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What is Cash on Delivery and why is it popular in the Philippines?

Online shopping has grown immensely in the Philippines. According to a report by Visa, more Filipinos now go on digital commerce platforms — with close to 9 in 10 people increasing their online shopping activities in the past year. And in all these transactions, one thing remains true: cash is still king. Despite the rise of a range of alternative payment methods, Cash on Delivery (CoD) is still one of the preferred payment options in the Philippines. This stems mainly from the fact that many Filipinos remain unbanked.

To give you an idea on what exactly the meaning of Cash on Delivery is, we’ve detailed how CoD couriers work, the benefits of CoD, and how to integrate it into your online store.

How do CoD couriers work? 

The CoD process is really simple: customers select CoD as their payment option once they check out. They will then only have to pay for their order once it arrives. Once their delivery comes, the buyer can then check the product, pay, and complete the transaction. When the seller receives the payment, they can close the order and mark it as a completed transaction. 

The Cash on Delivery couriers will collect each payment, and will be in charge of remitting everything to the merchant. Once the merchant receives all the payments, they can close the orders and tag them as a completed transaction.

Offering Cash on Delivery in the Philippines is convenient because not everyone can do online payments. And from a merchant’s point of view, cash handling is simple and does not involve complex processes. The profits from a sale are completed instantly, and the possibilities of payment failures are ruled out. 

Understanding the Preference for CoD in Philippine Logistics

Even up to this day, the Philippines remains a cash-based economy. Thus, Cash on Delivery is important for both Philippine logistics companies and merchants alike. If that’s not enough reason for you to consider CoD, here are a few things you should know about Filipino consumers.

Living paycheck to paycheck

Many Filipinos still live in a paycheck-to-paycheck lifestyle. This means, the money they make is only enough for them to spend on their needs and essentials. Merchants who offer Cash on Delivery grant them the time they need to save up for their purchases. This is highly important for them, especially if it’s something they really want but currently don’t have enough resources for.

In-person-like shopping experience

When looking for a logistics partner, go for those with a Cash on Delivery option because it enables an in-person-like shopping experience to a certain degree. In physical or offline stores, shoppers have the chance to examine a product before deciding to buy it. Similarly, CoD allows online shoppers to check the products that arrive before paying for it to make sure that it isn’t damaged and is what they ordered.

Added layer of protection from scams

Because of the growth of E-commerce, digital scams have also become more rampant. Rather than keying in their card details, Filipino shoppers prefer cash payments because it’s more transparent and secure for them. Cash on Delivery is essential for Philippine logistics because it offers another kind of protection. It gives consumers assurance that they are not being scammed or tricked.

CoD is simple and easy

Essentially, many Filipino shoppers prefer CoD because it’s easier to manage. Working with logistics partners with Cash on Delivery capabilities opens your shop to a whole demographic – those who are not tech-savvy when it comes to digital/online payments and those who do not have credit/debit cards. Offering CoD is a definite plus for you for inclusivity!

Leaning towards flexible arrangements

Lastly, merchants must remember that Filipino consumers have varying payment preferences. Offering Cash on Delivery equally benefits merchants because it shows your flexibility in catering to different types of consumers. Filipinos tend to favor shops that have flexible payment options primarily because it suits their needs, lifestyle, or their current situation.

Benefits of Cash on Delivery

Now that you know why there’s a preference for CoD, let’s look at how it helps both merchants and customers. Providing Cash on Delivery has a number of benefits, especially here in the Philippines. Here are a few examples: 

Benefits of CoD for merchants

Creates a wider customer reach

Millions of Filipinos remain unbanked, and if you opt to only offer online payments to your customers, you’re discouraging these Filipinos from making a purchase with you. This limits your customer reach, which means you’re losing the opportunity to make more sales and find potential customers. 

By providing Cash on Delivery, you can attract customers who prefer CoD as a payment method. Reasons for this may be because they don’t have a bank account, they aren’t as knowledgeable in e-payments, or they are more complacent with the ‘traditional’ way of paying for online orders.

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. 

