Category: Business

Building an online business nowadays has proven to be a lot easier because of technology. A few simple clicks and taps will have you ready to provide E-commerce service in the Philippines.

Similar to any new exciting venture, you need to be prepared before taking off. What better way to do it than to have an E-commerce checklist to help you cover all your bases? Here’s your ultimate E-commerce checklist to jumpstart your online selling journey. If you already have one, you can use this to make sure you don’t miss anything important.

Start your journey with a business idea

Kicking off your E-commerce checklist is developing a business idea. What’s a business that you’ve always wanted to put up? Are there consumer needs that you would like to address? Now’s your chance to make that idea into a reality. If you’re still undecided, you can read about trends on what’s hot or up and coming in the market. Go for an idea that you can fully commit to, especially in the long run.

Things to consider:

• The type of business you’ve always wanted
• A business that addresses a particular need in the market
• Business inspired by upcoming or hot market trends
• Potential products and services you want to sell
• Structure of your business
• Requirements for registration and permits

Work on your branding

After nailing down your business idea, next is branding. From your business logo to your brand personality and voice, this is all about how you want to present yourself to your potential customers. It would also help to have mission and vision statements to guide you daily and remind you of your long-term goal.

Things to consider:

• Business objective
• Mission and vision
• Key selling proposition or your competitive edge
• Brand personality and voice
• Visuals (logo, designs, layouts, packaging, etc.)
• External communication

Check the quality of products or services

Essentially, your products and services will do the hardest work of all as they are what customers would be seeing and using more often. That said, it is only apt that you offer them nothing less than the best. Having dedicated time to do quality assurance is also part of this E-commerce checklist to ensure what you are selling are in their best shape.

Things to consider:

• Products and services that are hot in the market
• Competitive edge against competitor products and services
• Supply production and procurement
• Quality assurance process
• Shelf life of products in storage and upon use

Choose an E-commerce platform

Thanks to technology, you now have a lot of options where you want to set up your business and sell your products. Your own website, social media sites, or online marketplaces like Shopee and Lazada – these are just some of the popular platforms that you can explore. Since you’re only starting, it would be best to stick to at least one. If you’re eager to reach more people, you can always expand to a different platform.

Things to consider:

• Where your target audience is most visible
• Pros and cons of each platform
• Preference for using one vs multiple platforms
• Platform-specific designs and content

Develop a logistics plan and strategy

Logistics is a crucial item on this E-commerce checklist because this is part of the operational side of your business. Lay down a plan of how you’ll be managing orders, customer service, storage, packaging, handling, as well as shipment and delivery. Keep in mind that the customer experience does not end until after orders have been received. You also need to factor in return and service recovery processes should there be a need for it.

Things to consider:

• Storage facilities and hygiene
• Order management process
• Fulfillment process
• Payment and shipping options
• Partner couriers and tracking capabilities
• Customer service representatives and escalation process
• Return policy and service recovery

Prepare for your grand launch

After all the backend preparations, it’s time for your online business’ grand launch. You can spread the word through social media posts and asking friends to share the big news. If your budget permits, you can also consider doing PR efforts and running digital advertisements to reach more potential customers.

Things to consider:

• Readiness for the launch (product quality and order management process)
• Channels to spread the word
• Supporting launch collateral
• Communication lines
• Budget for additional promotions (digital and traditional ads, influencers and ambassadors, other PR and marketing efforts)

Putting up an online business and providing E-commerce service in the Philippines may seem easy with the tools available at your disposal. With this ultimate E-commerce checklist, it is that much easier because you already know what to consider in each step of the process. If things do get overwhelming, Payo is the reliable partner that you can seek help from.

Payo is a leading E-Commerce enabler in the Philippines. It is an ideal partner to make online selling easier especially for budding merchants.  Payo offers services that can ease up various aspects of your operations. These include Warehousing, Fulfillment, Live Customer Support, Marketplace Optimization, and even Cash-on-Delivery.

Want to discuss your business idea further? Sign up with Payo today or send us a message at [email protected]. Let’s see how we can get your business off the ground!

