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7 ways to optimize order fulfillment

In running a business, day-to-day operations and the customer journey are two crucial aspects that you need to manage and maintain. By having an efficient fulfillment service in the Philippines, you are able to innovate business and keep your customers happy and satisfied.

Optimizing your order fulfillment doesn’t mean you have to make big changes. You can start small by looking into things you can streamline. One key trick is to digitize or use technology to improve your fulfillment and elevate the overall experience for both you and your customers.

Want to get started? Here are seven ways you can optimize your business’ order fulfillment.

Store your products in multiple warehouses

Storing your products in multiple warehouses optimizes your order fulfillment because it widens your audience reach. By making them available in multiple locations, you are able to cater to more customers while also speeding up the delivery time. It also ensures that your stocks won’t get stuck in one place should there be problems with one warehouse. 

Keep your inventory and orders organized

Sorting through products and orders, especially in large quantities, can be overwhelming. Organize your inventory whether it’s by name, size or function so it’s easy for you to find them once an order has been placed. Likewise, develop a system to better handle your shipments. You can categorize them according to location, size, weight, or even the type of courier that will be shipping them out.

Reinforce your packaging strategy

You can never be too careful when it comes to your products. Add enough fillers in your boxes or packs to keep products in one place during shipment. Place fragile stickers and guidelines that partner couriers can refer to for proper handling of your packages. Make sure you also seal each package well to avoid any water from seeping in should it rain. 

Diversify your partner couriers

Having different couriers can help you improve your delivery time as they have different shipping routes and areas. This will help optimize order fulfillment by giving your customers options with each courier having a specific delivery time. You can provide next-day delivery or make them 2-3 days earlier than standard delivery. You can even offer cash-on-delivery, which is a popular payment and shipping option among Filipinos.

Integrate live customer support

In E-commerce, you encounter customers who want to get their orders as soon as they proceed to checkout. To help manage their expectations and prevent them from being irate, you can optimize order fulfillment with the integration of live customer support. You can share the status of their order, provide updates on its whereabouts, and even notify them of possible delays or issues encountered during shipment.

Digitize your operations

One of the best ways to optimize not just your order fulfillment, but your business as a whole is to use technology and take advantage of the digital marketplace. For example, you can use an online marketplace like Shopee or Lazada to digitize the entire purchase journey. This allows you to do more with less effort. From setting up your online shop to choosing your payment options and shipping methods, everything’s made easier and simpler for you.

Related: Best Order Management Systems (OMS) in the Philippines

Choose a valued fulfillment partner

Having the right partner will definitely help you in optimizing your processes, whether it is fulfillment or any of the tips covered previously. Payo is that valued partner because it offers a reliable fulfillment service in the Philippines! Additionally, we help local and international merchants improve the overall management of their business through our tech-based solutions.

Apart from Fulfillment, we offer a wide range of services that can elevate your whole business. This includes Warehousing, Live Customer Support, Last Mile Management, even Marketplace Optimization and Shopify Integration. You get access to the full E-commerce suite when you partner with Payo!

Ready to optimize your business’ order fulfillment? Sign up with Payo today or send us a message at [email protected]. Let’s level up your fulfillment and your entire online business!

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7 signs it’s time to rent a warehouse for your business

E-commerce businesses have grown massively over the past two years. And merchants, including you, are now shipping more orders than ever. That being said, let’s admit it: doing warehousing in-house can be a lot of work. This is why the role of warehousing services in the Philippines is crucial — they can help you solve this pain point.

If you’re not sure if you should look into renting a warehouse now, we’re here to help you out! Here are some telltale signs that it may be the time to consider warehousing for your business:

You’re spending too much time on fulfillment

The amount of time you spend on fulfillment can easily keep you from focusing on equally important tasks. If you spend more time packing and shipping your products rather than investing in your core business, you’re putting your venture at risk. Let others handle your order fulfillment and spend more time on driving growth in your business.

You’re running out of space

Clutter is annoying and it can affect your operations. Running out of storage space is a red flag that says it’s time to rent a warehouse. By outsourcing a warehousing service, you get flexible storage space as your business scales.

