How to Start Dropshipping In Philippines In 2025

Launch your online store in Philippines for FREE with AliDropship and become an owner of a profitable business

Why start dropshipping

We’re glad you landed on this page – it’s often the first step to a game-changing entrepreneurial adventure.

Are you tired of the traditional business hurdles? Dropshipping is your golden ticket to bypass the headaches of inventory management, upfront costs, and logistical nightmares.

  • No hefty startup fees to drain your savings
  • No sleepless nights over stockpiling and storage
  • Just pure, unadulterated potential for growth and innovation

If the thought of building a successful online business without the usual baggage excites you, then you’re in the right place. Next, let’s tailor a roadmap that navigates you through dropshipping’s most promising avenues for rapid growth and lasting impact.

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How dropshipping works

#1
Find an online supplier who has the products you want to sell
#2
Show the supplier’s products with marked up prices on your website and advertise them
#3
Receive direct payment from the customers who buy from your website
#4
Your suppliers will get the orders and original prices of the products. You keep the profits to yourself!
#5
Do nothing: the supplier will ship the order directly to your clients
#6
Repeat! Find more products and suppliers if you like, and enjoy greater earnings!

Why start dropshipping in Philippines

In recent years, the Philippines has emerged as a vibrant hub for dropshipping, attracting aspiring entrepreneurs eager to tap into the burgeoning ecommerce landscape. With a population exceeding 113 million and an internet penetration rate of over 76%, the country boasts a digitally savvy consumer base that is increasingly turning to online shopping. This shift in consumer behavior presents a golden opportunity for dropshippers to connect with a diverse audience and cater to their unique needs.

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The appeal of dropshipping is particularly pronounced in the Philippines, where the low barrier to entry allows aspiring business owners to launch their ventures with minimal upfront investment. This model empowers Filipino entrepreneurs to focus on marketing and customer engagement rather than logistics, enabling them to build brands that resonate with local consumers. Moreover, the rise of social media platforms in the Philippines serves as a powerful tool for marketing, allowing dropshippers to showcase their products and reach potential customers in innovative ways.

As the ecommerce sector continues to grow, driven by a youthful population and increasing smartphone usage, the potential for growth in dropshipping is immense. According to recent studies, the Philippine ecommerce market is projected to reach $12 billion by 2025, underscoring the lucrative prospects for those willing to dive into this dynamic arena.

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In conclusion, the Philippines is not merely a backdrop for dropshipping; it is a dynamic landscape ripe with opportunities. For those willing to navigate this evolving market, the potential rewards are substantial, paving the way for a new generation of entrepreneurs to make their mark in the ecommerce realm.

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Advantages and disadvantages of dropshipping in Philippines

Advantages of dropshipping in the Philippines

1. Low startup costs

One of the most attractive features of dropshipping is its minimal financial barrier to entry. Entrepreneurs in the Philippines can start their ecommerce journey with little capital, as they don’t need to invest heavily in inventory. This is particularly beneficial in a country where many aspiring business owners are often constrained by limited resources.

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2. Flexibility and location independence

Dropshipping allows business owners to operate from virtually anywhere, provided they have internet access. This flexibility is ideal for Filipinos who may wish to work from home or while traveling. The ability to manage a business from a laptop on a beach in Boracay is an enticing prospect for many.

3. Wide range of products

With dropshipping, entrepreneurs can offer a diverse array of products without the risk of unsold inventory. This is particularly advantageous in the Philippines, where consumer preferences can vary widely across regions. From fashion to electronics, the options are virtually limitless, allowing sellers to cater to niche markets.

4. Scalability

As a dropshipping business grows, scaling operations becomes easier compared to traditional retail models. Entrepreneurs can expand their product offerings or target new markets without the logistical challenges of managing physical stock. This scalability is crucial in a rapidly changing ecommerce landscape.

5. Focus on marketing and customer service

Since dropshippers do not deal with inventory management, they can devote more time and resources to marketing and enhancing customer service. This focus can lead to better customer satisfaction and loyalty, which are vital for success in the competitive ecommerce environment.

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6. Access to global markets

The digital nature of dropshipping allows Filipino entrepreneurs to tap into international markets. With the right marketing strategies, they can reach customers beyond the Philippines, thereby increasing their potential customer base and revenue streams.

7. Growing ecommerce sector

The ecommerce sector in the Philippines is witnessing significant growth, with a projected market value of $12 billion by 2025, according to Statista. This growth presents a ripe opportunity for dropshippers to capitalize on the increasing consumer inclination towards online shopping.

Disadvantages of dropshipping in the Philippines

1. Thin profit margins

While dropshipping offers low startup costs, the profit margins can be quite slim. With many dropshippers competing for the same products, price wars can ensue, squeezing profits. This challenge is particularly pronounced in the Philippines, where consumers are price-sensitive.

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2. Lack of control over supply chain

Dropshippers rely on third-party suppliers to fulfill orders, which means they have limited control over product quality and shipping times. Any delays or issues with suppliers can lead to dissatisfied customers, tarnishing the dropshipper’s reputation.

3. Shipping challenges

The Philippines is an archipelago, which can complicate shipping logistics. While many suppliers may offer international shipping, delays and additional costs can arise, especially for remote islands. This can lead to customer dissatisfaction if expectations are not managed properly.

4. High competition

The low barrier to entry means that many individuals are entering the dropshipping space. This saturation can make it challenging for new entrants to differentiate themselves and capture market share. Effective branding and marketing strategies become essential but may require additional investment.

5. Dependency on suppliers

Dropshippers are heavily reliant on their suppliers for inventory and fulfillment. If a supplier runs out of stock or discontinues a product, it can directly impact the dropshipper’s business. Establishing strong relationships with reliable suppliers is crucial to mitigate this risk.

6. Customer service challenges

Since dropshippers do not handle the products directly, addressing customer complaints related to product quality or shipping delays can be challenging. Building a robust customer service framework is essential to manage these issues effectively.

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Although some may doubt the effectiveness of dropshipping, the countless success stories of entrepreneurs who have built thriving businesses from the ground up demonstrate that with the right mindset and strategies, this model is indeed worth pursuing.

What to dropship?

You can choose anything you like!
The main idea is to sell the products that are emotional, inspiring, and unusual. This is how you will motivate your store visitors to make impulse purchases. Here are the product types we can recommend:
Gadgets
Gadgets, devices & accessories
activites
Accessories for sports & outdoor activities
crafts
Supplies for hobbies & crafts
clothes
Clothes & fashion accessories
decor
Home gadgets, accessories & decor

How much can you make with dropshipping?

Supplier price
$74
$5
$500
Your margin
100%
10%
400%
Amount of sales per month
610
0
1000
Your monthly profit:
US $50*
There are no limits - all you need is just to start!
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How far you can go with dropshipping: real-life experience

FAQ

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.

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.

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!

Living in the Philippines, you are not limited to your local market. You can serve customers all over the globe, even in the countries of Europe and North America. Remember your store niche and think who might be interested in these products. Where do these people live, most likely? That’s your target region!

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.

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.

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.

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.

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.

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!

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!

Ready to start your dropshipping business?