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How to Do Dropshipping in the Philippines

How to Do Dropshipping in the Philippines

Learn how to do dropshipping in the Philippines with a practical, step-by-step playbook—niche research, legal setup, Shopee/Lazada/Shopify options, COD & local payments, shipping, and how to source fast-shipping products using Spocket.

How to Do Dropshipping in the PhilippinesDropship with Spocket
Mansi B
Mansi B
Created on
January 30, 2026
Last updated on
January 30, 2026
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Written by:
Mansi B
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If you’ve searched “how to do dropshipping Philippines?”, you’re probably looking for something practical: what to sell, where to sell it (Shopee, Lazada, TikTok Shop, or your own Shopify store), how to accept payments (including cash on delivery), and how to ship without complaints about long delivery times.

Dropshipping can work in the Philippines, but it works best when you treat it like a real business: you validate demand, choose a channel that matches your budget and skills, set clear delivery expectations, and partner with suppliers you can trust.

This guide walks you through the process end-to-end—from business setup and niche research to store launch, marketing, and scaling—with specific notes for the Philippine market. You’ll also see where Spocket fits into the workflow if you want access to a curated supplier network, automation, and faster-shipping product options.

What is dropshipping and how it works in the Philippines

Dropshipping is an eCommerce model where you sell products online without holding inventory. When a customer places an order, you purchase the item from a supplier, and the supplier ships it directly to the customer. Your margin is the difference between your selling price and your supplier cost.

In the Philippines, the model is the same—but customer expectations are different. Many buyers prefer COD, chat-based support, and fast deliveries (especially in Metro Manila). If your supplier is overseas with 2–4 week delivery times, you’ll see more cancellations, refunds, and negative reviews. That’s why supplier selection and shipping transparency matter more than people think.

A quick readiness checklist (before you start)

  • A clear selling channel: marketplace-first (Shopee/Lazada/TikTok Shop) or store-first (Shopify).
  • A niche with repeat demand and manageable returns (avoid fragile/complex items early).
  • A supplier plan: local fulfilment for speed, or fast-shipping international suppliers with tracked delivery.
  • A payment approach: COD support, plus prepaid options (GCash, cards, bank transfer).
  • Customer support process: templates for delivery updates, refunds, and returns.
  • A simple budget: platform fees, marketing, and working capital for orders/refunds.

How to do dropshipping in the Philippines: step-by-step

Step 1: Choose your model (marketplace-first vs Shopify-first)

There are two common ways to start dropshipping in the Philippines. Pick one based on your budget, timeline, and how much control you want.

Option A — Marketplace-first (Shopee/Lazada/TikTok Shop)

Best if you want faster traction and already have a product idea. Marketplaces bring traffic, but you follow stricter rules and fee structures. You’ll also be competing side-by-side with many sellers, so branding is harder.

Option B — Shopify-first (your own store)

Best if you want control over branding, customer data, and long-term growth. You’ll need to drive traffic using SEO, social, and ads—but your margins and brand equity can be stronger.

Step 2: Validate a niche that fits PH buying behaviour

A “good niche” in theory can still fail if delivery is slow, sizing is inconsistent, or returns are messy. Aim for niches that are: (1) lightweight, (2) non-fragile, (3) easy to explain in photos/video, and (4) have repeat purchase potential.

Examples of PH-friendly niche angles (without locking you into a single product):

  • Home organisation and small-space living accessories
  • Beauty tools and accessories (avoid restricted/regulated items)
  • Phone accessories and desk setups
  • Fitness and wellness accessories (low-risk, non-medical)
  • Pet accessories (toys, grooming tools)
  • Giftable items for birthdays and seasonal events
  • Print-on-demand (POD) designs for local humour/communities

How to validate demand quickly:
• Check Shopee/Lazada search suggestions and category best-sellers.
• Look at TikTok Shop trends and live-selling categories.
• Use Google Trends for the Philippines to avoid purely seasonal niches.
• Confirm that you can source the product with predictable shipping times and quality.

Step 3: Decide where you’ll sell (and why)

Your selling channel decides almost everything: fees, traffic sources, delivery expectations, and how much support you’ll need to provide.

Shopee

Shopee is strong for price-sensitive customers, flash deals, and mobile-first shopping. It’s competitive, so your listing quality, response time, and fulfilment speed are key.