You’re unable to monitor your inventory

Running out of stock is a major problem, and so is having too many products. If you are unable to keep track of inventory, a reliable business warehouse partner can help you tackle these issues at hand. 

There are warehousing services in the Philippines that use data to monitor orders and inventory levels, helping you predict how much stock you need on hand to meet the current demand. They may also have in-depth insights into returns, which allows you to determine and understand the pain points of your store.

You can’t keep up with the demand

Every business sees unexpected boosts in product demand, causing difficulty in fulfilling orders. But if you have had this problem longer than expected, you need a working warehousing strategy as soon as possible. 

Not being able to keep up with customer demand can put your business in a bad light. Remember that dissatisfied customers are less likely to return and recommend you to their friends. But having a warehousing partner can help you better respond to the increased order volumes and provide good customer service consistently. 

Your shipping costs become hard to predict or control

Shifts in demand, whether up or down, come with increasingly complex challenges and price variants. If your business is seasonal or you experience periods of high demand, shipping costs can blow up. 

When you have a warehousing partner, you can eliminate fluctuating costs and pay for the growth you need. Also, you can take advantage of the shipping discounts offered by these companies; more on this on the next point!

You know you’re not getting the best shipping deals

Fulfillment services can charge different prices based on the products you ship. You could save even more with leading couriers by negotiating discounts on their standard rates, but you’ll need a high volume of orders.

If you’re a small-scale E-commerce business owner, you won’t be able to meet those volume demands yet. When that’s the case, outsourcing a big warehousing company can give you direct access to additional saving opportunities as they can provide discounts based on their entire volume— not just your orders.

You’re shipping in the Philippines

If you are a merchant overseas that wants to ship products here in the Philippines, a word of caution – shipping here can be quite difficult. Postage costs are high and paperwork can take so much of your time. Then, of course, there’s the difficulty of making sure your products are packed well enough to survive a trip around the world.

Partnering with an efficient warehousing service in the Philippines does the trick. By utilizing a local partner for your warehousing needs, you can save more of your resources plus experience less stress in the long run.

It’s normal to be very hands on with your business, but there are aspects that you’ll need to ask help for. If you are seeing some of these signs in your business, let Payo do the warehousing for you!

Payo, one of the country’s leading E-commerce enablers, has a suite of services that can take care of your warehousing woes. From our Multiple Warehousing Solution and Order Fulfillment, to E-commerce Automation and Live Customer Support, we can definitely take the grunt work off your hands and help make your entire business more efficient. 

Sign up with us today or send us a message at [email protected] to see why we’re the best option for warehousing services in the Philippines!

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Hygiene practices to improve your warehousing operations

Businesses rent warehouses to help manage spaces for product inventories. With E-commerce experiencing a recent boom, warehousing services in the Philippines have also seen a rise in demand. However, there is more to warehousing than simply storing products.

Similar to a house, hygiene practices also matter for warehousing exactly because this is where you keep your products. Whether it’s for short or long term, warehouses need to be tidy and clean to maintain your products’ quality.

Get started on your warehousing hygiene practices with these easy-to-follow tips!

Clean your warehouse regularly

Whether you have fast-moving or slow-moving products, it is best to have a regular cleaning schedule. It can be once a week, every other week, or every month to keep dust and dirt from building up. This will also keep pests from nesting, especially in dark and cramped spaces.

Disinfect and sanitize all the time

With COVID-19 still a health risk, best to add disinfection to your warehousing hygiene practices to protect yourself, your products, and even your customers. Disinfect and sanitize all incoming and outgoing products in your inventory along with high-touch surfaces. On top of that, follow social distancing and proper health protocols because you can never be too careful.

Keep your products organized

Organization is another hygiene practice to improve your warehousing experience. How you sort your products is totally up to you, but what’s important is to have a clear system. You can arrange them by size, name, or functionality. This will help you save time because you will know where to look, even if you are in a hurry.

Add labels and warnings

In addition to organization, you can also opt to add labels so it’s easier to identify products. This hygiene practice comes handy in warehousing when dealing with a wide variety of products. Don’t forget to add warning signs for products that may be harmful or fragile so people know that they should be handled with extra care.

