Dropshipping vs holding stock for a small online business, what's realistic in Malaysia?

Realistic take from running a Shopee store for 3 years: pure overseas dropshipping is tough in Malaysia because of shipping speed and the fact that a thousand other sellers dropship the identical item, so you compete only on price and lose. What I do is a hybrid, I source from local or regional suppliers/agents who can fulfil faster, and I hold a small buffer stock of my best-sellers so I can ship quick and keep my rating high (ratings are everything on these platforms). Start with a tiny inventory of one niche you understand, don't blow all your capital. TikTok Shop rewards fast shippers and good content, so film your own product videos, that's where the real edge is now, not the sourcing model. Manage cash flow tightly and don't over-order untested products. It's doable but it's real work, not passive income like the gurus claim.

I tried both. Dropshipping (mostly from China suppliers) in Malaysia has a big problem: shipping times are long, so on Shopee/TikTok Shop where customers expect fast local delivery, you get bad ratings and returns, which kills your store. The margins also get squeezed by everyone selling the same dropship products. What actually worked for me: I started small by holding a little stock of a focused product I could ship locally within 1-2 days, buying in small quantities to test demand first. Yes it needs some capital, but even RM1-2k to start is enough to test. Local fulfilment plus good ratings beats the dropship race to the bottom. Reinvest profits to scale stock gradually. Dropship can work for testing ideas, but for a sustainable store, holding some local stock wins here.