Are you a Shopee seller who wants to tap into the lucrative e-commerce market in the Philippines? Look no further! As a fellow e-commerce enthusiast, I know that the success of an online business relies heavily on efficient logistics and shipping. This is particularly true for Shopee sellers in the Philippines, where the market is booming, and competition is fierce.
With a projected market value of $12 billion in 2021, the e-commerce industry in the Philippines is forecasted to reach $22 billion by 2025. This archipelago, consisting of 7641 islands, is home to over 109 million Filipinos, and with a growing population of at least 2 million annually, the potential for business growth is immense.
Despite the Philippines ranking 82nd in the world for mobile speeds and 41st for fixed broadband speeds, online shopping is becoming increasingly popular among digitally savvy Filipino consumers, especially during promotional periods. As an online seller, if you’re considering expanding your business into the Philippine market, Shopee is one of the most viable online selling platforms available. According to Statista, from January to March 2022, Shopee received 71.94 million web visits, significantly higher than its closest rival, Lazada, which received 36.55 million web visits during the same period.
But how do you ship your products to Shopee customers in the Philippines? Don’t worry. We’ve got you covered.
In this blog post, we’ll guide you through the entire shipping process, from choosing the right courier to packing your products to ensure your customers receive their orders on time and in good condition. So sit back, relax, and let’s get started!
Understanding Filipino Shoppers: Why choose Shopee when selling in the Philippines?
Since its launch in the Philippines in 2015, Shopee has earned loyal patronage from millions of local consumers, especially during sales, when the e-commerce site and its partner sellers offer amazing and irresistible deals.
Shopee has been enjoying online shopping leadership in the country, and it has become a popular household name. It has also established a strong bond and relationship with local e-commerce customers leading it to identify and categorise the major types of online shoppers among Filipinos, which international online sellers should take note of.
A survey conducted by Shopee, which involved over 3,000 Filipino respondents, identified four major types of online shoppers in the Philippines:
- Bargain Hunters: 42% of respondents were bargain hunters who prioritise finding the best deals and prices before making an online purchase.
- Brand Loyalists: 12% of respondents were brand loyalists who value having a large variety of brands to choose from and access to perks and loyalty points from brands they follow.
- Impulse Shoppers: 14% of respondents are impulse shoppers who are more likely to spontaneously check out a product that catches their eye and make impulsive purchases.
- Practical Shoppers: Practical shoppers focus on convenience and safety and may not necessarily spend extra time on the app or make impulsive purchases. 17% of respondents fall into this category.
The survey also revealed that value is the most important factor for online shoppers, with 42% of respondents stating that the best deals and prices drive them. And interestingly, 71% of this group are female and fall between the ages of 18 to 34.
As a seller, understanding these different types of shoppers can help you tailor your marketing and pricing strategies to appeal to each group.
How to sell on Shopee in the Philippines?
If you are interested in selling your products on Shopee in the Philippines, you should know a few things to get started.
This section will cover the requirements for selling on Shopee, the benefits of selling on Shopee in the Philippines, how to sign up as a seller on Shopee, and how to post and promote your goods on the platform.
Requirements for Selling on Shopee
Before selling on Shopee, you must meet the platform’s requirements.
Here are the basic requirements for selling on Shopee in the Philippines:
- You must be at least 18 years old.
- You must have a valid email address and mobile number.
- You must have a valid government ID.
- You must have a bank account to receive payments.
In addition to these basic requirements, Shopee requires sellers to maintain a good sales track record, promptly respond to customer inquiries, and provide accurate product descriptions and images.
Why choose Shopee when selling in the Philippines?
Since its launch in the Philippines in 2015, Shopee has been earning loyal patronage from millions of local consumers especially during special promotional sale periods, when the e-commerce site and its partner sellers offer amazing and irresistible deals to consumers.
Shopee has been enjoying online shopping leadership in the country and it has become a popular household name. It has also established a strong bond and relationship with local e-commerce customers leading it to identify and categorize the major types of online shoppers among Filipinos, which international online sellers should take note of.
Based on data from Shopee (from a poll of over 3,000 local Shopee users in early 2022), 42% of Filipino Shopee users are enticed by promotional prices and best deals. Of those, 71% are women with ages ranging from 18 to 35 years. These are the online shoppers who are patient enough to do some research on products and available options before placing orders on online purchases.
About 17% of Shopee users are after convenience, prioritizing ease and safety when turning to e-commerce. Over half of these shoppers are not more than 30 years old—busy people who do not spend extra time doing online shopping but are often purchasing impulsively during the quick time they log in to Shopee and especially when they stumble upon the best deals.
Up to 14% of Shopee users are window shoppers—consumers valuing variety and choice. They browse more items compared to average and spontaneously check out products that attract their attention. Lastly, 12% of Shopee users in the Philippines are regular online shoppers who have made adding to a cart and checking out in Shopee a habit.
After a quick glimpse into the Philippine Shopee market and the type of online shoppers using the portal, international online sellers can finally proceed to do transactions and sell/ship merchandise online via Shopee Philippines.
