Do You Need To Register A Dropshipping Business
If you lot've been thinking about starting your own online business in the Philippines for a while at present, and so you must have heard about dropshipping earlier. After all, it's one of the best ways to earn money online .
But what is the business organisation of dropshipping all about? What practice you need to get started? What products should y'all sell?
This guide is designed to help you start your ain dropshipping concern in the Philippines and reply frequently asked questions like the ones mentioned above and more.
Table of Contents:
[2021 UPDATE] The Ultimate Dropshipping Business organisation Guide in the Philippines Chapter i: What is dropshipping?
- How does dropshipping work?
- What are the advantages and disadvantages of running a dropshipping business organization in the Philippines?
- How much money tin can you possibly make from dropshipping?
Affiliate two: How to find profitable dropshipping niches?
- What are the most profitable dropshipping niches for 2021?
- What to look for when researching niche markets?
1. Consider the potential product turnover. ii. Consider consumables and disposable products. 3. Consider choosing a niche with a lot of accessories.
- What tools tin you use to find a profitable dropshipping niche?
- Google Keyword Planner
Step 1: Open the Keyword Planner Tool Step 2: Enter Your Niche Ideas Step 3: Check Volume and Other Ideas
- Google Trends
Step 1: Enter Your Niche on Google Trends Step two: Analyze the Interest Over Fourth dimension of the Niche Stride iii: Take Annotation of the Related Topics and Queries
- Facebook Potential Audiences (Business Suite Insights)
Step 1: Navigate to Facebook Business Manager Step ii: Open the Potential Audience Tool Step iii: Filter Your Potential Audience With Your Niche Idea Chapter 3: Where to find a dropshipping supplier for the Philippines?
- Where can you source your products?
i. AliExpress 2. AliDropship 3. Chinabrands iv. Esources 5. Oberlo six. Dropify Chapter 4: What platforms can yous use to start your dropshipping business in the Philippines?
- Where can you sell your dropshipping products?
1. Shopify
- Dropshipping on Shopify
two. WooCommerce
- Dropshipping on WooCommerce
3. Lazada and Shopee
- Dropshipping on Lazada and Shopee
4. Facebook
- Dropshipping on Facebook
Affiliate v: How to market your dropshipping store?
- How to drive traffic to your dropshipping store?
i. Search Engine Optimization (SEO)
- Inquiry Related Keywords and Phrases
- Create Good Metadata
- Build Backlinks
ii. Organic Social Media Referrals
- Share Social Videos to Drive Traffic and Engagement
- Create a Quality Content Marketing Strategy
3. Annunciate on Google and Social Media
- Google Ads
Chapter half dozen: What legal responsibilities do you demand to comply with when starting a dropshipping business organization in the Philippines?
- How to register your dropshipping business with the Bureau of Internal Revenue?
- What are the standard taxes you lot need to pay for your dropshipping business?
Chapter vii: Frequently Asked Questions Regarding Dropshipping in the Philippines
- How much capital exercise you demand to beginning a dropshipping business in the Philippines?
- Is dropshipping withal profitable in the Philippines?
- Can you lot start a dropshipping business organisation without a website?
- Do you need to pay taxes while dropshipping?
Kickoff Your Dropshipping Business Today
Chapter 1: What is dropshipping?
Dropshipping is a business model that uses the retail gild fulfillment method without the need to store physical stocks or inventory of the products. This allows entrepreneurs to sell products to others without the demand to create their own products and stock them.
Since y'all don't demand the manpower to actually create your own products (and besides spend money to shop them), you don't need a large investment that's unremarkably needed when starting a business.
How does dropshipping piece of work?
With a dropshipping concern, you have your own ecommerce store and yous handle the ecommerce side of the business organization, which includes marketing and client service. In the background, your supplier will handle the social club fulfillment.
When a seller purchases a product from your store, y'all will receive the order and forward it to your supplier. Then, your supplier volition ship the item directly to the buyer and will accuse you the toll of the product.
To illustrate how the dropshipping business model differs from the regular business model, here is the flow of how the regular concern model works:
- Your business maintains the inventory either by creating the products (if yous're the creator) or ordering them from a supplier.
- The products remain in the inventory until a customer orders them.
- You lot marketplace your products or rent others to exercise information technology to invite customers into your business.
- When a client orders the products, you lot will so handle the processing, packaging, and shipping of the order to your customer.
When you're running a dropshipping business concern model, here is how the catamenia goes:
- You market place the products or hire others to exercise it to invite customers into your business organisation.
- When a customer buys, you laissez passer 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 accuse you for the product sold at a lower toll.
From the illustration in a higher place, you tin encounter 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 organisation model.
What are the advantages and disadvantages of running a dropshipping business in the Philippines?
I of the nigh lucrative advantages of dropshipping is the fact that yous tin can piece of work online in the comfort of your dwelling or anywhere you prefer as long as at that place is an internet connection. You tin can too piece of work anytime you want every bit long as you take an automated system in place.
Since there is no need for a physical inventory, you lot don't demand to rent out a storage facility or warehouse to shop your products. The capital letter you need is lower compared to a regular business model, with lesser overhead costs compared to running a regular business model.
Here is a tabular array that summarizes the advantages and disadvantages of running a dropshipping business organization in the Philippines:
| The Advantages and Disadvantages of Dropshipping in the Philippines | |
| Advantages | Disadvantages |
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|
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| four. Harder to maintain production quality |
On the other paw, it'southward important to consider that the dropshipping manufacture is highly competitive. You also have less control over the quality of the products. Yous will non be able to cheque the products earlier 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 tin can't asking a refund from a supplier nigh of the time.
How much money can yous peradventure make from dropshipping?
When it comes to dropshipping, there is a lot of potential in the business model itself in earning money. However, there are no guarantees on how much success you will have and how much you could earn.
