Starting a Drop Shipping Business in the Philippines
Dropshipping is a popular trend to earn money online now and the key is to have the supplier ship the product directly to your customer in your name. You never handle the product. And, you don’t have to maintain your own inventory.
WHO CAN DO DROP SHIPPING?
Many working moms, dads, stay-at-homes mom and dads and even mature students do drop shipping to earn extra income and some do so well, they quit their jobs and go full time. (BUT, we recommend you establish your online business FIRST before you quit)
WHAT IS THE DOWN SIDE TO DROP SHIPPING?
Drop Shipping whether it’s with Amazon, Alibaba or AliExpress is ok, but it can take weeks for your customers to get their items because those items typically come from China and it simply takes time to ship.
And, because we are only talking about the Philippines, it still takes 2-4 weeks to deliver. And, you really have to watch out for hidden costs like import fees, and vat tax. The Philippines is still not operating on a reliable and predictable way regarding cost in our ports. We all know why.
Filipinos are very cautious and if they don’t have their items they ordered within a few days, they become very concerned that they got scammed. Even if you post that shipping is 2-4 weeks. Once the customer starts asking even if its just a few days after the order, they start thinking scam and the cancellations and refunds requests begin.
In addition, not all Filipino’s have credit cards or debit cards yet many purchase online paying via remittance locations like Cebuana, LBC, Bank Transfers etc. Amazon, AliExpress all require credit card real time transactions at point of order/sale and that limits your customers.
In 1st world economies where shipping is more reliable and people are more tolerant of waiting longer times for delivery, Drop shipping from China is a great way to earn online. But in the Philippines, Using China as your resource can and does cause issues. You really need a local supplier with shipping times less than one week.
UNDERSTANDING PHILIPPINE SUPPLIERS
Finding the right supplier is critical and they should at least have their own warehouse to store inventory and ship from. Many one-person suppliers that live in the Divisoria or Baclaran area are simply working from their home and when they get an order, run down to Divisoria or Baclaran shops and find the item ordered and ship it out. This is ok for some, but the problem is that there is a 50/50 chance the item is sold out already and you have to wait a day or two just to find that out.
Often these type of suppliers will pretend they have a warehouse and show bulk items that are really housed in a stall at Divisoria or Baclaran and they are not even an owner of those products. In essence they are an unnecessary middle man simply trying to earn money by pretending to be a supplier.
THE UPSIDE TO DROPSHIPPING IN THE PHILIPPINES
Using Lynns Fashion Store as your supplier has a lot of benefits. There are no Vat Tax Issues and no 2-4 week delivery issues. Lynns Fashion Store has their own REAL WAREHOUSE located right here in the Philippines and delivery to your Philippine customer is typically 1-4 days and not 2-4 weeks. This practically eliminates all cancellations and refunds.
There are no additional costs for drop shipping, The cost of drop shipping are normal shipping rates by JRS. They are a couple of pesos more than other couriers but they are the best. They have the most locations throughout the Philippines and after using all the couriers over a decade (10 year period) we find JRS the most reliable.
DROPSHIPPERS ARE RESELLERS! | 2 RESELLER MEMBERSHIPS AVAILABLE
We have two reseller memberships to fit your needs. Both memberships require registration and approval.
1. Facebook Reseller Membership. We gave it this title because most of our resellers are selling products on Facebook. But, you can sell anywhere online you wish. You are free to post our products on your own website, shopping cart, Blog, Facebook or anywhere else you choose. HOWEVER, All resellers must register and receive approval first.
Most resellers think that trying the Facebook reseller membership is the way to go because it’s cheap. Actually, it’s the hardest way to start because it requires you to do all the work.
As a member you have to work harder, because you have to copy and paste your products. You have to write descriptions and pricing for each item. Because you are not maintaining your own inventory. On a daily basis, you need to make sure that the items are not sold out, and if they are you must remove them promptly and add new stocks.
You will quickly realize that doing the work manually is boring, it’s redundant and after 20 or 30 items you will not like it. (We know this because that’s what all our resellers tell us the first time they do it)
If you are distracted or lazy and don’t remove sold out stocks in a timely manner, your customers will get angry when they find out the items are sold out when they order them. That’s not a good business practice.
It’s important to know that most resellers are new and have no marketing skills. They believe that all they have to do is post on their Facebook page and the sales will automatically happen.
Facebook is changing alot especially in 2018. Selling on your personal page is frowned on by Facebook. That’s why they offer Facebook Business Pages. Yet most resellers have no clue of the disadvantages and advantages of using a proper Business Facebook Page.
REMEMBER THIS! PEOPLE DO NOT WAKE UP AND SAY, “I’m going to see what’s for sale on Facebook Today”. It’s quite the opposite. Facebook is still the number 1 social media platform and is great to keep in touch with close family and friends.
Let’s face it, our existing friends and family are a good start, but if they don’t buy, or you can’t seem to get them to buy from you, you need to acquire more buyers. So that means you need to have a real strategy on how to get new customers and more sales. Are you experienced doing that? Probably not.
Finally, some that sign up for the reseller membership are experienced and if they have had success in selling in the past and know how to market and advertise properly, they usually do quite well. But they will be the first to tell you it’s hard work.
- QUICK START RESELLER MEMBERSHIP (FEE BASED)
How Soon Can I Start Selling?
