As the world goes digital, there has been a significant rise in eCommerce and online shopping in the past few years. In 2023, it’s forecasted that eCommerce sales will account for almost 21% of global retail sales, and this figure is expected to rise to 24% by 2026.
Hence, eCommerce brands are acquiring logistics solutions to ensure their products make it to their new owners efficiently and conveniently. Because of this, they would want to only partner with the best shipping companies in the country. If you’re planning to shift to eCommerce, understanding how the shipping process works will be crucial to your success.
What is a Shipping Company?
A logistics company is an enterprise tasked to transport goods from point to point. They serve as middlemen between buyers and sellers and ensure safe delivery of goods from the retailer up to the customer’s location. Considering the recent boom of eCommerce and the effects of the COVID-19 pandemic, the demand for their services is at an all-time high.
Because eCommerce platforms are becoming an excellent alternative to brick-and-mortar stores, 51% of retail leaders are increasing their investments in the logistics industry to provide better service.
The Best Logistics Companies for eCommerce Brands in the Philippines
The Philippines has a robust eCommerce industry, with market sales reaching $17 billion in 2021. There are also about 73 million online shoppers who live in the country. By 2025, the country’s market sales are expected to hit $24 billion. From 2021 to 2025, this equals a 17% growth rate.
As a competitive business owner, you should know that partnering with a proven shipping company is the way to stand out against your competitors. The good news is the Philippines houses a wide selection of logistics companies for you to choose from.
1. 2GO
Thanks to its large network of connections and diverse service offerings, 2GO caters to local and international clients, with 700 outlets in the Philippines alone. 2GO is also the go-to logistics partner for popular eCommerce platforms like Lazada and Zalora, boosting its appeal as a trusted partner for sellers and businesses.
2GO has services for almost everyone, so no matter the size of your parcel or how busy your schedule is. Ultimately, the company has you covered from door-to-door delivery, international delivery, and air freight delivery. Moreover, 2GO boasts the largest network of partner countries so you can find their offices worldwide.
2. Air21
For businesses that frequently handle expensive or fragile products, such as gadgets, consider Air21 as your partner. As the first global service partner of FedEx in the Asia Pacific region, Air21 has proven its excellence in delivery, regardless of whether it’s local or international dispatches.
Air21 has been integrated to service users online and is available via desktop or mobile applications. Book your delivery and pay with ease. Your deliveries are tracked in real-time, so you don’t have to worry about delays or lost shipments.
The company offers services ranging from standard door-to-door deliveries to crating and maritime freight transport. It also provides warehousing storage and crating for businesses that need them. Currently, it has offices in most regions in the Philippines.
3. Grab
Arguably one of the most popular providers in the country, GrabExpress is a premium delivery service geared towards providing the utmost convenience to its users. Grab is ideal if your business revolves around small and light product items or if you’re located in or near metropolitan areas.
What sets Grab apart from others is its capability to deliver parcels within the day or the next day. Items entrusted to the company are insured, covering up to PHP 20,000, and tracked in real time. Whereas some companies may require extra charges to fulfill this feat, this is the standard with Grab.
In terms of its operation areas, GrabExpress can normally be found in central business districts or metropolitan cities. Examples include the Metro Manila area, Cebu, and Davao.
4. J&T Express
As one of the more recent logistics companies to expand to the Philippines, J&T Express already has 400 branches across the country. The company originated from Indonesia and entered the Philippine logistics market in 2018. Since then, it’s become a trusted partner to some of the popular eCommerce platforms in the country, like Shopee.
J&T Express can be your go-to courier delivery partner if you value time and money. With the help of the service’s app, you can easily book and track the packages you’ve dispatched. It also offers last-mile delivery and deliveries abroad. Currently, J&T Express exists mainly within Asia but also has offices in parts of the Middle East and South America.
5. JRS Express
Another veteran in the Philippines logistics market would be JRS Express, which has been in business for over half a century. Like LBC, it has also garnered a vast list of partners and currently has 460 branches nationwide.
As a premier logistics company, JRS Express is able to provide reliable and affordable delivery services to their clients. This company also prides itself on being fast and accurate with its deliveries and is one of the top logistics firms that offer next-day delivery anywhere in the country.
They also offer services that cater to any parcel size, ranging from letters to general cargo goods, all at an affordable price. While its footprint in the country is strong, you can also find JRS Express in parts of the Middle East, Europe, and North America.
