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Make Money With Dropshipping: A Comprehensive Guide For Beginners in the Philippines



There’s no such thing as one size fits all. Your friend’s business may not work for you. Your brother’s business idea may not suitable for you. But if you are looking for a business without a big starting capital and requires less work from you, you might want to consider Dropshipping business.

But what is Dropshipping? How does it work?  How do you make money with it? Is it the right business for you?

In this article, we will discuss what drop shipping is, its advantages, the common issues that you should avoid, and the secrets on how you can be successful in this field.

Table of Contents

I. What is Dropshipping and How Does It Work

II. Difference Between Dropshipping and Affiliate Marketing

III. Top 3 Common Dropshipping Problems to Avoid

IV. How to Pick the Best Dropshipping Products (Niche)

V. Top 3 Best Platforms For Your Dropshipping Products

VI. How to Find The Right Supplier For You


What is Dropshipping and How Does it Work?


For those who do not have an idea what Dropshipping is, it is a kind of retail business wherein the owner does not keep stocks of the products it sells.

With Dropshipping, you don’t have to worry about not having big money to buy stocks in bulk and not having a warehouse to store your products. 

Furthermore, you don’t have to hassle yourself finding the best courier to ship your products to your customers.

What you need to do as the drop-shipper retailer is to add products to your online store, place an order to your supplier which can be a manufacturer, wholesaler, or another retailer once you receive an order from your customer, and have the items sent directly to your customers.

That’s it! That’s how Dropshipping business works.


Difference Between Dropshipping and Affiliate Marketing


So, what is the difference between Dropshipping and Affiliate Marketing when they’re just the same – you don’t hold up the inventory of the products?

As mentioned above, Dropshipping is a type of retail business, only that you don’t store up the product yourself but you can set your own price. You take the entire profit after the wholesale/retail price of your supplier.

Affiliate Marketing, on the other hand, allows you to promote a product on your website yet with a link connected to the main business. When someone buys through your link, you get a certain amount of commission.

Yes, just commission depending on the percentage set by the business owner.

I hope you now understand their differences.


Top 3 Common Dropshipping Problems to Avoid


As a business owner, you should be prepared for the possible problems that might occur in your business. Determining the issues and setting a solution beforehand will ensure you a smooth-sailing business in the long run.

Here are the top 3 common pitfalls that usually occur in Dropshipping business.


1. Product Returns

It’s inevitable that you will have to deal with unhappy customers in your business. These unhappy customers may not be satisfied with your products, return your product, and may ask for a refund. It’s really nerve-wracking, but you really have to anticipate this type of issue beforehand so you would know how to deal with it when you encounter a situation like this one.

Who would want to return the money the customer has already paid you which you already counted as sales of the day, right?

While you probably would like to impose a no-return policy, there are instances wherein unhappy customers will really go far so as to bring justice to their bad experience.

For this kind of situation, there are 6 things you can do:

1. When looking for a partner supplier, make sure to partner with those who allow product returns.

2. Make sure your product descriptions are accurate, either on your website or any platform you are selling.

3. Include sizing charts and more pictures of your products.

4. If the product is damaged, you can have the customer keep it and just send a new one. That’s to pacify your customers for the bad experience.

5. If the item sent is incorrect or the size is not correct, you can have it returned but the shipping cost will be shouldered by the customers or shouldered by you as the seller.

6. If the customer is really upset with the product due to the material, you can have it returned or not, and make the refund.

This may sound really absurd, but it can benefit your business in the long run, especially if you will send a follow-up to your “once” unhappy customer for feedback regarding the solution you have done.


2. Slow Shipping

Have you tried ordering a product online only to wait 3 weeks to 1 month? It’s infuriating, right?

Now, put yourself in your customers’ shoes. If you are the customer, will it be okay to wait for a long time?

So, how to avoid this potential problem?

Since our purpose is to prepare a solution beforehand, the matter really relies on when we select our partner supplier.

There are suppliers wherein they already have their own partner couriers who ship items at a fast speed. But there are other suppliers wherein you will be responsible to choose for a shipping company.

Depending on the location, the shipping timeframe might really take longer especially if the products are from other countries like China, Thailand, or the USA.

It’s best that you know the usual timeframes of the shipment from your potential couriers and indicate them on your website.


3. Out-of-Stock Product

Out-of-stock products after being ordered can really upset customers. This can be a problem if you are listing your products manually on your site. Thus, it is important to really keep track of the stocks on your supplier's website or file folder, wherever they put their inventory information.

One way to avoid this problem is to find a Dropshipping Company with an automation process for everything related to the business.

There is also this plug-in that automatically updates your site when the product is out of stock which we will talk at the later part of this article.


How to Pick the Best Dropshipping Products (Niche)


You may be excited to start your Dropshipping business now. But it is important to note that your choice is critical to the success of your business. Thus, it is best to choose a certain line of products that is profitable.

To determine if your chosen niche for your business is profitable, consider the following:

1. Are there a large number of people interested in it?

2. Will there be people passionate or desperate to buy it?

3. Will there be a group of people who are able to afford the product?

4. Will you be able to make a profit?

If the answers to the questions above are all Yes’s, then, your choice of products will definitely be profitable.


Top 3 Best Platforms for Your Dropshipping Products


Your selling platform is very important to ensure the success of your Dropshipping business. While you can instantly sell on Facebook and Instagram, having your eCommerce website will go a long way. In addition, each platform has its own advantages which can help you reach your goals.

So, what are the best platforms you can use for your Dropshipping business?


1. Shopify

If you have been considering Dropshipping before, you may have already heard about Shopify. It’s one of eCommerce business owners’ favorite, not only for those here in the Philippines but all over the world.

In a lot of ways, Shopify is the most ideal platform for a Dropshipping business especially since it partners with Oberlo which makes Dropshipping easy-peasy.

If you’re asking what is the role of Oberlo? It is a plugin that allows you to directly import products from Ali Express easily and quickly. It is definitely a hassle-free product listing and inventory tracking.

If you have been ordering products online, you may have already encountered what Ali Express is, a service of Alibaba Group.


2. WooCommerce

WooCommerce is another well-known eCommerce platform run on WordPress. It is a great option because it is FREE. However, the FREE version lacks functionality. Thus, you may have to buy the paid version.

If you do not have an idea on building an eCommerce store, it’s best you work with someone or a web development agency to build you one.


3. BigCommerce

BigCommerce is also a good option for your Dropshipping business as it has more features compared to other eCommerce platforms yet at a price that scales up depending on the features you want and your sales per year.


How to Find The Right Supplier For You


Deciding the right line of products is one. Finding the right suppliers to partner with is another thing.

Before starting out your Dropshipping business, make sure you partner with the right supplier with all the functionality, comfort, and support you need from product quality, shipping and return.

It is very important that you get to partner with the right people who stand for their mission and vision without compromising customer experience.

Here are 3 supplier sources you can start with.


Conclusion


Dropshipping business although sounds easy and fun also still needs your effort and money depending on your chosen niche and selling platform. While it can really be inexpensive but can also make a great slice of the pie if done wrongly.

Will you give the Dropshipping business a try? Tell us your thoughts in the comments section below.

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