Make ‘First In, First Out’ a habit

It’s a common mistake for merchants to simply grab the first product in the box, which is likely your latest inventory. Make it a habit to ship out items that you first stocked so all your products are moving and you are able to maximize your space. This also saves you from disposing of products that are no longer sellable because of damages from long-time storage.

Conduct regular checks and inspections

Oftentimes, merchants work with shared warehouses, which means different people go in and out of the facilities. Conducting regular checks will allow you to stay on top of your inventory and make sure that they haven’t been tampered. Aside from this, inspect warehouse equipment like shelves and locks as a safety and security measure. This simple practice can prevent potential mishaps in the future.

Align regularly with warehouse staff and team

It’s important to have regular communication with warehousing partners and the staff, especially if they are in another area or location. This will help you gather updates on your inventory and ensure that your storage space is being well-kept. You’ll also know immediately if there are any concerns that need your attention.

Practice effective coordination to maintain warehouses

For merchants that have multiple warehouses, managing them can be tricky. Cleaning schedules, inventory checks, sanitation processes – all these must be accounted for in each warehouse. Having good coordination is a warehousing hygiene practice that will help ensure that everything is in check. Even if your warehouses are in different locations, constant coordination will help make operations run smoothly, be more efficient, and have better overall performance.

All these warehousing hygiene practices are important because they also benefit your customers and reflect how you service them behind the scenes. Aside from keeping them safe from potential risks, it’s also about making sure that the products they receive are in their best shape, form, and quality.

If you don’t have a warehousing services partner in the Philippines yet, choose Payo! Payo is an E-commerce enabler that has warehouses in key locations across the country, providing you with reach and accessibility to more potential customers. Because these warehouses are under Payo, you don’t have to worry about coordination because the company will do it for you!

Payo also strictly adheres to warehousing standards including safety, security, and maintenance. Additionally, they offer digital services which allow you to get real-time updates on your inventory and more.

Why stop at Warehousing? Payo has other services to ensure that both you and your products are well taken care of. These include Fulfillment, Last Mile Management, Cash on Delivery Integration, and Marketplace Optimization, which are all essential in leveling up your E-commerce game. 

Want to know more about Payo’s warehousing services? Sign up with Payo today or send us a message at [email protected]. We’ll be in touch!

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The importance of providing express delivery in the Philippines

When it comes to E-commerce, speed is the name of the game. Because of the increase of online customers, brands and businesses now look for ways to stand out from the competition. One way is by offering Express Delivery, especially in the Philippines.

Similar to how they would shop in physical stores, Filipinos want to get their online purchases as soon as possible. This is why they opt for Express Delivery and favor shops that offer it. But what exactly is Express Delivery?

Simply put, Express Delivery is a shipping method wherein an order or purchase is sent to the customer in the shortest time possible. This often refers to same-day deliveries, next-day deliveries or speeding up the delivery time by two to three days, but this would also depend on the customer’s location. 

Ultimately, Express Delivery benefits both customers and merchants. If you need proof, then check out some of the reasons you should offer this in your business. 

Faster turnaround for customers

Customers may take their sweet time browsing through your products, and would sometimes ask a lot of questions to make sure that they are getting the right one. However, it is an entirely different situation as soon as they proceed to checkout. Express Delivery allows you to cut down their waiting time, and satisfy their need to immediately get their orders.

Improved shopping experience

Aside from offering great products, the shopping experience of customers is equally important. By shipping out their orders fast, you are already improving their shopping experience. This also increases the potential of having repeated sales, or even better, referrals to their friends and family.

Better standing against competition

Offering Express Delivery as a shipping method to your customers immediately puts you at a better spot. It is a common practice for customers to compare online shops, especially if they sell the same products. By making Express Delivery available to them, they would likely favor your shop because you can deliver their packages faster. 

Maximized inventory and storage space

Having a lot of products in your inventory would mean needing more storage space. With Express Delivery, you are actually maximizing your inventory and storage because products are shipped out faster. This helps you secure savings from storage costs, which you can use to procure more products and restock your inventory.

Cater better to last-minute or time-bound orders

Every once in a while you encounter customers who are doing some last-minute shopping or have a specific timeline to follow. Express Delivery helps you answer their needs. Once you have quickly and successfully fulfilled these customers’ orders, it will score you good points for being a flexible merchant.

