While the warehouse, inventory, and order management could be some of the crucial aspects of your business operations, the one element that binds them together is logistics. What exactly is logistics and what is its role in running a business successfully, especially if you are operating in the Philippines?

Right from determining the order routes (based on expediency, regulatory environments, etc.) to aligning shopping providers as per the nature of the order, a systematic logistics management system attributes to minimized operational costs and amplified business profits.

Growing E-commerce Opportunities in the Philippines!

Are you planning to start your own e-commerce empire in the Philippines or you are established in the country but want to expand operations and boost business profits? Well, the answer is to ‘Manage your Value chain by organizing logistics operations’.

Despite the Philippines not keeping up with the growing trends of e-commerce digital in the early 2019s, the country’s economy today represents major opportunities for all sorts of e-commerce businesses. So amid such growing economy, wouldn’t you also want to grow your bottom line?

Before we go deep into the topic, we would like you to first understand the logistics challenges that e-tailers like you are already facing and couldn’t grow any further. Don’t you want to find that out?

Logistics Challenges that E-commerce Businesses are Facing in the Philippines!

E-commerce businesses in the Philippines are increasingly encountering unique logistics challenges as the market expands, here are a few major challenges:

1. Error-Prone Manual Processes

Even today after the advancement of technology, businesses are highly dependent on manual logistics operations. For instance, let’s take the case of the AWB number into consideration. In order to generate the AWB number of a consignment, your dependency as a seller increases on the logistics partner. The whole process of generating and assigning the number to each shipment takes both your and your logistics partners’ time. Not to mention that the discrepancies in the value chain along with the longer lead times could become the by-product of manual processes.

2. Faulty Infrastructure

The Philippines is roughly classified into two main regions; Luzon and VisMin (Visaya & Mindanao). While travel is difficult from one region to another, there are many linguistic barriers as well as the language; Tagalog and Bisayaof both regions are totally different from each other. Moreover, the status of transportation in the Philippines could be defined by congested streets and traffic issues, which only increases the lead time of order delivery. And this becomes an absolute problem when it comes to the delivery of perishable goods – given their shelf life is less and they may get expired before reaching the destination. The problem gets magnified when the delivery platform you have integrated into your system does not deliver to a specific location or isn’t aware of the nooks & crannies of the locality.

3. High Logistics Cost

The absence of the larger authorities around the country to track the movement of the goods generally create inconsistencies in the logistics, increasing the cost of shipping. Now, these overhead expenses could either be borne by the seller or the consumers. While the former could actually minimize the profit margin, the latter could lead to poor customer service, which would eventually discourage them to shop more. But imagine if you would have the choice the partner with different courier partner/shipping aggregators as per your preferences, then you might have saved your operational costs – given you can allot the orders based on the type of the shipping partner.

Know more about How to Sell On Lazada Marketplace in Southeast Asia?

4. Cumbersome Returns Processes

Right from manufacturing & production to transportation & distribution, operational glitches and distorted messages are bound to happen. And these all lead to high order returns. While returning an order is a cumbersome process, the failure could cost you both unsatisfied customers and heavy losses. Be it Customer Initiated Return (CIR) or Return To Origin (RTO), you can’t ignore the operational costs associated with them.

When the returned products re-enter your supply chain, it challenges your operational efficiency. Not only does it acquire your warehouse space, but there’s also a risk of it depreciating quickly than the other products. To help you understand the various struggles businesses witnesses when the customer returns a specific product, we have culled out a list of some main activities included in the process.

• Organize the warehouse space
• Allocate a dedicated area for returned products
• Segregate returns items based on their nature and type

Coming over to the bad returns (where your products get damaged in the process) you not only have to take care of the operational costs, but the product cost will also make its place in your expenses. But imagine if you would have systematic doorstep QC systems, you would not have to think about the expenses, don’t you think so?

As we mentioned earlier, logistics is what binds all of the other supply chain management solutions; warehouse management, inventory management, order management, etc., together. To overcome the above-mentioned challenges, your business needs a consolidated view via a single platform that can further simplify your logistics management. Why?

7 Reasons to Centralize your Logistics Management in the Philippines!

1. Easy Returns

As returns management helps businesses enhance their customer’s experience, it’s always advisable to seek help from a solution provider who can manage the end-to-end process including sorting, integrating with smart shipping providers, providing AI-based reports, etc. But the question is why is it necessary to deploy a returns management system?

By serving the demands of your customer, you are not only enhancing their experience but also retaining social proof, as the chances to get positive feedback increase with the improved customer experience. Not to mention the fact that incorporating doorstep quality check processes in handy can help overcome the causes of bad returns.

2. Improving value chain visibility

You need to have complete visibility of the entire workflow; inventory receipt, storage, management of orders, and shipment. A centralized system enables you to ensure the shipments are following a prescribed route throughout the routing process and in case of any sort of disruptions, you can send notifications, alerts, etc., to the stakeholders so that actions can be taken on or before time.

