A Low-Cost Guide to Amazon Dropshipping in the Philippines [2025]

Hi everyone, I’m Henry Duy, and I’ve spent over a decade immersed in the worlds of marketing and dropshipping. I’ve seen firsthand how e-commerce has transformed the business landscape, and I’m excited to share my expertise with you, specifically focusing on a fantastic opportunity for Filipino entrepreneurs: Amazon dropshipping in the Philippines.

This isn’t just some theoretical guide; it’s based on years of experience and real-world results. I’ve helped countless individuals build successful online businesses, and I’m confident that this model can work for you, too.

The rise of e-commerce, particularly in recent years, has unlocked incredible potential. In fact, Statista projects that global e-commerce sales will reach over $8 trillion by 2027. This model allows Filipinos to sell products on Amazon, the world’s largest online marketplace, without holding any inventory themselves.

This guide provides a comprehensive overview, specifically tailored for the Philippine context. It’s actionable, up-to-date, and designed to help you avoid common pitfalls.

What is Amazon Dropshipping?

Amazon dropshipping is a retail fulfillment method where a seller (you, the dropshipper) lists products on Amazon without physically owning the inventory.

When a customer places an order, you purchase the item from a third-party supplier (often a manufacturer or wholesaler), and the supplier ships the product directly to the customer.

You, as the seller, are responsible for marketing the products, managing the Amazon listing, and handling customer service inquiries.

The difference between the price you charge the customer and the price you pay the supplier is your profit.

>>> Learn more: Best Dropshipping Platforms in the Philippines: A Comprehensive Guide

How Does Amazon Dropshipping Work?

The process of Amazon dropshipping in the Philippines, step-by-step:

1. Supplier Agreement: You find a reliable supplier and agree on terms (pricing, shipping, returns). This is the foundation of your business.
2. Listing Creation: You craft a compelling Amazon product listing with high-quality images, detailed descriptions, and competitive pricing.
3. Order Received: A customer buys your product on Amazon.
4. Order Forwarding: You send the order details (customer’s address, product) to your supplier.
5. Fulfillment by Supplier: The supplier packs and ships the product, using your business name as the seller of record (this is essential for complying with Amazon’s policy).
6. Order Tracking: You give the customer tracking information (usually from the supplier).
7. Customer Service: You handle questions, concerns, or returns, coordinating with the supplier.

Crucially, Amazon has strict dropshipping policies. You must be the seller of record on all paperwork. You’re responsible for returns and compliance. Failure to follow these rules can lead to account suspension – and I’ve seen it happen!

How Much Does it Cost to Dropship on Amazon?

Let’s break down the costs of Amazon dropshipping in the Philippines:

• Amazon Seller Account: Two options:
  • Individual Plan: $0.99 per item sold + referral fees. Good for low-volume sellers.
  • Professional Plan: $39.99 per month + referral fees. Better for higher volume. Look out for promotional pricing!
• Referral Fees: Amazon charges a fee per item sold (8%-15% typically, minimum $0.30), varying by category.
• Supplier Costs: The price you pay for the product and shipping. This is your main cost of goods sold.
• Marketing Costs (Optional): Amazon ads, social media, etc.
• Software Costs (Optional): Product research, repricing tools.

Is Amazon Dropshipping in the Philippines Profitable? Pros and Cons

Let’s be realistic – there are advantages and disadvantages:

Pros:

• Low Startup Costs: No inventory investment minimizes financial risk.
• Flexibility and Scalability: Easily add/remove products; scale without a warehouse.
• Wide Product Selection: Access a huge range of products.
• Location Independence: Run your business from anywhere in the Philippines.
• Amazon’s Huge Customer Base: Millions of potential buyers.

Cons:

• Lower Profit Margins: Tighter margins than traditional retail.
• Limited Control: You depend on the supplier for inventory, shipping, and quality.
• High Competition: The Amazon marketplace is competitive.
• Inventory Management: Monitor supplier stock levels to avoid overselling.
• Customer Service Responsibility: You’re the point of contact, even if the supplier handles fulfillment.
• Supplier Reliability: A bad supplier can damage your reputation.

How to Start Amazon Dropshipping in the Philippines

Embarking on your Amazon dropshipping journey from the Philippines requires a structured approach.

Here’s a step-by-step guide, drawing from my experience, to help you get started.

