Are you interested in how to dropship in Shopee? Are you planning to start a business in Southeast Asia? Dropshipping on Shopee could be a promising choice.
Dropshipping has become increasingly popular due to its low-risk nature, and within the realm of e-commerce, Shopee has emerged as a prominent platform for entrepreneurs. With that, this comprehensive guide aims to provide a systematic, step-by-step overview of effectively engaging in dropshipping on Shopee in the Philippines. Its objective is to assist aspiring entrepreneurs in comprehending the intricacies of the process and establishing a thriving online business.
Table of contents
- What is Shopee?
- What is Dropshipping in Shopee?
- Why Should You Dropship on Shopee?
- How to Dropship on Shopee
- Final Thoughts
What is Shopee?
Shopee stands as a prominent global online marketplace, offering an extensive array of products spanning various categories, including health and beauty, computer accessories, clothing, and home supplies. This marketplace strives to cater to diverse customer needs, ensuring a wide range of options.
Established in Singapore in 2015, Shopee initially operated in Southeast Asia and Taiwan. However, it has expanded its reach and now welcomes sellers from multiple countries, including Brazil, Mexico, Colombia, Spain, among others. This expansion has enabled Shopee to connect with a more extensive international seller community, fostering global commerce on its platform.
What is Dropshipping in Shopee?
Shopee dropshipping is a business model where sellers can offer products for sale on the platform without the need to keep inventory or handle the shipping process themselves. Instead, the seller partners with a supplier or wholesaler who holds the inventory and handles order fulfillment. When a customer purchases a product from the seller’s Shopee store, the seller then places an order with the supplier, who directly ships the product to the customer.
In this model, the seller acts as a middleman, focusing on marketing and customer service while leaving the logistics and inventory management to the supplier. Dropshipping offers several advantages, including low startup costs, as sellers don’t need to invest in inventory upfront, and the ability to offer a wide range of products without the need for storage space.
Why Should You Dropship on Shopee?
In recent years, Shopee dropshipping has undergone rapid growth and expansion. The increasing popularity of Shopee is evident from its consistently rising trend on Google Trends. To support this, Statista reports that Shopee achieved an impressive total gross merchandise value (GMV) of US$18.2 billion in the fourth quarter of 2021. These statistics signify a positive trajectory for Shopee, with the anticipation of sustained growth in the future.
In addition, there are several significant factors that make dropshipping on Shopee a compelling choice. Let’s delve into some of these benefits:
Shopee offers a communication tool that enables you to engage with your customers in a timely and efficient manner.
Wide Customer Base
Shopee boasts a large and diverse customer base, providing a vast potential market for dropshipping businesses. With millions of active users across multiple countries, you can reach a wide range of customers and expand your business globally.
Shopee enjoys a strong reputation among a vast consumer base, which means that with a well-crafted store and a comprehensive product detail page, you can effortlessly attract traffic to your business.
In contrast to Lazada, Shopee does not impose any commission fees for selling products. Even if you choose to sell on Shopee Mall, you will only incur a minimal commission fee, resulting in cost savings for your business.
Shopee offers a variety of marketing tools to sellers, which can be effectively utilized to attract traffic to your store and facilitate increased sales effortlessly.
Multiple payment methods
Shopee provides various payment options, ensuring convenience for your customers when it comes to completing their purchases.
Shopee supports a total of 8 payment options:
- Cash on Delivery
- Payment Center/e-Wallet
- Linked Bank Account
- Credit/Debit card
- Online Banking
- GooglePay (for android users only)
How to Dropship on Shopee
Now that you are aware of the benefits of selling on Shopee, you may be interested in learning how to become a drop shipper on this platform. In the following sections, we will guide you through the six steps involved in shopee dropship Philippines.
1. Discover a specific market segment
It refers to a specialized segment within a larger market that caters to the specific requirements of a particular target audience of shopee dropship Philippines. For instance, while clothing represents a broad market, dresses can be considered a niche, which can be further segmented into various sub-niches.
By choosing to sell within a niche, you concentrate your efforts and time on a particular area, which enhances your chances of success. Furthermore, specializing in a niche enables you to develop expertise in that specific field, thereby building trust among your customers. Additionally, focusing on a place helps you avoid intense competition within the dropshipping market.
Then, how do you find the right niche?
- Understand your interests and strengths.
- Identify what you can help with your customers
- Research your competitors
- Narrow down your niches
2. Start a store with Shopee
The procedure is as follows.
1) Sign up on the Shopee website
Select the specific country you wish to target and proceed with the registration process on the platform. During registration, you will be required to provide your phone number, Facebook account, or Google account for verification purposes.
2) Fill in your personal information
Click on the My Account button, fill in your username and shop name, choose your gender and date of birth, and complete other information.
3) Complete your shop profile
Access the Seller Center and complete your shop profile, which involves providing essential details such as your shop name, images or videos showcasing your shop’s decoration, and a comprehensive shop description.
3. Work with a supplier
A supplier takes care of inventory management, order fulfillment, and shipping on your behalf, making them a crucial element in your dropshipping business.
Nevertheless, finding a reliable supplier quickly is not a simple task.
To simplify the process, we have curated a list of dependable supplier sources for your convenience.
4. Sell proper products
Selecting the right products is crucial for generating profits and maintaining a successful business. However, amidst a vast array of available items, identifying profitable products can be a daunting task.
5. Market your business
Promoting your products is essential for enhancing their visibility in the market. Various marketing strategies can be employed, including social media marketing, email marketing, search engine optimization (SEO), and pay-per-click (PPC) advertising.
PPC advertising is highly effective for quickly showcasing your products to potential customers. SEO, on the other hand, offers a cost-effective approach to long-term business promotion. Additionally, leveraging email marketing and social media platforms facilitates ongoing communication and engagement with your target audience.
With careful planning, diligent research, and consistent effort, dropshipping on Shopee can be a rewarding and lucrative business opportunity. So, if you’re ready to embark on this entrepreneurial journey with shopee dropship Philippines , take advantage of the tips and insights shared in this guide on how to dropship in Shopee and start building your successful dropshipping business on Shopee today!
Also Read: GUIDE: Which is Better Shopee or Lazada?