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].