Starting an E-commerce business is no walk in the park. As a new entrepreneur, you must take on the challenging feat of deciding what business model you will follow. This will dictate your store’s future performance, profit, and growth. That being said, choosing one of the E-commerce business models can be overwhelming, especially for those who have limited experience in the industry. 

In this guide, we’ll break down everything you need to know about different business models so you can choose the best one for your E-commerce store.

What Is a Business Model?

A business model is a company’s plan to make a profit. It identifies the services and products a company wants to sell, its target market, and other expected expenses. In short, a business model refers to the company’s foundation and strategy on how to be profitable.

Business models are extremely important, especially for new businesses that want to grow steadily, as well as established businesses that want to scale.

A good business model not only helps with sales. It also does wonders in getting top-notch talent and lucrative investments. Furthermore, it also aids in motivating staff and management.

It’s worth noting that your business is not tied to the first business model you choose. As you expand, you can regularly update this to ensure it keeps up with trends and potential challenges.

Best E-Commerce Business Models in the Philippines

Here are some E-commerce business models you can follow if you’re looking to open your own online store.

B2C

Business-to-consumer is one of the most common types of business models in the E-commerce realm. Retailers follow the B2C model.

For this model, a business sells services or products to end users, not to manufacturers, or other businesses.

It’s worth noting that this business model is easy to start because your target market can be huge. That said, you should be prepared to deal with a massive amount of customers which can also mean constantly dealing with returns, complaints, and other issues.

Another challenge you may face with this business model is attracting new customers since it’s highly competitive. You’ll be dealing not only with local competition, but also established brands from around the world.

B2B

Business to Business E-commerce involves selling to other businesses. Whatever you are selling, whether it may be computers, uniforms, furniture, or food, your main target should be other businesses.

Many businesses that follow this model are also manufacturers who sell their products at wholesale prices to other businesses, such as retail stores.

One of the best things about this E-commerce business model is it has a huge potential for growth considering businesses buy in bulk and place massive orders compared to the B2C model. This means that every sale can be extremely profitable.

While it’s easy to get repeat customers when it comes to this model, expect fewer sales volume. There’s also a learning curve when it comes to this business model, especially if you have no existing business network or background in how businesses operate.

C2C

If you’ve bought from an E-commerce platform before such as Shopee, Lazada, Carousell, or Facebook Marketplace, then you’re already familiar with this model.

Consumer to Consumer business models involve sellers listing products they already have or sourced from other retailers. Also called Peer to Peer E-commerce, this model usually involves working with a platform that helps connect sellers to customers.

C2B

For this business model, companies heavily rely on consumers to not only use their products but also to give them value.

For instance, YouTube places ads on the videos of creators, and both parties generate profit from it. This business model is also widely used in affiliate marketing, where a brand enlists a person of influence to promote its product/s. If someone purchases a product through their link, the influencer gets a commission from the sale, and the business also makes money from it. Therefore, it’s a win/win situation.

Dropshipping

Dropshipping is growing increasingly popular among E-commerce entrepreneurs. With this business model, a retailer does not need to hold any inventory for the products they sell. The supplier ships it directly to the customer.

Dropshipping is a low-maintenance business model since the seller doesn’t deal directly with order fulfillment. However, since this model is not direct, you may find it hard to build your brand’s reputation. There’s also a huge risk of losing money if your supplier goes out of business.

Private Label

If you want to start a store that generates a lot of sales, then you should consider the private label business model. This model allows brands to sell their unique products made by a supplier. The supplier’s name will not be on the label. They will only be involved in the production process. As a business owner, you will decide what you want to sell, how it will look, its price, and other aspects.

White Label

If the last business model sounds like a good idea, but you don’t have the resources to create your own product from scratch, then you can try the white-label business model instead. 

For this model, a supplier gives retailers pre-made products. The supplier focuses on the product production while the retailer is in charge of selling and marketing it. One supplier can have a few retailers selling the same white-label product.

With this model, you can have access to other brands’ designs without investing much money in product development. For example, if you’re selling clothing, you can choose to use other brands’ designs but put your own label on them.