There are three factors to wait into on how much money you tin can perhaps make from dropshipping:
- The products you're selling on your ecommerce store
- How much competition there is in the niche
- Marketing tactics y'all're using to bring in more customers
In short, the amount you can make varies. It could be as depression as ₱14,000 in your first month similar this certain dropshipper from New Zealand did or you could make anywhere around ₱8.5 million in three months similar how Marc Chapon did.
With that, let'southward get on to 1 of the almost important decisions you lot need to make — choosing a profitable niche.
Affiliate 2: How to find profitable dropshipping niches?
The first pace yous need to accept when building a dropshipping business is to carefully select the niche of your products. Although you shouldn't overthink the niche selection process, it'south besides important to take your time with it.
In this section, you volition learn some examples of the most profitable niches for 2021 and what to expect for when researching niche markets. Most importantly, you volition larn how to find profitable niches using iii free tools.
What are the most profitable dropshipping niches for 2021?
Not all niche products are made the same. There may be some who volition contend that there are no good and bad niches. But the truth is, at that place will always be products that have higher profitability than others.
To accept better chances of beingness successful, information technology's a good idea to start with niches that were already proven to be profitable and popular among the masses.
Here are some of the most profitable dropshipping niches in 2021 according to data from Shopify :
- Wellness and personal care
- Kids and baby products
- Wear and accessories
- Kitchen supplies and grocery
- Dwelling and sleeping accommodation
- Home office products
- Home improvement products and tools
- Gadgets and telephone accessories
- Gaming products and peripherals
- Car and motorbike accessories
What to look for when researching niche markets?
Simply what if you're not interested in whatever of the near assisting niches listed above?
When starting a dropshipping business (or any other type of business, for this matter), it'southward important that you have some interest in what you're doing (or selling). Selling products you don't like would negatively impact how you lot maintain your ecommerce store.
For that matter, you will need to know how to research good niche markets. Prior to that, yous must know first what to consider when selecting a niche.
1. Consider the potential production turnover.
If y'all sell seasonal or trendy products, you volition be wasting time on products that will presently be outdated.
On the other hand, there may be instances when this brings a positive effect. Remember about smartphone products — there are always newer models each year. However, those made in the last three years however accept profitability in them, especially for those who can't beget the new ones.
2. Consider consumables and dispensable products.
Selling consumable and disposable products ways acquiring (likely) repeat customers. This blazon of client is of import since they already trust you. Rather than observe new sellers, they will simply become back to your shop and order the same fix of products.
This is a major reason why the health and personal niche too as kids and baby products are highly assisting. Many of the products are simply used once (think of face up masks, infant wipes, and hydrating oils).
3. Consider choosing a niche with a lot of accessories.
Since the introduction of cheaper motorcycles in the Philippines, there has been no shortage of people who want to buy motorbike accessories and parts. In fact, that'southward the reason why a lot of motorbike shops now sell diverse accessories, even as tiny as stickers.
It'due south too a good idea to observe customers with passion and target the accessories they demand. For example, since the start of pandemic lockdowns, the number of bikers in the Philippines has significantly increased.
What tools can you lot employ to discover a assisting dropshipping niche?
Now that you lot have ideas on what to wait for when searching for a profitable niche, it'southward time to acquire how to use tools that will allow you to check and measure out the demand for the marketplace and the products. Before yous start, make certain to set a list of niche ideas y'all have in heed.
Here are the tools yous tin utilize to find and check profitable dropshipping niches:
- Google Keyword Planner: This tool helps you lot bank check the boilerplate search volume of your niche ideas (a adept representation of how many people search for your niche in Google). It also helps you discover related niches that might prove to be more assisting.
- Google Trends: This tool helps y'all see how pop your niche ideas are and discover trends within Google Search, Google Shopping, YouTube, and related products. It also helps yous notice potential niches and products that accept high or ascent popularity.
- Facebook Potential Audience: This tool shows you the potential audience of your niche (a expert guess of how many people might be interested) according to the parameters you lot have set.
Google Keyword Planner
A good mode to mensurate the need for a niche is to see how many people are searching almost it on search engines. Fortunately, Google, which is also the biggest search engine, has a gratuitous keyword tool where you can find how popular a keyword is.
To use the Google Keyword Planner, follow these steps:
Step ane: Open the Keyword Planner Tool
The Google Keyword Planner is a free tool for advertisers who use Google Ads. To use the tool, you must create a Google Ads business relationship kickoff. Merely don't worry, you don't need to run any ads and spend money to use the tool.
Caput over to Google Keyword Planner and create an account.
Follow the prompts and provide the information needed including your email address and website (you can use any website for this affair). You will also have to provide some payment information even if you won't actually be running a campaign.
Important note: To use the keyword planner, yous will have to set a Google Adwords campaign. Later on you finish creating the campaign, yous can immediately disable it by clicking the dropdown and selecting the pause option as you tin can see below. 
Then, click the Tools button at the upper right of the screen (wrench icon) and choose "Keyword Planner" from the options.
Step 2: Enter Your Niche Ideas
What will greet you at the homepage of the Google Keyword Planner is an option on how to go on. Both volition bring y'all to the same results page. However, choosing only to get search volume and forecasts volition give yous results but for the keywords you entered.
Because of this, it's preferable to outset with "Detect new keywords".
In the space provided, enter a niche thought (and related ones).
For instance, you may be thinking almost starting a dropshipping business on bicycle accessories. Y'all can then enter "bike accessories" in the space provided.
You tin as well modify the target country if you want to include some. The Philippines will be selected by default if you're accessing the tool from the state.
After that, click the "Get Results" button at the lesser.
Step iii: Check Book and Other Ideas
On the results page, you showtime see the average monthly searches for the niche keyword that y'all entered.
For example, the keyword "bike accessories" gets around one,000 to ten,000 monthly searches in the Philippines.
Bated from the average monthly searches, Google Keyword Planner would too show y'all other details similar the competition and top-of-folio bids. However, these are virtually ads so they may not ever exist that relevant unless y'all're planning to run ads.
