In the Philippines, online reselling has become a popular and accessible way to earn extra income. Platforms like Shopee, Lazada, and Facebook Marketplace have empowered Filipinos to start small businesses with minimal upfront investment. By sourcing inventory, managing shipping supplies, and advertising products effectively, you can grow an online reselling business that caters to local or nationwide customers.
However, even with relatively low startup costs, strategic financial planning is essential for success. If you’re looking for financial support to scale your business or purchase initial inventory, platforms like Golden Peso can help. Golden Peso provides a range of loan options that allow aspiring entrepreneurs to fund their businesses and maximize their potential profits. With careful planning and the right tools, you can turn online reselling into a sustainable and profitable venture.
Why Start an Online Reselling Business?
Reselling offers flexibility, profitability, and scalability, making it a viable income source for both beginners and experienced entrepreneurs. Here’s why it’s a great option in the Philippines:
- Low Startup Costs
Unlike traditional businesses, reselling online does not require renting a physical store or hiring employees. You can get started with minimal capital for inventory and supplies. - Access to a Wider Market
With platforms like Shopee, Lazada, and Facebook Marketplace, you can reach customers across the Philippines and beyond, regardless of location. - Flexible Schedule
You can manage your reselling business at your own pace, making it ideal for students, stay-at-home parents, or individuals with full-time jobs. - High Demand for Affordable Products
Filipinos are active online shoppers looking for great deals on fashion, gadgets, household items, and more. - Scalability
You can start small and gradually expand your business by reinvesting profits into inventory and marketing.
Step-by-Step Guide to Starting Your Online Reselling Business
1. Choose a Niche or Product Line
Selecting the right products to sell is crucial for your success. Choose items that are in demand, affordable, and easy to ship.
Popular Niches in the Philippines:
- Fashion: Clothes, shoes, bags, and accessories.
- Beauty and Health: Skincare products, cosmetics, and supplements.
- Electronics: Gadgets, phone accessories, and small appliances.
- Home and Living: Kitchen tools, decor, and storage solutions.
- General Merchandise: Toys, stationery, and pet supplies.
Tips for Choosing Products:
- Check trends on platforms like Shopee, Lazada, or TikTok to see what’s popular.
- Consider products with low competition but consistent demand.
- Source products with good profit margins (at least 30–50% markup).
2. Budgeting for Initial Investment
To start an online reselling business, you need to budget for three key areas: inventory, shipping supplies, and advertising. Here’s a detailed breakdown:
A. Buying Inventory
Inventory is your most significant initial expense. Whether you buy in bulk or test with small quantities, sourcing quality products at affordable prices is key.
Common Sourcing Options:
- Local Wholesale Markets: Divisoria, Baclaran, and Taytay Tiangge are popular hubs for clothing and general merchandise.
- Online Wholesalers: Platforms like Alibaba, DHgate, or Shopee Wholesale provide bulk products.
- Direct Suppliers: Partner with manufacturers or local suppliers for exclusive products.
Estimated Cost of Inventory:
- Small startup: ₱5,000–₱10,000 (e.g., 20–30 items for a single niche).
- Medium startup: ₱10,000–₱30,000 (e.g., a wider range of products for more customers).
- Large startup: ₱30,000 and above for bulk inventory with better discounts.
If funding inventory is a challenge, platforms like Golden Peso can help. Accessing small business loans allows you to purchase larger quantities upfront, securing better pricing and increasing your profit margins.
B. Shipping Supplies
Packaging is essential for protecting products and ensuring customer satisfaction. Invest in durable and professional-looking supplies.
Essential Supplies:
- Courier Pouches: ₱3–₱10 per piece.
- Bubble Wrap: ₱200–₱500 per roll for fragile items.
- Boxes: ₱15–₱50 per box, depending on size.
- Labels and Tape: ₱100–₱300.
Estimated Monthly Cost: ₱500–₱2,000, depending on order volume.
Tip: Some courier companies offer free pouches for sellers, reducing packaging costs.
C. Advertising and Marketing
Promoting your products is essential to stand out in a competitive marketplace.
