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The evolution of E-commerce and courier services in the Philippines

In recent years, E-commerce has changed the global business landscape. By having an online store, the entire purchase journey became easy, convenient, and fast for both consumers and businesses. In 2017 alone, the Philippine E-commerce industry recorded revenues amounting to USD 1,237 million and was expected to have an annual growth rate of 16.2% by 2022. 

As more businesses and consumers flock to online retail for various needs, the demand for courier services in the Philippines immediately followed. From simply catering to parcel and mail deliveries, couriers have become partners of local and international merchants to serve and reach the greater Filipino population. In fact, a 2019 study showed that Third-Party Logistics (3PL) is expected to achieve a revenue share of 40% of the overall logistics sector by 2024.

When the COVID-19 pandemic hit the country in 2020, many saw the untapped potential of the digital space and online services. Whether it’s selling products, making payments or shopping for essentials, people could now do a lot of things right from their smartphone or computer.

The sudden shift to digital saw demands for courier services in the Philippines soaring. As couriers expanded their rider base due to the sudden boom, riders have become recognized as part of the essential workforce. This now meant couriers needed to change how they operate by introducing new innovations to keep these newfound essential workers and their clients safe:

Contactless Delivery

To ensure the safety of both riders and consumers, couriers introduced contactless delivery. Rather than handing over deliveries in close contact, this delivery option allows consumers to set a particular space outside their homes where riders can conveniently leave packages and orders. Riders can simply message the recipient to inform them of their status and if they’ve arrived and dropped off their package.

Digital Payments

Filipinos are cash-first consumers, and thus prefer Cash-on-Delivery (CoD). During the pandemic, many learned about digital payments through credit cards, e-wallets, and online banking. This lessens physical interactions between consumers and riders and streamlines the purchase and delivery process. Whether it’s CoD or digital payments, Filipinos now have more options when they make their online purchases.

Free Masks and Testing Kits

While they continue to service the public, riders remain at risk of unknowingly contracting the virus as they deliver and visit different homes and consumers. Some couriers now offer free masks and testing kits to riders to keep them safe and be on the lookout of their own health. 

Orders for Riders

Food deliveries have significantly increased since Filipinos are not able to go out and satisfy their cravings. With riders catering to a jump in demands, food delivery apps have also introduced a feature that enables consumers to also order for their riders, helping them show their appreciation for their hard work apart from tipping.

Thanks to these innovations, courier services in the Philippines have elevated the experience of businesses and consumers. These have also become beneficial to fulfillment services, as they rely on courier services to ensure a smooth transaction between merchants and customers.

If you’re looking for a reliable fulfillment service, Payo is the best choice for you because it works closely with the best couriers across the country!

Through their Courier Algorithm, Payo helps merchants find the top courier that can best cater to their needs according to courier fees, areas covered, and past courier performance. They also help ensure that products are packed, handled, and delivered safely and swiftly.

Apart from collaborating with couriers across the country, Payo also provides top-notch product security, quality control, and order fulfillment.

Looking for a fulfillment service in the Philippines for your products? You can sign up with us today or send us a message at [email protected] We are more than happy to assist you!