Benefits of Selling on Shopee in the Philippines
There are many benefits to selling on Shopee in the Philippines. Here are some of the main advantages:
- Large Customer Base: Shopee is the leading e-commerce platform in the Philippines, with millions of active users. This means you have access to a large customer base, which can help increase your sales and revenue.
- Easy to Use: Shopee has a user-friendly interface that makes it easy for sellers to post and promote their products. You can easily set up your store, manage your inventory, and track your sales in one place.
- Low Selling Fees: Shopee charges low selling fees, which means you get to keep more of your profits. This makes it an attractive option for small businesses and individuals who want to sell online.
- Payment Support: Shopee supports multiple payment methods, including credit cards, bank transfers, and e-wallets. This makes it easier for customers to pay for their purchases and for sellers to receive their payments.
- Logistics Support: Shopee provides logistics support to its sellers through its integrated shipping service. This means you can easily manage your orders and track your shipments, which can help improve customer satisfaction.
- Promotions and Discounts: Shopee regularly offers promotions and discounts to its customers, which can help increase sales for sellers. Additionally, Shopee provides sellers with tools to create promotions and discounts to attract customers.
How to Sign Up as a Seller on Shopee?
To sign up as a seller on Shopee, you must create an account and complete the verification process. Here are the steps to follow:
- Go to the Shopee website or download the Shopee app.
- Click on the “Sell on Shopee” button.
- Enter your personal and business details.
- Upload a clear photo of your government ID and bank account details for verification.
- Wait for your account to be verified, which usually takes 2-3 business days.
How to Post and Promote Goods on Shopee?
Once you have signed up as a seller on Shopee, you can start posting and promoting your goods. Here are some tips to help you get started:
- Take clear and accurate photos of your products.
- Write detailed and accurate product descriptions.
- Set competitive prices for your products.
- Offer free shipping or other promotions to attract buyers.
- Use Shopee’s marketing tools, such as sponsored ads and social media marketing, to promote your products.
By following these tips, you can increase your chances of success on Shopee and reach more customers in the Philippines.
How to Ship your products to the Philippines via Shopee?
If you are an international online seller looking to expand your business and reach more customers in the Philippines, Shopee International Platform (SIP) is an excellent option to consider. SIP program allows Shopee sellers to sell and ship their merchandise to customers in other countries where the e-commerce site operates. This means you can promote your products on the local Shopee platform in the Philippines and enjoy several value-added services for cross-border shipping via Shopee’s logistics, payment, and customer service support.
Benefits of Shopee International Platform (SIP) for Online Sellers
Here are some of the benefits of using SIP to ship goods to the Philippines:
- Increased Market Reach
One of the most significant benefits of using the Shopee International Platform (SIP) is its increased market reach to online sellers. By selling on Shopee through SIP, you can easily expand your customer base beyond your country’s borders and reach potential customers in the Philippines. The Philippines is a well-known market for e-commerce, and Shopee is one of the leading e-commerce platforms in the country.
With SIP, you can tap into this vast market and gain access to a large customer base that you may not have been able to reach otherwise.
- No Extra Cost
Another advantage of using SIP is that Shopee provides logistics, payment, and customer service support at no extra cost to the seller. This is a significant benefit for online sellers who may not have the resources to handle these services independently.
Shopee’s support system allows you to focus on your core business of selling products while leaving the logistics, payments, and customer service to Shopee.
- Safe and Secure Transactions
One of the biggest concerns for online sellers is the safety and security of transactions. However, with SIP, sellers can rest easy knowing that all transactions are conducted safely and securely.
Shopee has put in place various measures to protect sellers and buyers from fraud and other risks associated with online transactions. Shopee has a robust security system in place, and all transactions are monitored to ensure the safety and security of both parties.
- Simplified Shipping
SIP also simplifies the process of shipping goods to the Philippines. Once you receive an order, you only need to send the item to the local Shopee warehouse in your country.
Shopee will then take care of the rest, including delivering the parcel to the buyer’s local address in the Philippines. This streamlined process saves time and resources for the seller and ensures that the buyer receives their order promptly and efficiently.
Overall, the Shopee International Platform (SIP) offers significant benefits to online sellers looking to expand their market reach and sell their products in the Philippines.
With no extra costs for logistics, payment, and customer service support, and simplified shipping processes, SIP is a great option for sellers who want to focus on their core business of selling products while leaving the rest to Shopee.
Shopee International Platform (SIP): Which countries are eligible?
Currently, SIP is available to Shopee sellers and consumers in six countries across the Southeast Asia region where Shopee operates. These countries include the Philippines, Taiwan, Singapore, Thailand, Vietnam, Indonesia, and Malaysia. However, SIP initially serves Shopee sellers and buyers in the Philippines and Singapore.
How to ship goods via Shopee International Platform (SIP) to the Philippines?
The process of shipping goods via SIP is straightforward.
Once you get an order from a Shopee customer in the Philippines, you’ll receive a notification and advice to send the ordered item to the Shopee local warehouse in your country.
When the parcel gets to the local Shopee warehouse, it then gets processed to be shipped overseas to the customer’s location in the Philippines. Once the item reaches Shopee Philippines, the local e-commerce fulfillment platform will deliver the parcel to the buyer’s local address.