Step #1: Market Research and Niche Selection

Find a profitable niche with good demand and manageable competition. Use tools like Amazon’s Product Opportunity Explorer and MerchantWords to research product ideas and keywords. Consider evergreen products rather than trends. My tip: Focus on a niche you’re genuinely interested in – it makes the work much more enjoyable!

Step #2: Create an Amazon Seller Account

Go to sellercentral.amazon.com, choose either the Individual or Professional plan, and provide the required information (business details, tax information, bank account, etc.).

Step #3: Find Reliable Suppliers

This is a critical step. Look for suppliers who:

• Offer reliable shipping to your target market (often the US, as mentioned in the articles).
• Have high-quality products. Always order samples to test quality yourself.
• Offer competitive pricing.
• Have good communication and customer support.
• Have positive reviews and a good reputation.
• Consider having backup suppliers.

Step #4: Get Category Approval (If Necessary)

Some product categories require approval from Amazon before you can list them.

Step #5: Create Optimized Product Listings

Write compelling product titles, descriptions, and bullet points. Use high-quality images. Consider using A+ Content (if eligible) to enhance your listings.

Step #6: Connect with Shopify (Optional but Recommended)

Using a platform like Shopify and an Amazon integration app (e.g., Marketplace Connect, CedCommerce) can streamline your operations. It helps with:

• Automated order fulfillment.
• Inventory syncing.
• Tracking information updates.

Step #7: Market Your Products

• Amazon Sponsored Products Ads: Pay-per-click advertising within Amazon.
• Social Media Marketing: Promote your products on platforms like Facebook, Instagram, and TikTok.
• SEO Optimization: Use relevant keywords in your product listings to improve organic search rankings.

Step #8: Register Your Business

Make sure to register your business and comply with the local regulations.

Step #9: Analyze and Improve Your Online Store

Use analytical tools to gain insights and improve your store.

How to Choose a Dropshipping Supplier

• Product Quality: Order samples and thoroughly inspect them.
• Shipping Reliability and Speed: Choose suppliers with fast and reliable shipping to your target market.
• Pricing and Profit Margins: Ensure the supplier’s pricing allows for a reasonable profit after Amazon fees.
• Communication and Support: The supplier should be responsive and easy to communicate with.
• Return Policy: Understand the supplier’s return policy and how it aligns with Amazon’s requirements.
• Inventory Management: Ideally, the supplier should have good inventory management systems to minimize stockouts.
• Check supplier processing and shipping time
• Look for alternative suppliers

Top Amazon Dropshipping Software

• MerchantWords: Keyword research tool.
• Sellery: Real-time Amazon repricing software.
• FeedCheck: Monitors customer reviews and competitor activity.
• Seller Tools: Automation tools for keyword management, PPC, and product research.
• Shopify Apps: Various apps (Marketplace Connect, CedCommerce, etc.) are used to integrate Shopify with Amazon.

Amazon Strategies to Help You Scale Your Business from Asia

• Brand Registry: If you develop your own brand, register it with Amazon Brand Registry to protect your intellectual property and access enhanced marketing tools.

• Digital Advertising: Utilize Amazon’s advertising platform (Sponsored Products, Sponsored Brands) to reach a wider audience.
• A/B Testing: Use Amazon’s Manage Your Experiments tool to test different versions of your product listings and optimize for conversions.
• SEO Optimization: Continuously improve your product listings with relevant keywords and high-quality content.
• Fulfillment by Amazon (FBA): Consider using FBA for faster shipping and streamlined logistics, especially if you’re selling high-volume products. While not dropshipping, it’s a viable alternative for scaling.
• Create A+ content: If the brand is registered, utilize A+ Content (formerly Enhanced Brand Content) to enhance product pages with rich media and a compelling brand story, boosting conversions.

>>> Explore more: Dropshipping with AliExpress: Your Comprehensive Guide to Success

Conclusion

Amazon dropshipping in the Philippines offers a real opportunity for entrepreneurs seeking a low-cost entry into e-commerce. Success hinges on careful planning, diligent research, a relentless focus on customer service, and adherence to Amazon’s policies. 

Choose the right niche, partner with reliable suppliers, and implement effective marketing strategies. The competition is there, but so are the rewards for those who persevere and adapt. Remember to prioritize customer satisfaction and constantly optimize your listings and processes.

I hope this guide has been helpful! I’m passionate about helping entrepreneurs succeed. What are your thoughts on Amazon dropshipping? Share your questions or experiences in the comments below.

And if you’d like to stay updated on the latest e-commerce strategies and insights, be sure to follow me on my blog Henry Duy. Let’s build something great together!