How to Start Dropshipping in Indonesia
Why start dropshipping
Are you ready to take control of your financial future?
Dropshipping offers a unique pathway to entrepreneurship that requires minimal upfront investment.
Imagine launching a business that allows you to work from anywhere, giving you the freedom to design your own schedule.
With the ability to test various products without the risk of unsold inventory, you can discover what truly resonates with your audience.
This is more than just a side hustle; it’s an opportunity to create a brand that reflects your vision.
Keep reading to learn how to start your dropshipping adventure!
How dropshipping works
Why start dropshipping in Indonesia
Indonesia, with its vibrant economy and rapidly growing ecommerce sector, presents an exciting opportunity for aspiring entrepreneurs to venture into dropshipping. Here’s why you should consider starting your dropshipping business in Indonesia:
First, Indonesia boasts one of the fastest-growing ecommerce markets in Southeast Asia. With a population of over 270 million people, a significant portion of whom are young, tech-savvy, and increasingly embracing online shopping, the potential for online sales is immense. This thriving market provides a solid foundation for dropshipping businesses to flourish, catering to the diverse needs and preferences of Indonesian consumers.
Second, the country’s internet and smartphone penetration rates are on a steady upward trajectory. As more Indonesians gain access to the internet and mobile technology, the online shopping landscape continues to expand. This digital transformation opens up numerous opportunities for dropshipping, allowing entrepreneurs to reach customers across the vast archipelago with just a few clicks. The convenience of online shopping is particularly appealing to busy urban dwellers and millennials, who are driving the ecommerce boom.
Third, while major cities like Jakarta and Surabaya have thriving online retail scenes, there is significant untapped potential in smaller cities and rural areas. Dropshipping can bridge the gap between these underserved markets and the vast array of products available online. By offering a wide selection of goods that might not be readily available in local stores, dropshippers can cater to the unmet demands of these consumers, fostering a loyal customer base.
All in all, Indonesia’s dynamic market makes it an ideal destination for dropshipping ventures. With a strategic approach and an understanding of local consumer preferences, entrepreneurs can tap into this growing market and build a successful online business.
Population
Internet users
eCommerce sales in 2018
Leading e-retail category
Advantages and disadvantages of dropshipping in Indonesia
Advantages of dropshipping in Indonesia
1. Low startup costs
Entrepreneurs can start a dropshipping business with minimal investment since there’s no need to purchase inventory upfront.
2. Wide market potential
Indonesia has a large and diverse population, providing a vast customer base for various products, especially health-related items.
3. Growing ecommerce sector
The rapid growth of ecommerce in Indonesia, fueled by increased internet penetration and smartphone usage, creates numerous opportunities for dropshippers.
4. Flexibility and scalability
Dropshipping allows entrepreneurs to operate from anywhere and scale their businesses quickly without the constraints of managing physical inventory.
5. Access to a young, tech-savvy audience
The younger demographic in Indonesia is more inclined to shop online, making it easier for dropshippers to reach tech-savvy consumers.
6. Diverse product range
Dropshippers can offer a wide variety of products without the need for inventory, catering to different customer preferences and trends.
7. Integration with global supply chains
Improved logistics and international shipping options simplify sourcing products from global suppliers, enhancing product availability.
8. Minimal risk
Since dropshippers don’t hold inventory, they face less financial risk compared to traditional retail models, allowing for more experimentation with product offerings.
9. Potential for high margins
With the right marketing strategies and product selection, dropshippers can achieve significant profit margins, especially on imported goods.
10. Affiliate marketing opportunities
The popularity of affiliate marketing in Indonesia allows dropshippers to leverage partnerships to boost visibility and sales without extensive marketing costs.
Disadvantages of dropshipping in Indonesia
1. Intense competition
The growing interest in ecommerce has led to a saturated market, making it challenging for new dropshippers to stand out.
2. High marketing costs
As competition increases, marketing expenditures can rise significantly, leading to diminishing returns on investment.
3. Quality control issues
Relying on third-party suppliers can lead to inconsistencies in product quality and delivery times, which can harm brand reputation.
4. Limited control over supply chain
Dropshippers depend on suppliers for inventory and shipping, which can lead to complications if suppliers face delays or stock shortages.
5. Customer service challenges
Handling customer inquiries and complaints can be complicated when products are sourced from multiple suppliers, leading to potential service inconsistencies.
6. Shipping times
Longer shipping times from international suppliers can deter customers, especially those accustomed to faster delivery options.
7. Dependency on suppliers
A heavy reliance on suppliers for inventory and fulfillment means that any issues on their end can directly impact the dropshipper’s business.