Your main job is to promote, handle the marketing, and ship the product. As long as you work with reputable brands, this model can be very profitable.

Wholesale

In Wholesale E-commerce, businesses focus on serving other retailers and customers who buy in bulk. This business model usually comes with a Minimum Order Quantity or MOQ.

When it comes to this model, you should consider scalability. The more retailers buy your products, the more revenue you will generate. However, it comes with more responsibilities and higher risks.

Subscription

Another E-commerce model that’s gaining popularity is the subscription model. When you sell subscriptions, you’re selling products and services on a regular basis to a customer. This means you’ll get a steady stream of profit.

For instance, if you own an organic food business, you could have a subscription package where a customer gets a weekly delivery of organic fruits and vegetables.

Some of the biggest companies in today’s world follow the subscription model. This can be seen in the tech industry as well. The most notable examples are companies like Netflix and Spotify. There are also companies that offer monthly subscriptions for magazines or books.

On-Demand Manufacturing (ie: Print-on-Demand)

Want to sell products before they are made? The best way to do it is by using the on-demand manufacturing business model.

This business model reduces the inventory costs businesses usually have to deal with. On-demand manufacturing allows businesses to make or print books, designs, photos, t-shirts, and other products right after an order is placed.

On-demand manufacturing is much more cost-efficient because it allows you to only produce what you need when you need it. If you’re an entrepreneur who can’t afford the upfront cost of inventory, make sure to consider this model.

Worth Checking Out: Payo’s Free E-commerce Checklist

Tips for Choosing the Best E-commerce Business Model

Still not sure which of these E-commerce business models to follow? We’ve compiled some useful tips for you below.

Decide if you want to cater to customers or businesses

The first thing you need to ask yourself is whether you want to focus on serving individual customers or businesses. This crucial decision will let you narrow down your options for your e-commerce business model.

Want to start a business that serves individual customers? You should consider business models like drop shipping, C2C, or private label. Want to sell to businesses? Your focus should be on wholesale or B2B.

Get to know your target market more

Knowing more about the target market is vital when it comes to deciding on your business model. You should not only know their demographic information but also their buying behavior. For instance, how often are they buying stuff online? Do they need your products or services often?

Decide whether or not you want to keep inventory

Once you have decided to whom you want to sell to, you need to figure out if you want to hold inventory.

If you have a big budget, then it would be a good idea to keep inventory since it eliminates the risks and added costs of constantly purchasing products from suppliers. However, you will deal with a lot of expenses like rent, which could be extremely draining especially if you’re self-funding your business.

Before choosing to not keep inventory, you should also consider the shipping and order fulfillment time of your suppliers. 

If your suppliers can produce or ship products fast, not holding inventory may be a better choice. By following business models like drop shipping, you can focus more on customer service.

Assess how much control you want to have over your product development

Are you the kind of person who can design unique and marketable products? If you are, then you can go with the private label business model. 

This way, you can have full control over your products and the image of your business. You will also have more freedom when it comes to making a profit.

But if your budget does not permit this, don’t worry. You can still follow the white-label business model where you simply re-brand other people’s designs or products.

Consider what you’re selling

Your business model of choice varies depending on what you are selling.

If you’re selling physical products, then follow business models like dropping shipping, white labeling, or wholesale. E-commerce stores that sell physical products usually have more choices.

If you’re selling digital products, then you can follow business models like C2C. Businesses that want to sell services can follow various models as well, although they typically do best in B2B, C2C, C2C, and Subscription.

Take your strengths and weaknesses into account

Business models are also dependent on your strengths and weaknesses. For instance, if you have an expansive business network, then you can do B2B or wholesale. 

If you excel at creating things from scratch, private labeling will be perfect for you.

Understand your brand positioning

Before choosing a business model for your e-commerce business, you need to be clear about your brand positioning. This refers to how your business will be perceived by your target market.

Brand positioning is essential in determining your business model because different business models often have different brand positions.

You need to be able to showcase your business and products/services in a way that you can stand out from the crowd. 

