Dropshipping: A Business to Try in 2023

With the digitalization of the Philippines currently in full swing due to the constraints that the COVID-19 pandemic put on physical interactions in 2020, internet access has been made easier, and more organizations and platforms are transitioning to a more digital way of doing business.

More people are now also doing all their business online. From banking, payments, education, and work, the Philippines has made the successful jump to a more online way of life.

This is also now the perfect time to start a business online since more people are scouring the internet. Therefore, there is a better chance to hit more individuals or potential customers or clients or to connect to people than before.

If you want to start an easy online business this 2023, try dropshipping.

Dropshipping is a business model where the retailer does not keep products in stock but instead transfers customer orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the products directly to the customer.

According to Shopify, a leading e-commerce platform, “Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product using the dropshipping model, it purchases the item from a third party and has it shipped directly to the customer. As a result, the seller doesn’t have to handle the product directly.”

For some, that may sound similar to online selling, which Filipinos have already mastered. So is dropshipping the same as online selling?

No.

It all differs in inventory. In the online selling business model, a seller will buy the products themselves, then will sell them with markup to cover overhead expenses and for profit. The seller will also be responsible for the storage of the products, their packaging, and shipping.

In a dropshipping business, a seller does not need to purchase the products they will sell. Therefore, storage, packaging, and shipping will not be the responsibility of the seller.

In dropshipping, a seller partners with a product manufacturer or a supplier. They are the ones who store the products and do the packaging and shipping of the products on behalf of the seller.

That means the seller will only have to focus on one thing, which is the promotion of the product and the processing of orders.

A scan of popular e-commerce platforms such as Alibaba will help you find a niche you want and a potential manufacturer or supplier to partner with. From there, start your dropshipping business. (GFB)