How to Start a Dropshipping Business in the Philippines
I know that Filipinos are very hardworking people and I know a lot whos working 7 days a week without any rest days. I also have some friends who work 12hours a day for 6 days a week and just earning around 10,000PHP (200USD) per month. I asked them why and their answers to me are that they don’t have any other work options. Well, here in the Philippines, that’s what you will earn if you work as a factory worker. And if you can work in the BPO industry, you will be lucky enough because you can earn from 15,000PHP to 30,000PHP (300USD to 600USD). Now, I want to introduce this dropshipping business idea to my fellow Filipinos so you can have additional income and if the results are good, you can do it full time because you can earn high in this business. I know some dropshippers and they are earning 6-digits (PHP) every month, so if they can do it, maybe you can do it too! I know some of you are not yet familiar in this industry so let me guide on how you can start in this business. Step 1: Choosing a Dropshipping Niche - Maybe this is one of the hardest parts when starting a dropshipping business, it’s choosing your niche or your target market. Maybe some of you are thinking about what would be the best customers to target or what would be the best products to sell. Well, for me it can be divided into two parts. The first one is choosing the industry/niche you are passionate about and the second one is just to find the trending products that don’t matter whether you like it or not and just sell it.
We have to keep in mind that it is hard to sell something if you don’t like the product itself, right? Well, this is a good point. But let me tell you something, I have a lot of friends and they are selling products even if they don’t use it personally and they are earning enough! I know a guy who sells ladies’ accessories and he’s successful in it. I have a friend who’s selling iPhone cases and he is not even a fan of iPhones and he’s earning now 6 digits per month (PHP). Well, my point here is you can sell any product as long as there is a market on it and also let’s consider your marketing strategies.Step 2: Finding a Dropshiping Supplier - For many aspiring eCommerce entrepreneurs, it is very hard to find a reliable supplier. There are so many dropshipping suppliers out there, but choosing your supplier can give you a big break or maybe an outbreak into your business. So where do you find the right supplier? Well for me, you have to consider a lot of things to consider if a supplier can be reliable. You can check these criteria below:
A. They have quality productsB. Provide fast shipping C. They have fast customer support responseD. They don’t charge huge fees or any hidden feesE. Has good Refund PolicyOn finding these suppliers, you can just search it online and look for reviews or if you have any friends who're already in dropshipping business, you can just personally ask them. Or, another option you can do is to join facebook groups and look for reliable suppliers out there that dropshippers already using.Step 3: Perform Competition research - For competition research, it can be divided into two parts. The first one is that you will sell a product that is not yet on trending right now so you can have less competition. And the second one is that you will find the trending products right now and sell it but you have a lot of competitors.As I checked, most dropshippers prefer to find trending products with more competitors. Because with this, it means that there are already buyers for this product and all you have to do is to have good marketing for those products.
But how and where can you find the trending products? Let me give you some tips. You can check top selling products in Amazon, eBay, shoppe, Lazada and even in facebook. In facebook, when you browse your newsfeed, you can see some sponsored products right? So now, don’t just ignore it, you can check their facebook page, check their sales and read some reviews. In Lazada or with Shopee, check some products there and good thins with those stores is that you can see how many sales they already made with specific products.
Step 4: Build your Website or Page - When starting a dropshipping business, most sellers create their website or account in store platforms like Lazada, eBay, Shopify and shopee. And with the technology right now, you don’t need to be techy just to have your own website. Most store platforms have their own pre-made websites so it will be very friendly for anyone who doesn’t have any IT background. But if you are not comfortable or not yet ready having a website, you can also start by just selling on facebook. Because on Facebook, you can just post your items there by creating a facebook page or by just posting using your own personal account.