How to join Shopee International Platform (SIP) to ship products to the Philippines?
However, SIP is available only to international Shopee sellers invited to sign up for the program. Top brands, key sellers, and distributors regularly generating high sales via Shopee are usually the businesses invited and pre-qualified to join the SIP.
Shopee is also particular about some qualifications when screening businesses to get into SIP. It sets a minimum monthly order completion and requires a shop cancellation rate not exceeding 10% for an international Shopee seller to qualify for SIP.
International sellers who intend to sell and ship to the Philippines via SIP but are yet to receive an invitation from Shopee to sign up with SIP (and those who qualify) could apply for it by filling out an online form.
Other Shipping Options for International Sellers
If you’re an international seller who has not yet received an invitation to join SIP or you do not qualify for SIP, other shipping options are available.
You can use third-party fulfillment providers that ship to the Philippines. This option could be available for Shopee sellers in other countries like Indonesia, Vietnam, Thailand, Malaysia, and South Korea (even those in Singapore that are not part of the SIP program) who intend to sell and ship goods to Shopee customers in the Philippines.
Shipping via Third-Party Partner to the Philippines
International sellers in Lazada can still opt for self-managed delivery, which allows sellers to directly manage order fulfillment to deliver the goods directly to customers’ doorsteps via a third-party logistics partner like Locad, which handles fulfillment and last-mile delivery to and across the Philippines.
Locad facilitates a process that is different compared to the in-house Lazada Global Shipping service. However, many offshore sellers still choose Locad’s service to save on costs and to obtain more control over the delivery transaction. Here are the steps to do it:
- Finding a shipping partner for PH
For cross-border shipping, be prepared to undergo several quick processes. First, there will be first-mile delivery that facilitates shipping of the parcel to a logistics warehouse and from there to the port (sea) or airport (air). Second, the parcel will undergo customs clearance in the seller’s origin country. Third, the shipment is transported by sea (which takes longer) or air (faster but more costly) to the Philippines.
The parcel is subjected to customs clearance upon reaching the Philippine port or airport. After passing through clearance, the shipment is delivered to the provider’s domestic distribution centre or warehouse. It will be sorted to be assigned to trucks, vans, or other transport forms for last-mile delivery. The parcel is moved from the distribution centre to the Shopee customer’s Philippine address.
Note that last-mile delivery might take another day or two if the customer’s address is outside Metro Manila, the country’s capital. The local logistics provider will again have to ship the parcel via air if it is bound to far-flung provinces (the Philippines is an archipelago, and most islands require air or sea shipping).
Locad’s end-to-end solution will take care of the entire process from the moment the parcel is received from the sender. This is why it is among the most trusted providers by various international sellers and brands that ship orders to Philippine customers.
- Packaging the parcel
It is a standard practice to package the item using the right packing materials, especially as it will undergo cross-border shipping. Logically, your shipment will be subject to harsh handling during its journey to the Philippines.
It is advisable to use extra packing materials like packing peanuts or bubble wrap to provide additional protection inside the box. Doing so will prevent the breakage of the item, no matter how rough handling could be during the long shipment process.
- Choosing the right service level
When choosing a logistics partner, you should also consider the right level of service for your shipment to the Philippines. In this stage, an international online seller should look at the different tiers of shipping services offered. Take note that the more service features a shipping partner offers, the costlier the shipping fee gets.
An online seller could opt to choose features that are applicable and that suit the budget and logistics needs. Among the most important considerations are the delivery time, the parcel weight, real-time tracking of the shipment, packaging service (optional), and on-call customer service. It will also help if a feature compensates for the shipment loss, but it could add up to the overall shipping costs.
- Providing accurate shipping details
It is important to provide the right shipping details, and necessary documents as these are required to pass the Philippine customs. Make sure to include the following information: the online seller’s (sender’s) name and address, the Philippine recipient’s complete name and address, the product’s manufacturing origin, the declared value of the item (in US dollars as well as the seller’s and recipient’s respective currencies), system code, description of the item, the quantity of the item, and weight/dimensions.
The shipping services provider could fill out the customs declaration form (or the seller could do it) and perform labelling. It is important for the seller to always check for the completeness and accuracy of the details provided. Incomplete or inaccurate documentation may cause issues in customs or incur extra shipping charges. Fines could be incurred for the under-declared item valuation on the commercial invoice.
Other than the shipping costs to the Philippines, a parcel may incur additional charges for duties and taxes in the Philippine customs if the item value exceeds US$200. The tax cost could equal 32% of the shipment’s valuation.
- Passing the parcel to the shipping carrier
When the parcel is ready, the seller hands it to the chosen shipping carrier (Locad), noting the selected service level. The online seller could opt to have the package picked up from his or her address or delivered to the logistics provider’s address. If the track and trace feature is selected, the seller can monitor the shipment’s journey to the Philippines when the Locad receives the parcel.
The process of selling and shipping to Shopee customers in the Philippines is simplified and made faster and safer. Online sellers could enjoy the great potential this discerning market is offering. Filipino customers could be loyal patrons if they get satisfactory products and experience a smooth delivery process.