Starting a Shopee store is one of the most accessible ways to earn online in the Philippines. But while setting up a store is free and simple, many Filipino sellers make costly financial mistakes due to lack of preparation and research. These mistakes do not just waste time. They also eat up capital and reduce your profit margins. If you want to avoid throwing away money on trial and error, understanding the pitfalls ahead is crucial.
Here are the top five mistakes and how to avoid them:
1. Selling Without Market Research
The financial impact: You invest in inventory or time setting up listings for products that do not sell.
What to do instead: Always validate your product. Look at Shopee’s trending products, filter by top sales, and check how many sellers are offering the same item. Use tools or even free Google Trends and Shopee search suggestions to see what people are actively looking for.
70% of new Shopee sellers quit within their first six months due to poor product-market fit and lack of differentiation[¹]. The K Plus Collective ebook includes a detailed product validation checklist tailored for the Philippine market.
2. Underpricing to Compete
The financial impact: Sellers often lower prices thinking it will increase sales. Instead, it cuts into your profits or leaves you with none at all.
What to do instead: Price based on perceived value, not just competition. Include good product images, strong copywriting, and added bonuses like free shipping if feasible. These raise perceived value and allow for better margins.
In a 2024 seller survey, 62% of failed Shopee businesses reported pricing too low to sustain their operations[²]. Avoid the pricing trap. Sustainable businesses are profitable, not just busy.
3. Relying Too Much on Paid Ads
The financial impact: Many first-time sellers turn on Shopee Ads with no clear strategy, burning through hundreds of pesos per week without results.
What to do instead: Focus on organic SEO first. Shopee’s algorithm rewards keyword-rich titles, complete product descriptions, and seller performance. Only boost winning products after organic traction is proven.
Ad campaigns without proper listing optimization result in 83% lower ROI for new sellers on Shopee[³]. The ebook shows how to set up listings that rank without needing to rely heavily on ads.
4. Poor Inventory and Supplier Management
The financial impact: Cancelling orders due to out-of-stock items results in penalties, poor ratings, and lost sales.
What to do instead: Dropshipping is a smart solution if automated. Choose reliable suppliers with consistent stock, and use tools that sync inventory in real time.
Shopee penalizes sellers with a cancellation rate higher than 10% with reduced visibility and potential suspension[⁴]. The K Plus Collective guide explains how to automate your supply chain to avoid order issues.
5. Treating Shopee Like a Hobby, Not a Business
The financial impact: Lack of tracking, planning, and reinvestment leads to stagnation.
What to do instead: Track your revenue and expenses, and treat your profit like a business owner. Even if you start small, creating systems like inventory logs, income tracking, and performance reviews ensures you do not lose money without realizing it.
Only 38% of Shopee sellers in the Philippines actively track their business expenses, leading to hidden losses and underreported income[⁵].
A hands-off dropshipping model still requires smart systems, and our guide shows you how.
Final Thoughts
Many Filipino sellers dive into Shopee hoping to earn quick money. But without the right systems and knowledge, they lose time, effort, and most importantly, money. If you want to skip the costly mistakes and build a real business, a step-by-step plan can save you thousands in failed products, ads, and penalties.
Start your journey the smart way. Grab your copy of The Only Blueprint to Hands-Off Dropshipping in the Philippines at kpluscollective.com.
Date posted: June 1, 2025
Author: K+ Collective
References
[1] Shopee PH Seller Report 2024, Shopee University Insights
[2] Philippines Ecommerce Business Failure Survey 2023, Digital Pinoy Commerce Watch
[3] Ecommerce Ad Performance Study 2024, DataDriven Asia
[4] Shopee Official Seller Guidelines 2024
[5] Payoneer x Lazada 2023 Survey on Seller Financial Habits