The gold here is the keyword ideas that Google Keyword Planner will provide. Many of these are product searches that provide you a good idea of what your target customers are searching for in Google.
Google Trends
The Google Keyword Planner is a cracking tool to measure the raw search volume and estimate the likely demand of the niche and its products according to how many people search for them on Google.
On the other mitt, Google Trends is the tool of option to gain detailed insights on the niche similar its search involvement over time, related terms and queries, the geographical concentration, as well every bit the seasonality of the market for that niche.
To use Google Trends, follow these steps:
Stride ane: Enter Your Niche on Google Trends
Different the Google Keyword Planner, you don't fifty-fifty need to create an account to employ Google Trends. It's publicly available to anyone who wants to utilise it. To start using the tool, visit Google Trends on your browser.
If yous used the link above, Google Trends volition automatically utilise the Philippines geotag. Significant, the coverage of the trends is limited within the Philippines simply (you tin can always change it whenever you similar).
In the tool, enter your niche idea in the space provided and either click from the suggestions or press the enter key on your keyboard.
Step 2: Analyze the Interest Over Time of the Niche
After entering the search term, Google Trends volition show you a graph that shows the interest over time of your dropshipping niche idea.
To show more data, you can play with the properties of the graph including the term, category, and information source.
In the example, the data is for the by five years up to the present time:
The graph in a higher place shows that the popularity of the term "bike accessories" rose sometime around May and June 2020. It's also quite clear that the popularity is much higher compared to the previous years.
When finding a profitable niche, information technology'south important to mensurate whether or non the interest overtime is increasing, stable, or declining. Increasing popularity could provide yous with fast profit while stable popularity means there is a stable demand for the niche.
Avert niches with declining popularity.
Step 3: Accept Annotation of the Related Topics and Queries
One time you ringlet down below, you will encounter related topics and queries. Yous tin switch from rising topics and queries to top ones to see more ideas. Simply click its dropdown button and select from the options given.
You tin also download them as CSV to exist able to review them offline or see all the rising and top topics and queries altogether.
Skillful Trends is a groovy tool to better sympathize the popularity, tendency, and seasonality of your niche ideas. You can also use it to compare various niches and pit their data against one some other.
Facebook Potential Audiences (Business concern Suite Insights)
Facebook Potential Audiences is a new tool from Facebook that will be replacing their Facebook Audience Insights (prepare to retire at the end of June 2021). With 80.55 million users in the Philippines, this tool could aid yous bank check how assisting your niche ideas are.
To use Facebook Potential Audiences, follow these steps:
Stride 1: Navigate to Facebook Business Managing director
When creating an account, you can use your personal contour. You will need to provide some data for your concern like the business concern proper name, e-mail accost, address, and others. Then, you have to add existing Facebook pages or create a new ane.
Head over to Facebook Business organization Manager and either create a new business relationship or log in if you already registered before. Provide the necessary business organization details if this is your offset fourth dimension using the tool.
Step ii: Open up the Potential Audience Tool
Afterward logging in (assuming you lot already accept your business details fix), yous will see a dashboard for your Facebook business. At the left-side pane, you will see various tools that you can utilize to operate your concern.
Click the aggrandize button to show all the available tools. Curlicue downward and click "Audience Insights", which is office of the "Clarify and Report" tools group.
Check that you're viewing the potential audience instead of the current audience of your business. If you're currently seeing the current audition tab, simply click "Potential Audience" at the top of the dashboard.
Step three: Filter Your Potential Audition With Your Niche Idea
To detect out the potential audience for your niche idea, you volition need to employ the filter function of the tool.
Click on the "Filter" button and provide the following information:
- Location: This should exist set up to your target land (in this example, information technology'due south the Philippines).
- Age: The age range of your potential customers.
- Gender: Select men, women, or all, when applicative.
- Interests: Enter your niche idea here. Annotation that the exact keyword may non always be possible since this depends on the bachelor interest options of your audience.
- Language: You tin usually get out this bare since most Filipinos empathise English.
For instance, if your niche is motorcycle accessories and your target audition are men from age 18 to 50 in the Philippines, your potential audience size according to Facebook and Instagram'due south information is around 2.8 million people.
Since Facebook is the largest social media network in the world (and the platform of choice for Filipinos), y'all can be sure that its data is comprehensive. Information technology will assistance decide if your niche idea is profitable according to the potential audience.
Once you have a good list of profitable niches, you tin can and then go on to more important matters in edifice your dropshipping business like finding suppliers and setting up your ain store with your platform of option.
Chapter 3: Where to discover a dropshipping supplier for the Philippines?
Finding the right dropshipping supplier is important to your business. After all, what you can sell depends on what's bachelor on the supplier'southward listing. That's why you lot must e'er evaluate the different dropshippers available based on your needs and cases.
In this section, y'all volition larn the dissimilar dropshipping suppliers available in the Philippines. Annotation that there may be more out there, but the seven suppliers listed hither are currently the all-time ones you can find.
Allow's starting time.
Where can you source your products?
No supplier is made the same. Although the products may be similar to one another, each dropshipping supplier comes with its own advantages and disadvantages.
Below is an overview of the best dropshipping suppliers in the Philippines:
| Supplier | Sign Upward Cost | Dropshipping Assistants | Delivery Time |
| AliExpress | Gratis | With help from extensions and plugins | 3-xv days |
| AliDropship | ₱4,200+ | All-in-one solution for dropshipping business management | iii-fifteen days |
| Chinabrands | Free | One-click publish options for Shopify | 7-25 business days |
| Esources | ₱1,100 | Connect with suppliers | 3-46 days |
| Oberlo | Gratuitous | Product sourcing and society fulfillment automation | 18-34 days |
| Dropify | ₱nine,000 per month | All-in-one solution for dropshipping business organisation management | 3-18 days |
1. AliExpress
AliExpress is one of the near prominent e-commerce sites in the world. It'due south the consumer-facing business of Alibaba, a world-renowned B2B selling and wholesale platform. Because of that, the products on AliExpress have ridiculously low prices perfect for dropshipping.
