How to Do Dropshipping on Shopify: Expert Guide for Filipino Businesses (2025)

Dropshipping on Shopify can be a game-changer for Filipino entrepreneurs looking to start an online business with low overhead. I’m Henry Duy, and for over a decade, I’ve helped clients build successful e-commerce ventures, and I frequently get questions about this. This guide will show you exactly how to do dropshipping on Shopify.

The global dropshipping market is booming, projected to reach over $557.9 billion by 2025 (Source: Grand View Research). That’s a massive opportunity, and Shopify is, in my opinion, the best platform to capitalize on it.

This guide is based on my years of experience – the wins, the losses, and the lessons learned. We’ll cover everything from finding your niche to providing killer customer service and even how to get started if you’re on a shoestring budget. I will be sharing more e-commerce insights and strategies on the Henry Duy blog.

Is Shopify Dropshipping Legit? A Realistic Look

Absolutely, dropshipping is a legitimate retail fulfillment method. And yes, Shopify is built for this. It’s the leading e-commerce platform for a reason, offering tons of apps and integrations specifically designed for dropshipping. I’ve seen countless businesses thrive using this model.

But let’s be real: it’s not a “get rich quick” scheme. Early on in my career, a client came to me after trying dropshipping on his own and failing. He hadn’t done his research and was selling generic products with no marketing plan. That’s a recipe for disaster. Success depends on things you control: your niche, your supplier relationships, your marketing, and your customer service.

While only 10-20% of dropshippers might be profitable in their first year, this highlights the importance of a strategic approach. With careful planning, you significantly increase your odds of success.

Dropshipping in the Philippines: Global vs. Local Considerations

I’ve worked with clients all over the world, and while the core principles of dropshipping remain the same, there are local nuances. While the biggest markets tend to be the US, UK, Canada, and Australia, the Philippines (and other regions) have unique factors to consider:

• Suppliers: Most dropshipping suppliers are based in China (think AliExpress). If you’re targeting the Philippines, be mindful of shipping times and costs. Look for suppliers offering ePacket shipping or those with warehouses closer to your target market. I always recommend exploring options – don’t just default to the first supplier you find.
• Payment Gateways: Make sure the Shopify payment gateways you choose are widely used and trusted in the Philippines. Consider popular Philippine payment gateways like GCash, PayMaya, Dragonpay, and bank transfers. Ensure that Shopify supports these options.
• Local Regulations: This is crucial! I’ve seen businesses get hit with unexpected fees because they didn’t do their homework. Be aware of Philippine import duties, taxes (like VAT), and consumer protection laws. Consult with a local business advisor or lawyer to ensure compliance.
• Target Audience: If you’re selling to the Philippine market, tailor your product selection and marketing to local preferences and trends. What works in the US might not resonate in the Philippines. These factors are all key to success when you start to implement dropshipping on Shopify.

>>> Explore the Best Dropshipping Platforms in the Philippines

Why Choose Shopify for Dropshipping? Pros and Cons

Shopify is my go-to recommendation for dropshipping, and here’s why:

Pros:

• User-Friendly Interface: It’s incredibly intuitive, even if you’ve never built a website before. The drag-and-drop interface is a lifesaver, and you don’t need to know a single line of code.
• App Integration: The Shopify App Store is a goldmine. You’ll find apps that automate everything – product sourcing, order fulfillment, and inventory management. This saves you hours of manual work.
• Scalability: Shopify has plans for every stage of your business. You can start small and upgrade as you grow. I’ve seen clients start with the basic plan and scale to six-figure businesses.
• SEO-Friendly: Shopify has built-in SEO features that help your store rank higher in search engines. This is crucial for getting organic traffic.
• Mobile Responsiveness: In today’s world, your store must look good on mobile. Shopify themes are designed for this.
• Reliable Platform & 24/7 Support: Shopify boasts 99.99% uptime and excellent customer support, which is crucial for beginners.
• Strong Community and Resources: There’s a massive community of Shopify users and tons of resources (forums, tutorials, guides) to help you succeed.
• AI Assistance: AI Assistance (Shopify Magic): Leverage Shopify Magic to generate product descriptions, improve SEO, and automate tasks, saving you time and effort.