Gives customers flexibility

Just because a customer has a debit or credit card, doesn’t mean that he or she will always opt to pay every purchase with it. Similarly, offering CoD doesn’t ensure that most of your customers will always pay with cash. Offering CoD means that your business acknowledges how payment option preferences aren’t set in stone — it varies from purchase to purchase. 

One of Cash on Delivery’s benefits is that it lets your customers be flexible with how they pay for each order. It’s not about which payment method is better; it’s about catering to the different choices of your customers. 

Builds brand trust

Offering CoD elicits a greater sense of trust in Filipino customers because they receive their items before paying for it. They can inspect whether or not the item really is what the online shop promised, and if it has arrived in good condition. Providing CoD also shows that you’re aware of the factors you should consider while navigating the local E-commerce industry.

Benefits of CoD for customers

Gives customers the luxury of time

When you provide CoD, you give your customers the luxury of time in two ways; first, you give them time to check their packages and make sure everything is as it should be. Once they’re done, that’s the only time they need to pay.

Second, you also give them more time to come up with the money they need to pay for their order. These instances may be rare, but a few hours or even a day can make the difference between a customer being able to pay for an order, and that customer not being able to. 

Eliminates the stress of refunds

In the event that you, as a business, are unable to fulfill a customer’s order for whatever reason (e.g., a stock shortage) they may opt to cancel their order with you. On the other hand, they may also decide to cancel their orders for reasons completely unrelated to your service.

By providing CoD, you remove the stress of refunds, both for you and your customers. You won’t need to coordinate with them about it, or answer messages asking for follow-ups on the refund. 

Helps customers avoid online fraud

As a business, it’s your responsibility to provide secure payment options for your customers. However, not all customers are tech-savvy, and these customers are more prone to being victims of online fraud. Maybe you have secure payment methods, but you can’t say for sure that the same goes for every other online store.

By providing CoD, you help customers feel at ease because they know they can just pay with cash, and that they don’t need to share sensitive information online. This is an important benefit of choosing Cash on Delivery.

How to Integrate Cash on Delivery into your Online Store

Convinced that Cash on Delivery provides many benefits? It’s now time to integrate it to your shop! 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. Here are the ways you can do it.

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, 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 info@payo.asia. We’re happy to help you out!

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Here’s why your business should have an NCR warehouse

A massive 38% of the Philippines’ E-commerce transactions take place in Metro Manila. This huge share has resulted in the country’s National Capital Region (NCR) having a very competitive online market. When a majority of customers are all in one area, most businesses are incentivized to cater specifically to them.   

For E-commerce businesses based outside of the area, it may seem difficult to break into this market. Working with a logistics company in the Philippines – especially one that offers warehousing services –  can help you get a leg up in this space. Having an NCR warehouse has a huge impact on how your business can compete in the Philippine E-commerce landscape.

But before we get into that, let’s look into the reasons behind the increase in NCR warehouses.

Why is there an 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 past few years? 

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. 

Now that you know about the reasons behind the warehousing boom, it’s time to look into why you should invest in an NCR warehouse.

Why does your business need an NCR warehouse?

More efficient operations

If you’re a merchant based outside of NCR, delivering to the area on a per order basis can be difficult. However, you don’t have to relocate your entire operation to cater to that market. 

With an NCR warehouse, you can efficiently keep up with your customers’ demands. When they order from you, it’s just a matter of shipping the stocks you already have stored in your warehouse.

Easier inventory

Working with a logistics company with an NCR warehouse removes the hassle of having to look after your products. They can monitor your items to help you keep track of your inventory while you’re away. There are also teams there assigned to ensure the safety of your items from packing to pick up. This gives merchants one less thing to worry about! 

Lower shipping fees

Having an NCR warehouse helps lessen the shipping distance between you and your customers. The shorter travel helps merchants spend less on delivery fees, in comparison to if their products were shipped directly from outside Metro Manila. This results in reduced overall delivery costs, which allows you to save money over time.

Faster delivery

If you keep a customer waiting too long for their order, they have a tendency to cancel it. There’s even a chance of them switching to another merchant that can deliver the same item but faster.

