Local vs International Shopify Dropshipping Philippines?

If you’ve been thinking about starting your own online business in the Philippines for a while now, then you must have heard about dropshipping before. After all, it is one of the best ways to earn money online as Shopify dropshipping Philippines.

But what is the business of dropshipping all about? Lazada dropshipping Philippines? What do you need to get started? What products should you sell?

You may be interested in: What is Dropshipping: its Benefits and Disadvantages

Is Dropshipping Available in the Philippines?

In the eCommerce market, there are dropshipping Philippines 2020 websites in the Philippines that businesses can source to supply the products they sell. As that mentioned in our previous blog, it is possible to dropship but it depends on your commitment as an entrepreneur on how much you are willing to invest.

How to start dropshipping in the Philippines? Dropshipping can be profitable in the Philippines if you can find the right product at the right price and the right customer. When finding products to sell, remember added extras such as import tax or delivery charges that have not been included.

COD dropshipping Philippines is a business model that uses the retail order fulfillment method without the need to store physical stocks or inventory of the products. This allows entrepreneurs to sell products to others without the need to create their own products and stock them.

Related: You Should Start Knowing What is COD For Your Business

Since you don’t need the manpower to actually create your own products and also spend money to store them, you don’t need a large investment that’s usually needed when starting a business.

Is Shopify Dropshipping Profitable?

With a dropshipping business, you have your own ecommerce store and you handle the ecommerce side of the business, which includes marketing and customer service. In the background, your supplier will handle the order fulfillment.

When a seller purchases a product from your store, you will receive the order and forward it to your supplier. Then, your supplier will ship the item directly to the buyer and will charge you the price of the product.

To illustrate how the dropshipping business model differs from the regular business model, here is the flow of how the regular business model works:

• Your business maintains the inventory either by creating the products (if you’re the creator) or ordering them from a supplier.
• The products remain in the inventory until a customer orders them.
• You market your products or hire others to do it to invite customers into your business.
• When a customer orders the products, you will then handle the processing, packaging, and shipping of the order to your customer.

When you’re running a dropshipping business model, here is how the flow goes:

• You market the products or hire others to do it to invite customers into your business.
• When a customer buys, you pass the order information to the supplier.
• The supplier will then handle the processing and shipping of the order to the buyer.
• Your supplier will then charge you for the product sold at a lower price.

From the illustration above, you can see why dropshipping is attractive to aspiring online entrepreneurs. Since you can sell products on your ecommerce website without worrying about the stocks, fulfillment and shipping of orders, there are lesser risks compared to a regular business model.

Why Should I Choose to Do Dropshipping in Shopify?

Dropshipping is a great business model for aspiring entrepreneurs to start with because it’s accessible. With dropshipping, you can quickly test different business ideas with limited downside, which lets you learn a lot about how to choose and market in demand products. 

Here are a few other reasons why dropshipping is such a popular model:

Less Capital Is Required

Probably the biggest advantage to dropshipping is that it’s possible to launch an ecommerce store without having to invest thousands of dollars in inventory up front. Traditionally, retailers have had to tie up huge amounts of capital purchasing inventory.

Flexible Location

A dropshipping business can be run from just about anywhere with an internet connection. As long as you can communicate with suppliers and customers easily, you can run and manage your business.

Easier to Test

Dropshipping is a useful fulfillment method for both launching a new store and for business owners looking to test the appetite customers have for additional product categories.

What’s the Difference Between Local and International Shopify Dropshipping?

One of the most lucrative advantages of dropshipping is the fact that you can work online in the comfort of your home or anywhere you prefer as long as there is an internet connection. You can also work anytime you want as long as you have an automated system in place.

Since there is no need for a physical inventory, you don’t need to rent out a storage facility or warehouse to store your products. The capital you need is lower compared to a regular business model, with lesser overhead costs compared to running a regular business model.

Here is a table that summarizes the different between local and international of running a Shopify dropshipping business in the Philippines:

Local	International
Work online anywhere	High competition
No physical inventory to maintain	No control over the supply chain
Low startup costs (capital)	Longer delivery time
Low overhead costs	Harder to maintain product quality

On the other hand, it’s important to consider that the dropshipping industry is highly competitive. You also have less control over the quality of the products. You will not be able to check the products before they are sent.

Due to less control over the supply chain, customer service could become a nightmare. When customers request a refund and return the products (en masse) for defects, your gains could disappear. Unfortunately, you can’t request a refund from a supplier most of the time.

How Do I Drop Ship in Shopify Philippines?

No more up front inventory costs or shipping logistics. With Shopify dropship, products are sent directly from your wholesaler to your customers. Here the steps how to dropshipping in Shopify Philippines:

• Your customer places an order from your online store.
• Your store automatically sends the order to your dropshipping supplier.
• Your dropshipping supplier prepares your customer’s order.
• Your dropshipping supplier ships the order directly to your customer.

Where Can I Find Dropshipping Suppliers Philippines?

Finding the right dropshipping supplier is important to your business. After all, what you can sell depends on what’s available on the supplier’s listing. That’s why you must always evaluate the different dropshippers available based on your needs and cases.

Here the list of dropshippers in the Philippines:

AliExpress

Related to Oberlo Philippines, AliExpress is one of the most prominent e-commerce sites in the world. It’s the consumer-facing business of Alibaba dropshipping Philippines, a world-renowned B2B selling and wholesale platform. Because of that, the products on AliExpress have ridiculously low prices perfect for drop shipping companies in Philippines.

AliDropship

Strictly speaking, AliDropship isn’t a dropshipping supplier in the Philippines or even an e-commerce site. However, it made this list because of how it connects you with AliExpress and allows you to easily import them over to your e-commerce store.

Chinabrands

Chinabrands is another known dropshipping supplier in the Philippines and in most of Asia. Many of their products are somehow cheaper than other suppliers, which means more profit on your side of dropshipping in PH.

Conclusion

Dropshipping business Philippines is a great online business and income-generating activity that you can start without needing a large sum of capital. There are a lot of platforms, tools and extensions out there that would help you set up everything.

However, dropshipping is not a get rich quick scheme. Like any business, it’s not as easy as it seems. But with enough perseverance, it will happen.

Ginee Philippines

Are you interested in doing a dropshipping business in Shopify Philippines? Use Ginee Philippines to help you manage all your dropshipping processes at once in a single Ginee dashboard! Ginee has features related to product management, order, stock, promotion, sales report, Ginee Ads, and many more! Sign up to Ginee Philippines now, boost online sales starting this minute!