What is drop shipping?
Drop shipping is an ecommerce model where the online seller has no physical access to the products he sells on his website.
Instead, when a customer buys a product on the seller’s website, the seller purchases the product from a third-party vendor whether it’s a manufacturer, a wholesaler or distributor, or another retailer that will ship the product to the seller’s customer.
Here’s an easy to follow visual that sums up drop shipping in a nutshell.
First, the customer places an order on your store and pays you your retail price for your product of $80.
Next, instead of shipping the product to your customer, you forward this order to your supplier and pay them wholesale, of let’s say $50 in this case.
The supplier then ships the order directly to your customer. Instead of carrying inventory or buying products in bulk from your supplier, the supplier ships orders directly to your customers.
Here we’ve made a $30 profit without ever touching the product.
This entire process is invisible to your customer. They won’t know if it was shipped directly from your supplier.
So where do you find suppliers that will do this for you?
Oberlo and Aliexpress but do take note this will only apply If your target market are English speaking first world Countries not Philippines.
Oberlo and Aliexpress and other dropshipping suppliers from China normally will ship the items 2-4 weeks so this will not work if your target is local Filipino consumers.
Filipino consumers might think this is a scam so they will probably cancel or ask a refund. The also Bureau of Customs will also charge a fee items from overseas so this will be a drawback to local consumers.
Filipino internet users and buyers are growing too.
Here is an infographic of Filipino internet users
According to Oberlo many of Filipino users are in Facebook so if you are targeting Filipino consumers I would recommend you use facebook marketing.
Oberlo says:
“Facebook Penetration""
Facebook is a great way to reach your target audiences.
The only catch: Your target audiences need to be on Facebook.
Facebook penetration is something to keep in mind if you use Facebook for marketing.
Let’s look at a list of countries with the highest Facebook penetration, starting with Taiwan and its 66 percent Facebook penetration. The bold countries also appear in the Top 25 of total orders from Oberlo merchants.
- Taiwan
- Chile
- Argentina
- Australia
- United Kingdom
- United States
- Canada
- Malaysia
- Turkey
- France
- Brazil
- Mexico
- Peru
- Spain
- Colombia
- Italy
- Thailand
- Philippines
- Venezuela
- Germany
- Poland
Malaysia, the eighth-ranked country in terms of Facebook penetration, has been 28th, 24th, and 29th in total orders of Oberlo-sourced products from 2016 to 2018.
And this isn’t fueled by Malaysia having a huge population (it’s 45th worldwide) or tons of disposable income (it’s between 40 and 50, depending on the source, in per capita income).
But still, Malaysia has consistently accounted for a healthy chunk of Oberlo orders.
* The Philippines, meanwhile, has for three straight years been in the top 30 in Oberlo-sourced purchases, despite ranking lower than 100 in spending power.
We don’t want to make too many assumptions, but we do know that Malaysia and the Philippines have a high rate of Facebook usage, and that there are lots of English speakers in each country: In Malaysia, majority of its residents speak English, and in the Philippines, English is one of two official languages.
If you’re in North America or Europe, Malaysia and the Philippines might seem like the edge of the world. But they are actually a lot closer to China – the potential birthplace of the products that you’re selling – than more “traditional” markets.
These are both countries to keep in mind if you have an English store or set up English ads.
Conclusions
One of the biggest advantages of dropshipping is that you can get your products anywhere. The United States, United Kingdom, and other “usual suspects” will continue to account for the biggest chunk of Oberlo merchants’ orders.
That said, our data shows that there are viable dropshipping markets scattered from Scandinavia to the Asia-Pacific. And you don’t need to do anything to reach them that you wouldn’t be doing already.
Please take note also that If you want to target Local Philippine Consumers, use local dropshipping suppliers philippines or a local Online shop open for resellers
Local drosphipping suppliers Philippines can deliver in 2-4 days so and this will increase in higher Customer Satisfactions Rates
dropshipping suppliers philippines can ship from their local warehouse direct from anywhere in the Philippines
I have a list of local reseller shops that offer dropshipping here just browse over to their sites and learn their guides on how to dropship their products.
Start a dropship business here in the Philippines:
- If you want to target Philippine consumers join in local reseller shop programs since they can ship 2-4 days to local consumers.
- If you want to target English speaking countries, used Oberlo or Aliexpress and used Shopify e-commerce platform since Oberlo partnered with Shopify and you can easily import products from Oberlo and Aliexpress using Oberlo apps.
It is easy to setup Shopify store just visit here https://www.shopify.com.ph/dropshipping they have guides and free webinars to guide you in your dropshipping business.
Please note that dropshipping is the same with other business it needs work and determination for you to succeed just keep on learning
If you want to target local Philippine consumers use local dropship reseller shops suppliers.
I personally like https://lynnsfashionstore.com/ their program is straightforward and they have two plans to choose if you want to join as a Facebook reseller or as a Quick start program. https://lynnsfashionstore.com/info-how-to-get-started/
If you are having a hard time thinking what to name your Business click here
Business name Generator https://www.oberlo.com.ph/tools/business-name-generator
Also, if you don’t have time to setup a Shopify store you can buy Shopify stores that are operating already.
Here is the link where you can buy Shopify store https://exchangemarketplace.com/categories/oberlo-stores-for-sale?utm_source=oberlo&utm_medium=navigation
Make sure that you pay through https://www.escrow.com/ to protect yourself from being scammed.
Protecting both buyers and sellers is very important.
Using escrow, buyers get to inspect the goods or services before accepting them, thus protecting the buyer. Likewise, sellers are protected from counterparty risk by no chargeback, ever.
How do I set up dropshipping?
- Step 1: Choose a product to sell...
- Step 2: Locate a supplier who will drop-ship for you...
- Step 3: Set up an account with the drop-shipper...
- Step 4: Advertise the product for sale on eBay...
- Step 5: The product sells...
Now that you have your e-store setup it’s time to promote your business. You need to promote it using different internet marketing strategies, like SEO, Paid ads, Social Media marketing, influencer outreach etc.
If you don’t know all about these strategies, we at Exarcha SEO Philippines can help you. Contact us now!