Having a powerful brand image that is aligned with your business model is the ultimate way to make people interested in your business and your products.

For instance, if you follow the B2B business model, having a corporate image will do wonders for you. 

Meanwhile, if you follow the B2C business model and your target market is Gen Zers, then approaching things in a fun, friendly, and engaging way will give you an advantage.

Think about your plans for scalability

By thinking about scalability early on, you’ll be able to better determine what kind of business model to follow.

For instance, some E-commerce businesses like drop shipping are more easily scalable than others. 

Private labeling is also good for scalability because entrepreneurs usually want to expand their product line, although it involves more work when it comes to product development.

Consider your budget

It’s important to know your financial limits and only choose business models that are within your means. 

Keep in mind that it’s easy to lose control of your business and go broke if you manage your E-commerce store poorly.

If you don’t have much cash to start with, consider choosing a business model that won’t require you to keep a lot of inventory, like drop shipping or on-demand manufacturing, is recommended.

These are just some of the things that you should know about the different E-commerce business models. Once you know which model you want to go with, it’ll be easier to determine the other aspects of your business.

If you’re looking for a reliable E-commerce partner to help you with the nitty gritty of your business, you should choose Payo!

As your reliable partner, we’ll provide you with various E-commerce solutions — from Live Customer Support and Fulfillment to Cash on Delivery Integration and Advanced Remittance.

Sign up with us today or send us a message at [email protected]. We look forward to helping you thrive in E-commerce!

Getting into E-commerce in the Philippines can be an exciting venture, especially if you’re a new E-commerce business. It’s an industry that presents a lot of opportunities for growth, and one that continues to evolve today. 

If you’ve decided to start your own online store, there are some important decisions you need to make even before its launch. There’s also a considerable amount of research and planning that you have to do. Feeling overwhelmed already? Don’t worry, you’ve come to the right place! 

Here are some tips to follow if you’re just about to start your E-commerce business. 

Create a business plan

Your business plan will serve as your guide throughout your E-commerce journey. It details your business model, your short-term and long-term business goals, and your timeline for each milestone. 

Having a business plan helps you stay organized as you grow your E-commerce business, and helps you keep track of your progress. It will also make it easier for you to determine if there are certain strategies you have to change along the way.

Identify and study your target market

You won’t be able to effectively sell products to your target market if you don’t know them. Do some thorough research on them — their psychographics and demographics — and visit the platforms they’re on.

For example, you can check out boards, discussions, or social media groups that are relevant to your audience. Doing this will help you understand the challenges they face, what needs your products have to answer, and what content resonates with them. 

Utilize the power of digital platforms 

Today’s day and age makes it possible to easily reach customers across the country, or even across the globe. How? Simple – digital platforms. Take advantage of digital platforms like social media or your website to reach a wider audience. 

With the power of digital virality, one great social media post can also increase your followers exponentially, and create more brand awareness for you. Having said this, make sure to invest in creating an effective digital strategy no matter what you’re selling.

Excellent customer service sets you apart

When you start your E-commerce business, it’s a given that you should have a customer support representative or team. That, however, isn’t enough; you have to make sure that you provide quick and holistic service. This means having multiple channels where customers can reach you. It also means addressing their concerns and queries in a prompt and professional manner. Additionally, using chatbots that provide answers to frequently asked questions can save you time and effort.

Sometimes, effective customer service can be the difference between a canceled order and a saved one. 

Make time for networking 

There’s a saying that it takes a village to raise a child. Something similar can be said for businesses, because it takes a community for every business to realize its full potential. That’s why you should make time to get to know your colleagues in the industry. 

Go to networking events, attend seminars and talks, and look for opportunities to share your expertise. Doing these will put you in the same place with like-minded people, some who can inspire you or even help you with your business. 

Networking will also help you stay on top of industry trends and best practices, helping you innovate for your business.

Launch your business with a bang

Once you’re ready to launch your business, make sure you do it with a bang! This means having a multichannel approach. Set up your social media accounts, make sure your website is optimized, and have an email or cell phone number ready to accept orders and inquiries. 

