How to Earn Money from Drop Shipping in the Philippines
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.
Advantages of drop shipping in the Philippines
Drop shipping is costless on entrepreneur’s end. The online seller doesn’t need to worry about buying products in advance. The online seller doesn’t have to spend money for the warehouse to store the products. Lastly, the online seller doesn’t need to waste his time and effort to ship the orders himself.
All products are stored in the warehouse of the manufacturers or wholesalers. Shipping is done by shipping companies that partnered with manufacturers and wholesalers.
Setting prices for drop shipped product items
The online seller has the power to set the price for every product item. He has the power to make his own markup while taking into consideration the shipping fee because the drop shipping company always charges the shipping fee to the online seller.
Most customers in the Philippines, particularly in Metro Manila, don’t really care about the price tag of the product according to the survey made by IMARK Philippines among its clients. So long as there is a “free delivery” notice, customers don’t bother. They never think more than twice before purchasing an order, making the drop shipping business in the Philippines easier to run.
Marketing plans using ecommerce website and social media
Running a drop shipping business requires an investment in the ecommerce website. In most ecommerce web design companies in the Philippines, an ecommerce website usually costs from ₱80,000 to ₱120,000 depending on the features of the website. But at IMARK Philippines, a very basic ecommerce website with simple and most important major functions only costs from ₱30,000.
When a website is up and running, the online seller promotes the products on social media channels such as Business pages and groups on Facebook, Instagram, Twitter, LinkedIn, Google Plus, Pinterest, Quora, and many forum sites with threads and comments related to the products.
Earnings from drop shipping in the Philippines
There are more than 100 million people in the Philippines, according to the latest record or census released by the Philippine Statistics Authority. 70% of the population are Internet users. 60% of the Internet users are online buyers, which means there are 42 million people in the Philippines that buy products online. It’s a huge market compared to neighboring Asian countries where the number of online buyers is only below 10 million people in each of the Southeast Asian countries.
Metro Manila alone has a total population of about 13 million people where majority of online buyers are located due to their financial capability to spend money online.
Earnings an ecommerce website gets depends primarily on the type of products to sell and their prices. In Metro Manila, for example, an average buyer can spend up to ₱2,000 for every transaction. Most ecommerce website owners at IMARK Philippines are getting a minimum of 50 customers per week that spend an average of ₱2,000 each. In one month, the online seller can get about 200 orders worth ₱400,000 giving the online seller a net profit of ₱100,000 provided that the markup for every product is ₱1,000 where ₱500 is for shipping and the remaining ₱500 is for the revenue.
Get started with your drop shipping business or ecommerce business in the Philippines
IMARK Philippines has built and continues to build ecommerce websites and ecommerce mobile applications to help Filipino online sellers as well as the newest and youngest entrepreneurs to earn more money online through selling their products not just on social media networks but also on the ecommerce websites where products are automatically found by target buyers on Google search results.
At IMARK, you’ll get free consultations and the most important information from our digital marketing experts and technologists that will help you manage your ecommerce websites and guide you to find more buyers from the Internet. Consult IMARK now.