8. Market sensitivity
The Indonesian market can be sensitive to economic changes, consumer preferences, and trends, requiring dropshippers to continually adapt their strategies.
While some may argue that dropshipping has its challenges, the ability to start a business with minimal upfront investment and the flexibility to operate from anywhere makes it a compelling choice for aspiring entrepreneurs ready to embrace the digital marketplace.
What to dropship?
How much can you make with dropshipping?
How far you can go with dropshipping: real-life experience
FAQ
Is dropshipping legal in Indonesia?
Yes! When you are dropshipping, you are not ‘fooling’ anyone, and you are not breaking any laws. You are simply helping other people receive the items they want - and enjoy the perfect customer service you provide.
However, pay attention to your choice of products. It is illegal to sell branded, copyrighted items, or things like weapons (even their sports or hunting models), knives, smoking mixtures, etc.
How much money do I need to start?
At least $150 is necessary - let’s do the maths.
If you have some technical skills and can assemble and set up a website yourself, you will need around $150.
First of all, you will need to buy a domain name (a good one costs about $10-15, and you will need to pay this fee every year to prolong your registration).
After that, you need a hosting: a server that makes your store info visible to the Internet user. You can use the basic hosting service from AliDropship (‘Silver Plan’) and only pay $69 per year.
Then, you will need to install WordPress, which is absolutely free, and buy AliDropship plugin, which costs $89. It should be enough: WordPress + AliDropship make a proper basis to create a fully functional dropshipping store.
If you don’t have these technical skills, you can order a ready-made store based on the AliDropship plugin. It will be made for you personally by an expert team: the specialists will even add the first products to your store. So, technically, it will be ready to sell items from day 1. The basic ready-made dropshipping store costs $299; together with the annual domain fee, you will have to pay $310-315 to launch your business.
How to choose the store niche?
First, it should be something that you really like - or, at least, know deeply. You will be picking products, making advertisements, and advising customers, so you absolutely need to be a pro in this.
Also, this niche should be popular with buyers and easy to promote online. Here is a complete niche selection guide that will help you!
Where to find the products?
AliDropship plugin lets you easily import products on your dropshipping website. Basically, it transfers the products’ titles, descriptions and images in a single click. So, all you need to do is browse and find good quality products from reputable sellers.
Alternatively, you can use a database of over 50,000 selected products which are guaranteed to be in high demand. This database is available within AliDropship plugin: you can see it when you go to the Import section of your AliDropship-based store. The best part is that all the products’ titles and descriptions are already edited there, so you won’t spend your own time doing this yourself.
If I sell products, how can I compete with itself?
AliExpress is a large shopping platform where sellers offer everything at once. At the same time, your niche dropshipping store is focused on a specific range of products. Surely, you are more client-oriented than a large-scale store, and this is why buyers will choose you over.
Will my buyers know they are actually buying items?
It’s not likely. Even if they see Chinese names/addresses/characters on the wrapping paper, it won’t tell them anything. Lots of warehouses and manufacturing facilities of the largest global companies are situated in China, so there is nothing strange if a buyer receives a package of the Chinese origin.
Also, you can write your suppliers directly and ask them not to put any promotional materials into the package. Sellers are always glad to partner with dropshipping store owners because this partnership is profitable, so they will be happy to help you.
Will my buyers agree to a long delivery?
Long delivery itself isn’t a problem. Your customers are not buying life critical items from you, so they don’t mind waiting - especially, if you offer them an appealing price and a low-cost shipping.
Besides, you can choose the ePacket delivery method which cuts up the delivery time significantly. With ePacket, it will take the packages 7-15 days to arrive.
What if a buyer asks me for a refund?
Refunds are the responsibility of the original suppliers. Usually, they refund low-cost purchases really quickly, so there is nothing for you to worry about.
How to promote the store?
To make profit from your store, you first of all need to attract traffic to it. There are lots of ways to promote your store online for free, so pick the ones you personally like. Also, read the free marketing tips for dropshipping business: an experienced team brings them to you every week!
Will WordPress or AliDropship limit my activity and charge business fees?
No. The only recurring fee is the domain fee - you will have to pay for it every year, otherwise, your site won’t be visible on the Internet.
WordPress is completely free, and all the AliDropship solutions only require a one-time payment. Whatever AliDropship tool or service you get, you remain a full owner of your business. There are no limits on the amount of orders you can accept, or the volume of profit you make, or the quantity and the content of the products you import, etc. You are your own boss!
Free Dropshipping Guide