3. Reduce extra costs

By centralizing the whole value chain from a single panel, you can track your operational costs and know when you are going over the budget. This way not only can you reduce that extra cost but also disburden your customers from delivery costs. Don’t you think?

Moreover, if you have a choice of shipping aggregators/courier partners, will it not become easier for you to leverage the specialties of each based on the region, nature of the order, situations, etc.? Also, you can align your delivery packages with the best-in-class logistics players in the area who are familiar with the area and the surroundings.

4. Transparent operations

The integration of multiple processes, modules, and workflows lets you attain a well-structured organization where the information gets disseminated systematically. Also, the automation in AWB generation can save you time all while letting you monitor the fulfillment process from start to end. This way you can showcase the path of transparency to your customers all while achieving better accuracy in the inventory.

5. Enhance customer experience

Customer experience is not only limited to the ultimate purchase. Right from sending the order tracking details to delivering the order on or before time to supporting their queries throughout the process via phones, emails, etc., there are multiple aspects when it comes to retaining your customers. By integrating your order management with logistics, you can perform end-to-end tracking of shipment status all while offering a top-notch experience.

6. Identify potential order returns

You can set up an elaborative outbound quality check (QC) process amid the order processing process and ship the product only if it passes the QC test. This way you can reduce your order returns dramatically. To execute this, you need your logistics and warehouse management in place by centralizing your operations.

7. Achieve better order fulfillment rates

The main aim of any business is to process the received order as quickly as you can. To automate and streamline the operations, you can outsource e-commerce enablers. With the operational flow being automated, you can perform several tasks including; allocating the warehouse, managing the inventory levels, and monitoring where the product is placed. By simplifying these processes, you can hasten the completion of the delivery process and decrease the order fulfillment time.

The Solution to Overcome Challenges – Consolidated Logistics Management System!

We have already understood the challenges that sellers are witnessing when it comes to managing logistics in the Philippines, but what’s the solution to these problems?

Do you think that integrating with the leading logistics companies alone will solve your problem? But what about the processes associated with it? Can you really fulfill orders faster if your order management processes are not synchronized? Or can you actually perform inward and outward logistics operations if the layout of the warehouse is not clear?

A problem that the sellers across the Philippines have witnessed is the contingency situations and logistics regulations. Moreover, the overall infrastructure is still under development to incorporate complete digitalization and automation of processes. So given all these challenges, can you actually scale your online business in the Philippines? The answer is YES! But one thing that you definitely need to take care of is having a consolidated view of your e-commerce operations. While the integrated logistics management process keeps your operational costs low, it also reduces the dispatch time and keeps the SLAs intact.

Related read –

• Logistics vs Supply Chain Management
• Top E-commerce Marketplaces for Businesses in the Philippines
• E-commerce Trends in Malaysia: Become a Top Seller with The Right Approach!
• Key E-commerce Challenges & Opportunities in Malaysia
• How to Sell on Shopee: The Ultimate Guide to Sell on the Marketplace
• 8 Best Marketplaces & Carts to Sell Online in the Philippines: Lazada, Zalora, Shopee & more
• Maximizing Efficiency in Manual Inventory Management: Challenges and Solutions in the Philippines
• How to Sell on Lazada Marketplace in Southeast Asia
• UniShip – Advanced Logistics Tracking Platform
• UniReco – Automated Reconciliation of Orders, Returns and Payments
• Key Challenges & Benefits of Marketplace Payment Reconciliation
• Benefits of Shipping Notifications

The post E-commerce Logistics Management: How can you overcome Supply Chain Challenges in the Philippines? appeared first on unicommerce.com.

This trend has led to the emergence of various e-commerce marketplaces, each offering its own unique features and benefits. If you want to stay competitive in this ever-changing market, it’s important to understand the e-commerce ecosystem and choose the right marketplace for your business.

Whether you’re a seasoned online retailer or a newbie looking to dip your toes into the world of e-commerce, this guide will help you navigate the top marketplaces in the Philippines and enable you to make informed decisions about which platforms to use to reach your customers.

Top E-commerce Marketplaces in the Philippines

Here are the top e-commerce marketplaces in the Philippines that offer a wealth of opportunities for both buyers and sellers:

1. Lazada

Founded in 2012, Lazada has quickly risen to become one of the most prominent marketplaces in the Philippines. Lazada’s impact on the retail industry in the Philippines has been significant, thanks to its commitment to delivering a seamless online shopping experience to millions of customers.  

In 2021, Lazada’s Gross Merchandise Volume (GMV) reached an astounding $21 billion, cementing its position as a household name for Filipinos who prefer to shop online.

• Commission Structure: Ranging from 1% to 5%, depending on the product category
• Shipping: Fulfillment by Lazada (FBL). Lazada’s courier partners include Ninja Van, Entrego, Ximex Delivery Express, JRMT, and QDX.
• Monthly Web Visitors: Around 37 million
• Top Selling Categories: Electronics, fashion, home and living

Many businesses have had success selling on Lazada and have shared their stories online. For example, Mayette Jequinto, CEO of Plus Size Boutique, shares how Lazada has been instrumental in the growth of her business. 

