6 Profitable Online Business Ideas in the Philippines for 2022

online business ideas Philippines 2022

In 2022, it’s not enough to have a great idea. You need the know-how and resources too! That is why we’ve compiled this list of online business ideas Philippines for entrepreneurs in Asia with everything from finding your niche market up to getting traffic so they can see what their potential income could be like if they take on one or two projects at once following our advice today. Get ready because there will never come an easier time than now where things are changing faster than ever before — let these tips help guide you through the future ahead.

How To Start An Online Business In The Philippines

Infographic Table on how to start an Online business ideas Philippines

Like any business, starting an online business in the Philippines begins with a bit of preparation. There are no steps anyone can follow to ensure your online business idea succeeds.

Step 1: Identify Your Target Market

One of the most critical steps in starting an online business is to determine who your company is targeting. Ask questions such as:

  • What are their needs and pain points?
  • How will your business/ idea solve their problems?

The good news is you don’t have to do all the hard work yourself! Multiple online sources will tell you all you need to know about your target audience. You can even check out your potential competitors and get an idea of what to expect.

Step 2: Decide On Your Product Or Service.

Based on your research, decide on a specific product or service that you will provide. Ideally, this should be a product with high demand and low competition. Google’s AdWords planner is a good resource, which gives you how many people search for a particular product and how much competition it has.

Step 3: Calculate Profitability

No matter how fantastic your online selling ideas for the Philippines is, it all boils down to profitability. Make sure you get a clear view of your financial situation and your target market. Also, identify what sets you apart from your competition, what equipment you will need, and where you will get funding.

Step 4: Put Your Plans In Writing.

Now that you have everything you need to start your business put it in writing. Creating a business plan not only puts your ideas into writing but is a handy document to have when applying for bank loans.

Step 5: Make Sure Your Business Is Legal.

Registering your online business in the Philippines is one of the ways you ensure your business is legal and has all the required permits. Check out our guide on how to register your business here.

Related: How to Register Your Business as Barangay Micro Business Enterprise (BMBEs)

Step 6: Prepare The Finances Of Your Business

Some critical financial must-haves for any online business include a corporate bank account, business credit card, and online payment methods like Gcash. The great thing about Gcash is you can even use it to pay your BIR fees. Learn more here.

If you need help setting up your business legally, leave a comment, and we’ll walk you through the process.

Related: How to Get TIN Number Online for Business

Step 7: Find the Right Suppliers

If you decide on selling a product, partnering with suitable suppliers is crucial. Sourcing your physical products or materials requires finding legitimate suppliers or distributors. Make sure to do your homework and compare prices, so you know you’re getting the best deal.

The Benefits Of Starting An Online Business

If there is one thing the COVID pandemic has taught us all, it’s that eCommerce is here to stay. When everything was physically closed, the online world remained the same. Still doubtful whether you should start an online business? Here are three reasons why your online business idea in 2022 is the way to go:

Flexible working hours

Owning and managing your own business means you get to decide when and where to work. With a few clicks of the mouse, you can manage your store, send orders, contact suppliers, make payments, and accept payments.

Unlimited Ability to Maximize Profit

Unlike traditional 8-5 workdays, having an online business does not restrict when you can earn money. In most cases, the success of your business depends on your system and not on how many hours you work. You can make money as long as your business is online, which is 24/7!

Affordable Set-up

With an online business, you don’t need much equipment to set up. You can start a business in the comfort of your home. With a lower investment required, it is possible to start a business even with limited finances.

Related: How to Start Sari-Sari Store in the Philippines

What You Need To Know Before You Start Your Online Store

Before we get into the tips and tricks to ensure a successful, profitable eCommerce business, let’s talk about some essential things you need to know before you jump in.

Your Brand

Many think that a brand means big shots like “Jollibee,” “McDonald’s,” etc. However, a brand is more than that. It is a perception of all your business’s different aspects, including your vision, purpose, goals, and culture. You convey your brand from your logo, tagline, typestyle, messaging, and basically how you project your company.

The best way to find your brand is to dig into why you started your business. Think about the values that matter to you and reflect these values in your industry. Planning your brands’ image should be part of your preparation in Step 4 of the planning mentioned above.

Your Niche

Your niche is what category your business falls under in the eCommerce world. One way to do this is to do an online search and see what is trending in your niche and how you fit in. Discovering your niche is the key to determining your competitors and how you can set your brand apart.

Your Business Name

This is where you combine our brand with your niche and decide on a name. Along with your business name, you’d also choose your logo and colors- all of which should align with your brand. Remember that your business name should be unique enough to stand out and should embody your brand.

Your Platform

There are various platforms to launch your products, from Shopify to Shopee. Shopify offers as low as $29/ month (about 1, 500php). Shopee and Lazada do not charge new online sellers a registration fee. However, other fees are included;

For Shopee:

  • Seller transaction fee– 2% plus VAT on buyers final amount
  • Mall commission fee– 2% VAT inclusive of the cost of goods sold.
  • Cashback and Free Shipping Program Service Fee– 3% service up to 100php per item for cashback and 5% service charge for free shipping.

For Lazada:

  • Payment Fee– price of item – promotional charges + shipping fee paid (inclusive of 2.24 VAT)
  • Commission for LazMall Sellers– percentage fee for each category based on the price of an item and charged per order
  • Payment fee – charges for paid lost claim

Before deciding which platform to join, note that both have similar seller protection regulations, and both are relatively equal in terms of logistics. However, Shopee has more traffic and payment options compared to Lazada.

