A guide to dropshipping companies in the Philippines

  • 3 minute read
Dropshipping allows people to run online stores without their own storage or warehouse space.

You’ve come up with a new idea for your online business, and you’ve decided that, like many entrepreneurs, you want to open up your own online store. The problem is you’re not sure where to start in setting up an online store, don’t have any items or stock on hand to sell, and you certainly don’t have space to store a large inventory.

This is where dropshipping comes in. Dropshipping is a retail shipping method in which a business buys the product they're selling from a third party—usually the manufacturer—and ships directly from the manufacturer to their customer. The seller acts as a broker or middleman, facilitating the customer's purchase.

This article will list some of the most reliable dropshipping companies in the Philippines for Filipino business owners.

Why should I work with a dropshipping company?

Dropshipping companies understand that the seller may find it easier to have the manufacturer send the wares they're selling directly to the customer. Maybe a physical store or a warehouse is not in the business's budget, and you have to keep your overhead small by keeping the storefront completely online.

Dropshipping also eliminates the need to buy a large number of products from the manufacturer, as you only get as many products as your customers buy. You won't get stuck with and lose money from products you couldn't sell. This also means you can offer a wide range of products and variations to your customers.

If you don’t like the hassle of tracking inventory or shipping items yourself, dropshipping companies handle that part for you as well.

Dropshipping companies in the Philippines

There are a handful of dropshipping companies popularising the method in the Philippines.

Oberlo

Oberlo is a dropshipping platform developed by Shopify with access to millions of products in their catalog, allowing anyone to start an ecommerce business for free.

AliExpress

AliExpress is a distinct platform of seller and manufacturer network AliBabaAliExpress also has access to the same catalog found in AliBaba, except it doesn’t enforce a minimum purchase order. It also allows for Shopify store integration.

CJdropshipping

Chinese company CJdropshipping, with more than 400,000 unique items, allows for free registration and no monthly or warehouse fees.

OJMD Solutions

Philippines-based dropshipping company OJMD Solutions allows for Shopify store integrations and also has importing and customs clearing services.

Chinabrands

Chinabrands sources directly from Chinese manufacturers, and has integration with Shopify as Shopify users get a free VIP membership.

Frequently asked questions about dropshipping

How much do I need to start dropshipping?

The amount you’ll need to start an online store via dropshipping will depend on how much you can spare. You’ll have to consider the costs of your online store, website domain name, advertising, and the particular dropshipping company’s services itself. It’s possible to start with a relatively small budget, but as always, the more you spend—especially on the marketing side—the more you’ll be able to get back.

Are there any disadvantages to using dropshipping?

There are disadvantages to using dropshipping companies, too. The main disadvantage is that you won’t have control over the products and items being offered by the dropshipping company, so if there’s any specific product you’re looking to sell, you’ll have to hope that it’s available and in stock.

You’ll also likely earn less than if you were to buy the products you’re selling in bulk. With bulk orders you may be able to negotiate a cheaper deal—but since dropshipping sees orders of a few products at a time, you’ll be paying a higher price per product, resulting in a smaller profit.

Lastly, competing businesses can set up shop as easily as you do and crowd the market. This can result in suppliers’ inventory running out because of other businesses.

Will I have control over the way the products look?

As most products that you can buy from suppliers tend to be ready-made and finished, you may have minimal control over the product's appearance. You may be able to request some branding considerations, but don't expect to have the option to have brand-specific designs.

This also means that if there are any errors with the product the customer received, there’s not much you can do as you have no control over how it was made or shipped.

Start an online store easily with dropshipping

Now that you know how to source products and get them to your customers via dropshipping, it's straightforward to start your online shop on Shopify. For a monthly fee, you can start, market, and manage your business on a platform that helps you do everything you need to build a brand online.

Start your online business today - sign up to Shopify for a 14-Day Free trial.
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Topics:
Dropshipping