Read: How to Sell on Lazada Marketplace in the Southeast Asia

2. Shopee

Launched in Singapore in 2015, Shopee has successfully expanded across Southeast Asia, including the Philippines, attracting millions of buyers and sellers. One of the key reasons behind Shopee’s success is its user-friendly interface, which enables buyers to browse products seamlessly and sellers to set up their online stores quickly and efficiently.

According to Shopee’s financial report for the third quarter of 2021, the company’s GMV in the Philippines reached $6.2 billion, representing a 74.3% year-over-year increase.

• Commission Structure: Ranging from 2.5% to 4% (Applicable to local Marketplace sellers with ≥ 100 completed orders)
• Shipping: Fulfillment by Shopee (FBS). Shopee courier partnerships include J&T Express, XDE, and 2GO. They also offer free shipping promotions to incentivize customers.
• Monthly Web Visitors: Around 72 million
• Top Selling Categories: Electronics, fashion, and beauty. Local brands such as Cherry Mobile and Human Nature are popular in electronics and beauty, respectively.

Big brands such as Unilever have recognized the significant impact of e-commerce platforms like Shopee in the Philippines. According to Jackie Manago Nepomuceno, the Digital Commerce Marketing Manager at Unilever Philippines, Shopee is a strategic partner that helps drive a seamless shopping experience for the omnichannel shopper.

Read: How To Sell on Shopee in the Southeast Asia

3. Zalora

Zalora is a popular lifestyle marketplace that has been operating in the Philippines since 2012. While Zalora’s market share is not as significant as Lazada’s, it has still managed to establish a loyal customer base in the Philippines.

The platform offers a wide range of products across various categories, including fashion, beauty, and lifestyle, and has become one of the leading online retailers in the country.

• Commission Structure: Ranging from 10% to 30%, depending on the type and range of the products
• Shipping: Zalora uses different courier partners such as LBC, Entrego, 2GO, 7-Eleven, and DHL to deliver customer packages.
• Monthly Web Visitors: Around 1.8 million
• Top Selling Categories: Fashion, beauty, and sportswear. Some local brands popular on Zalora are Penshoppe, Bench, Mango, and more.

4. eBay

This global marketplace has firmly established itself in the Philippines, providing retailers with a reliable platform for selling their products. The platform’s extensive user base and global reach provide an unparalleled opportunity for sellers to connect with a vast pool of potential buyers. 

Popular for its auction-style listings, eBay also offers a more conventional B2C marketplace through its eBay Store feature. It allows merchants to offer their products alongside established brands, providing a diverse selection of goods for shoppers. 

• Commission Structure: Ranging from 8% to 10% on the total transaction value. It is important to note that eBay Philippines also charges additional fees for certain services such as listing upgrades, international selling, and PayPal transactions.
• Shipping: eBay Philippines does not have a specific shipping type or carrier that sellers are required to use. Instead, sellers are free to choose the shipping method that works best for them and their buyers.
• Monthly Web Visitors: Around 28 million
• Top Selling Categories: Consumer electronics and gadgets, Fashion and clothing, and Health and beauty products.

Check out what Jeptall and Agsbeagle have to say about how selling on eBay has helped them maintain a work-life balance. 

5. TikTok Shop

TikTok’s massive user base in the Philippines made it an attractive platform for businesses to sell their products; therefore, it has recently launched its own e-commerce feature called TikTok Shop. The innovative e-commerce marketplace brings together sellers, buyers, and creators, all within the TikTok app.

It offers an integrated shopping experience, enabling users to discover and purchase products without leaving the app. Local brands and businesses are also leveraging TikTok Shop to reach a broader audience and grow their sales.

• Commission Structure: To incentivize online retailers, TikTok only charges 1% payment service fees and 0% commission fees.
• Shipping: Sellers can choose their own logistics partner or opt for TikTok Shop’s logistics services. TikTok Shop courier partnerships include Ninja Van for SEA logistics.
• Monthly App Visitors: Over 43 million
• Top Selling Categories: Fashion, clothing, beauty, and home decor

Many online businesses have experienced remarkable success by selling their products on eBay. Check out what Grace Mauyao, the CEO of Botanical Boon Health and Beauty Products, has to say about how eBay simplified their online selling.

6. FB Marketplace

Despite being less hyped than other platforms, Facebook Marketplace is a popular choice for local buyers and sellers to connect. With just a few clicks, users can snap a photo of the item, add a description, set an asking price, and publish their listing.

The integration with Facebook Messenger further simplifies the process, allowing for easy communication and negotiation between parties.

• Commission Structure: Unlike other e-commerce platforms, Facebook Marketplace does not charge fees for listing or selling products.
• Shipping: The seller ships the item directly to the buyer.
• Monthly Web Visitors: Around 79.6 million
• Top Selling Categories: Fashion apparel, furniture, home decor, and electronics.

