The Surge of Cross-Border E-Commerce in the Philippines: How Zoomasia Logistics Became the Preferred Choice for Sellers
Release date:2023-04-14 Reading volume: 3832
The Surge of Cross-Border E-Commerce in the Philippines:
How Zoomasia Logistics Became the Preferred Choice for Sellers
In recent years, Southeast Asia has been one of the fastest-growing regions for global e-commerce. According to Bain & Company, the e-commerce market in Southeast Asia is expected to reach $234 billion by 2025, indicating significant room for growth.
Among Southeast Asia, the Philippines stands out. Online shopping habits are penetrating various consumer segments, showcasing diverse demands. In 2022, the e-commerce platform Shopee recorded an impressive growth of 25.9% in the Philippines.
The Philippines is the second most populous country in Southeast Asia, with a rich tapestry of ethnicities and religious beliefs—80.58% of the population is Roman Catholic, 10.8% are Protestant, and 5.57% are Muslim.
In 2021, the Philippine e-commerce market reached $12 billion, marking a staggering 132% year-on-year growth, making it the fastest-growing e-commerce market globally. Across Southeast Asia, Lazada and Shopee dominate in terms of app downloads and website traffic.
The boom in the Philippine e-commerce sector has significantly increased demand for cross-border logistics, creating a positive feedback loop. However, many pain points are becoming increasingly evident.
Pain Points in Cross-Border Logistics
1.Long Delivery Times
Compared to domestic logistics, cross-border logistics face longer distances and are affected by weather, customs clearance, and various national policies, leading to prolonged delivery times.
2. Lack of Package Tracking
Once cross-border packages are dispatched, consumers often cannot track their logistics routes, particularly in less developed countries. Additionally, the quality of logistics services can be inconsistent due to the distance involved.
3. Complex Processes
Cross-border logistics require customs clearance through both the exporting and importing countries, which can lead to potential issues like returns or confiscations. In some countries with less developed customs infrastructure, clearance efficiency is low, often causing delays.
4. Inefficient Logistics Solutions
With long logistics cycles and multiple involved parties, prices in the cross-border market can fluctuate dramatically, leaving merchants without efficient solutions for routing, pricing, and timeliness.
5. Numerous Islands in the Philippines
The Philippines, known as the "Archipelago Nation," consists of many islands, complicating logistics with multiple transshipments and significant price fluctuations in the cross-border logistics market.
Zoomasia Logistics' Overseas Warehouses: A Solution to Cross-Border Logistics Pain Points
Logistics serve as a crucial link between consumers and sellers, reflecting their demands and impacting consumer experience and business decisions.
Zoomasia Logistics has established overseas warehouses in Manila, Cebu, and Davao, addressing the complexities of cross-border logistics. This efficient logistics solution enhances customs clearance and reduces delivery times.
By localizing warehouses in the Philippines, sellers can leverage Zoomasia's overseas warehouses for timely replenishment, maximizing cost savings and minimizing risks.
Zoomasia's overseas warehouses also provide services such as quality inspection upon entry, inventory management, order processing, sorting, verification, and multi-channel shipping.
Compared to traditional cross-border logistics, overseas warehouses offer several competitive advantages:
For Merchants: Increased supply options allow merchants to stock goods in overseas warehouses, reducing inventory pressure. Orders from overseas consumers can be shipped directly from the nearest warehouse, minimizing logistics steps, lowering damage and loss rates, and facilitating returns and exchanges directly at the warehouse, enhancing consumer shopping experiences.
For Overseas Consumers: More convenient logistics services are available; overseas warehouses significantly improve the quality of cross-border logistics services.
For Logistics Companies: The number of overseas warehouses may become a crucial asset in the competition for cross-border e-commerce logistics.
With its extensive overseas warehouse network, Zoomasia Logistics has become the top choice for Chinese sellers in cross-border e-commerce logistics, helping reduce costs while providing long-term, stable, high-quality, and relatively affordable services, thereby improving delivery efficiency.
Capacity Assurance: "Aerial Solutions" to Cross-Border Logistics Challenges
Zoomasia Logistics is deeply invested in the Philippine market and offers specialized air logistics services for users with high time sensitivity, continuously expanding international sea freight routes to assist cross-border merchants in overcoming logistics challenges.
By addressing logistics issues, Zoomasia Logistics helps more cross-border sellers excel in the last mile of e-commerce, enabling them to tap into the lucrative Philippine market.