The Blueprint of Success: How International E-commerce Brands Win in the Philippines

The Philippines is one of the fastest-growing economies in the Southeast Asian belt, exhibiting consistent double-digit growth toward $35 billion by 2025. This growth is largely driven by e-commerce, which in turn attributes its success to increasing domestic demand, higher digital adoption, and a rising group of population entering the upper-middle-class income groups.

Despite being an emerging market in Southeast Asia, e-commerce businesses entering the region have previously experienced substantial growth and success. International brands and disrupters have been able to displace category leaders. In 2022, these new disruptors were 23% of the market share and registered $52 billion of the total e-commerce revenue across Southeast Asia. 

International brands can increase their chances of success in the Philippines by:

• Catering to product gaps existing in the market
• Offering products that meet local preferences and customs
• Meeting lifestyle expectations through premium products
• Targetting the masses through lower price points and category democratization

While the blueprint to e-commerce success is fairly straightforward, and a lot depends on swaying a loyal customer. Filipino shoppers are open to switching brands, especially with access to more choices than before. By tailoring an experience to local preferences, brands can increase the possibility of shoppers preferring them to local options. 

In a market where value and convenience are primary indicators of conversion, e-commerce businesses, particularly foreign brands, must rethink their go-to-market strategy for the Philippines. 

And that’s where this guide will help you. To garner an understanding of the Philippine market like never before. Understand what it takes to launch a business in the Philippines, the investment you need, and how you can scale economically to dominate the market.

Before exploring the feasibility of sales, let’s examine the customers, the Filipino shoppers, closely.

Decoding E-commerce Customers: The Filipino shopper

Launching a business is about understanding the current gap in the market and addressing that through the product you wish to sell. Knowing who your customers are, their behavioral traits and their spending habits help you build a realistic profile of your ideal customers. This helps businesses align their positioning, sales, marketing and pricing to maximize wins.  

Distribution of e-commerce shoppers in the Philippines:

The e-shopaholics or shoppers in the Philippines comprise only about 19 per cent of the Filipino population. But this segment is responsible for driving nearly 47 per cent of total e-commerce purchases in the country.

Nearly 64% of e-commerce shoppers are under 35, making Millenials and Gen Zs the dominant group of shoppers. Shoppers belonging to the working-class group of 25-34 were responsible for 50% of online shopping. On the other hand, the distribution starts dipping as the age group of the shoppers increases. Nearly 24% of the population comes from the 35-44 age group, and shoppers aged between 45 to 54 make up 11.1% of the total e-commerce shopping population.

Age	Distribution of Filipino Shoppers
18-24	29.3%
25-34	35.6%
35-44	24%
45-54	11.1%

Do Philippine Customers Shop Till They Drop?

Generating a pipeline of shoppers with increased potential for repeat buying helps e-commerce merchants increase their share of recurring revenue.  As of June 2023, the majority of Filipino shoppers were male, representing 57.2% of the country’s total online shoppers. The remaining 42.8% of shoppers were female, indicating a skewed distribution.

However, bringing them back for repeat purchases helps generate a sustainable revenue stream. Nearly 22% of shoppers in the Philippines make a purchase multiple times a week. The spending pattern goes up, with 24% of shoppers visiting online stores to complete a purchase on a monthly basis. 

The convenience of e-commerce, along with the frenzy induced by Pay Day and seasonal sales, clearly influences shoppers in the Philippines.

Analyzing the Commercial Hubs of the Philippines

Shoppers prefer to buy products from online stores that offer faster delivery options. The location you choose to operate your e-commerce businesses can be a strategic combination of increased proximity to buyers and faster delivery times. Despite being an archipelago, the Philippines’ customers today enjoy fast fulfillment, like same-day fulfillment and next-day delivery. By choosing ideal commercial hubs, e-commerce businesses can also leverage access to a skilled workforce, improved infrastructure, and wider logistical choices. E-commerce businesses can serve their growing customer base, have more logistical choices, and scale faster

While Metro Manila leads the race as the Philippines’ commercial capital, e-commerce businesses can factor in exciting opportunities in other regions. Cities like Pampanga, Baguio, Cebu, Iloilo, Davao, and Batangas are emerging as major commercial hubs. To zero in on the ideal location, merchants must consider:

• Strategic Locations: Cebu City and Iloilo serve as central hubs for the Visayas region, offering easy access to a vast customer base. Davao, in the south, enjoys a dominant position in Mindanao due to its extensive transportation network.
• Gateway Cities: Pampanga and Batangas are strategically located near Metro Manila, allowing businesses to tap into the capital’s resources while efficiently reaching nearby markets.