7. Carousell

Carousell is a highly popular B2C and C2C online marketplace where people can buy and sell both new and secondhand goods. Carousell is renowned as one of the leading e-commerce sites in the Philippines, with a large following in Malaysia, Indonesia, Cambodia, Taiwan, Hong Kong, Macau, Australia, New Zealand, and Canada.

Thanks to its user-friendly interface, easy-to-navigate categories, and extensive range of products, Carousell has become a go-to destination for people looking to buy and sell goods online.

• Commission Structure: Sellers have to pay a fee to post ads, and costs vary by category.
• Shipping: Carousell courier partnerships include GrabExpress, Lalamove, AngkasPadala, MrSpeedy, Transportify, LBC Express, 2GO Express, and DHL Express.
• Monthly App Visitors: Around 2.3 million
• Top Selling Categories: Cars, property, fashion, home and living

8. Metrodeal

Metrodeal is an undisputed market leader in Southeast Asia when it comes to discount vouchers for retail, dining, leisure, and travel. The easy-to-use platform makes it simple to upload your deals and reach a massive audience of deal-hunters.

It is primarily a platform for purchasing vouchers for products and services rather than physical products. You just have to visit the website to register and fill-in the needed details. The account executives will contact you as soon as they have available slots.

• Shipping: Shipping type will depend on the seller and the product being shipped. Metrodeal may offer various shipping options, such as standard shipping, express shipping, or local pickup.
• Monthly Web Visitors: 77,000
• Top Selling Categories: Travel deals, dining deals, health and beauty deals.

Let’s Make Selling Easy!

Meanwhile, as you look for the right marketplaces to sell on, it’s also important to be ready with the right technology provider to help you streamline your orders, inventory, and warehouse. This will give you the ease and flexibility to sell on multiple marketplaces, making your business more efficient and profitable.

Whether you’re a small business owner just starting out or a large enterprise looking to expand your reach, the Philippines’ e-commerce marketplaces offer plenty of opportunities for growth and success.

So go ahead and explore the options available, weigh the pros and cons, and take the leap toward expanding your business in the world of e-commerce. Who knows, you might just find the perfect marketplace to take your business to new heights!

Explore our platforms:

• Advanced Logistics Tracking and Returns Management Platform
• Automate Reconciliation of Orders, Returns and Payments
• Best Warehouse Management System in the Philippines
• Inventory Management System to Maximize Philippines Businesses Profitability

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In this comprehensive guide, we’ll take you through the step-by-step process of setting up your seller account, creating compelling product listings, requirements for a seller, costing and commission, and start earning in the Philippines.

Why Should Your Brand Sell on Zalora?

Many International brands got significant recognition in the Philippines by selling on Zalora, which has made Zalora a hit in the region. Seeing this as an opportunity, new sellers can tap into Zalora’s immersive customer base and make their brand successful in the Philippines. So, before we dive into the “how,” let’s explore the “why.” Why should you consider selling your products on Zalora? 

• Vast Customer Base: 59 million monthly users
• Trusted Marketplace: Proven track record of secure transactions and genuine products
• User-Friendly Interface: Easy to use & one of the biggest fashion app downloads in the Philippines
• Category Diversity: Having multiple diverse categories
• Prominent Sales Events: Hosts major sales events throughout the year

1. Vast Customer Base: With 59 million monthly users, Zalora provides access to a broad audience base, ensuring your brand gets the visibility it deserves. With trend-setting brands like H&M, Calvin Klien, Adidas, Nike. etc. on the platform, huge traffic is attracted to the website. These potential customers searching for trendy fashion and beauty products on Zalora could be your Brand’s opportunity to excel in the marketplace.

Read – Top E-commerce Marketplaces in Philippines

2. Trusted Marketplace: Zalora’s reputation as a trusted e-commerce platform holds significant weight in the Philippines. With a proven track record of secure transactions and genuine products, Zalora offers cash-on-delivery and buy-now-pay-later options across their markets, making it easier for shoppers to buy their favorite brands.

Successful brands like Nike achieved a 73% sales uplift in their launch week and 4x weekly sales for both their 11.11 and 12.12 campaigns, as Zalora’s case study revealed. Just like Nike, the association of your business with Zalora can significantly boost your brand’s credibility and visibility in the Philippines.

3. User-Friendly Interface: Zalora’s intuitive platform is easy to use, making it effortless to navigate in the app and list products without a hassle, creating a seamless in-app experience for IOS and android users for both sellers and customers. This means that customers will easily find what they’re looking for, resulting in repeated visits to the app. Which, in turn, fosters a more sustainable and loyal audience, providing your brand with consistent access to potential customers. Zalora shopping app has been downloaded over 1.77 million times, which has been one of the biggest fashion app downloads in the Philippines.

4. Category Diversity: Sellers have the flexibility to list products across multiple diverse categories, catering to a wide range of consumer interests and needs. Zalora has an extensive range of products for customers to choose from, including brands like Calvin Klein, Adidas, Gap, and many more. Your brand can select from a range of Fashion and Lifestyle categories that align seamlessly with the platform’s core strengths, a fact clearly reflected in its top-selling products.