Yous can directly use AliExpress with Shopify using an extension. There are also plugins available for stores running on WordPress WooCommerce. Unfortunately, if yous programme to dropship on Lazada or Shopee, you have to manually manage the orders.
Dropshipping with AliExpress would as well simplify the shipping. They would provide you lot with some options depending on the supplier. FedEx delivery costs more than twice compared to AliExpress Premium Shipping, but information technology's manner faster.
As for the estimated delivery time, AliExpress Premium Shipping takes around seven to 15 days while FedEx could have only 3 to five days. It's also important to consider the time it takes to actually deliver the product to your customer's front doors.
You can freely use AliExpress in your dropshipping business. Y'all can browse freely like a buyer and even contact the supplier from there. The extensions and plugins all the same aren't free merely they help manage your business easier.
2. AliDropship
Strictly speaking, AliDropship isn't a supplier or even an e-commerce site. Even so, it fabricated this list considering of how it connects you with AliExpress and allows yous to easily import them over to your due east-commerce store.
AliDropship is a plugin especially fabricated for dropshipping. Its master production is a plugin (an original, more powerful plugin that works with any WordPress website and another one that only works with WooCommerce websites).
Basically, AliDropship connects yous with AliExpress, a large e-commerce shop owned by Alibaba, and lets you import products straight to your store. With more than than 100 million items, at that place are more products and categories than you tin keep count of.
In a fashion of speaking, AliDropship simplifies dropshipping (instead of you scouring Alibaba or AliExpress for niches). The plugin costs $89 (effectually ₱4,200), paid one time, and is good for one website or domain but.
As for the shipping, AliDropship basically imports the aircraft options available in AliExpress. They also recommend dropshipping business organization owners to contact the suppliers directly and ask alternative couriers that tin can deliver the products.
3. Chinabrands
Chinabrands is some other known dropshipping supplier in the Philippines (and in most of Asia). Many of their products are somehow cheaper than other suppliers, which ways more profit on your side.
Unlike Alibaba, Chinabrands actually has dedicated dropshipping services. The way it works is simple — you post the items yous want to share from Chinabrands to your ecommerce store (with the aid of an extension or an awarding programming interface).
The number of products you can choose from Chinabrands is also vast — somewhere effectually 500,000 items. Delivery fourth dimension may also vary depending on the shipping visitor used. Chinabrands estimate the delivery time to be between 7 to 25 business days.
As for the price, anyone tin use the visitor'south dropshipping services equally long as they annals for a free account. However, you tin upgrade your account to VIP for $iii.99 per month (₱190+) to enjoy more discounts.
iv. Esources
Almost of the actual suppliers from the websites mentioned earlier are from Asia. Esources , all the same, is based in Europe (specifically, the U.k.). It's a massive directory of suppliers with product quantities comparable to that of Chinese suppliers.
Esources set up the tone differently past being dropshipping-friendly. In fact, they have an entire directory dedicated to dropshipping only and list out the actual suppliers of various products and categories.
It's of import to annotation that production prices are not that cheap compared to Chinese suppliers. This may sound counterintuitive at outset. But if yous consider the higher quality of the products, the prices make more than sense.
Although Esources is free to use, you would want to utilize their premium membership that costs €twenty or around ₱1,100. Information technology allows you to access the full directory Esources has to offering and contact any supplier direct.
Esource is mainly a supplier directory. You lot will have to discuss the shipping options bachelor from the supplier's point of origin to the Philippines. As for the shipping time, information technology normally takes anywhere between three to 46 days, depending on the method used.
5. Oberlo
Technically, Oberlo isn't a supplier directory nor an e-commerce website. It's an app that would allow you source products from AliExpress suppliers. Because of that, yous would gain access to millions of products bachelor for market and customization.
In a way, Oberlo is similar to AliDropship. It'southward an app that would help you find suppliers of products and add them to your store in a few clicks. It would also assistance y'all manage your business by shipping products directly from suppliers to your customers.
The but caveat with Oberlo is that it but works with Shopify, exclusively. On the positive notation, many dropshippers adopt to apply Oberlo and Shopify as information technology simplifies the dropshipping process and eliminates many of the difficult parts of running the business concern.
It also bridges the gap between you and the supplier. In case you need customized products, information technology would assist you connect with the supplier directly. The skillful news is that Oberlo has a costless programme with a generous product limit of 500 (with unlimited monthly orders).
Equally for aircraft, Oberlo would give you various methods available depending on the warehouse location, product type, and the supplier itself. Usually, orders made via AliExpress Standard Shipping accept anywhere from xviii to 34 days.
6. Dropify
Dropify is a local dropshipping company that enables Filipinos to experience dropshipping themselves without having to worry about technical matters. To exist precise, Dropify allows y'all to start a dropshipping concern in but a few clicks.
In comparison to others on this list, Dropify will serve y'all curated products for various catalogs including sleep essentials, sneakers, babe products, and others. All you lot have to do on your side is to subscribe to whatever itemize and pay the monthly subscription.
Once y'all're subscribed, yous can so select specific products you want to sell in your shop. Although Dropify didn't disclose the exact details as to where they source out their products, you can see a folio on their website that allows brands to partner with them.
Currently, Dropify only partners with Lazada and Shopee (with plans for Shopify and WooCommerce). They will create an online store for y'all on those platforms and manage your business from there.
As such, delivery is handled by Lazada and Shopee couriers. Depending on the location of the customer and where the production is shipped from, the delivery will take anywhere from three to eighteen days.
Once you detect a supplier that would provide you with the best products to sell, information technology's now time to really first your dropshipping business and build your e-commerce shop on your platform (or platforms) of choice.
Chapter iv: What platforms can you utilise to kickoff your dropshipping business in the Philippines?