Top Online Business Ideas Philippines 2022

1. Online Tutorial Classes

Online Tutorial Classes

Even with the COVID restrictions easing, there is no question that online learning is here to stay. When classes normalize, there is still a chance students will need tutoring. If you have a teaching background, you can make some extra cash tutoring Math, English or Science. If you already have a working laptop, you may only need to invest about 3,000 for a quality headset and mic or perhaps extra lighting.

2. Resell Skincare products

Resell Skincare Products

There is no denying that Filipinos love trying out new products! This is one of the fastest-growing niches with room for further sellers. The great thing with this option is that all you’ll need is to select the product you believe in, get a supplier, and start selling. For about 5,000php, it is possible to get a starting kit to sell and purchase necessary packing material like bubble wrap and tape. If you are on a tight budget, this is one of the best online businesses in the Philippines.

3. Sell homemade meals

Sell Homemade Meals

This is an excellent online food business idea in the Philippines if you perhaps have culinary roots from other parts of the Philippines or have a passion for cooking in general. With a simple Facebook page, you can market your homecooked meals and start making money. One advantage of this idea is you only need to invest in ingredients and containers to place your orders. A budget of 3,000php will do as capital.

Related: How To Prepare Inventory Listing

4. Sell pre-loved items

Sell Pre-loved Items

Everybody loves a good bargain, and what better way to offer competitive prices than to sell second-hand items? Look through your home and closet for any items in good condition and put them up for sale. In this case, you’ll only need starting capital to handle packing and delivery. This is a small online business idea anyone can try.

5. Monetize your creations

Monetized your Creations

Homemade plant pots, furniture, jewelry, decorations, candles are all viable business ideas if you want to monetize your creativity. Some entrepreneurs have made a fortune from homemade bath bombs, slime, and other items, and you can be one of them! Your starting capital will depend on what you have in mind.

6. Sell services 

Sell Services

Do you have experience with graphic design, programming, or other skills? This is another unique online business idea in 2022 to try out. Graphic designers can offer services for designing logos, t-shirts, posters, and the like. You could offer customized items like coffee mugs, keychains, refrigerator magnets, t-shirts, and other unique items you design especially for your client.

5 Tips And Tricks For Having A Successful, Profitable Ecommerce Business

  1. Don’t force the launch.

Rushing the launch is one of most eCommerce business owners’ biggest pitfalls. Remember, you only get one chance to launch your website or store, so do it right! If there is anything you feel needs improvement, postpone the launch and try and make everything perfect first. Make sure you have done all the necessary ‘groundwork’ before the big opening.

  1. Make use of A/B Testing.

It is wise to invest in some sort of testing tool during and after you go live. These tools can compare results when you make small changes to your website. This is one of the best ways to determine what is working and what is not and ensure your online business idea in 2022 gets off to a good start.

  1. Harness the power of social media

Especially during the early days, it is wise to handle all your social media marketing yourself. Social media platforms give you an inside peek into your potential customers’ lives, which in turn tells you how to serve them better. Many affordable courses will teach you the basics if you are not yet familiar with social media marketing.

  1. Build a customer’s database

It is essential to collect customers’ information and build a database for future launches from the start. Many entrepreneurs also use other marketing strategies like email marketing to keep customers informed of any promotions or new products.

  1. Continue growing

Never stop trying to improve every part of your business. There will always be something new with technological advancement that can help improve your business. The only way to compete and stay competitive is to evolve.

Marketing Tips For Online Business Ideas Philippines (And Other Southeast Asians)

When it comes to marketing, there is no such thing as “one size fits all.” It would be best to market your business according to what works in your locality. Here are some marketing tips that will help:

Offer Multiple Payment Options.

It’s a fact that COD (cash on delivery) is one of the most popular payment options, and for a good reason- it feels safe. As a new online business, you must offer a wide range of payment options from Gcash to debit and credit cards and, of course, COD.

Limit Your Product Options

This may sound contradicting- isn’t more always merrier? According to psychology, no! One study shows that customers are likely to go through with a purchase when fewer choices are available. Just think back to the time you spent a few frustrating minutes trying to decide what to order at a restaurant because the menu was too long. That’s precisely how your customers feel when faced with too many options. Keep your options short but sweet.

Join A Community

Word of mouth is especially effective here in the Philippines, so be active in your community both physically and online. One great way to gain a good reputation is to offer a referral discount to anyone who helps you make a sale. Joining community events and sponsoring them in some way is another technique to increase your brand’s visibility.

Related: How To Lower Your Taxes Paid in the BIR

Invest In Your Visuals

Posting low quantity product images not only harms your brand but repels customers. It is always good to hire a professional photographer to create appealing visuals. The same goes for product videos. The fact is most buyers are stimulated visually, so the quality of your photos is crucial to your success. There are also many applications and tutorials online that can help you take quality photos with your smartphone.

Up or Cross-Sell

Depending on the product you are selling, try and find a way to add another item for a slightly higher cost (cross-sell) or offer more items (upsell) for a higher price. Think about the ads you see that say “Get 5 for …” “Buy 1, take 2,” and figure out how to do something similar with your items.

Conclusion

It can be hard to start a business, but creating an online business for the Philippines is one of the most brilliant things entrepreneurs can do in current times. Many Filipino-based websites and areas need to be explored and many unfilled niches. Exploring these areas could provide a very profitable online empire that may take time to build up. Some people can do this within a few months, while other businesses require several years of perseverance. Let us know what what other online business ideas Philippines might be by leaving them in our comment section below!

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