You can also consider advertising your store’s opening, and if possible, even tapping influential people as brand ambassadors. 

No matter what approach you go for, make sure that you generate as much buzz and brand awareness as you can. 

These are just some of the things to consider when opening your E-commerce business. It can be a lot of pressure, especially if you have to do everything alone. Thankfully, Payo can be your reliable partner in online selling!

Payo is a leading E-commerce enabler in the Philippines that provides holistic solutions. When you partner with Payo, you don’t have to worry about the different aspects of owning an online store. We’ll be there to take care of Warehousing, Fulfillment, Cash on Delivery, and even Marketplace Optimization!

If you want to learn more about how Payo can help you, sign up today or send us a message at [email protected]. We’re looking forward to working with you soon!

Just a few more days and Christmas will finally be here! While this means a period of merriment and gift-giving, it also means you have just a few more days until the busiest E-commerce season is over. Don’t lose the opportunity to take advantage of it!

If you’re an E-commerce service in the Philippines, you probably already have marketing campaigns in place. Still, it can be helpful to see how else you can boost your sales in the coming days. With that, here are our top holiday tips to make the most of the Christmas rush!

Create last-minute promos

While there are some shoppers who do tick off their Christmas lists in advance, some don’t have the time to buy gifts until the very last minute. That’s why one of our holiday tips is to create last-minute promos for these customers.

You can hold a flash sale on specific days of the month (e.g. 10 days before Christmas, or on Christmas day itself), or you can even have creative gift bundles up for the whole month of December! Don’t feel discouraged about creating promos because you feel you’re late to the game.

Plan some email campaigns

Email campaigns are a great way to talk directly to customers, especially those who have already bought products from your store. Make email campaigns exciting by offering exclusive discount codes, or early access to website sales. This way, customers will be excited for your holiday campaigns, and will be more likely to patronize your store. 

Make sure to also feature engaging images of your products, and focus more on being visual-heavy when it comes to these types of campaigns — something similar to a virtual gift catalog. 

Put importance on personalization 

Most purchases around the holidays are for gift-giving, and one seemingly small thing that customers look for is personalization. Offering simple gift-wrapping or holiday note cards can help them save time and resources. It’s also one less thing to worry about for them, as your products will be ready to give once it gets to their homes. 

This is one of the holiday tips you can do for free or for a minimal fee. Either way your customers will appreciate that you’re helping them with holiday preparations. 

Amp up digital campaigns 

With today’s digital age, it’s easier than ever to reach out to hundreds or even thousands of people. That’s why it’s the perfect time to amp up your digital marketing campaigns, especially on social media. 

Invest in marketplace banner ads, social media ads, and even sponsored articles. Do as much as you can to get your product bundles and discounts out there, and it’s sure to catch the attention of potential customers during the Christmas rush.

Take advantage of post-holiday shopping

The holiday spirit goes beyond December 25, so don’t be afraid to extend your holiday offerings! Some customers might still need additional gifts, or may want to treat themselves in preparation for the new year. 

Having said this, it’s important to cater to these customers by planning out campaigns even until January. After all, the Philippines is known to have one of the longest Christmas seasons!

Offer same-day delivery

If there’s anything that last-minute Christmas shoppers need, it’s same-day delivery. We consider this one of the most important holiday tips for the Christmas rush. That’s because offering same-day delivery caters to a specific type of customer — the one that’s in a race against time to deliver their gifts. By being a store that can address this need, you have better chances of attracting more customers. 

These are just some of the tips that merchants can follow to increase their holiday sales in the next month or two. But if you want to be a reliable and credible E-commerce service in the Philippines, you have to optimize all the aspects of your business – not just ones involving your marketing and sales strategies. To do that, you need a partner in E-commerce who can take care of the legwork, and Payo is the perfect choice for this!

Payo takes care of all the logistical aspects of your business, from Warehousing and Fulfillment to Last Mile Management. Additionally, Payo helps you with Marketplace Optimization, Live Customer Support, and even Advanced Remittance. 