5. Prominent Sales Events: Zalora hosts major sales events like ZALORA Birthday, Big Fashion Sale, Fashion Festival, 11.11 and 12.12 throughout the year, which offers a platform discount up to 90% off. This provides ample opportunities for sellers to boost their sales during peak shopping seasons. These events could be your brand’s opportunity to dominate the fashion and lifestyle market in the Philippines by showcasing your unique products at competitive prices on this trusted marketplace.

Requirements to Set Up Account on Zalora

Legal documentation and business information are crucial to ensure a hassle-free account setup on Zalora. Here are the essential documents you’ll need:

1. Business License and Registration: Ensure you have your original ID proofs, a valid business license, and registration documents that adhere to all the relevant laws and policies in the Philippines. You must be above 18 years of age during the signing of the contract.
2. Tax Identification Number (TIN): A Tax Identification Number is essential for tax purposes. It helps Zalora identify your business and ensures that you comply with tax regulations in the country.
3. Bank Account Information: You’ll need to provide details of the bank account where you’d like to receive payments for your sales on Zalora. This includes the account number and other relevant information for seamless financial transactions.

Having these documents ready and available in digital format will fast-track the process of setting up your seller account on Zalora.

Step-by-Step Guide to Become a Seller on Zalora

• Visit www.zalora.com
• Fill out the Form
• Provide Business Information
• Upload Required Documentation
• Set Up Payment Details
• Start Listing Your Products
• Manage Inventory and Update Product Pricing

Step 1: Visit www.zalora.com

Search for “www.zalora.com” in your browser. Scroll down the page and get to the “About Us” section. Click on the “Sell with us” option.

Step 2: Fill out the Form

Fill out the form on your screen and hit submit. After submission, the form is reviewed by Zalora’s Strategic Marketplace advisors. Their response usually does not take more than 7 days. Once approved, you will be notified through an email.

Step 3: Provide Business Information

After approval, log in to your seller account and provide essential information about your business. This includes your company name, contact details, company logo, and a brief description of the products you intend to sell.

Step 4: Upload Required Documentation

Zalora will require certain legal documents for verification purposes. These may include your business license, tax identification, and other relevant certificates. Make sure you have these documents ready in digital format for uploading.

Step 5: Set Up Payment Details

Next, you’ll need to provide your payment information. This includes details on how you’d like to receive payments for your sales.

Step 6: Start Listing Your Products

With your seller account activated, you’re now ready to list your products on Zalora. Head to the Seller Center dashboard and click on the “Add New Product” button to start filling in the details. Remember to provide accurate and detailed information about each product, including high-quality images, clear descriptions, and relevant specifications.

Pro tip: Take your time with product listings and click high-resolution and artistic pictures of your product, as it tends to attract more potential buyers.

Step 7: Manage Inventory and Update Product Pricing

Regularly review and update your product prices based on market trends, competition, and any changes in your costs. Additionally, keep a close eye on your stock levels to ensure that you have an adequate supply to meet customer demand. By staying on top of pricing and stock management, you’ll be well-positioned to meet customer expectations and drive sales.

Congratulations! You’ve successfully set up your seller account on Zalora. Now, you can start showcasing your products to a wide audience in Southeast Asia and start earning.

Cost to Set up shop on Zalora

After the initial sign-up, Zalora’s fee structure comes into play when you start listing your products. They charge a nominal fee for uploading multiple images of a product, with costs varying based on the chosen category. When it comes to commissions, they usually range from 10% to 30%, subject to Zalora’s policies. Further, if a customer returns a product, sellers are charged with an additional fee. Customer cancellations do not affect seller metrics, but the combined cancellation rate of a channel and seller should be less than 5% in order to avoid penalties. It’s crucial to keep these factors in mind to plan your selling strategy effectively.

In conclusion, venturing into the growing Philippines e-commerce market through Zalora presents a golden opportunity for sellers. With a vast customer base across the globe, a user-friendly interface, and diverse category offerings, it’s a platform designed for success. With the right strategies in place and understanding the associated costs, sellers can effectively tap into this dynamic market, opening up new avenues for growth and profitability. So, seize the opportunity today and embark on your journey with Zalora!

Read how businesses are growing with Unicommerce –

• How Edamama achieved 99.99%+ Fulfillment Rate?
• How Luxurious Craving achieved 6K+ Order Management?
• How PayO Asia achieved 10X Growth in Sales?
• How Ellana Cosmetics achieved 99.99% Order Fulfillment Rates?

The post How to Sell on Zalora Marketplace in the Philippines? appeared first on unicommerce.com.

With a population of over 110 million people and a rapidly growing middle class, consumer spending power is also increasing. This has led to a surge in demand for fashionable clothes and accessories and opportunities for businesses to thrive. 