These are only some of the benefits and opportunities that you can explore by simply offering Express Delivery to your customers in the Philippines. If you want to provide this option for your customers, one way you can do it is by partnering with an E-commerce enabler like Payo.

Payo has a presence in key cities across the Philippines and can definitely help you offer next-day delivery to your customers. If they are in rural areas, Payo can shorten the delivery time by two to three days, making sure that customers still receive their orders faster than standard times.

Payo also offers other services that can help you elevate your online business. This includes Fulfillment, Warehousing, Live Customer Support, and so much more. If you’re looking to take your business to online marketplaces, you can also opt for Payo’s Marketplace Optimization for a seamless online selling experience.

Want to know more about how you can offer Express Delivery? Sign up with Payo today or send us a message at [email protected]. We are more than happy to help!

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Why warehousing is more than just storing products

In today’s E-commerce era, the demand for a convenient online shopping experience has made the role of warehousing services in the Philippines more important than ever. Gone are the days when warehousing can be considered as just storing goods in one place. Through time, its function evolved into becoming an element for success in E-commerce for both local and international merchants. How exactly? Read on to find out!

Improves order processing

Warehousing is a vital part of your customer’s overall experience. One of the most common concerns of customers is whether or not their package will arrive on time, and in perfect condition. When you have a reliable warehousing service in the Philippines, you can safely and swiftly deliver products, ultimately protecting your business from potential logistical issues. As your products can be available for shipping whenever it’s needed, you can reduce delays and create a delightful shopping experience for customers. 

Ensures inventory accuracy

Have you ever lost potential sales after realizing a little too late that you haven’t stocked up on products? Or have you ever handled irate customers because you sent the wrong items to them? If you have a reliable warehousing service to do inventory for you, you minimize the chances of having these problems.

Managing inventory is an important component of E-commerce. It isn’t an easy task, but there are ways to go about it efficiently. And that is through having the right technology, processes, and warehousing partner. 

Your warehousing provider should be able to help you organize and easily track your products. By being on top of your inventory, you will be able to improve your performance as a business and run a more seamless operation.

Provides leverage for seasonal growth

Holidays and shopping seasons are famous for their high sale numbers. Warehousing providers can help you leverage seasonal growth driven by consumer trends and stock up on products for peak seasons. 

As an E-commerce merchant, you don’t need to have big facilities to manage your sales. An efficient and effective warehousing service will suffice. And if you have one of the most reliable warehousing services in the Philippines, you can take advantage of the new opportunities and jump on the sales trends in the market these days. 

Helps minimize and mitigate business risks

Warehousing services provide safe custody of your products and goods. Whether you need cold storage for perishable items or just a secure space to store your goods, warehousing is the solution to keep your products protected. You can minimize the loss from fire, theft, and damage by partnering with warehousing services to store your products. Plus, your items are insured, so you can expect compensation in case of any damage or loss.

Supports business flexibility and agility

For the past two years, E-commerce merchants have dealt with the pandemic’s uncertainty. You may have even experienced challenges in getting items to your customers, especially if your warehouses were in areas under lockdown. One solution for this that has proven to be effective? Utilizing multiple warehouses. 

Multiple warehousing ensures that your products don’t get stuck in one place, and that you are able to cater to customers nationwide despite the pandemic. This shows how warehousing can help your business be more flexible and agile. Additionally, having multiple warehouses lets you refocus your efforts on different areas should one area go into lockdown. 

From these points, it’s clear that warehousing services in the Philippines can help businesses run more efficient and seamless processes. That’s why as a merchant, it’s crucial to choose the warehousing partner that will improve your operations. That’s exactly what Payo aims to do!

As an E-commerce enabler, Payo can help you with all your logistics needs. We have a strategic Multiple Warehousing Solution that allows for faster and cheaper delivery. Apart from this, we have a suite of tech-driven and innovative E-commerce solutions such as CoD integration, Live Customer Support, and Marketplace Optimization to help you scale in no time. 

Learn more about Payo and what we have to offer! Send us a message at [email protected] or sign up with us today!