It's disquisitional that you select the platform or platforms where your e-commerce store volition reside. In a way, what you utilize will become your sales channel. Since you will be dropshipping in the Philippines, it's also of import that yous accept into account where your sellers typically shop.
Where can you sell your dropshipping products?
While reviewing the platforms listed below, think that you can build your e-commerce store in more than than 1 place. Each place to sell also has its own advantages, disadvantages, and toll.
Below is a table that compares the different platforms:
| Platform | Advantages | Disadvantages | Cost | Dropshipping Features |
| Shopify | All-around eastward-commerce platform | Not platonic for those who desire to start without spending much | At least ₱1,400 per month | Dropshipping and business apps |
| WooCommerce | Low cost and flexibility | Tedious startup process | At least ₱69 per month | Dropshipping and business concern plugins |
| Lazada | Sectional merely to Filipinos | High competition | ₱400 | Integration with tertiary-political party services and apps |
| Shopee | Most visited e-commerce website in the Philippines | Possible competition with suppliers | Free | Integration with third-party services and apps |
| Top social platform in the Philippines | Not dropshipping-friendly | Free | None |
i. Shopify
Shopify is ane of the about popular e-commerce software in the world. It'due south an accommodating platform that volition enable yous to create an e-commerce store from scratch and customize it according to your liking.
On the downside, Shopify isn't costless. At the very least, you will have to beat out out $29 per month (effectually ₱1,400 every month) for the basic plan. You lot must also accept your own domain name, which you tin can buy for equally depression as ₱360 from z.com .
To starting time, all you need is to register and start with a free 14-day trial. During this trial phase, you don't need to enter your payment details (you only take to when you launch or publish your store online).
After that, you will then be able to add products, set up your store, set payment for your customers, and others. You tin can also customize the look and experience of your site easily by applying a theme and playing with its configuration.
Dropshipping on Shopify
Shopify is the most dropshipping-friendly platform ever made. You can customize it equally much as y'all want and install new functionalities and features using apps. In fact, in that location are many dropshipping apps yous can apply that will permit you to connect with many suppliers.
Some of the almost popular dropshipping apps in Shopify include:
- Oberlo
- Printful
- Modalyst
- Spocket
- Spreadr
- Commonage Fab
- AliExpress
Within the Shopify app shop, you lot would observe more than than 500 apps for sourcing and selling products:
All those apps make dropshipping on Shopify easy (and even doing information technology from multiple suppliers at the same time). For instance, with Oberlo, you don't merely get to import products straight to your store, yous can even keep the pricing feature automatic and manage them in bulk.
Proceed in listen, however, that using any one of these apps would bump the monthly fees you lot need to pay. Some of them, like Oberlo, take a sort of complimentary plan for express orders only. Make certain to examine the apps and detect out how much each app costs every month.
2. WooCommerce
WooCommerce is a free e-commerce platform built on WordPress, a website creation platform that'south 1 of Shopify's fiercest competitors. Information technology'south also the most popular website platform, firing 35% of all websites on the web.
The difference between using WordPress and WooCommerce with other platforms is that y'all need to use a host first. On the bright side, it doesn't have to toll that much. For example, the personal plan in z.com but costs ₱69 per month and already includes a free domain proper name.
You tin check out our guide on how to get started with WordPress for more information.
One time you already have WordPress prepare, all that's left is to create your e-commerce website . If yous want to make things faster and easier, there are a lot of free e-commerce themes you tin can customize according to your gustation.
And then, you have to actually install the WooCommerce plugin to your website.
Dropshipping on WooCommerce
WordPress in itself is merely a platform for publishing websites. When you install WooCommerce, it adds a whole lot of functionalities and features that would turn a simple website into a powerful e-commerce store.
Like in Shopify, yous must install extensions, which are called plugins, to make dropshipping on WooCommerce easier. Some of the elevation picks for the best dropshipping plugins include:
- AliDropship
- WooDropship
- DropshipMe
- Dropified
- Yous Droop
Y'all can likewise search for more than dropshipping plugins in the plugins directory , although virtually plugins available connect just with AliExpress.
There are too plugins bachelor that would help you in other aspects of running your dropshipping business organisation. For example, y'all can install a plugin to help y'all with posting content on social media or adding more shipping options for your customers.
3. Lazada and Shopee
Lazada is one of the largest east-commerce websites Filipinos visit. In fact, it used to accept the panthera leo'due south share in the eastward-commerce industry. Though non at the top anymore, it still receives more than 36 million visitors a month (according to a popular web traffic platform ).
To use Lazada, you must annals for a free seller's account first and become a market place seller:
Before you can outset selling on Lazada, yous must provide your business organisation data and seller requirements including the following:
- Address for product shipping and returns
- Banking company account information for payouts
- Valid government ID (for individual sellers)
- BIR 2303 or Certification of Registration for corporate sellers
After on, you will take to comply with the requirements of the Online Micro Sellers Marketing Cooperative (if yous're an individual seller). It has similar requirements when registering at Lazada plus your Tax Identification Number (Tin can).
You volition also have to pay ₱400 as your minimum capital share requirement. The commencement ₱100 will automatically be deducted from the first payout while the rest must be paid inside a year of signing upwardly equally a seller.
Shopee used to lag behind Lazada. But now, it's grown to exist the number one e-commerce website in the Philippines — with the largest market share — and more than 62.twoscore 1000000 visitors every month.
Like Lazada, Shopee is also free to annals :
However, unlike with Lazada, becoming a seller in Shopee isn't as complicated. In fact, everything you need to complete your seller contour is only the following:
- Full proper noun
- Telephone number
- Address
You don't demand to prove whatsoever proof of your identification or citizenship. All you need to do is add and verify your telephone number and e-mail and complete your shop profile. The reason for that is Shopee accepts cross-border sellers.
Dropshipping on Lazada and Shopee
Of the ii, Lazada was the outset one to become dropshipping-friendly. It took a while until Shopee permitted apps and services to connect with information technology to make dropshipping easier and simpler. Back then, your only choice was to practice information technology manually (placing orders on the supplier website).