With an NCR warehouse, you can get your products to customers within days even if you’re based outside of Metro Manila. This is in contrast to when your products come from a farther place and customers have to wait for up to a week or two for their orders. 

There are even some logistics companies in NCR that offer same-day and next-day delivery, which ultimately helps increase customer satisfaction. 

Attract more customers

Once you combine all the benefits of an NCR warehouse into one seamless experience, you have a better chance of getting more customers.

For online shoppers, the advantage of getting their order faster has a big bearing on their purchase. This is especially true when the quality of your products is on par with the rest of the competition. The more times you win over these potential customers, the easier it becomes for your business to achieve success. 

These are just some of the logistical advantages of having an NCR warehouse. Ultimately, being strategic about your warehouses will help you enter the area’s highly profitable E-commerce market.

If you’re looking for a logistics company in the Philippines with innovative warehousing services, then look no further than Payo!

As the country’s leading E-commerce enabler, Payo has a wide array of services that can handle your business’ needs. These solutions range from Fulfillment, Last Mile Management, and of course, Warehousing.

Aside from the usual warehousing service, Payo also offers a Multiple Warehousing Solution. This means that your items are stored in warehouses located within different major cities across the Philippines. This helps keep your business flexible, so you can adjust your storage based on wherever your customers may be. 

Sign up with us or send us a message at info@payo.asia to get in touch with a reliable warehousing partner for your business!

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A look into the warehousing business boom in the Philippines

E-commerce has been experiencing a sudden boom as Filipino consumers continue to flock to digital marketplaces. Many businesses are now searching for warehousing services or warehousing businesses in the Philippines, causing an increased demand for warehousing.

A 2020 study done by Colliers Philippines revealed that the pandemic disrupted the country’s consumer-driven economy. Retailers are innovating their processes to remain relevant and competitive with the changing landscape. This resulted in increased partnerships with logistics firms and warehousing businesses across the Philippines to reach consumers wherever they may be. 

In nine months alone last 2020, the warehouse sector recorded a gross value of PHP 118.4 billion. This accounts for 31% of the gross value added to the transport and logistics sector, an all-time high for the warehousing business in the Philippines.

The report also indicated that the average rental costs in Metro Manila ranged from Php 220 to Php 570 (per square meter). This is higher than provincial rentals which only cost Php 160 to Php 240 in Northern and Central Luzon. 

This demand for warehousing will likely continue post-pandemic and will be sustained by the continued shift of retailers to E-commerce. However, the main driver will still be the growing demand for online shopping.

Overview of 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.

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.

Things to consider when looking for Warehousing Services in the Philippines

If you’re looking for a partner to help you out with warehousing services in the Philippines, here are a couple of things you need to look out for:

Business Flexibility

Look for a warehousing partner that can be flexible when it comes to your needs. It’s a must for them to have warehouses in different locations, especially in key areas where you want to concentrate your business. This ultimately reduces the risk of having your products stuck in one place, giving you enough leverage to manage unforeseen circumstances.

Quick Delivery

It’s not enough that they are present across the country. What you need is a partner that can provide quick deliveries wherever your customers may be. It’s a definite plus for your business if you can offer customers same-day or next-day delivery. You should also consider cutting down delivery time for provincial areas.

Cheaper Shipping Fees

You haven’t even started, but savings are already at arm’s reach. Having warehouses in various locations also means shorter shipping distances from a warehouse to your customer. Because travel time and distance are shorter, it is only natural that shipping or delivery fees are significantly lessened.

With these things in mind, you now know how to choose the best warehousing business in the Philippines. But aside from these, go for a partner you know you can trust, and one that can help you scale your business.

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!

So if you need help when it comes to warehousing and stock management, you can sign up with Payo today or send us a message at info@payo.asia. We’ll be right there with you!

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5 best practices every logistics courier should follow

One of the most important E-commerce decisions you’ll make is what logistics company in the Philippines you’ll partner with. Logistics is the backbone of your operations, and the type of partner you have for it can make or break your business. 