Step 5: You can Create your Own Brand - Having your own brand in your dropshipping business will add more value to your products. If you will ask me, I prefer a dropshipping supplier that can provide you with custom packaging and labeling. Also, based on the study, customers prefer to buy items with own branding compared to items who don’t have any labelling or logos. Having your own brand will also add more trust and credibility to your products.Step 6: Implementing a Customer Acquisition Strategy - Now that you have your own store and you have your products, the next step is to make awareness for your customers that you have an existing store and products. When you build your store, imagine that it is on a remote island where no one can see it because all of your customers are on the neighbor island. And that’s what marketing do, to inform your customers that you have an existing store and products.The most common marketing in e-commerce business is facebook marketing. You can search online on how to do it or you can hire your own facebook ads manager to do it for you. Below are some example strategies to increase your customer acquisition:
So here we are, I know some of you want to step out from the corporate world and start your full-time business now. And maybe, some of you might have heard from a friend that this kind of dropshipping business is really profitable, well, yes that’s correct. But don’t get me wrong, there is a high chance that you can still fail in this kind of business. So today, I want to discuss with you some common mistakes drop shippers make that made them failed in this industry. As the saying goes, “Prevention is better than cure.”1. You don’t need a penny to start - Not just in dropshipping, but in any kind of business, this is one of the most enemies of everyone, having a wrong expectation. Maybe some of you heard that the dropshipping business doesn’t require any investment to start with. Well, that’s correct, but it may require you a lot of hard work and effort. Since your mindset is not investing a penny, you might not hire an assistant to do the other tasks for you, so you have to do all the tasks by yourself. So you have to spend long hours working and sleepless nights just to build your brand. Since your mindset is not investing a penny, you might have a hard time advertising your products. With that, you need to do a lot of hard work to get enough traffic and sales with your products.You can still be successful by not investing in an assistant or even with paid advertisements. But if you can afford it, why not right? And you will be surprised about the conversion rates and additional sales in your business.2. Spending too much money in the wrong advertisement - Now that you heard that dropshipping business can provide more results when you have paid advertisement, now you are willing to invest all of your money for ads. But the question here, is it guaranteed? The answer is a big NO! I want to tell you this, there is no 100% guarantee in this world!Since you’re willing to invest money in a paid advertisement, I suggest you do some research first on how you can have effective ways of paid advertisement. There’s a lot of free articles out there in google or video tutorials on youtube that you can learn from. Or if you want, you can also purchase some courses on how to land an effective advertisement that converts. And if you are not willing to invest time for this, what I can suggest is that you can hire a freelancer like FB Ads expert or social media manager that can provide more results and conversions for you. It might be an additional cost, but I assure you, you’ll have a better chance of having more sales!3. Not Effective Customer support - And now, you have set up your business, you have your website, you already have your social media accounts and all your ads are running. So, what now?The next thing that you have to consider is to have an effective and great customer support. This is very important. Customer service is the face and backbone of the business. Bad customer service means bad business. Unsatisfied customers can give you bad reviews into your social media accounts and they will not even recommend you to anyone. And good customer service means good business. Once you have satisfied and happy customers, aside from they might recommend you, they will also be returning customers.Most of the time, it doesn’t matter if you have the best product or not, as long as you have a good product and excellent customer support, success is near your business.4. Unclear Return and Refund Policy - Since you are in dropshipping business, you should always expect that there is always a chance for delayed orders, damaged orders, wrong orders or even untrackable orders. And you should know how to explain and handle this kind of concern into your customers. You have to give them an assurance that they should get what they paid for, it’s either a refund or a resend of their products.If the customer asks to resend the products, some sellers ask their customers to pay for the shipping fee again. If I am a customer, I should be angry. Why should I pay for another shipping fee if I already pay for the first one? This is not my fault why you can’t send and I didn’t receive my products, why should I pay for the shipping fee again?So most sellers come up with the solution for this, instead of asking their buyer to pay for the shipping fee again, the seller will be the one that will shoulder the shipping fee.It might be a little bit of loss for your income, but imagine, you will still have a happy customer and he might return in the future to buy products again.5. Choosing the wrong supplier - There is a lot of suppliers dropshipping companies and suppliers out there. So how will you know what would be the best one for your business?
I'll try to explain to you some things that you can do when choosing the right supplier in your business. The next thing you have to do is research with the supplier and which one can provide your needs best. You can check their reviews on google or even with their facebook page.You need also to check if their customer support is offering 24/7 support which can be very helpful with your business. So just in case, you have any concerns or if your customers have any dispute, you can contact them easily.After that, you can try to put a sample order for yourself. With this, you can test yourself the quality of their service, packaging, delivery time-frame, and also the response rate of their customer support just in case you have any questions. And after that, you can decide for yourself if they are a good supplier for your business or not.