Highlights of the E-commerce Apparel Industry in the Philippines: Opportunities & Trends

• The Apparel market is on the rise, with a projected revenue of US$779.10 million in 2023.
• Robust growth is anticipated, with an annual growth rate of 15.01% between 2023 and 2027. This will lead to a market volume of US$1,363 million by 2027.
• While the Philippines is seeing growth, China dominates the market with a staggering revenue projection of US$131,300 million in 2023.
• The number of users in the Apparel market in the Philippines is set to increase, reaching an estimated 34.2 million users by 2027.
• User penetration in the market is growing steadily, starting at 22.4% in 2023, and is forecasted to reach 27.5% by 2027.
• The average spending of each user, or ARPU, in the market is projected to be US$29.62.

However, along with these opportunities comes a unique set of challenges for the retailers operating in this region. So, let’s explore the challenges, opportunities, and solutions of the Philippines’ booming fashion industry. 

Overcoming E-commerce Apparel Industry Challenges with Solutions in the Philippines

The apparel industry is known for its ability to adapt to ever-evolving styles and trends. However, this state of flux brings notable challenges, including the following:

1. Real-time Inventory Management

In the fast-paced fashion industry, managing inventory is crucial. The task of mapping an extensive SKU base with orders on various marketplaces like Lazada, Zalora, Shopee, etc., can become tedious and error-prone if handled manually. For Example, manual mapping can sometimes lead to the same products being marked with different SKUs, causing them to be counted as separate items.

Adding to the complexity, the fast-changing trends in the apparel industry lead to short product life cycles. Fluctuating demand and rapidly changing fashion trends can lead to overstocking or stockouts, both of which can be costly for retailers. 

Solution – Implementing Barcode Inventory Management System

Retailers should implement a robust Barcode Inventory Management System to tackle these challenges. This system enables real-time tracking and accurate monitoring of inventory levels. The centralized SKU mapping enables retailers to streamline operations and ensure consistent product identification across various sales channels. 

With precise insights, retailers can optimize stock levels, minimize stockouts, and enhance order processing efficiency. Brands like Luxurious Cravings have successfully leveraged these automated systems to stay ahead in the competitive market.

Moreover, these automated systems not only streamline inventory control but also provide comprehensive reports. These reports offer valuable data and analytics, empowering retailers to make informed decisions and anticipate future demands. 

Given the rapidly changing pace of the fashion industry, these reports provide sellers with the latest trends. They provide insights into the best-selling and lowest-performing SKUs, allowing retailers to form their strategies effectively. 

2. Order Processing and Fulfillment

Retailers in the Philippines face significant challenges with processing and delivering orders. Businesses need to handle this task well to uplift the post-purchase experience of their customers. The region has different kinds of areas, some with modern facilities and others with fewer resources. 

Also, the presence of islands within the Republic of the Philippines adds a distinctive layer of complexity to the logistical landscape. The country consists of more than 7000 islands, and shipping and returning goods between these islands require a refined transportation and coordination strategy to guarantee timely and undamaged deliveries. This can make it tricky to process and deliver orders on time, especially in remote areas.

Solution – Automating the Entire Order Processing Workflow

Implementing a robust order management system can centralize and streamline the entire order processing workflow, from order placement to delivery. Retailers can consider investing in systems with solid integrations with 3PL (Third-Party Logistics) providers. These established logistics companies have expertise in navigating the region’s diverse landscapes, resulting in timely deliveries and higher order fulfillment rates. 

Leading brands like Ellana Cosmetics have successfully achieved faster, better, and more efficient deliveries through automation. The brand achieved an impressive 99.99% order fulfillment rate by implementing a robust e-commerce order management system. 

3. Product Returns and Reverse Logistics

Returns management is crucial in establishing a solid brand reputation, especially in the apparel industry with high return rates. A cumbersome and slow returns process can result in customer dissatisfaction and negatively impact brand reputation. 

Businesses must also be vigilant about fraudulent returns, where some customers may abuse the process for personal gain. For example, some individuals may return used or damaged items, claiming they are faulty, in order to receive refunds or replacements.

Solution – Using a Robust Returns Management System

To address these challenges, it’s essential to implement an efficient returns management system that facilitates smooth and quick handling of product returns, ensuring a positive post-purchase experience for customers. 

The system should include features like easy return initiation, seamless reverse pickup, thorough quality checks, inventory reconciliation, refund processing, and more. This can help retailers minimize return processing time, reduce operational costs, and maintain a positive brand image. 

4. Changing Landscape of the Retail Industry

One of the biggest challenges facing fashion retailers is the industry’s changing landscape. With advancements in technology and shifting consumer preferences, traditional brick-and-mortar stores are facing intense competition from online retailers. 

D2C brands are investing heavily in technology to build a strong supply chain ecosystem and drive traffic to their brand websites. The convenience and accessibility offered by online shopping have revolutionized how people shop for clothing and accessories. As a result, many traditional retailers have had to rethink their strategies and find ways to integrate online platforms into their business models.

On the other hand, digital-first brands, which initially started as online-only entities, have recognized the value of offline presence and are expanding into physical retail spaces. This convergence of online and offline retail indicates a shift towards a more holistic approach to retailing, where brands are exploring multiple ways to connect with consumers. 

