Dropshipping Business Guide (Philippines)
Starting a dropshipping business in the Philippines is straightforward but requires careful planning, legal compliance, and strong supplier negotiation. This guide walks you through each step, typical startup fees, product ideas, and negotiation strategies so you can launch confidently.
What you’ll learn in this dropshipping business guide
This dropshipping business guide for the Philippines explains how to choose a niche, find suppliers, register your business, set up your online store, and manage orders and budgets.
To go deeper on specific steps, you can also read our Shopee, Lazada, and TikTok Shop Online Marketplaces Guide, Payment Processors for PH Businesses Guide, and Business Registration & Bank Account Guide.
When setting your dropshipping prices and margins, you can also use our Product Costing Calculator to include product cost, shipping, platform and payment fees, and your target profit.
Research and Select a Niche
Focus on specific audiences like students, mothers, or pet owners so you can pick faster-moving products and create targeted marketing.
- Study local demand, seasonality, and trending products in your chosen category.
- Check Lazada, Shopee, TikTok Shop, and Facebook Marketplace for bestsellers and reviews.
- Avoid overly broad stores—niche positioning makes your ads and content more effective.
Find Reliable Suppliers
Product quality and supplier responsiveness make or break a dropshipping business.
- Order product samples whenever possible to check quality, packaging, and shipping time.
- Review supplier ratings and feedback on platforms like AliExpress, Alibaba, or local/niche suppliers.
- Ask about return policies, warranty handling, and how they deal with damaged items.
- Prefer suppliers that support CSV/Excel order uploads or basic integrations for easier fulfillment.
Register Your Business
Treat dropshipping as a real business. Proper registration builds trust and makes it easier to access payment gateways and bank services.
- Register your business name with DTI (sole proprietorship) or SEC (corporation).
- Complete your BIR registration so you can pay taxes properly and issue receipts when needed.
- Use your registered details to open a dedicated business bank account and e-wallets.
Set Up Your Online Store
Choose Your Platform
- Hosted platforms like Shopify (~₱1,600–₱2,000/month).
- Self-hosted WooCommerce on WordPress.
- Marketplaces such as Lazada and Shopee.
Buy a domain (around ₱800–₱1,500/year) to look more professional.
Integrate Payment Gateways
- Enable GCash, Maya, credit/debit cards, or PayPal.
- Offer COD (cash on delivery) carefully, as it increases return risk.
- Test the full checkout flow before launching ads.
List Products, Set Prices, and Launch Marketing
- Use high-quality photos and clear descriptions, including shipping times and fees.
- Price products to cover cost, platform fees, payment fees, and your profit margin.
- Start with organic marketing (Facebook page, TikTok, Instagram) then scale with paid ads (₱5,000–₱15,000/month to test audiences).
- Consider micro-influencer partnerships that match your niche.
Manage Orders, Service, and Optimization
- Forward orders to suppliers only after customer payment is confirmed.
- Track deliveries and update customers proactively on shipping status.
- Handle disputes quickly to protect your reviews and page ratings.
- Review analytics (views, add-to-cart rate, conversion rate) and adjust product selection and ads.
💰 Fees and Startup Costs
| Item | Estimated Cost |
|---|---|
| DTI/SEC Business Registration | ₱500–₱2,500 |
| BIR Tax Registration | ₱500+ |
| Domain Name (annual) | ₱800–₱1,500 |
| Shopify Basic Plan (monthly) | ₱1,600–₱2,000 |
| Payment Gateway Setup Fees | Usually Free |
| Paid Ads (optional, monthly) | ₱5,000–₱15,000 |
| Product Samples (optional) | ₱500–₱2,000 |
| Dropshipping Apps / Platforms | ₱0–₱5,000 |
Fast-Moving Dropshipping Products
For Students
- Wireless earbuds and mini speakers
- Multi-device chargers and power banks
- Trendy stationery, planners, and highlighter sets
- Portable laptop stands and foldable desks
For Mothers
- Baby carriers and ergonomic nursing pillows
- Reusable food pouches and baby bottle sterilizers
- Wearable breast pumps and bottle warmers
- Home organization baskets and toy storage solutions
Pet-Related
- Slow-feeder bowls and automatic food dispensers
- Pet hair removers and cleaning tools
- LED pet collars and pet car seat covers
- Smart pet cameras, GPS trackers, and interactive toys
Recommended Tools for Your Dropshipping Business
These demo tools from BusinessMindedPinoy can help you track orders, manage stock, and plan pricing. They are optional but useful when you start handling more products and customers.
Planning and Pricing
-
Product Costing Calculator – compute total landed cost (product + shipping + fees) and target selling
price.
https://product-costing-calculator.businessmindedpinoy.com/
Orders, Tasks, and Stock
-
Order Management System – track customer orders, payment status, and fulfillment steps.
https://order-management-system.businessmindedpinoy.com/ -
Task Management System – organize daily tasks for content, ads, and supplier follow-ups.
https://task-management-system.businessmindedpinoy.com/ -
Stock Management System – if you keep some local buffer stock, use this to monitor quantities and
re-order points.
https://stock-management-system.businessmindedpinoy.com/
Negotiating Higher Commissions & Bulk Discounts
- Ask suppliers directly if they can reduce minimum order quantities (MOQ) for serious partners.
- Offer to place bulk pre-orders or pay the MOQ value upfront in exchange for a mix of variants or better per-unit pricing.
- Build long-term relationships—repeat orders often unlock better terms and higher commissions.
- Emphasize your marketing plans or existing audience when requesting better rates.
- Get all negotiated terms (discounts, commissions, shipping rules) documented in writing or email.
Sample Supplier Pitch
“We’re planning an advance order of [quantity] units for [product/variant]. If we commit to this amount regularly, can you provide a better price per unit or higher commission? We are confident in bringing more volume as we scale with student, mother, and pet communities in our network.”
📌 Final Reminders
Starting a dropshipping business in the Philippines is accessible and cost-efficient if you follow a structured approach. Focus on niche, high-demand products and strong supplier relationships.
Combine proper legal setup, realistic budgeting, continuous marketing, and clear communication with suppliers to maximize your chances of long-term success.