Cons:

• Lower Profit Margins: You’re not buying in bulk, so your per-unit cost is higher. This means your profit margins will be smaller than traditional retail. You need to factor this into your pricing strategy.
• Inventory Unpredictability: You rely on your supplier’s stock levels. Stockouts can lead to unhappy customers and lost sales. Regular communication with your supplier is vital.
• Shipping Challenges: Using multiple suppliers can complicate shipping costs and delivery times, especially for international orders. Consider using a shipping app to manage this.
• Supplier Errors: You’re the face of the business, even if the supplier makes a mistake. You’ll be handling customer service.
• Building a Brand: It’s harder to build a strong brand identity when you’re selling generic products. This is where your marketing and unique value proposition become critical.
• High Competition: The low barrier to entry means competition is fierce. You must differentiate yourself through niche selection, strong branding, and exceptional customer service.

How Does Shopify Dropshipping Work?

Here’s the basic flow:

1. Customer Places an Order: A customer buys something from your Shopify store.
2. You Receive the Order: You get the order and payment through Shopify.
3. Order Forwarded to Supplier: Your dropshipping app (or you, manually, but I highly recommend using an app) forwards the order and customer details to your supplier.
4. Supplier Ships the Order: The supplier packages and ships the product directly to the customer.
5. Customer Receives Order: The customer gets their product as if it came directly from you. You never touched the product. This streamlined process is a core part of how to do dropshipping on Shopify.

How to Do Dropshipping on Shopify: My Step-by-Step Process

Here’s how I guide my clients through the process:

Step #1: Choose Your Dropshipping Niche

• Passion and Expertise: What are you genuinely interested in? What do you know a lot about? This makes creating content and connecting with your audience much easier.
• Market Demand: Use tools like Google Trends, Facebook Audience Insights, and Google Keyword Planner to research trending products. Look for niches with high demand but, ideally, lower competition. I once had a client who was passionate about eco-friendly pet products – a perfect niche!
• Profitability: Don’t just look at demand; analyze potential profit margins. Consider product costs, shipping, marketing, and Shopify fees.
• Popular niches I’ve seen success with include Fashion, Home & Garden, and Electronics, but don’t be afraid to go niche! The first and often most crucial step in learning how to do dropshipping on Shopify is niche selection.

Step #2: Research Competitors

• Identify Competitors: Use Google searches and competitor analysis tools (like Semrush, Ahrefs, or SimilarWeb) and browse social media and marketplaces (Amazon, eBay, Etsy).
• Analyze Strategies: What are they selling? How are they pricing their products? What’s their marketing strategy? What are they doing well, and what are they doing poorly?
• Find Opportunities: Where are the gaps? How can you differentiate your store? Can you offer better product selection, unique branding, or superior customer service?

Step #3: Select Reliable Dropshipping Suppliers

• Supplier Directories: Use dropshipping apps like DSers (for AliExpress), Spocket, Zendrop, or AutoDS. These apps connect you with thousands of suppliers.
• Supplier Evaluation: This is where many beginners fail. Thoroughly vet potential suppliers. Check their reviews, ratings, product quality, processing times, shipping options (ePacket is your friend!), and communication responsiveness. 
• Order Samples: This is non-negotiable. Order samples yourself to assess quality, shipping times, and packaging. I once had a client skip this step, and they ended up with a supplier who sent damaged goods – a nightmare!
  • Ensure suppliers’ reliability and consistency. Finding the right supplier is paramount in dropshipping on Shopify.

Step #4: Select Products and Set Prices

• Curate Your Catalog: Choose products that align with your niche and target audience. Focus on quality and think about cross-selling opportunities (e.g., phone cases with screen protectors, not just chargers).
• Pricing Strategy: Calculate all your costs (product cost, shipping, marketing, Shopify fees) and set a competitive price that allows for a reasonable profit margin.
  • A simplified pricing formula is helpful: Selling Price = (Product Cost + Shipping Cost + Desired Profit Margin) / (1 – Shopify Fees – Payment Processing Fees)
• Consider Market Prices: Research what your competitors are charging. You need to be competitive, but don’t undervalue your products.