These regions offer businesses access to skilled labor to manage business operations and the ability to cater to specific regional demands and extend nationwide coverage to compete in other local markets.

Where Philippines e-commerce customers shop

With e-commerce gaining momentum in the Philippines, several online marketplaces have become the top channels for Filipino consumers. As a seller entering this dynamic market, understanding the top e-commerce platforms becomes a critical factor that determines your success. Each e-commerce platform draws a certain type of shoppers. The ideal commerce platform should have shoppers who visit the platform to shop for the product you sell. Understanding this helps you finalize the right e-commerce platform to set up your online store. 

Website	Monthly Visits In million	% split
Shopee	53.9	54.2%
Lazada	24.4	24.5%
Zalora	1.1	1.1%
TikTok	20.0	20.1%

In the Philippines, established marketplaces like Shopee and Lazada capture a major share of online traffic. With millions of shoppers, monthly visits, and app downloads, these platforms can potentially give your online brand the right exposure.

Let’s take a look at the top platforms operating in the region:

• Shopee: Shopee currently dominates the market, boasting a staggering 46% market share. The platform records web traffic and app downloads, nearly 3 million app downloads, and 53.9 million monthly visits. The top-selling product categories on the platform include fashion and beauty products, electronics and gadgets, home and living items, toys and baby products, and food and groceries.
• Lazada: Lazada takes the runner-up spot, averaging 24.4 million monthly visits and 1.4 million app downloads. The top categories that recorded high sales in Lazada Philippines include home and living, health and beauty, electronics, pet supplies, and fashion.
• Zalora: Exclusively for fashion, apparel, and accessories brands, Zalora has become the go-to marketplace for style-conscious Filipino shoppers. The platform logs on an average of 1.1 million monthly visits and clocks in 175 thousand monthly app downloads. Zalora helps merchants in the Philippines sell products like apparel, footwear, fashion accessories, Sportswear, luxury clothing, beauty, and lifestyle products.
• TikTok Shop: The social media powerhouse has redefined social commerce in the Philippines. Since its launch in the Philippines in 2022, TikTok Shop has swiftly become one of the country’s most active online selling platforms, averaging about 20 million web visits. The top 5 categories that resonated with shoppers on the platform were beauty and personal care, fashion, shoes, phones and electronics. E-commerce businesses previously used TikTok as a discovery platform where customers notice brands and interact with their content. With TikTok shop, the platform was able to direct shoppers from engagement to purchase seamlessly. Last year, TikTok dominated the charts by recording 3.2 million Android app downloads in the Philippines. 

How much are Filipinos spending while shopping online?

In the Philippines, e-commerce has improved accessibility for users across different demographics to engage with brands and buy. Understanding the income distribution and average spend value can help businesses understand the shoppers better. 

Income Distribution across Filipino Shoppers: The share of Filipino shoppers is almost evenly split across three major classes. The major share of the shoppers either belong to the high or low-income groups, representing 34.4% and 34.9%, respectively. The rising middle-income group represents 30.6%. This distribution tells us how Brands can easily cater to two different types of shoppers, either through affordable products for the masses or premium products for high-value shoppers.

Average Spending per Order in the Philippines: Toughening market conditions and recent e-commerce adoption indicate that the average Filipino seeks value while shopping. The average basket size for e-commerce is $23 USD, which is due to shoppers evenly spread across diverse income groups. The average spending also indicates that Filipino shoppers leverage sale days and deals to make smaller or more frequent purchases.

Disposable Income Set for Shopping: Rising inflation also impacts the frequency of e-commerce activities. Households prefer saving up or restricting their spending. In the fourth quarter of 2023, nearly 35.9% of Philippine shoppers allocated 5-9% of their income to savings. The value-seeking shopper prefers saving instead of spending online. Businesses can consider offering more value during key sales periods to persuade shoppers to buy more. 

Capital Requirement for Entering the Philippine Market:

The Philippines Government has actively implemented initiatives for foreign brands to establish their business and operate in the country. Retailers now need around $446,000, reduced from the previously mandated $2.5 million. This levels the field for international medium-sized businesses and enterprises to enter the Philippines e-commerce market. However, there are still some challenges to consider:

• Physical Store Capital: Retailers who aim to have a chain of brick-and-mortar stores must consider the additional paid-up capital over the 25 million PHP requirement. Retailers must have a $178,000 investment, which translates into 10 million Philippine Pesos, for each store location. This could limit the opportunities for businesses that cannot expand into the country due to budget constraints.
• Increased Freight Rates: When establishing an entity, retailers also need to factor in dynamic freight and transportation costs. Global freight rates have risen, reaching over $3,900 for a 40-foot container in February 2024. This can increase logistics costs for e-commerce businesses, impacting their profitability.