Hope that this short article helped you. And since you already in dropshipping business, I highly recommend to you CJ Dropshipping to give it a try. We have 24/7 support, very friendly agents, we have no setup fees or even monthly fees! What we charge is just the products cost and shipping fee. With CJ Dropshipping, you can send a sourcing request and we can process your orders the same day!If you have any questions and concerns, please leave a comment below and we will be more than happy to assist you!
Top 5 Money Making Industry
here in PH without Investment
1. Vlogging - Here in the Philippines, vlogging is very familiar for almost all of us. Maybe a lot of you are familiar with vloggers like Cong, JaMill, Lloyd Cadena, Ranz Kyle & Niana, Alex Gonzaga and many many more to mention.CongTV is an entertainment vlog that started on February 2008, and now he is earning up to 1.5M per month. While Lloyd Cadena started in 2010, also an entertainment vlog and now earning up to 1.5M per month. Alex Gonzaga, a Philippine Celebrity, started vlogging in 2017 and just for two years, she’s now earning up to 3M per month. JaMill started Dec 2016 and now earning up to 13M per month. Because of these successful vloggers, now, many Filipinos are also very eager to become a successful vlogger and to earn a lot of money. Who doesn’t want to earn millions of pesos every month while having a lot of followers and doing what they want, right?If you think you have enough charisma and worth spending time of contents, why not try this? Maybe this is the right opportunity you are waiting for! But don’t forget, “Nothing worth having comes so easy”.2. Afiiliate marketing -Affiliate marketing is one of the best ways to make money online from home. Most companies offer this since this is a win-win situation for both the company and the one who promotes the company. So what happens here is that you need to promote their products or services on Facebook or any social media that you prefer, and they pay you commission each time someone buy a product or service from the link you provided. Some companies that offer this kind of program are Lazada, Amazon, Zalora and you can also check our affiliate program which is CJ Dropshipping.In this kind of business, you can be your own boss and you can work anytime you want. Since they don’t pay you any basic salary, they don’t really care if you work hard or not. Because they will only pay you once you make any sales or you sponsor someone. This industry is also very rewarding once you generate enough traffic and become sales to your affiliate partner. Imagine having a vacation at a 5-star beach with your family and loved ones while earning passive income from your affiliate partners.3. Blogging - If you are a type of person who likes to write, then blogging can be a way for you to earn money without investing any money capital. There are a lot of successful bloggers out there. You can be a successful blogger by writing about dogs, cooking, travelling, photography, self-improvement or anything under the sun. You can earn in blogging by putting some ads in your site, affiliate links, selling digital products, or even selling memberships. Blogging may takes time before you earn, but if you really love what you are doing, then it might be worth investing time doing it.4. Online Selling - To start this kind of business, you have to create an account with online platform like Lazada or Shopee, then you can start selling. If you are not familiar with those platforms, then you can just use your Facebook account to sell your items. Also, Facebook now has the Marketplace where it became more seller and buyers friendly.With the help of the internet and social media, there are a lot of traditional sellers shifted to the world of online selling. Imagine you can have customers that see your products anywhere they are as long as they have internet connection. And imagine you have a store that can operate 24/7 without paying for overhead expenses like electric bill, water bill, and monthly rent.5. DropShipping - Since we already tackled online selling, another booming industry or business now is DropShipping. Compare to traditional online-selling or ecommerce, you need to have your items on hand or you need to buy stocks before your customers buy the items from you. Then, after they pay you, you have to pack those items and transfer it to the courier for shipping to your customers.But compare to DropShipping, all you need to do is to sell the items in your store, then your dropshipping partner will take care of everything. They will pack the items for you and they will be the one who will send the items to your customers’ doorsteps. And aside from that, you don’t have to keep your items on hand and you don’t really need to buy items in advance. It’s like you will only buy the products from your dropshipping partner right after your customers already paid the orders to youDropshipping here in the Philippines is just starting so most of the online sellers out there are not yet familiar about this system. Dropshipping will save a lot of your time from packing your items to sending it to your customers. It will also lessen the risk in your business since you don’t have to pay for any overhead expenses and buy items in advance. So that you can focus more of your time and energy for the advertising and marketing of your business. And good thing about this kind of business, you can start with less capital or even without investing any money. CJ Dropshipping can help you about this since they don’t ask for any sign-up or membership fees compare to other dropshipping platforms out there like Oberlo and Ali Express.