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5 reasons behind the increase in Metro Manila warehousing

In the Philippines, warehousing services have continued to grow despite the COVID-19 crisis. It has become an indispensable industry, providing the necessary support to other industries as new economic and social protocols emerged due to the pandemic. Because of this, its growth will likely be sustained post-pandemic.

During this period, Metro Manila has seen a growing demand for online shopping, deliveries, and consequently, warehouses. But what drove the exponential growth of warehousing in Metro Manila over the last two years? Read on to find out.

More room is needed to manage the demand in E-commerce

The E-commerce sector has been one of the major demand drivers for warehousing markets across the globe. In the Philippines, Filipino consumers have relied heavily on the convenience of online shopping due to the pandemic and lockdowns. As E-commerce in the region continues to flourish, there is a higher demand to fill the increased number of sales, particularly in the metropolis and its neighboring provinces. As such, warehousing services in the Philippines, particularly in Metro Manila, needed to address this.

It is a strategic location due to accessibility and proximity to customers

The metropolis has become a gateway for warehousing services to flourish. Being at the center of commerce, Metro Manila has accessible key delivery routes via airports, ports, and major transportation hubs. It is also an ideal hub for warehousing services in the Philippines as major business districts are in the vicinity. And when it comes to proximity to customers, Metro Manila is home to close to 12 million Filipinos, making it a perfect spot for warehousing.

There’s a need for speed

The big guns in E-commerce have set the standards in terms of delivery speed. Customers are now accustomed to ordering online and receiving their purchases as soon as the next day. This has put immense pressure on smaller E-commerce companies to shorten their delivery times. As such, warehousing providers have established multiple locations in Metro Manila so that they can fulfill orders as soon as possible.

Retail spaces turned into fulfillment hubs

According to real estate experts, retail industry players have already bared plans to convert their spaces into warehouses. In 2020, the average vacancy of malls across Metro Manila rose to 12.5% due to the closure of many brick-and-mortar stores. Many vacant spaces have now been converted to warehouses, mainly to accommodate the retail industry’s shift to online platforms. This contributed significantly to the rise of warehousing services in Metro Manila.

The competition to attract more customers has become tougher

As E-commerce grows at break-neck levels, the competition to attract and create loyal customers has become extreme. Warehousing is crucial to ensure that merchants remain on top of their E-commerce game.

Choosing a warehouse in a strategic location like Metro Manila allows merchants to decrease resources used between each point. The more warehousing services are available in the area, the closer they become to their customers. This also means that fast shipping and easy returns — two factors that customers have high standards for — are possible. And this results in increased sales and growth in the long run.

There are more reasons why Metro Manila has become a hub for warehousing services in the Philippines. But more than these reasons, one thing is sure: warehousing providers in Metro Manila have enabled thousands of local and international merchants to scale their E-commerce business effectively. 

Even if there are many warehousing services in the Philippines available to serve you, it’s important to choose the right one. Our advice? Choose Payo!

As an E-commerce enabler, Payo offers reliable warehousing services that can address your needs. We have multiple warehouses in key locations across the Philippines and aside from that, our tech-based solutions can further optimize your E-commerce journey. We’re talking about Live Customer Support, Fulfillment, Marketplace Optimization, and even Cash on Delivery Integration


Payo certainly makes for a strategic and reliable partner that will help you scale faster and ship smarter! Want to know more about our warehousing services? Sign up with us today or send us a message at [email protected].

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How to integrate Cash on Delivery into your online store

When it comes to online retail and E-commerce, Cash on Delivery is king in the Philippines. According to a 2020 survey, Filipino consumers still prefer cash payments for their online transactions. This is because they are either unfamiliar with digital payments or simply prefer getting their goods first before paying for them.

This highlights the value of having to integrate Cash on Delivery for every online store. Whether you’re a startup or a well-established business, Cash on Delivery is vital to your online store’s payment methods so you can cater to more Filipino customers. But how do you get started?

Direct to couriers

Many local couriers in the Philippines now offer Cash on Delivery services for online stores. If you’re operating outside an E-commerce platform, you can offer this payment method through your preferred couriers.

Couriers offer different arrangements when it comes to Cash on Delivery. One arrangement sees their riders paying for the goods upon pick-up and collecting payments after dropping them off. Another is through cash handling where they collect all payments from multiple deliveries. They can either give your earnings in person or remit them through bank deposits.

