are handmade or crafted using local materials and traditional techniques, as there is a growing trend among people in the Philippines who prefer to buy locally-made furniture with unique designs.
Just make sure your things are of exceptional quality, and provide friendly customer service and possibly a warranty.
It’s also important to have a good eCommerce solution, one that caters to your local business needs, as more and more customers are shopping online.
14. Cars
One way to enter the car business in the Philippines is to buy and sell used cars. You can purchase used cars at a lower price and then resell them at a profit—anywhere from Php 100,000 to Php 300,000 for each unit.
You must be familiar with the legal requirements and guidelines that apply to car ownership and sales in the Philippines, including the process for acquiring, registering, and transferring ownership of vehicles, as well as car maintenance, in order to work in this industry.
And as more car enthusiasts are looking to personalize and improve their vehicles, you can sell car accessories alongside them to earn more.
Good customer service, attention to detail, and a good understanding of the market will help ensure a successful car buy and sell business in the Philippines.
15. Motor Bikes
As the traffic in many of the major cities in the Philippines is often congested, this makes motorbikes a popular mode of transportation because they can navigate through traffic more easily than cars can.
You can specialize in certain niches, such as electric motorbikes, which are getting more popular as the government promotes sustainable transportation.
Your target customers may be fast-food chains, delivery businesses, or individuals looking to purchase a high-end, reasonably-priced motorcycle.
FAQs
Is a buy and sell business profitable?
Yes, it is profitable because there’s a good demand for this type of business. Filipinos love good bargains in small quantities (also called tingi).
Why do people buy and sell?
People buy products or services based on emotional needs or wants and then justify their purchase logically. So, in the qualifying phase of the sales process, you need to find the desired results your prospect is seeking.
Final Thoughts
More Filipinos are starting various types of businesses as they become more aware of their finances. “Buy and sell” businesses are one of the most popular types of ventures in the country today.
There are numerous ways and plenty of different options for how to set up and what to sell in a buying and selling business. I hope you’re inspired by the business ideas mentioned above.
Additionally, as more and more Filipinos turn to online shopping for even their most basic necessities, it fits the current dominant business model, which is eCommerce. All you have to do is find and partner with a reliable local all-in-one eCommerce platform and sell your products from there.
Further reading:
- Budgeting Tips for a Small Business
- 5 Easy Steps to Setup an eCommerce Business in the Philippines
- 10 Advantages of Starting an Online Business
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