Both paid-up capital and increasing freight costs occupy a major share of the budget for business expansion. But there are other costs involved for businesses entering a dynamic market like the Philippines. Let’s examine them.

Understanding the Philippine E-commerce Customs, Duties, Taxes and Clearance:

As international players, most business operations will rely on shipping inventory to the Philippines. Understanding the Philippines’ duties and taxes can help businesses remain mindful of how to ship inventory and how to leverage tax-saving instruments to minimize shipping costs.

• De Minimis Threshold: Shipments valued at PHP 10,000 or less are exempt from import duties and taxes. International businesses offering low-cost products can take advantage of this.
• Import Duties & VAT: For businesses dealing with high-value or bulky shipments, potential import duties from 0% to 20% will apply to the value of goods exceeding PHP 10,000. Businesses must additionally pay a 12% Value Added Tax (VAT). Understanding the import duties and VAT helps e-commerce businesses price their products to recover these spends.

Another challenge associated with importing inventory into another country is the clearance timelines. While businesses should ensure that they provide all the paperwork, the type of import and evolving regulatory guidelines can impact the time required for import clearance at the port.

The average clearance time for imports in the Philippines is around 5 days and 18 hours but can vary depending on risk assessment. 

The Philippines has 23 major ports. According to the Philippines Port Authority, the Manilla Port alone handled 7.91 million Twenty foot Equivalent Units in 2022, up 7.2% from 2021.

 The increased import inflow and the nature of import and labor challenges can impact clearance time. Here is how imports are classified and cleared at the port

• Green Lane (Fastest): Low-risk shipments can clear in 1-2 days, which is ideal for strategically planned inventory.
• Yellow Lane (Moderate): Moderate-risk shipments take 3-4 days. Be mindful of potential delays for document reviews.
• Red Lane (Slowest): High-risk shipments undergo inspections and can take 7 days or more to clear. This can impact delivery times.

Compliance that prevents custom hold up:

Several factors apart from the nature of import can result in the shipment being held at port. Businesses must comply with local regulations to increase the chances of faster clearance. Some primary reasons for freight held at port include:

• Filing Requirements: Planned import deals with accurate filing of goods declarations. Failure to declare goods within 7 days of the ship’s arrival can result in abandonment by customs.
• Payment Deadlines: Businesses must make sure that they pay the assessed duties, taxes, and other charges. Not clearing duties and takes within 15 days of arrival can result in import goods being abandoned at port.
• Claiming Goods: To free up space at the port, businesses must claim goods within 30 days of payment. Delaying the clearance can result in the import being classified as an abandoned shipment at the port.

Inventory Storage 

Once the shipment clears customs, e-commerce businesses should have an ideal location to store inventory. Choosing a strategic location serves many advantages. Being closer to customers means faster shipment times. A warehouse near a key economic region translates to better infrastructure and regional connectivity. However, having a warehouse close to the city also means a high rental or lease involved. Here are the top locations in the Philippines to consider for a warehouse:

• Metro Manila: A prime e-commerce hub due to its central location and excellent transportation infrastructure. Having a warehouse in Metro Manila gives businesses easy access to a large consumer base and major ports and airports. E-commerce businesses with warehouse in Metro Manila can rely on fast and efficient distribution and fulfillment across the Philippines.

However choosing Manila isn’t an economically viable option for brands entering the market with budget constraints. Rental growth observations reveal that Manila’s logistics property rents surged 39.3% annually and 7.3% from H1 2023. While Manila may be the top pick, the Philippines has other e-commerce hubs for brands to station their inventory. These include:

• South Luzon Provinces: Provinces like Cavite, Laguna, and Batangas are close to Metro Manila. They offer infrastructure and improved connectivity. Warehouses in these locations serve businesses to fulfill orders across Manila and other key regions in the Philippines.
• Cebu: The second-largest city in the Philippines, Cebu is a major economic hub with a growing base of e-commerce shoppers. Warehouses here offer easy access to the Visayan region and nearby islands, and warehousing costs are lower than Manila’s.

