Dropshipping business plan template for the Philippines

Business summary

[Store name] will sell [product niche, for example phone accessories, home organisers or pet supplies] to buyers in [Philippines-wide / Metro Manila / your region] through [your own online store / e-marketplace shops / social media]. Orders are fulfilled by [supplier name, local or abroad], which ships directly to the customer. Owner: [name], working from home.

Start-up cash: ₱____ (product samples ₱____, store set-up and apps ₱____, photos and content ₱____, initial ads ₱____, permits ₱____, reserve for refunds and ad tests ₱____). The owner funds this personally; no loan is planned.

Products, suppliers and the order flow

Name your niche and why you chose it. Then name your supplier(s), where they ship from, delivery time to [city] ([days]), how they handle returns, and their price per unit (₱____) including shipping. Order samples first and test the delivery time yourself.

Order flow. Buyer pays on your store → you forward the order to the supplier with the buyer's address → supplier ships and sends tracking → you send tracking to the buyer → you handle questions and returns. Write who does each step and how fast.

Returns and refunds. Write your policy: who pays return shipping, how many days the buyer has, and who absorbs the loss when a supplier sends the wrong item. This is where many dropshippers lose money.

Target buyers and competing sellers

Answer these by searching the marketplaces and social media, and write down what you see with dates:

Example fill-in. "We searched [keyword] on [platform] on [date]. The top [number] listings were priced ₱____ to ₱____, with delivery times of [days]. Reviews complained about [slow delivery / poor packaging / item not as pictured]. Our edge: [shipping from a local warehouse / bundle with accessory / clearer sizing guide]. Target buyer: [age group, location, what problem the product solves]."

• Who buys this product, and where do they shop online?
• How many sellers list the same item, and at what price?
• How fast do competing sellers deliver?
• What do their reviews complain about?
• Can you deliver faster or explain the product better?

Online seller obligations

The universal registrations are in the online business registration guide. DTI charges ₱200 to ₱2,000 for a business name depending on scope, plus ₱30 documentary stamp tax; scope follows where your business is located, not where buyers are, so selling nationwide does not by itself call for national scope. BIR stopped collecting the ₱500 Annual Registration Fee from 22 January 2024.^[1,2]

Under the Internet Transactions Act (RA 11967), an e-marketplace must collect your name with a valid government ID, or business registration documents for a juridical entity, before it lists your products. E-retailers must publish their business name, address and contact details and submit them to the DTI E-Commerce Bureau with an ID or registration document, and the Bureau is tasked to enforce registration of online merchants.^[3]

BIR's RR 16-2023, as reported by the Inquirer in July 2024, requires online sellers to register with BIR and give their certificate of registration to the e-marketplace and the digital financial services provider (such as GCash or Maya). Those platforms withhold 1% on one-half of gross remittances. The regulation exempts sellers whose remittances did not pass ₱500,000 last year, or have not yet passed ₱500,000 this year. RMC 8-2024 adds the paperwork: you have a sworn declaration received by BIR, using its Annex A form, and submit it to the platform and provider, then again on or before 20 January each year. Without it, the 1% is deducted. See the BIR guide for online sellers.^[4,5,6]

Financial plan

Published amounts: DTI ₱500 for city scope (₱2,000 for national scope), plus ₱30; BIR ₱0. The 1% withholding is on half of gross remittances, so it equals 0.5% of what platforms remit to you.^[1,2,4]

Per order. Selling price ₱____ − supplier cost and shipping ₱____ − platform or payment fees ₱____ − ad cost per order ₱____ − refund allowance ₱____ = profit per order ₱____.

Monthly. Orders [number] × profit per order ₱____ − fixed tools and apps ₱____ = ₱____. Ad cost per order is the number to watch; test it with a small budget before scaling.

• Product samples ₱____
• Store platform and apps ₱____ per month
• Photos and content ₱____
• Ad test budget ₱____
• DTI ₱500 (city) or ₱2,000 (national) + ₱30; BIR ₱0
• Barangay clearance and mayor's permit for your home office ₱____ (set by the barangay, assessed by the city)
• Reserve for refunds and chargebacks ₱____

Risks

You do not control the product or the delivery. Plan for that.

• Supplier ships late or wrong items. Test suppliers with samples, keep a backup supplier, and track complaints per supplier.
• Ad costs rise. Stop ads with a cost per order above ₱____ and build repeat buyers.
• Platform suspends the shop. Keep your registration documents complete and your business details published.
• Withholding surprises. If you qualify, have the sworn declaration received by BIR and give it to your platforms, or plan cash flow around the withholding.

Dropshipping registrations and fees

Questions people ask

Do dropshippers need to register in the Philippines?

Yes. You sell goods online, so e-marketplaces must collect your ID or registration documents, and BIR rules require registration before selling through e-marketplaces.

Will Shopee, Lazada or GCash withhold tax from my payouts?

Under RR 16-2023, e-marketplaces and digital financial services providers withhold 1% on half of gross remittances. If your remittances will not exceed ₱500,000, RMC 8-2024 lets you submit a sworn declaration, received by BIR, to the platform to stop the withholding.

Which DTI scope should an online store choose?

DTI offers barangay (₱200), city (₱500), regional (₱1,000) and national (₱2,000) scope. DTI ties scope to where your business is located, not where buyers are, and says it is not a limit on where you transact business; see the scope guide.