Solution – Building a Strong Omnichannel Presence

In this ever-changing landscape, it has become essential for retailers to build a solid online presence. However, it is equally important to maintain a physical store as well. Adopting an omnichannel approach allows retailers to seamlessly integrate their online and offline channels, providing customers with a cohesive shopping experience across all touchpoints. For instance, with an omnichannel strategy, customers can order online and return offline and vice-versa, or they can choose products online and try them in person.

For this, businesses need to have a user-friendly website or mobile app that offers convenient browsing and purchasing options while ensuring that brick-and-mortar stores are visually appealing and provide exceptional customer service. By creating a seamless online and offline shopping experience, retailers can attract and retain customers in an increasingly competitive market. 

Leading omni brands like Edamama have successfully implemented an impactful e-commerce strategy to strengthen their presence in the market.

Let’s Make Fashion Business Easy in the Philippines!

While there are challenges facing the fashion retail industry in the Philippines, there are also immense opportunities for growth and success. Retailers can navigate the evolving landscape by staying agile, embracing technology advancements, and understanding consumer needs. As the Philippines continues to be a hotbed for fashion innovation and consumption, it is crucial for retailers to stay ahead of trends and constantly innovate to stay relevant in this dynamic market. 

Frequently Asked Questions (FAQs)

1. What factors affect the fashion and retail industry in the Philippines?

Factors affecting the fashion and retail industry in the Philippines are the shifts in consumer preferences, the economic fluctuations of the country, the changing landscape of the e-commerce industry, the growing online penetration, increased competition, and the ever-changing supply chain dynamics.

2. What is the weakness of the fashion industry in the Philippines?

The weakness of the fashion industry in the Philippines lies in various factors, such as its reliance on imported raw materials, limited infrastructure, and inconsistent regulatory frameworks across different regions in the country.

3. What are the popular fashion trends in the Philippines?

Fashion trends in the Philippines can vary from city to city, but some popular trends in the region include a fusion of traditional and modern elements, vibrant colors, intricate patterns, and a mix of Western and local fashion influences. Moreover, streetwear, sustainable fashion, and athleisure are gaining popularity among the younger demographics.

Explore our platforms:

1. Integrated logistics management system
2. Automated payment reconciliation system

Related read on E-commerce in Philippines –

• Top E-commerce Marketplaces for Businesses in the Philippines
• Maximizing Efficiency in Manual Inventory Management: Challenges and Solutions in the Philippines
• E-commerce Fulfillment in the Philippines: How to Boost Operational Efficiency and Profitability?
• E-commerce Logistics Management: How can you overcome Supply Chain Challenges in the Philippines?
• How to Sell on Lazada Marketplace in Southeast Asia
• How Edamama managed business operations across 1,000+ brands with 99.99%+ fulfillment rate?
• How PayO Asia achieved 10X growth in sales, simplifying their operations across 43 Facilities?
• How Philippines-based beauty brand, Ellana Cosmetics achieves 99.99% order fulfillment rates?

The post E-commerce Apparel Industry in the Philippines: Opportunities, Challenges and Solutions appeared first on unicommerce.com.

The e-commerce industry in the Philippines is no exception, as its rapid growth demands efficient and effective inventory management solutions. While business owners in the Philippines are well aware of the benefits of automation, budget constraints can sometimes hold them back from making the switch. However, failing to address these inventory management challenges can limit a company’s ability to stay competitive in a rapidly growing industry

So, let’s unveil some of the most common inventory management challenges faced by companies in the e-commerce industry in the Philippines and solutions to overcome them.

Top Inventory Management Challenges in the Philippines

• Inconsistent Tracking
• Inefficient Warehouse Management
• Data Inaccuracy
• Limited Inventory Process Visibility
• Manual Documentation
• Overstocking and Understocking Issues
• Insufficient Order Management
• Expanding Product Portfolios
• Inventory Loss

Though every company can have its set of holdbacks, here are a few challenges that might be the common ones among all:

Challenge #1: Inconsistent Tracking

When you have tons of inventory to manage, it’s quite natural that the tracking can become tough, and there’s a huge room for errors in tracking products in the warehouse. Talking about the holdbacks, there are high chances of late and wrong product deliveries due to inconsistent inventory tracking, which can be responsible for depleting the brand value and gaining low ratings on social media as well, ultimately resulting in tarnished brand value. 

Challenge #2: Inefficient Warehouse Management

As said earlier, inventory management isn’t ever a piece of cake; thus, managing warehouses to accommodate new stocks can be a cumbersome process. In case you’re operating on a manual process, there can be a few steps, including scratching a plan, allocating spaces, and then heading to management. The process will take generous time and resources, which can increase your budget. Without an automated inventory system, it’s nearly impossible to have efficient warehouse management.

Challenge #3: Data Inaccuracy

Managing large amounts of data associated with a vast inventory can be extremely challenging without automation. Manual data management becomes even more complex and prone to errors. Having a system to back up your process and incorporating the right tracking to have the data in sync can be done only through an e-commerce solution. This can later avoid data inaccuracy and keeps stuff ready to use for further purposes.