While a warehouse in Metro Manila helps e-commerce businesses operate from prime locations, rental costs are significantly higher. Businesses launching in the Philippines can offset the price by considering warehouses in locations outside Metro Manila. However, this might result in longer delivery times.

Inventory Storage Costs and E-commerce Fulfillment in the Philippines

Inventory storage costs, in addition to duties, taxes, and manufacturing, impact product pricing and e-commerce fulfillment in the Philippines. Understanding these costs allows businesses to make informed decisions about warehousing and fulfillment strategies. Here’s a breakdown of warehousing costs on your operational budget:

Warehousing Costs in the Philippines:

• Warehouse Rent: The average gross rent is PHP 323.8 per sqm per month, but this can vary depending on your warehouse’s location. The highest warehousing rate in the Philippines is PHP 1,764 per sqm, and this value increases based on the storage space you require for inventory. Dedicated warehouses may result in businesses paying for the spaces they may not use, regardless of the storage volume.
• Personnel: In 2023, the minimum wage for professionals in the Philippines was PHP 610.00 per day. Investing in skilled labor for warehouses helps improve inbounding, pick and pack, stock security, and faster dispatch. Labor costs significantly add to operational overheads and are a mandatory requirement for warehouse functioning.
• Utilities: The average cost of electricity is PHP 11.3430 per kWh. Utilities will depend on the security involved in the warehouse, the size of your warehouse, and the energy efficiency practices observed. 

Warehousing costs directly affect e-commerce fulfillment in a few ways:

• Order Fulfillment Costs: Higher warehousing expenses can lead to increased costs per order fulfillment. Businesses might need to factor in storage costs when calculating their pricing strategy. Poor inventory planning may result in excessive holding costs and may affect the cash flow of an e-commerce business.

Average Fulfillment Cost per Item in the Philippines:

• On average, the cost of fulfilling an order can range from PHP 14.40 to PHP 360.00 per item. Shoppers may prefer buying from an e-commerce business if the fulfillment cost is in line with the national average. Businesses must also consider the cost associated with last-mile delivery. Globally, the last mile generally falls between PHP 720.00 to PHP 3,600.00 per package. High storage costs can eat into profits if businesses don’t manage operational costs wisely. Balancing storage needs with fulfillment speed and customer expectations remains critical while trying to compete with local businesses in the Philippines.

So what happens when you choose to sell with Fixed Infrastructure

Heavy capital investment 

While the capital investment is relatively upfront, starting a business in The Philippines involves high procedure costs, which are 23.3% of the gross national income (GNI) per capita. For an international brand, registering as an entry incurs a business tax rate of 25%, which is lower than in countries like India and South Korea. [Source]

Despite returning to normalcy, shoppers in the Philippines still rely heavily on e-commerce. Online shopping in the region will remain profitable as consumer behavior has shifted to a mix of online shopping and offline purchases. Businesses entering the Philippine market need to be mindful of their investments in both capital and infrastructure. Relying on fixed infrastructure may drain resources, especially for successful businesses trying to enter the market for the first time. Here’s what happens when businesses choose the traditional way of expanding into the Philippines market:

Higher markup on products 

• Costly overheads, in-house fulfillment, and privately owned logistics fleets directly increase the operation costs of running an e-commerce business.
• If operating costs become too high, management may need to increase the price of their products in order to maintain profitability.  
• The Filipinos value great discounts, along with competing brands offering high-quality products at lower prices will eat into your market share, leaving you with low sales and unmarketable inventory.

Single-carrier Dependency

• Companies that opt for single-carrier shipping are taking a huge risk by putting their complete trust in a sole carrier; there’s no possibility of comparing routes or rates, and there is minimal flexibility and agility. 
• The supply chain and last mile can be threatened by localized issues or carrier-specific disruptions.
• Relying on one carrier means all the orders up for fulfillment depend on the carrier’s operation. If something goes awry, such as price increases, inclement weather, fulfillment will take a hit resulting in high cancellations or marketplace penalties.
• Restricted coverage, unserviceable areas/regions, and limited shipping options for end customers.

Legal bottlenecks

Import delays and clearance can derail either the market launch timeline or inventory replenishment runs, or, in some cases, cause stockouts. This translates into businesses unable to serve customers and missing out on sales opportunities. 

