As e-commerce booms, logistics firms rise to the challenge

By Jonathan Enriquez

There is no slow down for the e-commerce in the Philippines. Over the years, there is continuous demand for buying products online and having it delivered at your doorsteps. That’s shopping with ease, thanks to trusted e-retailer companies and their logistics partners.

The e-commerce industry is expected to enjoy the growth, remain healthy and bullish for years. According to a report from Statista, the Philippine e-commerce market grew $840 million or about P44 billion in 2018, from $688 million or about P36 billion in 2017. This number is expected to grow about 10.5 percent annually, leading to a market volume of $996 million or about P53 billion by 2019.

Small and medium businesses are now expanding their marketplace, accepting orders and payment online which makes their businesses stay up-to-date with the dynamic retail environment and changing consumer preferences.

According to Nagesh Devata, General Manager for Southeast Asia cross-border markets for Paypal, the Philippines, e-commerce is multilateral. As consumer purchasing power expands and digital infrastructure becomes more sophisticated globally, businesses need to identify emerging markets with the right potential. Accessing these evolving consumer markets helps businesses diversify their revenue streams, which, in turn, helps build greater resilience and stability when growth slows in other markets.

Key developments expected this year include the rise of regional trade clusters, which businesses can capitalize on to navigate the challenges within the current climate of uncertainty.  There is a growing cross-border e-marketplace in Asia Pacific.

There are tremendous opportunities for the cross-border e-commerce sector to expand, and Philippine merchants should look to capitalize on the growth potential of these emerging markets. In a survey in Asia Pacific, price is not the only driver for online purchases. Almost half of consumers shop internationally as it allows them to purchase higher quality goods (49 percent) and gain access to items not found in their own country (48 percent).

Filipino e-commerce businesses should push for its full potential not only in the country but throughout the region by quality products, reliable delivery service and providing great customer experience to complete the cycle.

Seamless logistics solution

As e-commerce gears up for expansion, logistics solutions are also expected to set up. Local businesses need to think beyond the narrow dimensions of their own product and ensure that they integrate seamless logistics solutions for the delivery and return of goods as well as uphold high standards of customer service to capture market share, according to Devata.

The Philippines has been ranked among the strongest clusters of emerging markets in Southeast Asia, thanks to business-friendly conditions and core strengths, according to a logistics survey of 50 nations globally.

The increasing use of mobile technology and online platform for businesses has been a great move in the industry. Logistics companies, through mobile app, provide reliable total logistics technology solution in just a touch for e-commerce businesses and customers. They now ensure that their clients and customers will have the safe, fast and reliable e-commerce delivery experience with online real-time tracking system, an integral part on creating and keeping customers.

Logistics companies also help their customers realize a more practical and efficient express service for online business, also to effectively encourage the development of their partners to be bigger and stronger.

Major players in the country like Entrego, a technology-driven end-to-end fulfillment and logistics solutions provider, is one of the game-changers in the industry. The Ayala-led logistics solution company last year said that they are investing heavily on technology to cater to clients and customers to drive its operation.

Started as Zalora’s in-house delivery service, Entrego grew to be one of the biggest in the industry offering reliable delivery nationwide, connecting businesses and customers all over the country.

J&T Express officially launched in the Philippines this year in a bid to extend its services to the growing local market. Coming from Indonesia, J&T Express has forged a partnership with Shopee, which strengthens its business operations and encourages it to deliver quality services for the increasing number of online sellers and buyers in the Philippines.

To further improve the delivery services, logistics solution companies are also moving forward by offering tailor-fit solutions for B2B customers. Value-added services like warehousing and inventory are often part of customized solutions for companies’ need to enhance productivity and efficiency.

As the explosive growth of e-commerce continues, logistics solutions companies are expected to expand too by delivering goods and connecting the country through logistics and technology.

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