With this, it’s important to know what to look for in a logistics courier. To help give you an idea, here are five best practices that your courier should ideally follow. 

Having efficient packing practices

How your products are packed can determine their condition once your customers get them. You should look for a logistics partner who uses the proper packing materials, and has strict packing protocols. This is especially true if you have a number of fragile or big-ticket items. 

Ample use of bubble wrap or packing peanuts, secure wrapping, and putting items in the correctly-sized pouches or boxes are some of the basics of proper packing. Additionally, efficiency in packing means your partner is quick to pack, but doesn’t skip steps that ensure your products stay in great condition. 

Handling items with care

Your logistics partner should take care of your items at every point of fulfillment. This includes when a logistics courier is set to deliver your package. First, your logistics partner must properly receive the package, and make sure it’s secure in transit. This means not overloading one’s delivery vehicle and properly arranging packages. 

Any behavior that involves tossing packages or just carelessly transporting them to be quick with deliveries should not be tolerated. 

Giving timely updates

Both merchants and customers deserve timely updates when it comes to their packages – for merchants once items are shipped out for delivery, and for customers once their package is on its way to them. A reliable logistics partner should be able to consistently send these out, be it through text messages, emails, dashboard notifications, or a combination of different channels.

Embracing automation

Going about fulfillment manually can result in a lot of errors and delays. That’s why it’s so important to embrace automation, especially in today’s day and age. One example of this is having a centralized dashboard where you can view all your incoming and outgoing packages. Another one would be using an algorithm that determines the best courier for each delivery. 

Automation makes the logistics process better and faster, and your logistics partner should recognize this.

Providing same-day delivery

Speed is king in E-commerce, which is why choosing a logistics courier who can provide same-day delivery is a must. This will give you an edge over your competitors, and help establish your brand as a reliable store. Same-day delivery also helps you expand your customer base to last-minute shoppers, or those with time-bound orders. 

Ultimately, providing same-day delivery can help your store get more sales, especially if you make sure you deliver on your promise of fast delivery.

These are just five best practices that your logistics company in the Philippines should be doing already. Looking out for these will help ensure that you’re getting the service you deserve.

If you’re looking for a logistics company that practices these and so much more, Payo is the clear choice!

Payo is an E-commerce enabler that takes care of your online business in a holistic manner. We provide both Warehousing and Fulfillment services, as well as Live Customer Support and Advanced Remittance. Furthermore, Payo advocates for E-commerce automation, and uses the latest tech to ensure that the E-commerce experience is seamless for both merchants and their customers. 

If you want to know more about how Payo can help you with logistics, warehousing, and other E-commerce services, sign up today or message us at info@payo.asia. We look forward to hearing from you!

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Understanding the same-day delivery feature on Lazada

Same-day delivery is a growing trend within E-commerce. As speed and convenience become the name of the game, merchants are working so hard to provide same-day delivery, making it easier for customers to get what they’ve ordered on online marketplaces in less than 24 hours. 

In the Philippines, online marketplaces like Lazada offer same-day delivery. This mode of delivery combines the convenience of online shopping with the speed of brick-and-mortar stores. And instead of the standard three- to five-day wait, customers can now get their purchases within hours. 

If you are on Lazada, same-day delivery could work to your advantage. Not only does this give you a quicker way of delivery, but it can also satisfy even your toughest customers.

Enable same-day delivery for your store

Lazada launched their same-day delivery feature this year to address the rising demand for customers to receive their purchases almost instantly. This feature is currently available for merchants with warehouse services in Metro Manila. Customers from the metro, as well as in Laguna and Cavite, who are within 30km of the seller’s store can opt for this type of delivery service.

To enable same-day delivery for your store in Lazada, you have to register, fill in all necessary information, and submit your online form. After which, you’ll get an email confirmation from the online marketplace regarding the result of your application. Once confirmed, all your products will be available for same-day delivery. You can edit this option anytime.

You can still can track these orders

Wondering if it’s a hassle tracking same-day orders? Thankfully, it’s not. Similar to standard delivery, Lazada’s same-day delivery service also includes order tracking. You can track your same-day delivery order status at the Seller Center’s order management page in Lazada. You will also see how much time is left to pack and arrange the item for shipment before it gets automatically canceled once the counter runs out.