Here are the apps and services that make dropshipping easier on both Lazada and Shopee:
- Chinabrands
- Kumoten
- Dropify
Chinabrands and Kumoten work almost similarly — you integrate the app with Lazada or Shopee, detect and select products to sell, and sync the products with your store and let the orders period.
Below is a good representation from Chinabrands on how dropshipping works with the two e-commerce giants in the Philippines:
Whenever someone orders from your store, information technology volition automatically sync with either Chinabrands or Kumoten and will place the order for you (with the customer's details). Dropify, though a subscription-based service, works similarly in terms of guild fulfillment.
iv. Facebook
Whether y'all set a standalone folio on Facebook or create a linked folio for your due east-commerce website, information technology's important that you brand apply of Facebook. Undoubtedly, it's the most popular social media network here in the country, with more than 80 million users .
Through the years, Facebook has been testing various due east-commerce features. Currently, the easiest style to dropship on Facebook is to create a business page and sell your products from at that place.
As you may know, creating a business concern page is free. If you lot already have an e-commerce store, yous tin can use the aforementioned elements there similar your logo and content, and import your products directly from your website.
Dropshipping on Facebook
Unfortunately, there is no service, app, or plugin yet on Facebook that would allow you to dropship directly from Facebook. The most that you tin can practise is sync your product listing on your business organization page with the listing on your website.
You tin read more about importing products to Facebook from Facebook's Business Help Center.
The easiest manner to dropship on Facebook is to direct the traffic to your website or to your online store on Shopee or Lazada.
If y'all want to accept orders on Facebook, and then you lot must perform the lodge fulfillment manually. Meaning, if your supplier is from AliExpress, so you will have to order from AliExpress and change the shipping details to that of your customer.
Take note that dropshipping tends to result in poor customer feel due to lack of control and long shipping time. This volition event in a penalisation in the algorithm , which favors stores with a skilful customer experience.
At this stage, pick one or more platforms to get started with. Consider whether or not you want to create an actual website for your e-commerce store, or simply inside a large platform like Lazada, Shopee, and/or Facebook.
Chapter five: How to market your dropshipping store?
In every business, marketing is important to build long-lasting relationships and enhance customer date. Merely with dropshipping stores, what are the ways to drive traffic to your store and where tin can you get them?
In this chapter, nosotros will discuss how to market your dropshipping store effectively.
Let's start!
How to drive traffic to your dropshipping store?
To accept sales, you must take a lot of visitors to your dropshipping store. The latest surveys and studies betoken that east-commerce websites have an boilerplate conversion rate of ii.86% , which puts information technology roughly at around 2-3 sales per 100 visitors.
It's also a fact that dropshipping startups vary in terms of budget. Fortunately, it's notwithstanding possible to drive traffic to your shop even without spending coin.
Here are some methods you can use to drive traffic to your dropshipping shop:
1. Search Engine Optimization (SEO)
Basically, good SEO practices issue in higher visibility. The cease goal is for the website to come up upward start whenever a person enters a set of related keywords into a search engine. That's why yous must optimize your pages for better visibility.
It as well helps to publish more content. This is the reason why many e-commerce websites and dropshipping stores start a blog every bit it'south the well-nigh efficient manner to publish more than content and rank for more keywords.
With that, here are ways y'all can crash-land the search engine optimization of your e-commerce store:
Research Related Keywords and Phrases
Keyword research is of import equally it helps you find terms that people use to search on search engines like Google. When yous know what your target customers search for, you know what terms to employ throughout your store and content.
At that place are many complimentary keyword enquiry tools that can help you including Google Keyword Planner, which you tin can read about in chapter 2, as well as some good ones like WordStream'southward Gratis Keyword Tool .
Allow's say you lot desire to search for good motor accessories to dropship. Pop upward the Free Keyword Tool and provide the primary term (this can exist your niche) and specify the land to search on (this should exist your target country).
After that, WordStream will evidence you the related keywords and additional information on each i including the search book, cost-per-click, and contest. Yous can also send the results to your email address.
Y'all can and then run into some ideas on the top products for your niche every bit well as what terms to use across your content. Brand sure to sprinkle the right terms on your pages and blog. Just avoid going overboard so Google won't penalize and tag your website as spammy.
If you want more than data, Backlinko has a definitive guide on keyword research .
Create Good Metadata
Metadata refers to the overview and summary of the webpage content (like the production pages and blog posts on your e-commerce store). Information technology appears on the search engine results when the keywords lucifer.
Primarily, metadata refers to the page title (known equally meta title) and page description (or meta description).
For example, if you search for "best motor accessories" on Google, you would see that all results have metadata that match the term:
Here are proficient suggestions on how to create good metadata:
- Remember to write for humans and not search engines.
- Keep the meta championship around 50 to 60 characters (the text limit that gets displayed).
- Apply the meta description to encourage searchers to click through.
- Keep the metadescription around 150 to 160 characters.
- Avoid keyword stuffing on your metadata.
Build Backlinks
Link-building refers to the method of enticing other websites to link with your east-commerce store. This sends a signal to Google that your website is trustworthy and helps increase your credibility, visibility, and domain authority.
There are diverse ways to build links to your website. Some ideas include:
- Create a linkbait (usually in the class of good data, infographics, and exception content) and permit the procedure progress organically.
- Reach out to websites that currently link to outdated websites and data and offer your content as a replacement.
- Invitee post on other blogs and link to your content from the article.
Brian Dean, a major personality in SEO, lists out diverse strategies y'all tin can use to build links .
2. Organic Social Media Referrals
The results of search engine optimization could take months to take consequence. In the brusk term, it'due south ideal to implement a tactic that would still bulldoze traffic to your website without having to spend anything.
Organic social media referrals are a expert manner to reinforce trust and build a relationship with your target customers.