6. Lalamove
Like GrabExpress, Lalamove is another shipping service that users can access through their mobile devices. With over 15 million individuals and businesses using the service, Lalamove currently has a large footprint in countries like China, Southeast Asia, and India. You can also find it in cities in South America.
Lalamove is the way to go if you want something delivered quickly and at an affordable rate. The ability to book a driver at a click of a button stands out as one of the biggest features of this shipping service. It also partners well with their fast turnaround time with deliveries and is especially handy if your business has many clients living in Luzon and Cebu.
7. LBC
Having opened its services to the public, LBC is one of the first logistics companies in the country. The company is notable for providing several benefits for its clients, including express deliveries, cargo shipping, and 24-hour door-to-door delivery. When it comes to having the largest network of branches nationwide, LBC is the best.
As a pioneer in shipping parcels and packages, LBC has accumulated a long list of partners, poising it for local and international deliveries. Transactions can be conducted over the counter, online, or through the hotline.
LBC has an extensive range of services to choose from, regardless of the size of your package. These include standard post or parcel delivery, freight forwarding, express mail, and cargo airline services. The company can be found in different countries, with a strong footprint in Asia, Europe, and North America.
8. Ninja Van
Business owners can also look to Singapore’s Ninja Van as a potential partner for their parcel delivery strategies. As one of Singapore’s most extensive courier services, Ninja Van is accessible to sellers through online and physical drop-off points and offers sellers the option to schedule future deliveries, adding to the service’s convenience and ease of use.
In addition to scheduling and flexible pick-up and drop-off options, Ninja Van caters to all budget ranges, meaning you don’t need to be charged more for quality delivery. It also boasts of having the highest service coverage in the region, with operation areas in most Southeast Asian countries.
How to Choose the Best Logistics Company for Your eCommerce Business
Now that you know the leading logistics companies in the country, you may wonder which one will be the best fit for your business. Here are seven factors to consider when choosing a partner.
1. Take note of the company's delivery speed and area of service
As a seller, one of the things that help you stand out is the speed of your delivery. In a 2021 report by Flexe, which had a sample size of 500 consumers, 62% of the shoppers said delivery speeds heavily influenced their purchasing decisions. Generally, faster shipping also results in higher conversion rates, which benefits your business.
Likewise, a logistics company known to offer fast delivery is a must for any business owner. It’s also important that it has a wide coverage of cities or regions and is well-connected. Having a partner company that only covers a few locations greatly hinders your business from growing and restricts the number of people who can avail of your products.
2. Prioritize services with tracking capabilities
Tracking capabilities act as a safety net for your package since it lets you and your customer know the parcel’s location. Sellers can use the tracking information to avoid delays affecting the delivery process. With technology being integrated into most logistics companies, finding a good partner that offers real-time tracking shouldn't be hard.
3. Note how reliable they are in the market
Partnering with a reliable logistics company helps customers see your business in a more positive light. Prompt deliveries, open communication, and minimal problems throughout the delivery process increase customer loyalty.
The opposite is also true if you choose a carrier that isn’t reliable. Ultimately, avoiding carriers notorious for damaging or losing goods would be best.
4. Identify how long they've been in the industry
Opting to go with a service that has been in the industry for years is vital. A growing market footprint signals your business that the company is trustworthy and provides excellent service.
Partnering with a company in the market for several years is better than a new brand with unstable performance. Choosing the latter poses a risk to your business since you wouldn’t have prior information on how they deliver goods to customers.
There’s also a chance that new carriers can easily go out of business, forcing you to go through the process repeatedly, wasting time and resources.
5. Assess if it can scale well with your business
eCommerce is a continuously growing industry primed for growth in the future. As such, you’ll need a partner that readily addresses your needs to fully take advantage of the thriving retail space.
Since the industry will be prone to different trends and technological advancements, your partner should keep up and provide ample support to your business needs.
Your Order is Out for Delivery!
Shifting to eCommerce is one of the best ways to drive growth for your company. As you start your venture into the digital sphere, it will be much easier to have a partner that addresses all your logistical needs with little to no hiccups.
As you set up your online start, make sure you use an eCommerce platform in the Philippines that provides all your needs and more. Interested? Make sure to book a demo!