No need to book your own courier

Once you’ve arranged the shipment of your item, you don’t need to book your own courier for delivery. Your courier will be booked automatically and shall contact you once they are at the warehouse. You don’t have to pay the courier either. However, your driver may cancel if the item is still not with them after waiting 10 to 15 minutes. Also, the online marketplace itself may cancel the order for issues beyond your control such as out-of-stock items, lack of couriers, and items not prepared on time for shipping.

Take note of the same-day guidelines

Merchants and customers alike must take note that Lazada’s same-day delivery has specific guidelines. If your customers want to get their purchases on the same day, they must place their orders before 11 AM from Mondays to Fridays. Customers who order after the cut-off will get their items the following day.

Also, the items get to customers via motorcycles. This means orders for same-day delivery in Lazada must have a limit of up to 20kg, and a dimension of 43cm x 43cm x 76 cm. Additionally, if you decide to order a mix of items under same-day delivery and standard delivery, the whole order will be under standard delivery upon checkout. 

These are just some of the things you need to know about same-day delivery on Lazada. Thanks to this feature, customers no longer have to wait anxiously for the goods they’ve purchased.

If you are thinking about how to start offering same-day delivery for your store, Payo can help you with it!

As an E-commerce enabler, Payo can be a reliable and trustworthy partner in delivering instantly to your customers. Payo’s Same-Day Delivery is currently applicable to Metro Manila, Metro Cebu, and areas near our warehouses.

Payo can help you offer Same-Day and Next-Day Delivery across major Philippine cities. And if your customers are in rural areas, we can shorten the delivery time by 2-3 days!

Apart from that, we can help you further elevate your business and sell seamlessly with services like Fulfillment, Warehousing, Live Customer Support, and Marketplace Optimization among others.

With Payo’s Same-Day Delivery, you can ship your packages to your customers quickly and hassle-free. Sign up with Payo today or send us a message at info@payo.asia to know more about this service.

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A look at logistics and its meaning

In today’s time, a logistics company in the Philippines needs to become agile to adapt to the changing landscape. Adopting trends, embracing digital, and innovating services – these are only some of the ways for one to remain competitive as a provider of logistics solutions.

For a company or merchant that’s looking for a partner, you may wonder what logistics is, its meaning, and its function. Here’s a quick read to help you better understand how everything works.

Logistics and its meaning

In business, the process of transporting, receiving and storing resources is called Logistics. Its meaning was derived from how the military managed and transported different supplies and equipment. Now, it is used mainly by businesses and encompasses transportation and warehousing functions – services provided by a logistics company in the Philippines.

Transportation refers to how products are delivered from their origin to their destination. This includes a vehicle plan, an itinerary, and a schedule to properly manage when and where goods will be picked up and dropped off.

Warehousing is all about inventory management and order fulfillment. Products are kept for storage in warehouses. As orders come in, products are taken from these warehouses, packed, and shipped to the recipient.

For goods that come from abroad, customs management becomes part of logistics. This encompasses transactions and the necessary documents needed to import or receive products through a country’s international ports. 

Logistics in the Philippines

Logistics in the Philippines has rapidly evolved in recent years, and most of it was driven by the pandemic. Prior to the widespread integration of technology, processes were more traditional and were also prone to various challenges.

According to a 2019 research, among these challenges were: Traffic congestion in Metro Manila which could potentially lead to daily losses of USD 106.4 million by 2023; Manual processes that result in longer lead times and unhappy customers; and, inefficient clearance processes with customs that also leads to port congestions.

These opened up various opportunities to help avoid any further losses to the logistics sector. The same research provided digital-centric solutions including working with tech-savvy experts, partnering with digital-capable companies, and digitizing operational aspects. A year later, the adoption of these measures became necessary with the sudden boom of E-commerce.

Transformation of logistics

Logistics and its meaning rapidly changed in the last two years. Filipinos started exploring the digital marketplace while businesses ventured into online retail. Both are now present in websites, online marketplaces, and on different social media platforms, giving birth to all-new shopping behaviors in the community.