Here are suggestions on how to drive social media referrals to your eastward-commerce store:
Share Social Videos to Bulldoze Traffic and Date
Sharing fun, relevant, and engaging videos is a pop way to proceeds followers on social media and hold their attention. Another benefit is that information technology has been proven that videos, peculiarly those related to a product, increment the conversion rate of visitors.
The skillful side with this is that you don't take to create the social videos yourself. You lot can search for related videos on your social network of pick and share them on your folio or account. Then, sprinkle some copywriting tactics on the caption.
Below is a proficient instance of a bicycle parts video that garnered a lot of engagement and drove a lot of traffic:
When sharing or creating a video on social media, follow some of these tips to bulldoze traffic and appointment:
- Make sure to have a decent video resolution.
- Add subtitles to optimize your videos for the newsfeed.
- Consider using a foursquare format on your videos to occupy more space on mobile.
- Encourage the viewers to engage with your video and get out a like or annotate.
Lumen5 has outlined some strategies you tin can follow to garner more than views on your video.
Create a Quality Content Marketing Strategy
To effectively make use of social media (similar Facebook), yous need to be consistent. This is why you need a quality content marketing strategy. You merely can't exist posting every twenty-four hours this week and be silent the next week.
The fundamental here is to make certain your page doesn't announced to just be a money-making machine.
Here are some suggestions on how to make an effective content marketing strategy on social media:
- Brand use of stories that could stir the emotions of your target customers.
- Curate and create timely posts co-ordinate to current events and trends.
- Consider showing the man side of your dropshipping business.
If you lot desire to make things easier, you can utilise social media marketing tools similar Hootsuite or Buffer to automate your posting schedule.
Cheque out Sprout Social'south post on creating a quality content marketing strategy to drive organic social media referrals to your dropshipping store.
3. Annunciate on Google and Social Media
The first 2 methods to bulldoze traffic to your e-commerce shop don't require yous to trounce out greenbacks (unless yous want to brand utilise of tools and software to make the work easier). Unfortunately, both methods may take a while before you can garner substantial traffic.
Here is a bones comparison of the three platforms you can employ to effectively run ads for your dropshipping business in the Philippines:
| Platform | Suitability | Ad Formats |
| For those who want to use creativity, mode, and branding by targeting the interests and hobbies | Image, video, stories, carousel, and collection | |
| For those who desire to utilise artful visual content (high-quality images and videos) | Video, image, story, carousel, reels, and IGTV | |
| For those who want to make apply of high-search intent in the search engine | Text, responsive, image, app promotion, video, product shopping, telephone call-only |
If you lot want an advertising tool that helps you reach your platonic customers with inventiveness and manner, then Facebook is definitely the all-time for you.
Its diverse advertising formats permit you to run ads that are cogitating of your brand's artistry and image. Information technology optimizes ad delivery by targeting users whose interests and hobbies are in line with your products.
Moreover, when you cull to apply paid ads from your Facebook page, your brand exposure increases and your number of followers may grow.
Facebook uses four ad formats — prototype, video, stories, carousel, and collection. And then if you desire to focus on push button marketing and entertainment-related e-commerce, go with Facebook.
When advertising with Facebook, recollect to use:
- Vertical videos. Make your ads user-friendly for those who are using their mobile phones.
- Images with less than xx% text. On Facebook, images perform better with niggling or no text.
- Call-to-activity buttons to encourage your audition to engage with your brand and take action.
Some other option for businesses who want to go for push marketing would be Instagram. As it is now integrated with Facebook, it utilizes the latter'south demographic information to distribute ads to its appropriate viewers.
Although Instagram is more than on photos, it likewise offers other seamless ad formats. Merely similar Facebook, you tin advertise your brand through video ads, story ads, carousel ads, explore ads, and IGTV.
Considering how this platform focuses on artful visual content, it would exist dainty to use high-quality videos and images for your posts. That beingness said, Instagram ads are suitable for youngsters who want to see beautiful photos and stories.
Beneath are other things you demand to remember when making Instagram ads:
- Use eye-communicable thumbnails. They instantly capture attention.
- Proceed your videos brusk. The platform's limit for videos is at 60 seconds, and so exist sure to fit your message in that bridge of time equally people's attention spans are short.
- Use relevant hashtags and keywords.
- Curate your feed and be consistent with your chosen themes or color schemes. Your Instagram profile serves as your folio and so all of your posts must exist presented beautifully.
- Make compelling captions, especially those that evoke an emotional response.
- Include a call to action (CTA) to encourage date.
Google Ads
While the first ii platforms are more on push button marketing, Google ads focus more than on pull marketing. Significant, it attracts customers to a make via SEO and non-intrusive methods, so it is all-time for businesses with high search intent.
Google offers a lot of ad formats that you tin apply for your business organisation.
Search campaigns, known as text ads on search results, show your brand once people offset looking for the products that you lot offer. Prototype ads, on the other hand, announced when users browse through various apps and sites.
Video campaigns generally appear on youtube, while shopping ads are displayed on the Google shopping tab equally well equally on search results.
Google too has local campaigns — but they're more useful to those with a brick-and-mortar store.
If you desire to advertise your products using Google Ads, here are some points to keep in mind:
- Be focused and specific with your ads to make them relevant in targeting audiences.
- Employ simple, everyday linguistic communication because Google prioritizes ads written in natural linguistic communication.
- Create engaging ads that are both mobile and desktop-friendly. Most users are using their mobile phones when browsing the net, simply you also want your advertising to look good even when being viewed through one's desktop.
- Include a functional and user-friendly landing page to bulldoze traffic and user date.
- Utilize negative keywords and so you tin can refine your audience and target only those who are likely to catechumen.
- Measure the results of your ad performance to create improvements if necessary.
Aside from the methods mentioned in a higher place, there are still enough of ways to market your dropshipping store. However, optimizing your store for the search engines, using organic social media referrals, and running ads on social networks and Google are great ways to start.
Chapter 6: What legal responsibilities practice you need to comply with when starting a dropshipping business in the Philippines?