There are also couriers that offer single or bulk deliveries but follow a remittance schedule. This means that they’ll collect payments within a certain period and remit payments based on the dates agreed on.

Via E-commerce sites

Popular E-commerce sites like Lazada and Shopee make it easier for sellers to offer Cash on Delivery for their online stores. You can actually do this through their respective apps or websites.

Simply go through the settings and browse through your shipping information. When you’ve located the “Enable Cash on Delivery” or “Enable CoD option,” one simple tap and it’s already activated.

Offering Cash on Delivery for your online store via E-commerce sites is also more convenient because they already have courier partners. Along with enabling the CoD option, you can also choose which couriers you’d like to make available to your customers. Just remember that shipping rates vary for each courier.

Payments will be remitted to your bank account either in real-time or based on a schedule, depending on which site you choose to work with.

Through E-commerce enablers

Similar to E-commerce sites, E-commerce enablers usually have many courier partners. What makes working with them more efficient is that they also have access to different E-commerce platforms.

With Payo, integrating Cash on Delivery to your online store is simple and easy. If you’re already on Shopify, all it takes is one tap of Payo’s Cash on Delivery plug-in. It will instantly be available to your customers upon checkout.

When it comes to payments, Payo understands that your customers’ courier preferences vary. To streamline this, Payo collects payments from riders and remits them to you in one go. Because of Payo’s digital capabilities, you can track payment collections better and see the status of deliveries in real-time. You can also choose Advanced Remittance to receive your payments even before the couriers remit their collections. 

These are the multiple ways to go about offering Cash on Delivery in the Philippines. But why stop there? Payo offers other services that can help optimize your entire E-commerce journey.  Whether it’s Warehousing, Fulfillment, Last Mile Management, or Live Customer Support, Payo can help you digitize your operations so you can focus on building a better business.

Interested in Payo’s E-commerce services? Sign up with Payo today or send us a message at [email protected]. We’re happy to help you out!

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Here’s how Cash on Delivery can optimize your business

Cash on Delivery (CoD) in the Philippines remains a key area of focus for local and international E-commerce merchants. That’s because, despite the significant rise of digital payments in the country, CoD continues to be the preferred payment option for Filipinos.

Offering CoD not only creates consumer confidence in emerging businesses; it also shows your business’ understanding of the local landscape. As such, incorporating the CoD payment option is one of the best ways to attract new customers and convert them into loyal ones. 

Here are some other ways Cash on Delivery can help optimize your business.

Flexible payment options empower Filipino customers to shop

It’s undeniable that many Filipinos are still unbanked. In fact, the Bangko Sentral ng Pilipinas (BSP) shared that around 36.9 million Filipino adults don’t have bank accounts. This is around 48% of the country’s adults. 

With the Philippines being a predominantly cash-based economy, you open up your business to a bigger demographic when you provide CoD. Filipinos tend to prefer shops that offer payment options that suit their needs, lifestyle, or their situation. With CoD, your customers won’t have to worry about not having credit/debit cards or a digital wallet. They can just pay with cash when their items arrive. 

By doing this, you give customers the power to be flexible regarding their payments. And the more they see that you care about their preferences, the more they’ll get encouraged to become loyal customers.

Convenience attracts more customers

Among the benefits of adopting Cash on Delivery to optimize your business is that it’s convenient for your customers. 

Cash is one of the common forms of payment, and paying through CoD is a very straightforward process. Moreover, customers don’t have to go through tedious processes of filling out details when paying online. CoD also helps prevent customers from falling victim to online scams and fraudsters, even more so if they’re not tech-savvy. 

When you offer Cash on Delivery in the Philippines, you can cater to many potential customers because of how easy it is, and how comfortable they are with it. Customers value convenience, and it is one of the main reasons they patronize a business aside from price points and good deals. When you make things convenient for them, you distinguish yourself from the competition.

Flexibility and convenience are just two of the main benefits that Cash on Delivery in the Philippines can bring you. If you want to up your game and optimize your business, then Cash on Delivery integration is a must. 

Ready to take your online business to the next level? Let Payo help you!