Data showed that the number of online sellers in the Philippines grew from 1,700 to more than 93,300 from March 2020 to January 2021. Annual revenues have also significantly increased from less than USD 99,000 in 2019 to over USD 170,000 in 2021. These numbers are only forecasted to grow even further in the years to come.

This change also saw the need for logistics companies in the Philippines to evolve and innovate. Apart from transportation and warehousing, companies now offer different digital solutions to help merchants and sellers grow digitally and service online customers.

Payo is an E-commerce enabler that makes for a perfect logistics partner for companies of different sizes. Aside from Warehousing and Fulfillment, Payo also offers other solutions that are handy to merchants, especially in today’s landscape. Among them are Cash-on-Delivery Integration, Marketplace Optimization, and Live Customer Support.

Need a logistics partner to help you conquer online retail? Sign up with Payo today or send us a message at info@payo.asia. Let’s see how we can elevate and innovate business!

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Order fulfillment 101 for new merchants

Order fulfillment is the backbone of any E-commerce service in the Philippines. It’s the process that covers a customer’s entire order experience, starting from the moment they purchase an item until it reaches their home. If done well, this can leave a huge impression on customers and even inspire repeat purchases. 

However, order fulfillment can be overwhelming for new merchants especially if they’re handling it in-house. This lack of experience can lead to failed deliveries that in turn, gives your store a bad reputation amongst customers and prevents you from growing your business. 

If you want to be a successful E-commerce service in the Philippines, an understanding of the ins and outs of order fulfillment is a must. 

Luckily, we’re here to make this easier for you. Here’s everything you need to know about order fulfillment before starting your own E-commerce service in the Philippines! 


Storage

First off, how you store your products plays a major role in the efficiency of your order fulfillment. Storing your products in areas near your customers can make it easier for you to deal with multiple orders. This can also help you cut down on costs and help you ship orders faster.

A good way to simplify this process is by working with a warehousing service. Apart from the benefits mentioned above, they can even pick up your products from your location and store it in their warehouse for you. This ensures that the item is readily available for shipping once an order is placed.

Shipping and delivery

Upon confirmation of an order, items are then picked from their storage area and packed for delivery. 

New merchants usually directly coordinate with couriers about delivery. This is fine at first but once the orders start piling in, any E-commerce service in the Philippines looking to succeed needs to work with a logistics partner. Good partners have systems in place that tap multiple top couriers in the country.

Last mile management 

The work doesn’t stop when you hand over your package to a courier. A lot of issues can still take place while the package is in transit. Failed deliveries can happen due to miscoordination, couriers getting lost, customers not being able to receive items, and even wrong delivery details. 

Attending to these matters takes time – time that you could be using to deal with other aspects of your business. It’s best to partner with a logistics provider that offers services like live customer support to prevent issues like this from happening. They’ll take care of the coordination for you, and will ensure that your packages reach your customers without fail.

These are just some of the basics of order fulfillment that new merchants should know about before getting into E-commerce. It may seem difficult to execute without much experience, but with a logistics partner like Payo, that’s not going to be a problem! 

Payo, is the Philippines’ leading E-commerce enabler that can help merchants with Fulfillment and so much more! Our holistic approach to logistics makes sure that all your needs are taken care of. From Warehousing services, Same-Day Delivery, and even Last Mile Management – we’re with you every step of the way.  

Learn more about our logistics solutions by signing up with Payo today or by sending us a message at info@payo.asia

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How to choose a logistics company in the Philippines

For most merchants, a reliable logistics company in the Philippines is essential for running a successful E-commerce business. Your logistics partner will be responsible for storing your products and delivering them to your customers, so you must take the time to find the right one.

Finding a trustworthy logistics company in the Philippines is not easy, but it is possible. Here’s a list of questions you should consider answering before choosing a logistics partner for your company.

Do they have credibility?

There are a lot of logistics companies in the Philippines, and when you’re looking for one, the first thing you have to check is their credibility.