Even if all the transactions in your dropshipping business are done online, you still take to comply with your legal responsibilities — registering your business and paying taxes. In this chapter, y'all volition learn what you need to do in terms of legal compliance.
How to register your dropshipping business organisation with the Bureau of Internal Revenue?
The offset step towards registering your concern is by registering your business name at the Department of Merchandise and Industry. For this affair, you can head over to DTI's Business Name Registration System .
The reason is, you lot may demand it for filing a registration at BIR. Currently, there is no way to register your business online on BIR'southward website, and so any registration must accept identify at whatever of their offices about your expanse.
Y'all may be required to submit the post-obit documentation:
- DTI Certificate of Registration (if applicable)
- Occupational Tax Receipt or Professional Tax Receipt from Metropolis Hall or Municipal Hall (if applicable)
- Barangay Clearance
- Proof of Address, e.g. Lease Contract or Land Title Certificate
- Valid identification
Note that you need to prepare at to the lowest degree ₱500 for the registration, which can be paid via an authorized agent bank. After that, the BIR will issue yous a certificate of registration, a banner asking for receipts, and a stamp on your books of accounts.
What are the standard taxes you need to pay for your dropshipping business?
The certification of registration that the BIR issued volition confirm the type of taxes you demand to pay. More probable, you will need to pay like standard taxes to what physical businesses pay. Tax laws hither in the country have no distinction whether the marketing channel is online or non.
With that, here are some of the taxes that you may have to pay:
- Monthly and quarterly value-added tax that's required for all businesses earning more than ₱3 meg in a taxable year
- Quarterly pct tax for businesses earning ₱three 1000000 or less per year and not subject to VAT
- Withholding tax on compensation
- Expanded withholding tax/creditable withholding tax
- Quarterly and annual income tax returns
Note that the above department is for full general information purposes only. Anything mentioned earlier doesn't constitute or intend to advise anyone on financial, accounting, legal, and regulatory matters. It's not a replacement for professional advice.
There are a lot of firms y'all tin can approach in the Philippines both in-person and online. For one, you lot tin attempt and consult the professionals at Taxumo and even avail of their services and let them handle the legal and taxation responsibilities of your dropshipping business organisation.
Chapter vii: Frequently Asked Questions Regarding Dropshipping in the Philippines
Now that you have reached the cease of this guide, you may still have some questions with regards to starting a dropshipping business in the Philippines. What this chapter aims to do is address the near frequently asked questions you lot may have.
How much capital do yous need to beginning a dropshipping business in the Philippines?
Dropshipping is definitely 1 of the online businesses you lot can start without shelling out a lot of cash. That's because you don't need to ain any of the stocks before you can sell them. It's almost similar to retailing business without actually buying the products to sell first.
From the information in the previous chapters, y'all can derive that the capital yous demand to outset a dropshipping business depends on the platforms, suppliers, and extensions or plugins yous desire to use.
Below are examples of scenarios and how much capital you would demand:
- If you create a store with Shopee and tap Chinabrands equally your supplier would basically price you nothing.
- If yous employ Lazada with suppliers that don't require a membership fee, then all you need to pay is the ₱400 for the minimum capital share requirement.
- If y'all use Shopify and Oberlo, you will demand to gear up ₱i,400 a month for Shopify and ₱360 for the domain. You may not basically demand to pay for Oberlo right away if the orders yous receive are below 500 per month.
- If you create a WooCommerce store and use the AliDropship plugin, then yous need ₱4,269 (₱4,200 for the plugin and ₱69 per calendar month for the hosting and domain with z.com).
In short, the minimum uppercase you need is nothing if you brand use of Shopee and Chinabrands. If you want to go all out, yous demand at least a few 1000 pesos for the setup and the marketing tactics you need to run.
Is dropshipping even so profitable in the Philippines?
Dropshipping may not be as mature compared to western countries. However, the fact remains that with the correct niche, products, customer service, marketing tactics, and enough effort, you lot could earn profit from dropshipping in the Philippines.
In terms of numbers, Statista shows that revenue in e-commerce marketing (in the Philippines) is projected to reach more than $iv million in 2021. In add-on, around 56% of customers visit an online store at least once every 30 days.
Still, do note as with every business organization, you lot will come across failure and obstruction along your way. If you are willing to work difficult, this guide volition help yous in your dropshipping journey.
Tin you start a dropshipping concern without a website?
Admittedly! You can prepare a dropshipping business by only using Lazada, Shopee, and Facebook. These platforms don't cost that much (more often than not free) though the bodily procedure of managing the business may be a chip boring.
If y'all have enough capital, information technology'south best if y'all set up your own e-commerce dropshipping store or website (either through Shopify or WooCommerce). With that, you actually own the platform itself.
Do you need to pay taxes while dropshipping?
The tax laws in the Philippines don't have a distinction between what marketing channel was used to earn the sale. Significant, whether it's an online business with all-online transactions or a brick-and-mortar store, you demand to pay taxes.
It may exist tempting to avert the taxation part. Still, it's best if you comply with information technology as early as y'all can to avoid further complications (and punishments) in the hereafter. Even if you lot're not making much, it'due south still of import to file your taxes.
Likewise, you won't be paying anything if you're non earning any income. You lot just have to file your taxes and specify your income and expenses. To avoid confusion, contact a professional and inquire for clarifications most business registration and taxation.
Starting time Your Dropshipping Concern Today
Dropshipping is a great online business and income-generating activity that you lot can start without needing a large sum of majuscule. There are a lot of platforms, tools, and extensions out at that place that would assistance you fix everything.
Take note, notwithstanding, that dropshipping is non a become-rich-quick scheme. Like any concern, information technology's not every bit easy as it seems. But with enough perseverance, information technology will happen.
Start building your online dropshipping store today.
Source: https://web.z.com/ph/blog/2021-update-the-ultimate-dropshipping-business-guide-in-the-philippines/
Posted by: mosesyousin.blogspot.com
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