Payo offers a convenient way to integrate Cash on Delivery so you can reach more customers here in the Philippines. And aside from CoD integration, Payo also offers other tech-driven solutions, like their data-driven Courier Algorithm and Marketplace Optimization. Additionally, Payo offers Multiple Warehousing and a reliable Fulfillment Service that can further accelerate your growth. What more could you ask for?

Partner with Payo today! Send us a message at [email protected] or sign up now!

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A look into the warehousing sector in the Philippines

Logistics is among the many industries that remains resilient over the course of the pandemic. As E-commerce continues to grow, so does the demand for logistics and warehousing services in the Philippines.

Overview of the warehousing sector in the Philippines

According to a 2020 year-end report from Colliers International, warehousing services in the Philippines recorded a gross value added of Php 118.4 Billion as of September 2020. This was due to the rise in E-commerce transactions as Filipinos stayed at home due to lockdowns. This also saw businesses expanding their offerings, which led to the increased demand for warehouses.

Warehousing, along with the rest of the logistics sector, is expected to maintain its growth for the succeeding years thanks to this shift in consumer behavior. However, Colliers also identified several challenges that warehousing is experiencing in the Philippines. These include limited spaces in Metro Manila, limited flexibility of existing warehouses, aging warehouses in provinces, and the worsening traffic congestion.

Growth opportunities for warehousing

There is hope for the warehousing sector in the Philippines to reach its full potential through different growth opportunities. One of which is modernization through technology. Automating warehouse processes will enhance overall operations because you can do tasks digitally, and sometimes, even remotely. Another is having warehouses outside the metro. This will help save on costs, especially as warehouses within business districts tend to be more expensive.

Colliers also identified using a ‘hub and spoke’ model to effectively manage warehousing in the Philippines. This means merchants can opt to have warehouses in the metro where their main operations are, and also in nearby provinces where the lease is cheaper. It’s easier on the budget plus merchants still get a lot of space.

Perspective from industry and government

It’s also possible to view the warehousing sector in the Philippines in a different lens. In real estate, JLL Philippines shared that as of September 2021, the country’s demand for logistics in the urban areas will continue to grow. Third-party logistics service providers and E-commerce stakeholders are forecast to lead the rising demand for space.

Similarly, the Philippines’ Department of Finance also continues to see growth opportunities in upgrading warehouses, but with a focus on enhancing food storage. This opens up the discussion on improving warehouses to better serve other industries they cater to, like E-commerce.

In a recently concluded online forum entitled “The PH logistics industry scales big and high: An industry outlook for 2022 and beyond”, decongestion was highlighted to help logistics grow further. The countryside offers affordable investments but metro cities remain most attractive to investors because of access to consumers. Thus, decongesting Metro Manila will significantly contribute to the sector’s overall long-term growth.

Importance of a reliable warehousing partner

Considering the local situation, this now raises the value of having a warehousing partner that can best capture these opportunities. Luckily, Payo makes for an ideal partner because it offers efficient warehousing services in the Philippines, as well as a wide range of E-commerce services.

Payo has warehousing presence in strategic locations, namely Metro Manila, Cagayan De Oro, Pampanga, and Cebu. You’re not only able to gain a tech-enabled partner, but you also get access to key markets where you can be visible to consumers. Aside from warehousing, Payo also offers Cash on Delivery Integration, Fulfillment, Last Mile Management, and even Live Customer Support!


Want to know more about Payo’s warehousing and E-commerce services? Sign up with Payo today or send us a message at [email protected]. We look forward to chatting with you!

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7 reasons you end up with RTS packages

One of the most frustrating things that online merchants can experience is getting package returns. Even with today’s advancements in E-commerce automation, This situation can still be a big hassle for both them and their customers. Moreover, it can result in additional costs and damage the reputation of their brand.

But why exactly do customers return packages, and what are some of the ways you can avoid them? Read on to find out!

The customer made an impulse buy

Sometimes, a customer may see something on your online store and immediately want it. So, they add it to their cart and check out. Later on, however, they realize that they did this on impulse, and decide that they want to return or cancel their order.

This occurrence is more common than you think, especially when you have ongoing deals or promos that make online shopping more enticing.