You can do this by doing some research on the different logistics companies. Know their track record and their reputation in the market. Check out their websites, social media accounts, and what their clients say about their services. Feedback matters, and you’ll know if they are credible based on the service they provide their clients, as well as the reputation they’re able to build through time.

Do they have the right technology to do the work?

Another thing you need to consider in finding a logistics company in the Philippines is its technological capabilities. As the E-commerce industry evolves, so does logistics. With that said, the logistics company must integrate the latest IT systems for transport management, such as a courier algorithm that analyzes the best courier to manage your needs. 

Are they offering transparent and competitive pricing?

Wasting money on bad logistics is a big no-no. To avoid falling into the trap of inconsistent and ambiguous pricing, check their rate card to know if their services are best suited for you. Also, a detailed report of delivery costs can help you choose your delivery schemes consciously and save you from wasting money.

Do they have policies on returns and refunds?

While damaged and lost parcels can be inevitable, it still pays to have your back covered by knowing your logistics company’s policies on refunds and returns. Checking if they have a safe delivery guarantee and transit damage policy can help you select the best logistics partner.

Will you get timely logistics updates?

Communication is crucial in customer management. The E-commerce industry has come to a point where almost all customers expect to know where their packages are at all times. Complaints about not getting real-time updates can create a dent in your reputation as an E-commerce business.

Do they have 24/7 customer support?

Cases of lost parcels, mishandled packages, damaged goods, and unresponsive logistics partners have become prevalent, causing frustration for both merchants and customers. For customers especially, it can be discouraging when logistics companies cannot assist them promptly. 

Consider a logistics provider that offers fast and consistent customer care service. You can actively observe this by checking how responsive they are in communications, and how they handle problems. It would be a plus if they offer 24/7 customer support, or customer support through different channels. 

Are they present in key locations?

If you make deliveries nationwide, you need to choose a logistics partner that can cover all parts of the country. It is important to note if they have multiple warehouses or if they are present in key locations in the Philippines, as this will benefit your business. 

For one, you’ll be able to reduce the usual delivery wait times because your products are closer to your customers. This also means that delivery costs won’t be as expensive in the long run.

Getting a reliable logistics company in the Philippines can be very challenging, but these questions will help you choose the right partner and strategically scale your business. If you want to improve your logistics now, look no further because Payo’s got your back!

As an E-commerce enabler, Payo is a reliable logistics company in the Philippines. We offer quick and hassle-free logistics services with our range of innovative and tech-driven solutions such as Information Logistics, Live Customer Support, Courier Algorithm, Multiple Warehousing, and so much more. Payo is the perfect logistics partner that will give you access to dependable and cost-effective logistics in the Philippines.

Optimize your logistics process now by signing up today or sending us a message at info@payo.asia. We will be happy to help with your logistics!

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5 benefits of providing same-day delivery in the Philippines

One vital element in the success of E-commerce businesses is providing same-day delivery in the Philippines. For one, it establishes a solid customer-client connection. Another reason is that it enhances the likelihood of a sale within the day. 

Modern times call for faster, more efficient deliveries. This is why logistics companies in the Philippines offer same-day delivery to merchants. If you are a small business, you may think twice about providing same-day delivery for your customers. However, partnering with a reliable logistics partner that can help you with same-day delivery can positively impact your business. Here’s how:

It gives a higher level of customer satisfaction 

Offering same-day delivery in the Philippines is valuable for customers who can’t wait or can’t make it to a shop. If your customers can place their orders or schedule returns on the same day, they will be more satisfied with your service. 

It increases your credibility as a merchant

Giving your customers access to convenient services like same-day delivery will give show that you care for them. As such, you will appear more professional, credible, and trustworthy as a merchant. This will do wonders for your reputation, and you establish yourself as a reliable store.

It is cost effective

If you are a small business, same-day delivery will help you minimize your expenses and maximize your revenue. You get to reduce your operational costs because you’ll have simplified inventory management — no need to pile up your inventories in a warehouse! 

Plus, because you can ship items faster and more efficiently, you get to trim down your shipping costs. 

