Future Growth of Philippines E-Commerce Logistics Market: Ken Research

How Is The Philippines E-Commerce Logistics Market Positioned?

The Philippines offers tremendous potential for e-commerce and omnichannel merchants, boasting one of the fastest-growing consumer markets in all of Asia and one of the world’s highest internet usage rates. According to an analysis, the combination of rapid urbanization and an emerging market of young shoppers (the country’s average age is 25.7 years) points to long-term economic growth and increased consumption. The Philippines’ shift towards e-commerce is boosted by certain factors including the growing middle class, growing government support, and convenience of a digitalized shopping experience. The Philippines also has the second-largest average online shopping basket size in Southeast Asia, which only goes to show how eager local consumers are to find and buy products online.

Moreover, the opportunity here for online sellers is quite clear: they can stand out in this market by offering products Filipino consumers don’t have access to locally. One of the reasons behind the relatively slow uptake of e-commerce in the country in the past few years is the continued dominance of cash-based transactions. According to the Philippines’ central bank, cash accounted for 99% of all local transactions as of January 2018. In addition, with the Philippines being an archipelago of more than 7,600 islands, logistics naturally presents a challenge you will have to prepare for when serving customers in this country. Consumers living in the sprawling capital of Metro Manila enjoy access to huge shopping malls, flagship brick-and-mortar stores, and even quick delivery from large marketplaces like Lazada and Shopee. Moreover, the Philippines has one of the slowest and most expensive internet connections in Southeast Asia. 87% of Filipino merchants sell products on social media. Facebook also drives traffic and engagement on Lazada, Shopee, and Zalora.

Philippines E-Commerce Logistics Market Segmentation, 2020

Philippines E-commerce logistics market has been observed in its early growth stages of development, thus growing year on year majorly due to rising E-retailing coupled with an increase in the number of online orders. The average logistics order cost in the Philippines was evaluated at PHP ~ per order in 2019 which further declined to PHP ~ in the year 2020.

By Channel

The market has highly dominated by the 3PL players with a massive share of ~% in terms of annual shipments delivered during the year 2020. Marketplaces like Lazada and Shopee which have their in-house logistics arm are also dependent on 3PL partners to deliver their orders.

By Domestic and International Shipments

Most of the shipments ordered online in the Philippines are for domestic delivery. Domestic players through effective collaborations with global companies are enhancing their reach to the remote areas of the country. Most of the orders placed online are for intercity deliveries to the Metro Manila region.

By Mode

Ground shipments dominate the overall revenue as last-mile; deliveries are not possible by air express. Moreover, ground express plays a significant role in first mile, mid mile, and last-mile deliveries.

By Delivery Period

1-3 day delivery has dominated the market in terms of the number of orders owing to the increasing focus of the companies on providing better services coupled with increasing customer needs for better service. Growing expectations of consumers towards fast shipping from e-retailers along with the delivery of products in the case of a special event, such as during festivals will lead to rising of same-day delivery options in the Philippines. Customers are even willing to pay the extra price for sooner deliveries.

By Type of Products

Consumer electronics have dominated the online retail sector in the Philippines in 2020. Gadgets & Electronics platforms such as Argomall have seen a huge rise in the business in recent years. Fashion & Accessories is another huge market in the Philippines. Fashion-related keywords like “Shoes, Nike, Adidas, and Dress” are among the top 10 shopping queries in 2020. Beauty and personal care is the third leading e-commerce category in the Philippines.

By Payment Mode

One of the reasons behind the relatively slow uptake of e-commerce in the country in the past few years is the continued dominance of cash-based transactions. Over 80% of online retail players in the Philippines offer COD or payment centers (like paying at a 7/11) as a payment option. Credit cards, Paypal, and GCash as a payment mode is also preferred by few consumers shopping online.

Key Segments Covered: –

By Channel

3PL Players

E-Commerce Merchants

By Type of Shipments

Domestic Shipments

International Shipments

By Area of Delivery

Intercity

Intracity

By Mode

Air Shipments

Ground Shipments

By Delivery Period

Same Day Delivery

1-2 Day Delivery

3-4 Day Delivery

More than 4 Day Delivery

By Type of Products

Consumer Electronics & Media

Fashion & Accessories

Foods & Personal Care

Home Care & Furniture

Toys & Baby Products

Others (Video Games, Digital Music, Pet Care, Home Gardening, etc.)

By Payment Mode

Cash on Delivery

Credit Cards

Others (Debit Cards, Paypal, GPay, SMART Money, etc.)

Captive and 3PL E-Commerce Warehousing

Warehousing Concentration in Philippines

E-Commerce Logistics Companies Covered

LEL Express

J&T Express

NinjaVan

Lalamove

Entrego

GoGo Xpress

LBC Express

Shopee Xpress

2GO Express

Air21

JRS Express

E-Commerce Marketplace Platform Covered

Lazada

Shopee

Zalora

Key Target Audience

3PL Logistics Companies

Integrated Logistics Companies

E-Commerce Marketplace Platform

Retail Companies

Logistics/Supply Chain Industry Associations

Time Period Captured in the Report:-

Historical Period – 2019-2020

Forecast Period – 2020-2025

Key Topics Covered in the Report: –

Philippines E-Commerce Market Overview

Cross Comparison- Major E-Commerce Players in Philippines

Philippines E-Commerce Logistics Market Overview

Cost Component for Philippines E-commerce Logistics Industry

Philippines E-Commerce Logistics Market Size

Philippines E-Commerce Logistics Market Segmentation 2020

Philippines E-Commerce Warehousing Landscape

Philippines E-Commerce Warehousing Clusters

Philippines E-Commerce Warehousing Rentals

Philippines E-Commerce Warehousing Cost Analysis

Philippines E-Commerce Shipments Pricing Analysis

Philippines E-Commerce Logistics Market Growth Drivers

Philippines E-Commerce Logistics Market Trends & Developments

Philippines E-Commerce Logistics Market Government Role and Initiatives

Philippines E-Commerce Logistics Market Logistics Constraints

Philippines E-Commerce Logistics Market SWOT Analysis

Competitive Landscape of Philippines E-Commerce Logistics Market

Philippines E-Commerce Logistics Market Cross Comparison

Philippines E-Commerce Logistics Market Pricing Analysis

Future Market Size and Segmentations, 2020-2025F

Covid-19 Impact on Philippines E-Commerce Logistics Market

Analyst Recommendations

Case Studies

For More Information On the Research Report, Refer to the Below Link: –

Philippines E-Commerce Logistics Market

Related Report by Ken Research: –

India E-Commerce Logistics Market Outlook to 2025-Driven by Changing Shopping Patterns and Increasing Demand of Fast Delivery Services

Competition Benchmarking of Top Logistics Players in Indonesia in Transportation, Warehousing, Cold Chain, 3PL, Express, E-Commerce, Automotive, Pharma and Retail Logistics

Contact Us:  –
Ken Research
Ankur Gupta, Head Marketing & Communications
[email protected]
+91-9015378249