Challenge #4: Limited Inventory Process Visibility

Customers have come to expect transparency and accuracy in their e-commerce experiences, including real-time tracking information. Inadequate inventory tracking can result in delayed deliveries, which can lead to customer frustration and a switch to competitor products. Inaccurate inventory management can severely impact customer satisfaction and loyalty. 

Challenge #5: Manual Documentation

Manual inventory management can be a difficult task, especially when it comes to tracking inventory, managing reports, processing purchase orders, and handling invoices. Inaccurate documentation can result in incorrect order allocation, causing missed or delayed deliveries that can have a significant impact on operations and customer satisfaction. 

Challenge #6: Overstocking and Understocking Issues

Overstocking and understocking are two significant issues that businesses face when managing their inventory. In a general supply chain process, new stocks are ordered once the old/existing ones go bleak or maybe about to finish. In the case of inefficient inventory management, there are huge changes in overstocking or understocking materials, which can cut your profit margins, while manual management can lead to inaccurate records, missing items, and higher budget allocation for re-ordering.

Challenge #7: Insufficient Order Management

With tons of orders pouring in, you must have a strong order management system to help you fight the insufficiency of products. For instance, if the customer has ordered five pieces of a particular order and post-purchase you find lesser pieces available, ordering more will take time, and thus your order delivery duration will extend, leading to insufficient order management. Additionally, incorrect SKU mapping can also cause problems with order management. An incorrect SKU mapped to a product can result in inaccurate inventory tracking and fulfillment errors, leading to delays and, ultimately, unsatisfied customers.

Challenge #8: Expanding Product Portfolios

Expanding a product line or setting up a new warehouse requires strong and effective management of inventory stocks. Having it done manually can surely lead to mismanagement; why so? This is because the inventory managers are required to have order tracking, maintain shipping details, and have an eye on the currently available stocks to allocate the same for rising customer demands. Having an automated system can be the right way to expand product portfolios.

Challenge #9: Inventory Loss

Wastage in inventory is often overlooked until it shows up as losses on the balance sheet. Poor inventory management can result in damage or defects during the product life cycle. Inefficient tracking can lead to missing inventory, causing further losses if not noticed. These inefficiencies can significantly impact the bottom line.

Read how brands like Ellana and Edamama solved their inventory management challenges in the Philippines.

As a business owner, you require robust software to manage complex logistics and seamlessly integrate with your existing business processes. However, choosing the right inventory management solution from the hundreds available can be challenging, particularly with the need to master a range of features that require training and ongoing support.

But what should be kept in mind while finding the right solutions to overcome the above-listed challenges? Here’s what you need to know!

Choosing the Right Inventory Management Solutions in the Philippines

• Integrations
• Multi-location Sync
• Extensive Dashboard for Reporting
• Product Barcoding
• Product Bundling

A comprehensive inventory management system is crucial for any business. The right solution can provide valuable insights into your stock, enabling effective management and identification of any potential obstacles to success. This can help ensure timely deliveries and maintain customer satisfaction.

When choosing an inventory management solution, it’s important to consider the following essential features:

Integrations

Having an inventory management system in place is not enough for a successful business. It’s important to ensure that all necessary integrations are in place, including an ERP solution, a comprehensive point-of-sale system, accounting software, and strong logistics.

This should also include integration with leading marketplaces, websites, and carts such as Lazada, Shopee, Shopify, and Magento, and with logistics providers such as J&T and Ninjavan, and with ERP systems like SAP, Infor, and Microsoft.

Multi-location Sync

Having your presence on a single channel isn’t enough to grab the eyeballs; make sure you have omnichannel visibility with a marketplace sync. This includes a strong presence on both digital and offline channels.

An inventory management system can facilitate efficient omnichannel operations, such as centralizing inventory across online and offline channels, optimizing inventory allocation for a higher return on investment, and improving inventory turnover while reducing working capital. The system can also allow for effective order routing based on inventory availability.

Extensive Dashboard for Reporting

An all-encompassing report dashboard is crucial for monitoring and analyzing business performance, including metrics such as growth, profitability, loss, holdbacks, customer feedback, data usage, and more. These dashboards also provide real-time data synchronization and inventory updates on marketplaces.

Not only do these updates help you avoid loss of sales and delays in delivery, but they also lead to improved customer satisfaction. Ensure that you have access to a comprehensive dashboard that presents all of this information in a single, easily-readable view.

Product Barcoding

Barcoding software is an essential tool for reducing data entry errors, automating internal processes, and ensuring accuracy and efficiency in inventory management. The use of barcode software often integrates with digital documentation and reporting features, allowing for a more streamlined and efficient workflow.

Integrating a mobile barcoding device can significantly enhance inventory accuracy and speed up back-end processes, reducing manual labor and shifting towards a more paperless documentation process.

Explore our platforms:

• Integrated logistics management system
• Automated payment reconciliation system

Recommended read:

• Inventory Management challenges & solutions
• What is Warehouse Management System
• Logistics Vs Supply Chain Management
• What is Order Management

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