Here are some brief tips to help you start your very own dropshipping business.1.Select a NicheThere are two routes you can take when selecting a niche. If sales are your highest priority then your best bet is to do some research. Identify the types of products that are in constant demand and find the optimal way to present those products to a specific demographic. Another method is to consider the things that you are genuinely passionate about. If you already know the best products that surround a specific interest, then it would be that much easier to cater to that niche. Having a clear idea of the types of customers you are trying to target will help you make sales further down the line.2.Build a BrandOnce you have an idea of who your customers are and what products they are most likely going to buy, it’s wise to consider how you’re going to present the products to them. In other words, how do you intend on branding your business? You wouldn't buy fine jewelry from a random person on the street corner? Neither will potential customers buy products from a website that looks the same as all the others. You have to stand out from everyone else and the best way to do that is to create a Branding Guideline. Do you have a logo or particular color pallet that you’re going to use. What is your website's layout, what fonts best depict your brand? Will each order come in custom packaging? These are all things to consider when building a Brand Guideline.3.Find Reliable SuppliersThe suppliers you choose will make or break your brand, so it’s very important for you to choose based off of reliability. The higher you are in the supply chain will dictate how wide your profit margins will be. Meaning the less people that are in between you and the manufacturer will allow for greater profits. You may want to whitelist products that are already in production, meaning placing you logo on a product that’s already made. Or you may want to private label a product. Meaning that you have an item custom made exclusively for your brand. Or you just want to simply sell products from your website and nothing more. Whichever the case, it is your supplier that will be shipping these products on your behalf. Therefore it is important to ask which shipping method works best for you and your customers.4. Logistics
At present, there are four categories for Dropshipping Methods: commercial express delivery, China post, special line and overseas warehouse. First of all, choose the appropriate shipping method in accordance with the products characteristics (size, type, etc.). Secondly, shipping methods should correlate to the shipping level, customs clearance requirements and capabilities of different market destination. Finally, dropshippers should clearly list all the characteristics of the provided shipping methods to customers, as in how long it may take and where the products are being shipped from.
5.Build your website
Now that all the technical stuff is out of the way, here comes the more creative portion of running your own business. Remember the Branding Guideline mentioned earlier, now is time to put that information into use. It's important to reference your guideline when designing your website and all it's assets. This will ensure that your brand achieves a high level of consistency. In the end you want your website to look as professional as possible. The more a potential customer can trust you at face value, the more likely you ware to receive a sale. The level of your customer service you provide will ensure a higher retention rate. While your advertisements and credibility will draw new customer in. Be sure to make pages that clearly state your contact information, Return and Privacy policies as well as a general FAQ page.
6.Traffic and Advertising
Marketing is the money maker in this industry and you can only go so far via word of mouth. It's important to have some knowledge of SEO when creating your store. So that way search engines will favor your website when keywords are are used by potential customers. You may choose to create a blog for your store to organically drive traffic to your listings. But by far the most effective way to get your store in front of the right eyes is to master Facebook ads. We highly suggest you spend some time researching the basics of the Facebook Ad Manager. It will defiantly help to send the right people to your website. And depending on how well your website is designed and how effective advertisements are will determine your conversion rate, or the frequency you make sales.
Keep in mind that most e-commerce stores have a conversion rate of 1-2%. This means that for every 100 visitors you are most likely going to get one or two sales. Therefore the more traffic you can drive to your store, the more likely you are to convert a sale.