Lazada

Lazada often performs well for brand-like positioning and category-driven browsing. If Lazada is your focus, see Spocket’s guide to dropshipping with Lazada (linked below) for platform-specific workflow tips.

TikTok Shop

TikTok Shop is powerful if you’re comfortable creating short-form content or working with creators. Product storytelling matters more here than perfect SEO.

Shopify

Shopify is best for building a brand asset. It’s also the best long-term play if your goal is sustainable SEO traffic and repeat customers.

Helpful Spocket resources for this step:

Step 4: Sort out the basics: legal, taxes, and policies

This section is not legal advice, but it will help you avoid common issues. If you’re selling consistently, treat dropshipping like any other online retail business—especially when it comes to receipts, taxes, and customer protection policies.

Practical way to approach compliance:
1) Start small to validate your product and process.
2) As soon as you see consistent orders, formalise: basic business registration and clear store policies.
3) Keep clean records: supplier invoices, platform statements, shipping proof, and refund documentation.

If you’re unsure where to begin, check official government guidance and speak to a local accountant for the latest requirements.

Step 5: Build your supplier strategy (this is where most stores win or lose)

Most “dropshipping problems” are supplier problems in disguise: inconsistent quality, slow dispatch, no tracking, and unclear return handling. Your goal is to partner with suppliers who can ship reliably and support your customer expectations.

Supplier approach that works well for the Philippines

A simple way to de-risk your business is to use a split strategy:
• Fast delivery products for PH buyers (local or regionally fulfilled)
• Higher-margin products shipped internationally, but only if delivery times and tracking are clear

If you plan to sell internationally (or to OFW audiences in other countries), fast US/EU fulfilment can be an advantage.

Where Spocket fits (and why it’s useful)

Spocket is designed to help sellers source products from a curated supplier network and automate fulfilment workflows. On Spocket’s platform, you can browse a large product catalogue, filter by shipping speed, and connect to your store so orders can be processed with less manual work. Spocket also supports branded invoicing and supplier communication on eligible plans—useful if you’re building a brand rather than a one-off store.

Key pages to reference as you compare tools:

Step 6: Create your store (Shopify) or optimise your listings (marketplaces)

If you’re launching on Shopify

Start lean. Your first goal is not a perfect store—it’s a store that converts and can deliver.

Minimum pages you need:
• Homepage that explains your niche and value quickly
• Collection/category page(s)
• Product page template with shipping time + returns clearly stated
• About page (short, human)
• Contact page + support email
• Shipping + Returns policy pages

When you connect a supplier app, review how it publishes products, sets variants, and manages shipping rules.

If you’re launching on Shopee/Lazada/TikTok Shop

Marketplaces reward seller performance. Your listing needs to reduce uncertainty fast:
• Clear product photos/video
• Size charts (if relevant)
• Expected delivery window (set realistic expectations)
• FAQ-style bullet points: what’s included, how it’s used, warranty/returns
• Fast response time to messages

If your supplier ships internationally, make sure your delivery promise matches reality. Customers are far more forgiving of a longer ETA if you’re transparent.

Step 7: Set pricing that survives fees, refunds, and delivery issues

Pricing is where new sellers accidentally lose money. Your selling price must cover:
• Supplier cost
• Platform fees (marketplace or payment gateway)
• Shipping (if you subsidise it)
• Refunds/returns buffer
• Marketing spend
• Profit margin

A practical starting point for many beginner stores is a 25–40% gross margin (higher is better), but you must test it against your actual fees and refund rates.

Tip: If COD is a big portion of your orders, plan for higher cancellation and return-to-sender risk. You can reduce this with confirmation messages, phone verification for high-risk areas, and prepaid incentives.

Step 8: Set up payments Filipinos actually use

In the Philippines, trust is a major conversion factor. Many buyers prefer cash on delivery, and many also use e-wallets. Your goal is to make payment frictionless while reducing risk.

  • Cash on delivery (COD): high conversion, but higher cancellation/return risk.
  • E-wallets: GCash is a common preference; also consider Maya where relevant.
  • Cards/bank transfer: important for higher-ticket purchases and repeat customers.

If you’re running a Shopify store, consider testing prepaid incentives (small discount, free shipping threshold, or freebie) to gradually shift repeat buyers toward prepaid orders.

Step 9: Plan fulfilment + customer support like a system

Your support process is part of your product. Many dropshipping stores fail because they treat customer questions as interruptions. Instead, set up a simple system.