Taking these off your plate helps you focus on the bigger picture, ultimately helping you scale your business while having better processes.

If you want an E-commerce partner to help you with the holidays, as well as the rest of the year, then sign up today or send us a message at [email protected]. We look forward to helping you win in E-commerce!

A Hubspot study revealed that 93% of customers are more inclined to repeat purchases with companies who offer excellent E-commerce customer service. This only tells us one thing, customer service is essential, no matter how big or small your E-commerce business is. 

While there’s no cookie-cutter approach to customer service, there are ways you can delight your customers and build lifelong relationships that will help your company thrive. Ready to take your E-commerce service in the Philippines to the next level? Start by implementing these customer service best practices.

Being proactive is key

Stand out from the competition by having a proactive approach to customer service. For example, ensure that your customer is informed of their package’s whereabouts. And if there is a delay, make sure that you reach out to them as soon as possible. Your customer will appreciate your effort and remember your store the next time they go online shopping. 

Consistency is the name of the game

Customers who choose to shop online expect fast reactions and prompt answers. It’s not enough to have a multi-channel approach; you have to make sure that you balance speed and convenience even in customer service. To do so, you have to serve your customers with a consistent level of quality in a short period of time across different channels. 

Show that you really care for your customers

Offering your customers genuine empathy is what can set your business apart. When you add empathy to your strategy, even a simple interaction between you and your customer can be meaningful and memorable. Remember that being approachable helps create great customer experiences that can drive loyalty, positive feedback, and eventually, repeat sales.

Add a personal touch

Giving every customer a personalized shopping experience can be challenging. Thankfully, there are small ways in which you can do this! Personalization can be in the form of after-sale follow-ups or small thoughtful gestures like adding free stickers in your packaging. You can also send personalized cards and notes to your customer. By doing any of these, you can deliver excellent customer service in your own simple way.

Always ask for feedback and act on them

In the Philippines, E-commerce services taking customer reviews and feedback seriously is a must. If you notice that a customer has had a negative experience with your store, don’t let them feel like they are shouting into a void. Reach out to them, offer a solution, and let them know you value their feedback. Your harshest critics today can be your biggest supporters tomorrow, so don’t forget to engage with feedback or reviews.

Meet your customers on the channels they prefer

Online shoppers expect that they can connect with their favorite brands via different channels. The best way to go about this? Meet them on the channels they prefer. Whether it be over social media, email, real-time messaging, offline support channels, or phone calls, communicating with them at their convenience is important. This is also why having a multi-channel presence can prove to be an advantage for your business.

Measure, optimize, repeat

One way to know if your E-commerce customer service is working is to set KPIs and track metrics. You can also analyze your performance through generated reports. There are various tools to help you with this. You can start with tracking the number of tickets, chat response rate, and period of resolution of requests. This way, you’ll know exactly where you are in your customer service approach and improve your quality of work.

Automate your processes with customer service tools

E-commerce enablers know that automation is the key to efficient processes. Luckily, even customer service in E-commerce can now be automated. There are various software or even help desks you can utilize to help your team connect with customers and organize their information. And with automation, you can resolve issues in as few steps as possible compared to manual processing.

Consider implementing a dedicated eCommerce call center

Setting up a dedicated call center can provide an additional layer of personalized and direct customer support. While online channels are important, some customers might prefer the familiarity of a phone call when they have queries or issues. An eCommerce call center can handle these interactions efficiently and offer a human touch to your customer service strategy.

These are just some of the best practices on how you can improve your customer service. Following these best practices can help set your E-commerce business apart from other online stores, so make sure you keep them in mind.

If you are finding it hard to handle customer service on your own, there are E-commerce enablers like Payo that can help you provide excellent customer service.

As the leading E-commerce enabler in the Philippines, Payo has a range of services that can empower you to create exceptional customer experiences. Level up your E-commerce game with services like Information Logistics and Live Customer Support, as well as other solutions like Fulfillment and Warehousing. 

Sign up with us today or send us a message at [email protected] and discover how you can scale while providing great E-commerce customer service in the Philippines!