Not having the right team with local customs expertise may result in import clearance delays due to:

• missing documents and required licenses, delaying value verification processes;
• challenges related to the submission of documents, with permits not being directly transmitted to BOC by relevant government agencies;
• Misvalued inventory causing discrepancies in duties and taxes

Building your regional e-commerce and warehousing staffing

Operating in a country like the Philippines requires businesses to have a team on ground zero. This helps the business adapt to the dynamic changes in the business, and circumvent situations in a timely manner without affecting deadlines. But having a native staff to back your business comes at a price.

• The cost of hiring an employee in the Philippines includes the employee’s total base salary plus a minimum of 13.5% of that salary since employers must contribute 9.5% to the Social Security System (SSS), 2% to the Philippine Health Insurance Corporation (PhilHealth), and 2% to the Home Development Mutual Fund.
• Employers must also pay their Filipino employees a 13th-month payment, which is equal to 8.33% of their employees’ annual base salary.

Challenges of building your business staffing in the Philippines:

Time-consuming process:

Finding the right talent can be time-consuming. Accelerating the process might be costly or result in your business having to compromise on key preferential qualities the ideal candidate must have.

Incorrect payroll contributions

Failure to calculate payroll and taxes correctly in the Philippines leads to litigation and fines. Additional fines imposed may impact your operational budget since you may have to allocate funds to clear the dues or for legal help.

Permanent establishment

When a business operates from a fixed location in the Philippines and generates revenue, the revenue is subject to local corporate taxation.

Statutory employee benefits

Filipino employees have various statutory benefits, holidays, payroll cycles, bonuses, and more. International brands with a local presence may not be familiar with such benefits and may have to front the cost from their budget.

The cost of fixed infrastructure on your e-commerce business

While the initial capital requirement of 25 million PHP ($446,000) likely covers various expenses to enter the Philippines, fixed capital refers specifically to upfront investments used for ongoing operations. Here, let’s assume that the e-commerce business has a dedicated warehouse space in Metro Manila. The potential monthly expense, without considering the last mile, can look something like this:

Inventory Shipment:

• Container: $3,900 or PHP 226601  (This cost assumes you’ll need one container for initial inventory to sell in the Philippines)

Monthly Fixed Costs:

• Warehouse Rent:
  • Daily rate: PHP 182 per sq ft / 
  • Monthly rate: PHP 182/ sq ft * 4000 sq ft = PHP 728000
• Personnel Cost:
  • Daily wage per person: PHP 600
  • Assuming 22 working days a month: Daily wage * Days = PHP 13,200 per person
  • Total for 5 people: PHP 13,200/person * 5 people = PHP 66,000
• Electricity:
  • Consumption rate: 0.51 kWh per sq ft per month
  • Total consumption: 0.51 kWh/sq ft/month * 4000 sq ft = 2040 kWh/month
  • Electricity consumption: 1020 kWh
  • Cost per kWh: PHP 11.9566
  • Total electricity cost = 1020 kWh * PHP 11.9566
  • Total electricity cost per month (approx.): PHP 12,195.73

Total Monthly Fixed Cost:

PHP 794,000 (excluding electricity) + PHP 12,195.73 (electricity) = PHP 806,195.73

Therefore, the total monthly fixed cost for operating the e-commerce business in the Philippines, including warehouse rent, personnel cost, and electricity, is approximately PHP 806,195.73.

Establishing an entity for your e-commerce business through traditional methods may take a lot of time, can be resource-intensive, and requires you to have a firm grasp of local regulations and governing policies, both regarding the product you sell and the talent you hire to manage your day-to-day operations. 

What if there was a way for you to sell products to the Philippine market, like a local right from where you are operating? 

As e-commerce transcends borders, there is a need for a modern way of selling without the cost of fixed logistics and inventory storage infrastructure draining your reserves.

Store Local, Grow Global and Reach Customers Anywhere

The rise of online shoppers, transforming infrastructure, and increasing spending make the Philippines an ideal location for e-commerce businesses to expand into. Sellers that take the traditional route must be ready to invest heavy capital. By doing so, the business is vulnerable and can shut down if it’s not equipped to handle seasonal lows and demand fluctuations.

Brands can find it challenging to sell in the Philippines without a physical presence or a team with a deep understanding of how the regional market operates. But today, you no longer need a physical presence or heavy capital investment to sell in the Philippines. And shoppers who want to buy from you do not have to wait it out for weeks to get their orders fulfilled.