  • A tracking workflow: where you check tracking, how often, and what you tell customers.
  • Message templates: order confirmation, shipping update, delay explanation, refund/return steps.
  • A clear returns policy: which products are eligible, timelines, and what “final sale” means.
  • A dispute process: screenshots, proof of delivery, supplier communication, and resolution timeline.

If you use a supplier platform that supports automation and tracking updates, you reduce manual work and respond faster. Spocket positions itself as an automation-focused platform, with order management and tracking features highlighted on its main site.

Step 10: Launch with a simple marketing plan (PH-specific)

Your first 30 days matter. Don’t spread yourself across every platform. Pick one primary traffic source and execute well.

If you’re marketplace-first

• Use platform tools: vouchers, bundles, free shipping thresholds, and limited-time offers.
• Improve ranking by optimising titles, images, and early reviews.
• Use chat to confirm COD orders quickly and reduce cancellations.
• Add a short video (even basic) for higher conversion.

If you’re Shopify-first

• SEO foundation: create 1–2 supporting blog posts around your main niche and internal link to collections.
• TikTok/IG Reels: simple demos and before/after use-cases.
• Micro-influencers: offer affiliate commissions or free samples.
• Retargeting: once you have site visits, retarget with a single clear offer.

Spocket content you can cite for broader strategy and next steps:

Common dropshipping mistakes in the Philippines (and how to avoid them)

  • Overpromising delivery times: be transparent and show a delivery window on every product page.
  • Selling regulated or risky products: avoid anything that could trigger compliance issues or high return rates.
  • No COD process: if COD is allowed, verify high-risk orders and confirm addresses before ordering from suppliers.
  • Ignoring messages: marketplace algorithms and customer trust depend on response time.
  • Copy-paste listings: differentiate with clearer photos, better FAQs, and real use-cases.
  • Scaling ads before fixing fulfilment: solve shipping and support first; then scale traffic.

Conclusion: a practical way to start

If you keep one idea from this guide, make it this: dropshipping works in the Philippines when you optimise for trust and delivery reality. Pick a niche that fits local buying behaviour, choose a channel you can execute consistently, and build your supplier process before you spend heavily on ads.

Once you’re ready to source products and streamline fulfilment, explore Spocket’s supplier network and automation tools, and compare plans to match your stage of growth.

Start here: Create a free Spocket accountSee pricing plansRead more dropshipping guides

FAQs: how to do dropshipping Philippines

Is dropshipping legal in the Philippines?

Dropshipping is generally treated like any other form of online retail: it’s legal as a business model, but you’re expected to follow applicable consumer protection rules and tax/registration requirements once you operate consistently. Use official government resources (DTI, BIR, SEC where relevant) and consult a local professional for the most current guidance.

How much capital do I need to start dropshipping in the Philippines?

You can start lean because you don’t buy inventory upfront, but you still need a budget for store setup (or marketplace fees), product samples, marketing, and a buffer for refunds/returns—especially if you offer COD. Many first-time sellers start with a small test budget and scale after a product proves consistent demand.

What are the best platforms for dropshipping in the Philippines?

Shopee and Lazada are strong for built-in traffic, while TikTok Shop can move products quickly if you can create content. Shopify is best if you want full control over branding and long-term SEO. The right choice depends on whether you want speed (marketplaces) or control (Shopify).

How do I handle COD orders without getting too many cancellations?

COD can convert well, but cancellations happen when buyers aren’t sure about delivery time or legitimacy. Reduce risk by confirming the order via chat/SMS, verifying the address and phone number, and offering small prepaid incentives (like a discount or free shipping threshold).

How do I choose a dropshipping supplier for PH customers?

Prioritise predictable shipping times, consistent quality, tracking, and clear return handling. Start with a small set of products, order samples, and measure real delivery performance before scaling. Tools like Spocket aim to simplify supplier sourcing and fulfilment automation, which can reduce manual errors.

Can I use Spocket for dropshipping if I’m targeting the Philippines?

Yes—Spocket is commonly used to source products from its supplier network and to automate fulfilment workflows with compatible store platforms. For PH customers, you’ll still want to set realistic delivery expectations based on the supplier’s shipping profile and the destination address. Use Spocket’s shipping-time information and filters to choose suppliers that match your delivery promise.

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