How to Create a Successful Dropshipping Business in the Philippines

I’ve shared with you the process of entering the eCommerce space, and this time, I’ll show you how to create a successful dropshipping business in the Philippines.

If you’ve read our previous blog on everything that you need to know about dropshipping, then you’d know how EASY it is to start this online business BUT!

It requires a greater deal of commitment and dedication, compared to having your own products.

So, if this is the way you want to take part in the growing eCommerce market, here’s the step-by-step to help you become a successful dropshipper:

1. THINK ABOUT YOUR PRODUCT NICHE

First things first.

You need to choose what to dropship.

There are so MANY things to choose from, but when it comes to a dropshipping business, you should choose something that sells.

What that usually means is that it’s either an essential, something trendy, or unusual items that will motivate impulsive buying.

Some product types we can recommend that are more suited for dropshipping include:

  • Technology Accessories, Mobile Devices And Gadgets
  • Sporting Goods And Indoor/Outdoor Activities
  • Hobbies And Craft Supplies
  • Clothes And Fashion Items
  • Household Appliances And Decor
  • Sanitation/Hygiene Products And Medical/Protective Equipment
The good thing about dropshipping is that you can start selling a certain set of products and change it easily over time depending on what sells or what your customers demand.

2. CHOOSE THE RIGHT TARGET AUDIENCE

Once you’ve decided on what you want to sell, you need to know about your target market.

But since your dropshipping business will be online, you can narrow down your target audience to internet users and think about which groups you want to target such as:

  • Homeschooled College Students
  • Teleworking Professionals
  • Newly Retired Hobbyists
  • Small Families Or Newlyweds
  • People Who Are Living Alone Or In A Co-Shared Space

These examples are more prevalent considering the COVID-19 pandemic that has forced people to live in quarantine for the sake of health and safety.

While most of the product categories we suggested can be suitable for a wide range of people, you need to consider a particular group in terms of demographics, psychographics, geographics and behavioral segmentation.

3. PARTNER UP WITH THIRD-PARTY SUPPLIERS & MANUFACTURERS

Now that you know what you want to sell and the market to sell to, you need to source where your products will be dropshipped from.

This is where third-party suppliers, manufacturers and distributors come into the picture.

There are a few strategies that you can use to connect with them such as:

  • Doing your online research on Google to acquire their contact information
  • Direct contact with the manufacturer to request for a list of wholesale distributors
  • Integrate dropshipping platforms like AliBaba and AliExpress into your online store
Partnering up with wholesalers is one of the biggest benefits of dropshipping because it allows you to purchase inventory from suppliers at a lower price, so you can sell them for profit.

4. DECIDE ON A PRICE & CREATE YOUR BRAND

Since you’re able to purchase items from suppliers at a lower price, you have the advantage on how much you want to mark-up your prices, while considering shipping expenses from the supplier.

To be a competitive dropshipping business in the Philippines, it’s important to know that customers care more about the delivery fees compared to the “ sticker” price of the item.

That means marking-up your items and offering free shipping when they reach a minimum purchase.

Another part of your USP (unique selling proposition), apart from pricing, is having a brand.

Branding is a whole different lesson, but in a nutshell you should:

  • Work on SEO keywords to become searchable
  • Use your business name on social media and online store domain
  • Create a memorable logo and attach it to everything
  • Build a brand personality to communicate with customers
Based on statistics, dropshipping has spiked in 2020 and branding will set you apart from competition who probably dropship the same set of products as you do and build trust in the market.

5. BUILD A DROPSHIPPING ONLINE STORE

As promised, we’ll share with you the steps involved with creating a dropshipping business in the Philippines.

Steps 1-4 are all important, but!

They are just groundwork, and this is where you will feel your business turning into reality.

That is having a DROPSHIPPING ONLINE STORE, where you can accept online orders, integrate payments and manage deliveries.

We’ve already shared the costs of different online store builders like Shopify and WooCommerce, but their partner platforms are limited to Oberlo for Shopify (USD80/PHP3,900) and WooCommerce Dropshipping (USD49/PHP2,400).

Both of which are quite expensive, if I may add!

I understand that a lot of you are just small-time sellers or startups, so you need an online store that doesn’t cost a fortune but can get the dropshipping job done.

Prosperna can help you integrate dropshipping to your eCommerce website with the dropshipping platform of your choice at a fair price (except for exclusive ones like Oberlo).

Stay tuned for our future blogs to give you platforms to choose from.

6. PROMOTE & MARKET YOUR BUSINESS

It’s time to spread the word and let people know about your business.

You can share it with your friends and loved ones first, so they can help you with referrals and perhaps maybe they’d want to make a purchase from you as well.

In order to reach your target audience, you need to expand your online audience to relevant social media pages like Facebook, Instagram, Twitter, YouTube and LinkedIn (depending on what works for your business and customers).

Also, don’t forget to register on Google My Business so you can appear on search engine results.

Make sure that it’s brimming with relevant content to build E-A-T (expertise, authority and trust) with people who will visit your online store and social media pages.

Once that’s ready, you can consider investing in paid advertisements on those channels, including Google.

7. CREATE A STRUCTURED ROUTINE

Lastly, this step is more of an advice but to make your dropshipping business successful, it needs to be an easily repeatable process.

You may think that this process is too complex or manual, which is why you need to:

  • Set goals
  • Be consistent with your time/schedule
  • Prepare to troubleshoot issues
  • Offer immediate Customer Support
  • Monitor your progress to stay on track

The whole reason you chose to dropship over reselling is because you don’t need to keep an inventory of items with you.

In exchange, dropshipping requires you to have a system by which you can process orders, communicate with suppliers right away whenever an order is created, and keep your customers informed of their order status.

CONCLUSION

If this looks like an ideal business venture for you, then this guide should help you get started with dropshipping in no time.

Here’s a summary of everything we discussed, to help you remember:

  • Think About Your Product Niche
  • Choose The Right Target Audience
  • Partner Up With Third-Party Suppliers & Manufacturers
  • Decide On A Price & Create Your Brand
  • Build A Dropshipping Online Store
  • Promote & Market Your Business
  • Create A Structured Routine

At Prosperna, we want to empower 100,000 SMEs and social sellers by keeping them informed about everything they need to know about eCommerce and provide them with the online selling tools to become successful.

Sign up now for FREE and we’d love to help you.

Access our eCommerce Secrets for FREE!

Subscribe NOW to learn new skills on marketing and read helpful insights to sell more on your online store.
  • Yes, I would like to receive marketing communications regarding Prosperna products, services, and events. I can unsubscribe at any time. *
Dennis Velasco

Dennis Velasco

Dennis Velasco is the CEO and Founder of Prosperna, an all-in-one eCommerce platform for Philippine businesses. As a technology evangelist at heart, Dennis is super passionate about helping MSMEs "level the playing field" with technology. Feel free to connect with him on Facebook and LinkedIn.

Dennis Velasco

Dennis Velasco is the CEO and Founder of Prosperna, an all-in-one eCommerce platform for Philippine businesses. As a technology evangelist at heart, Dennis is super passionate about helping MSMEs "level the playing field" with technology. Feel free to connect with him on Facebook and LinkedIn.

Share this Article

Leave a comment

Your email address will not be published.

Related Posts