Step #5: Create Your Shopify Store

• Sign Up for Shopify: Choose a plan that fits your needs and budget.
• Choose a Theme: Select a visually appealing and mobile-responsive theme that reflects your brand.
• Customize Your Store: Customize the design, add your logo, and create essential pages (About Us, Contact Us, Shipping Policy, Return Policy, Terms of Service, Privacy Policy). These pages build trust.
• Add Products: Import products from your supplier using a dropshipping app. Write compelling product descriptions, use high-quality images, and optimize for search engines.
• Install Dropshipping App: Install your chosen dropshipping app (e.g., DSers, Spocket) to connect your store to your supplier and automate order fulfillment.
• Set Up Payment Gateways: Choose secure and reliable payment gateways that are convenient for your target audience. Building your store is a foundational element of dropshipping on Shopify.

Step #6: Decide on a Business Structure

• Sole Proprietorship: This is the simplest, but you’re personally liable for business debts.
• Limited Liability Company (LLC): This separates your personal and business assets, offering liability protection. This is what I usually recommend for starting out.
• C Corporation: This is more complex for larger businesses.
• Consult a Professional: Talk to a lawyer or accountant to determine the best structure for your situation. This is an investment that can save you headaches down the road.
• Obtain an EIN (Employer Identification Number): If you’re in the US, you’ll likely need an EIN from the IRS.

For Filipino businesses, consider registering with the Department of Trade and Industry (DTI) for a sole proprietorship or the Securities and Exchange Commission (SEC) for a partnership or corporation.

Step #7: Set Up Finances

• Open a Business Bank Account: Separate your business and personal finances. This makes accounting much easier. Open a Philippine business bank account (e.g., BDO, BPI, Metrobank)
• Get a Business Credit Card: Consider a business credit card for managing expenses and potentially earning rewards.
• Understand Sales Tax: Consult a professional to determine if you need to collect sales tax based on your location and your customers’ locations. Shopify can automate this.
• Comply with Local Laws: Check for any local business license requirements.

Step #8: Establish a Brand Identity

• Brand Name and Logo: Choose a memorable and relevant brand name and create a professional logo.
• Brand Voice: Develop a consistent brand voice across all your marketing and customer interactions. Are you friendly and approachable? Professional and sophisticated?
• Unique Value Proposition: What makes your store unique? Why should customers choose you over the competition? A well-defined brand is essential to successfully figuring out how to do dropshipping on Shopify.

Step #9: Implement Effective Marketing Strategies

• Paid Advertising: Consider advertising on platforms popular in the Philippines, such as Facebook, Instagram, TikTok, and potentially Viber or local online marketplaces. While the average e-commerce ROAS is around 2.87x, aim for a higher return, but be realistic. Start with a small budget and scale up based on performance.
• Influencer Marketing: Partner with influencers in your niche to promote your products. Shopify Collabs can help you find and manage these partnerships.
• Content Marketing: Create valuable content (blog posts, videos, guides) related to your niche. This attracts organic traffic and establishes you as an authority.
• Social Media Marketing: Build a presence on relevant social media platforms. Engage with your audience, run contests, and be consistent.
• Email Marketing: Collect email addresses and send newsletters, promotional offers, and personalized recommendations. Email marketing is still incredibly effective.
• SEO (Search Engine Optimization): Optimize your website and product pages for relevant keywords. This is a long-term strategy, but it’s essential for organic traffic.
• Community Engagement: Participate in online communities (forums, Facebook groups, Reddit) related to your niche. Build relationships and establish yourself as a helpful resource.
• Mobile Marketing: Consider SMS marketing for sending targeted messages and promotions. Effective marketing is a cornerstone of knowing how to do dropshipping on Shopify.
• Remarketing: Utilize remarketing campaigns (targeting users who have visited your website) to re-engage potential customers.