Once you avail the membership, we can have your shopping cart created and activated in 24 hours or less.. Guaranteed!
The Quick Start Membership is our fee based membership where we provide you a shopping cart that has all of our inventory pre-populated into the shopping cart and ready to sell.
Inventory & Stocks
We remove sold out stocks daily and add new stocks weekly. This saves you a tremendous amount of time.
Order & Payment Process
All orders submitted by the customer are automatically sent to your email inbox instantly. The customer also gets a copy of their own order as well.
At time of order, The buyer is not required to make a online real time payment using a credit or debit card. This is a big benefit because most Filipinos don’t have them and even now, the Philippines is still a predominantly cash-based economy.
So you get the order in your email box and then take that same order and duplicate it on our Wholesale Shopping Cart. What’s in your Quick Start Cart is also on our Wholesale Shopping Cart only we are showing wholesale prices. ( P100 below your retail price)
We instantly let you know if the product(s) are available and you can then tell the customer to make the payment.
The customer pays you. You put the P100 pesos profit in your pocket per item and send us the wholesale price.
As soon as we receive payment, We ship direct to you or your customer whichever you wish. If it’s to your customer, we send it in your name so they don’t know who we are.
There are no minimum orders, Door To Door Delivery, Dropshipping and we offer free shipping if there’s a bulk order.
A Closed System
The Shopping cart is a closed system and that means that WE DO ALL THE WORK FOR YOU. You do not have access to the admin of the shopping cart because there is no need. This may not sit well with you if you are a techy. But, if you like the idea of focusing only on driving traffic and leave everything else to us, it will be a dream come true.
Too Much Busy Work
Most resellers are too focused on busy work, logo, colors, fonts, a comma here or there etc. When they should be focused on one thing and that’s “DRIVING TRAFFIC TO THEIR SHOPPING CART” Customers and Sales are your priority. If we remove your ability to “Do Busy Work & Procrastination” you will get to doing what counts.
Developing New Customers, Learning how to get your existing customers to buy over and over again.
It’s a Strategy and a Process. But the longer you focus on busy work, work that really does not make you money, you will have a higher chance of getting bored and never get around to doing what makes you money in the first place. No customers equals, No sales and no sales result in the reseller quitting.
We have top resellers that use the same exact website as all of our other resellers and they work hard, they strategize and work the process. They make a lot of money. When you understand the strategy and the process, your stress levels drop and sales become easier.
Default Profit Margin
There is a default profit margin of P100 pesos per item. This gives you plenty of room to offer a discount if the buying customers asks for one.
The main reason for failure is not the products or the platform you sell on. It’s the INEXPERIENCE OF THE RESELLER.
To be effective, efficient and successful no matter what you do, you need to ultimately know what you are doing. Airline pilots, stewardesses, chefs, mopping the floor at Mcdonalds, they all need training first. Yes, THAT INCLUDES YOU IF YOU HAVE NO EXPERIENCE SELLING. WHY? Because if you trulying want to earn a reliable income, you have to be trained and you have to learn.
Training is important and that’s exactly why we offer our facebook resellers a step by step guide. Yes it’s limited but it gives you a start.
We offer our Quick Start Members even more valid and valuable information and content they can use immediately for free.
3. OPTIONAL SERVICES & TRAINING
But, we also offer optional services to help you market and advertise your business. Learning how to market and advertise for free and at low cost is critical.
We are the very first to help train our resellers in this industry. A supplier is simply a supplier. We are more than that and if we teach you to become successful, then we become successful as well.
Some of our Optional Fee Based Services include the following:
Pre-made customizable marketing Videos
Facebook Cover Videos holds the premiere location on your facebook business page because every visitor will view your video there guaranteed. The message should be professional and to the point.
Video SEO Strategies
Learn To Know How Many Clicks, Not Views your videos get.
How To Use Email Follow ups and Upsells
How To Capture Email Address ( Your Business LifeBlood)
Learn How To Get Free Traffic and Low Cost Traffic
Learn How To Build Customer Relationships
Learn How To Develop Repeat Customers and Build Trust with Customers
A Final Word From Lynn The Owner:
My personal story is no different than yours. I wanted to help support my family and I invested borrowed money to start from my tiny home and sell online. Today over a decade (10years) we have progressed from selling online from home to owning a couple of boutiques and eventually moved on to be a real direct wholesale supplier with our very own real warehouse.
It’s been very challenging at times. But one thing I have found out. When things are at their worst and you want to give up, it is at that point when it’s the toughest but with a few tears and a lot of stubbornness, My family and I worked through our difficulties and the business grew even more. It was hard and sometimes you think your family wants you to fail. But they really don’t.
It doesn’t matter if you are poor or not. It doesn’t matter if you have no experience selling online or not. We care about our resellers but it does take a certain type of personality. You have to be stubborn, you have to really and truly want success and be prepared to sacrifice. If you are lazy, please don’t even start. But if you want it bad enough, you too will succeed.
I can guarantee one thing in life, If you really do the work and sacrifice and don’t stop and stay focused within one year when you look in the mirror, you will see a transformed person, man or woman. You will be stronger, more confident and you will likely have a bank account full of money. It’s your choice.
I hope you become part of our family of resellers.
Owner-Lynns Fashion Store