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:
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 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.