Step #10: Provide Exceptional Customer Service

• Prompt Responses: Respond to customer inquiries quickly and efficiently.
• Clear Policies: Have clear and transparent return, refund, and shipping policies.
• Professional Communication: Be polite and professional in all interactions.
• Problem Resolution: Be proactive in resolving customer issues.
• Personalization: Personalize interactions whenever possible.
• Feedback Loop: Encourage customer feedback and use it to improve your service.

Step #11: Analyze and Optimize

• Track Key Metrics: Use Shopify’s analytics and Google Analytics to track website traffic, conversion rates, sales, customer behavior, and marketing campaign performance.
• A/B Testing: Experiment with different product images, descriptions, pricing, and marketing messages. See what works best.
• Adapt and Improve: Continuously analyze your data, identify areas for improvement, and adapt your strategies. This is a continuous process. Constant analysis is crucial to mastering how to do dropshipping on Shopify.

How to Start Dropshipping on Shopify with No Money?

While dropshipping requires less upfront investment than traditional retail, it’s not entirely “free.” But you can minimize your initial costs:

• Utilize Free Trials: Take advantage of Shopify’s free trial.
• Choose Free Dropshipping Apps: Some apps (like DSers) offer free plans with limited features, which can be enough to get started.
• Focus on Free Marketing Methods: Initially, prioritize organic social media, content marketing, and community engagement.
• Negotiate with Suppliers: It’s rare, but you might be able to negotiate payment terms with some suppliers.
• Start with a Limited Product Catalog: Begin with a small selection of carefully chosen products.
• Use Free Design Tools: Use free tools like Canva to create your logo and marketing materials.

Best Shopify Dropshipping Apps

There are many great dropshipping apps. Here are some of the best (and remember to always check their websites for the most up-to-date pricing):

• DSers (for AliExpress): This is my go-to for AliExpress dropshipping. It has replaced Oberlo as the primary app. They have tiered pricing, including a free plan for beginners.
• Spocket: This is Great for sourcing products from US/EU suppliers. They have a free version with limited features.
• AutoDS: This offers AI-assisted analysis of product trends.

The “best” app depends on your needs. Consider:

• Supplier Location: Where do you want to source products from?
• Product Selection: Does the app offer products in your niche?
• Pricing: Does the app’s pricing fit your budget?
• Features: Do you need automated order fulfillment, inventory syncing, etc.?
• Ease of Use: Is the app user-friendly?

I always recommend trying out the free trials or free plans of several apps before committing. Choosing the right apps will significantly streamline dropshipping on Shopify.

Essential Tips for Dropshipping Success

These are crucial for long-term success:

• Prioritize Customer Service: Provide exceptional customer service by being responsive, transparent, proactive, and professional. Handle inquiries and issues promptly and efficiently.
• Streamline Order Management: Automate order processing and tracking with apps. Maintain clear communication with your suppliers and have a robust system for handling returns.
• Embrace Continuous Learning: Stay updated on industry trends, marketing techniques, and best practices. Regularly analyze your store’s performance, A/B test different strategies, seek customer feedback, and monitor your competitors.
• Avoid Common Pitfalls: Don’t neglect SEO, ignore sales data, fail to plan for growth, or neglect unhappy customers. Proactive problem-solving is key.

>>> Learn more: How to Dropship on Lazada: Expert Guide for Filipino Startups

Conclusion

Knowing how to do dropshipping on Shopify offers a fantastic opportunity to start an online business with minimal risk and low capital. Shopify is a powerful platform, and the dropshipping model removes the burden of inventory. But remember, success isn’t guaranteed. It requires hard work, dedication, and a willingness to learn and adapt.

By choosing a profitable niche, finding reliable suppliers, building a strong brand, marketing effectively, and providing exceptional customer service, you can dramatically increase your chances of success. Analyze your data, be flexible, and always prioritize the customer experience. The dropshipping world is competitive, but with the right approach, you can achieve your entrepreneurial dreams.

Ready to start your dropshipping journey? Sign up for a free Shopify trial and put these strategies into action! Share your questions and experiences in the comments section on the Henry Duy blog. I’m here to help!