It reduces cart abandonment

Customers often abandon their virtual carts after seeing the estimated delivery date of their items. When you offer same-day delivery in the Philippines, you can mitigate this disadvantage and set your business apart from the competition. You increase your chances of a sale because of the immediacy you provide your customers. 

It creates a loyal base of last-minute shoppers

Convenience is king for last-minute shoppers. If word gets out that you offer same-day delivery in the Philippines, more shoppers will check out your store for their last-minute shopping hauls. You’ll now be their reliable go-to store and if they need anything quickly, they’ll choose you over the competition.

There are a lot of advantages that you can enjoy by partnering with logistics companies in the Philippines that offer same-day delivery. In this world where instant gratification is a must, you will need to offer same-day delivery to your customers if you want to satisfy their needs asap. 

Keep your customers’ satisfaction high when you partner with a reliable E-commerce enabler like Payo!

Payo has a presence in major cities in the Philippines and can help you offer same-day and next-day delivery to your customers. And if they are in rural areas, Payo can shorten delivery times by two to three days – still faster than standard delivery times. 

Aside from swift delivery, Payo has other services that can help scale up your E-commerce business. This includes Warehousing, Fulfillment, Live Customer Support, and Marketplace Optimization

Start your same-day delivery journey now with us at Payo! Sign up with Payo today or send us a message at info@payo.asia.

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5 characteristics of an efficient E-commerce service in the Philippines

One of the keys to having a successful E-commerce business in the Philippines is efficiency. From streamlined processes to a seamless overall experience, merchants have the opportunity to do more for their business when things are done right and efficiently.

With more merchants looking to set up shop and expand locally, providers of E-commerce services in the Philippines are also increasing to serve the growing demand. Merchants need to have the right partner who can bring their products and services to the online world and help them manage different aspects of their business.

What do merchants need to look for exactly? Here are five characteristics that merchants should look for in their partner to provide efficient E-commerce service in the Philippines.

Organized and systematic

Nothing says efficiency more than having a seamless system and being organized. Merchants benefit from an organized and systematic partner because there’s less room for mistakes and manual errors. Product stocks, incoming orders, shipments and backlogs – they definitely keep everything in check, which enables merchants to stay on top of their game.

Digitally-inclined and tech-savvy

In today’s time, the best way to achieve efficiency is by embracing the digital space and its different opportunities. Tech-savvy partners help merchants optimize their E-commerce service in the Philippines by lowering operational costs through digitizing processes. Things like marketing, customer service, reporting, and many more are easier to do online, boosting a merchant’s overall productivity.

Strategic thinker

Merchants who want to explore E-commerce in the Philippines more effectively must partner with strategic thinkers that offer local insights and strategies to understand the market. With these, merchants are able to build their online presence faster, reach target audiences, and tap more areas efficiently. 

Agile and adaptive

From customer complaints to natural disasters, doing E-commerce in the Philippines also has its own set of challenges. Merchants need to have access to partners that are agile and can easily adapt to navigate tricky situations with the best possible solutions. This will ultimately make the overall experience better for both merchants and customers.

Flexible and collaborative

There’s definitely no one-size-fits-all when it comes to offering any E-commerce service in the Philippines. A flexible and collaborative partner makes work efficient because they tailor-fit their solutions to a merchant’s needs. They are eager to listen and provide different suggestions and recommendations to ensure all requirements are met.

To conquer and thrive in E-commerce in the Philippines, merchants must be wise in choosing their partner. These characteristics are essential to finding the right one, especially as these help bring efficiency to various aspects of the business. Merchants can certainly find them in Payo!

Payo is the leading E-commerce enabler in the Philippines that understands the value of efficiency for businesses. Payo is a reliable partner for merchants because its solutions are comprehensive and can be tailor-fit based on your team and needs. Among these are Live Customer Support, Warehousing, Fulfillment, and Marketplace Optimization, which cover different aspects of a business.

Curious as to how Payo can make your business efficient? Sign up with Payo today or send us a message at info@payo.asia. It’s time to discover and unleash your brand’s true potential!