How to deal with this scenario: Make sure that you have a clear return and exchange policy. While some stores accept a change of mind as a reason for a return or exchange, others don’t. You can also add guidelines on which items are eligible for returns or exchanges. Ultimately, it will all depend on how strict your store policies are.

The customer is engaging in wardrobing 

Wardrobing is when a customer buys an item so they can use it once or twice and then return it after. To make sure that they can still return the item, they usually hide the tags when using it. This behavior is fraudulent, especially when the customer requests a refund later on. 

Wardrobing is most commonly done with clothing, but can also be done with bags, gadgets, and appliances, among others. 

How to deal with this scenario: Customers who engage in wardrobing usually conceal the tags of the items they use so that they can still return them later on. You can implement strategies to prevent them from easily doing so, such as putting tags in places that can’t be hidden. If a customer is adamant about returning an item, it’s best to ensure that it has no damages and is truly eligible for a return or exchange.

The item is damaged

If you bought something online and it came in poor condition, you’d definitely want a refund or an exchange. This is why one of the most common reasons for RTS packages is a damaged product. If you don’t handle this situation properly, it can make customers lose trust in your business.

How to deal with this scenario: The best course of action is to grant the customer a return or exchange, and to do so as soon as possible. If the courier is responsible for the damage, you can also check whether or not your package has insurance. This also highlights how important it is to have a reliable courier partner.

You shipped the wrong product 

Another common reason for a returned package is when a merchant ships the wrong product. This can be frustrating for customers, especially if they need to use the item sooner than later. Shipping the wrong product can mean that the item isn’t the color or size that the customer ordered, or worse, it’s a completely different item altogether. 

How to deal with this scenario: Because this is most likely a mix-up from your end, you should coordinate with your customer and send them the correct product as soon as possible. If they want a refund, attend to their needs and take them through the refund process. This will show your customers that you genuinely want to make up for this mistake. 

The item was delivered to the wrong address

Another mix-up that can happen is delivering a package to the wrong address. It’s usually one of two scenarios: either there was a miscommunication, or the customer provided an incomplete/incorrect address. Either way, this means that your products didn’t get to the right recipient.

How to deal with this scenario: The best way to deal with this scenario is to prevent it from happening altogether. Try to have certain processes in place for address verification, such as calling customers who input incomplete information. This will help you avoid wasting your time and resources bringing a package to the wrong place.

The delivery came too late

Speed and quality are kings when it comes to online shopping. Customers want to get products in excellent condition, and they want to get them as soon as possible. This is especially true for orders or purchases that are time-bound. That’s why if a customer doesn’t get their order within the supposed delivery timeline, chances are you’ll end up with RTS packages.

How to deal with this scenario:  It’s important to make customers aware of your shipping timelines, and to stick to them as well. And as much as possible, get a delivery partner who can ship out your others safely and swiftly. It would be even better if they provide same-day or next-day delivery, and can accommodate provincial areas.

A natural disaster has put deliveries on hold

The Philippines is no stranger to natural disasters, especially because numerous typhoons hit the country every year. Sometimes, areas that are heavily affected by typhoons or other disasters like earthquakes or volcanic eruptions become difficult to access. That’s why packages bound for those areas get marked as RTS packages.

How to deal with this scenario: There’s not much you can do in this case other than to inform your customers about possible delays. You can also temporarily avoid accepting orders bound for places that have limited accessibility. 

These are just some of the reasons that you end up with RTS packages. Some of these circumstances are out of your control, but some are preventable. This highlights just how important it is for merchants to have a reliable fulfillment center – one that can correctly and properly pack their items, deliver their products in perfect condition, and provide swift delivery. Luckily, Payo ticks all these boxes!

As the leading E-commerce enabler in the Philippines, Payo wants to help merchants ship their products cheaper, faster, and smarter. That’s why we provide a holistic set of tech-driven solutions, from Warehousing and Fulfillment to CoD Integration and Live Customer Support. We even verify customer addresses to ensure that we’re shipping your package to the right place! By combining tried-and-tested solutions with the dedication of our team, we can successfully bring down your RTS rate. 

Want to make sure your deliveries are successful? You can sign up with us today or send us a message at [email protected]