Marketing Strategies:
- Social Media Ads: Run Facebook and Instagram ads to reach targeted audiences.
- Cost: ₱500–₱5,000 per month, depending on your budget.
- Platform Ads: Lazada and Shopee offer “boost” features or sponsored ads to increase product visibility.
- Cost: ₱500–₱3,000 per month.
- Influencer Marketing: Partner with local influencers or bloggers to promote your products.
- Cost: ₱1,000–₱5,000 per post or collaboration.
Tip: Start with organic (free) strategies like posting on Facebook Marketplace, joining buy-and-sell groups, or leveraging TikTok videos.
3. Registering Your Business
While many small resellers operate informally, registering your business gives you credibility and access to more opportunities, such as partnerships with bigger suppliers.
Steps to Register:
- Barangay Clearance: ₱500–₱1,000.
- Mayor’s Permit: ₱1,000–₱3,000, depending on location.
- DTI Business Name Registration: ₱500–₱2,000.
- BIR Registration: ₱500–₱1,000 for your Certificate of Registration.
Total Estimated Cost: ₱3,000–₱6,000.
4. Choosing an Online Platform
Select one or more platforms to list your products and start selling:
- Shopee and Lazada: Ideal for reaching large audiences. Their seller programs offer tools like free shipping and advertising.
- Facebook Marketplace: Great for local buyers and promoting in buy-and-sell groups.
- Instagram and TikTok: Perfect for showcasing trendy or visually appealing products.
Tip: Start with one platform to test your products, then expand to other platforms as you grow.
5. Managing Operations and Logistics
Managing orders, inventory, and deliveries is essential for providing excellent customer service.
Logistics Options:
- Courier Services: J&T Express, LBC, Ninja Van, and JRS Express are popular choices in the Philippines.
- Platform-Integrated Couriers: Shopee and Lazada have partner couriers that simplify the shipping process.
- Estimated Shipping Costs: ₱50–₱200 per parcel, depending on weight and destination.
Inventory Management Tips:
- Use spreadsheets or tools like Google Sheets to track stock levels and sales.
- Restock popular items regularly to avoid lost sales.
How to Scale Your Reselling Business
Once you’ve established your online reselling business, reinvest profits to grow and scale:
- Expand Your Product Line
Offer complementary products to attract more customers. For example, if you sell clothes, add accessories or shoes. - Invest in Branding
Create a unique logo, improve your packaging, and build a strong social media presence. - Upgrade Your Marketing
Run targeted ads on social media or collaborate with larger influencers to boost visibility. - Build a Website
A dedicated website gives you control over sales and customer experience. Platforms like Shopify or Wix make it easy to create an online store. - Secure Financing for Growth
If you need capital to purchase larger inventory or upgrade operations, Golden Peso can provide financing solutions tailored for small businesses.
Challenges and How to Overcome Them
1. Inventory Management
Managing stock can be challenging as your business grows.
- Solution: Use inventory tracking tools and adopt a first-in, first-out (FIFO) system.
2. Competition
With so many online sellers, standing out can be difficult.
- Solution: Focus on quality, competitive pricing, and excellent customer service.
3. Cash Flow Shortages
Balancing expenses with income can be tricky, especially when restocking inventory.
- Solution: Use financing options like loans from Golden Peso to manage cash flow effectively.
4. Shipping Delays
Shipping issues can frustrate customers and impact your reputation.
- Solution: Partner with reliable couriers and set realistic delivery expectations.
Final Thoughts
Starting an online reselling business in the Philippines is a practical and profitable way to earn extra income. By budgeting carefully for inventory, shipping supplies, and marketing, you can lay a strong foundation for your business and grow steadily over time. Platforms like Golden Peso offer accessible financing options to help you get started or scale your operations without financial stress.
With determination, smart planning, and excellent customer service, your online reselling venture can thrive in a competitive marketplace, bringing you closer to financial independence and success. Whether you’re selling fashion items, gadgets, or household goods, the opportunities in online reselling are limitless.