Avoid Import Complications and Reduce Operational expenses

The Locad Borderless service helps international e-commerce brands launch into the Philippine market and sell to customers. It helps businesses manage customs clearance, inventory storage, an online store, sales, and order fulfillment while complying with local regulations. In short, Locad lets you sell like a local from anywhere, with the infrastructure and an expert team on the ground to support your business goals. Here’s how:

Flexible solutions to support your business:

Shoppers in the Philippines expect affordable shipping costs, fast fulfillment, and safe order delivery. Relying on flexible inventory and logistics solutions means you remove costly overheads like warehousing rents, labor costs, and expensive carrier partners. With Locad, you pay for the storage space required for your inventory, strategize resource allocation, and partner with multiple last-mile carriers for seamless fulfillment.

Integrated Logistics for Freight Forwarding

Optimal inventory management helps reduce high holding costs. However shipping inventory internationally requires extensive awareness around choosing the right mode of transport, the ideal port to ship out to, and forwarding it to the destination warehouse. Locad partners with freight forwarding specialists to find the optimal way to ship inventory to the Philippines, the ideal mode of freight transport, and tracking updates to monitor the progress of the freight. 

Custom Clearance, IoR, and SoR for Ready-To-Sell 

Understanding the laws around importing to the Philippines and customs clearance helps avoid inventory hold-ups. Having a team to liaise with customs and course correct any errors proactively can avoid high penalties or, worse, abandonment of shipments. With Locad, you have a dedicated team that helps move your shipment from the country of origin to the destination country. Since the e-commerce business doesn’t have a physical presence, Locad will assume the responsibility of being the Importer of Records to import the shipment into the Philippines. The team will then liaise with the customs to gain clearance and forward it to the destination warehouse. After this, Locad will take up the role of Seller of Record to allow shoppers to buy products through leading marketplaces and channels.

Product Registration And Online Store Setup

Most businesses importing into the Philippines may not be familiar with the prerequisites of sale and the paperwork involved. With Locad, businesses can outsource the responsibility of permits required for selling products in the Philippines. Brands will also have a dedicated account manager to work with them in identifying leading marketplaces to set up and manage their online stores. The team will work on applying local intel and product knowledge to create a compelling description that increases conversion. 

Distributed Inventory and Destination Handling

Inbounding shipments at Locad’s destination warehouse may require layers of processing before they can be stacked within the designated space. With Locad’s network of warehouses in key strategic regions in the Philippines, you get to distribute your inventory for better nationwide coverage, proximity to major hubs of high e-commerce activity, and speed up fulfillment. Get expert personnel adept at receiving the inbound shipments, processing them based on your requirements and specifications and finally stacked in the respective sections after updating the records to reflect the current inventory levels. Handling the inbound to meet brand-specific requirements can make it easy for the warehouse team to locate, pick orders, and pack them for dispatch at much faster rates, thereby speeding up the fulfillment process.

Cutting-edge Tech for Selling

Selling in a new market can be challenging, and expanding the possibilities of sales happens with multi-channel selling. Locad supports businesses entering the Philippines with the tech infrastructure to manage inventory across multiple warehouses in the region, leading marketplaces like Lazada, Shopee, Shopify, and TikTok. Avoid overwhelming your team with multiple tools to use and dashboards to follow. The Locad OMS lets you monitor sales orders, track inbounding status, assess inventory levels, sync with online stores to automate order processing and follow orders as they are dispatched from the warehouse to customers’ doorsteps.  

Affordable and Reliable Fulfillment

Delighting customers in the Philippines largely depends on how efficient the last mile leg of the order fulfillment process is. With Locad Borderless, your business has access to not just one but multiple last-mile carriers. You seamlessly tap into regional experts with diverse offerings for the last mile. The Locad OMS also manually assigns the cheapest courier option for every order by assessing the destination and the diverse offerings these last milers offer. By having a range of top last-mile partners, you access preferential rates for shipping that make fulfillment affordable for your brand and customers. You also remove the dependency on one provider and make the last mile more resilient with the option to switch to another carrier in case one becomes unavailable.

The cost of doing business in the Philippine market shouldn’t deter an international brand from expanding into the country. However, catering to regional demands and competing with locally established players require brands to rethink their market launch and expansion goals. With Locad powering your brand’s entry into the market, you optimize the cost involved in storage, shipping, labor, and fulfillment. The offset cost can then be reinvested in the business to create value deals that resonate with Philippine shoppers. 

Working with a team with expertise in Southeast Asia and with an expert team on ground zero gives your business an upper hand over local competitors and dominates the market. At the end of the day, business success depends on smart moves, connecting with shoppers, and offering a personalized shopping experience from checkout to order fulfillment.