Here is a graph taken from Google Trends showing the incline of interest dropshipping as had over the last 5 year.Clearly an interest for this business model has climbed steadily over the years. So what’s the hype all about and why are people rushing to incorporate this business into their lives? Two words, “Passive Income.” People are striving, now more than ever, to increase their quality of life. Here are 7 reasons why this business model is so appealing.1. Easy to start:You can technically have a shop up and running within a day and have units sold within a week. It literally never been easier to start your very own business.2. Low cost:Most goods are manufactured in China because the cost of production is rather low. And because you don’t necessarily need to buy inventory, it means you can purchase your stock as you make a sale. The higher you place yourself up in the supply chain gives you have access to products at its lowest cost. Enabling you to charge for those products at a more profitable margin. And because this is a web based business model, there’s no need to pay rent for a storefront or warehouse.3. Low risk:Testing the marketability for any given product can be relatively cheap. You can scale and buy inventory once you found a real winner. When playing your cards right, overhead should be a non-issue.4. Customer retention possibilities:It’s possible to structure your business in a way that has customers buying from your store every single month. If you’re constantly testing all your products and rotating the winners throughout the seasons, you can find a way to stay profitable every month throughout the entire year.5. Set your business on autopilot:We live in a day and age where anything can be automated. If you’re willing to put in the time and effort upfront, then you can set up a system that allows you to import and process orders in one click. The tools are out there, you just have to find them and learn them. It is a lifesaver for those with busy schedules, full-time jobs or are currently in school.6. Enable expansion into new markets:Sometimes getting products across international borders can be challenging, not to mention costly. But if you do your research and partner with suppliers who are strategically located, you can often get the same or similar product to almost any region. This permits you to test the market and validate if a given product is worth importing.7. Virtually unlimited inventory:One of the main reasons the dropshipping industry exists is to help retailers and suppliers combat inventory distortion: the problem of over-stock clearances and out-of-stock shelves. Theoretically, by tapping into inventory further up the supply chain, you can get access to virtually unlimited inventory.By contrast, dropshippers may find it harder to work with Amazon and eBay. As their policies do not support the dropshipping business model. Preferring retailers to buy inventory of products and fulfill orders manually. Which means a higher investment for the retailer and therefore higher risk. Not only that but entrepreneurs find it hard to convert sales when linking their Ebay and Amazon product pages to their advertisement.
Here are six simple steps explaining how drop shipping works::
Step1: Retailer determines a target audience and what products best suits their needs.Step2: Retailer partners with Suppliers that can fulfill orders on demand.Step3: Retailer then lists the products on their personal ecommerce website.Step4: Customer places an order on the Retailers website, typically paying for both the product and shipping fees.Step5: The Retailer would then contact the Supplier and pay for the goods at a lower rate while giving them the Customer’s credentials as the shipping address.Step6: Finally the Supplier packs and ships the order directly to Customer.For visual learners, here’s a chart detailing the supply chain to make it a little easier to understand.The customer orders a product from your e-commerce website, which is listed at a profitable margin.You then forward the order details, either manually or automatically, to the supplier, manufacturer or wholesaler.Then the Supplier charges you for the product at a cheaper rate, and ships the product directly to the Customer. The shipment is sent without an invoice and is marked with your logo. Thus, the customer is none the wiser. This is generally known as “Blind Dropshipping.”In conclusion, drop shipping is one of the simplest business models to be implemented in the e-commerce industry. You can theoretically run your own drop shipping business from anywhere in the world. If you have a stable internet connection and a laptop you can potentially start today.
Drop shipping is a business model where a Retailer never fulfills orders manually and instead tasks a Supplier to ship products on their behalf. Essentially the Retailer acts as a “middle man,” often listing items on their website at a profitable margin, while purchasing said items from a Supplier at a cheaper rate. What typically happens is a Dropshipper will build an ecommerce site and list all the products which they have access to. Then when they receive a purchase, they would turn around and buy the product, with their own money, and list their customers credentials as a shipping address. Then when the customer receives their order, they would be reimbursed by the Payment Gateway they’ve installed on their website. In other words, it is a newer form of albatross marketing, where you as a Dropshipper will take orders from online customers, buy goods from a Supplier, then have them delivered directly to the Customer without physically touching or managing stock. All requests are satisfied and transported directly from a wholesaler, such as CJ Drop shipping. This enables you the Dropshipper to focus more on building your brand, advertising and driving sales.Thus, drop shipping provides you a way to easily start a business at a relatively low cost. Giving you the ability to scale a company from the ground up with little to no risk. It is entirely possible to build an empire with just one winning product. You do not have to pull a loan and go into debt buying inventory, only to deal with massive over head because the units didn't sell. You don’t have to deal with the cost of renting, management and maintaining a warehouses.In conclusion, Dropshipping is the perfect means for you to start a business on a low budget. Numerous companies started their web-based business with Dropshipping, Amazon, Zappos and Wayfair just to name a few. The ecommerce industry is steadily growing simply because it’s profitable. The only question you should be asking yourself is “how soon can you feasibly start your own business?”