More Filipino consumers are choosing to buy products online. A study found that 62.5% of Filipinos buy products and services from online channels every week. Moreover, this number is expected to grow bigger and bigger every year. That is why, as an e-commerce business owner, finding a reliable warehousing service provider in the Philippines is more crucial than ever.
There are many ways to have an e-commerce warehouse space in the country. You can rent a warehouse or collaborate with a logistic company that will also handle your inventory.
Partnering with an e-commerce enabler company is also a good idea as they not only take care your your warehousing needs but also your entire e-commerce process, from marketing to delivery.
However, with so many options out there, how do you choose the best warehousing service for your e-commerce business?
We’ve got you covered. In this guide, we’ll unveil all the factors you need to find the best warehousing partner for your business.
5 Main Types of Warehouses in the Philippines
There are many factors to consider when choosing the best warehouse for your e-commerce business. But before we get into that, let’s take a look at the different types of warehouses available in the Philippines. Here are some of the common types of warehouses you can find in the country:
1. Public Warehouses
Public warehouses in the Philippines are huge warehouses that allow other businesses, typically small and medium-sized, to rent a space for their products. Commonly, this is owned by third-party logistics (3PL) providers. So, you can expect that their services also include fulfillment options. This type of warehousing service is suitable for businesses that lack the manpower and other resources to handle their warehousing operation.
2. Private Warehouses
Private Warehouses in the Philippines are usually owned by large companies and businesses. The reason for this is that private warehouses are owned and operated by businesses for their own use. This type of warehouse is good for businesses that have complex warehousing needs.
3. Bonded Warehouses
Bonded Warehouses are the type of warehouses that are licensed by the Bureau of Customs. These warehouse facilities are used to store imported goods that have been imported or will need to be exported from the country. Bonded warehouses are usually found near ports and docks.
To avail space from a bonded warehouse, you will need to get a license from the government. This also means that you will need to pay the necessary taxes
4. Cold Storage Warehouses
True to its name, cold storage is the type of warehouse that has freezing and refrigeration units. These warehouses have facilities that let you control temperature efficiently and accurately. You need to look for this warehouse if your products are temperature-sensitive such as food and pharmaceuticals.
5. Distribution Centers
Distribution Centers are the type of warehouses that specialize in moving a large number of items. These centers are typically larger than traditional warehouses. The goal of these warehouses is to house items that are meant to be packaged and shipped to customers as soon as possible. This means that aside from warehouse space, this facility is also used to fulfill orders.
5 Factors to Check to Find the Best Warehousing Service Provider in the Philippines
Consider these factors to find the right warehousing service provider for your e-commerce business.
1. Your Product and Business Needs
Before you look for your warehousing partner, make sure that you know your business needs. Do you need a warehouse to store products? Do your products have specific requirements? Where do you usually ship your items?
By answering these questions, you can narrow down your choices and find the right warehousing service for your business. For instance, if you run an e-commerce business, you may need a warehousing service that can also manage your order fulfillment process. Also if you’re selling perishable goods, warehousing service providers that offer cold storage
2. Area of Expertise
It is also important to look for the experience and expertise of a warehouse service provider. While many warehousing companies in the Philippines offer space for all types of products, some specialize in certain niches. You should look for the provider’s track record. Find out if the company has experience handling products similar to yours.
It is also worth noting that some products require expert handling to prevent costly and harmful errors. Some examples of these products include luxury items, antique furniture, sensitive electronics, pharmaceuticals, and medical supplies. These items should be entrusted to professionals who have extensive knowledge and experience in that niche.
3. Technology and Facility
Of course, apart from expert staff, you need to find a warehouse that can meet your product’s specific needs. You don’t want to compromise the quality and value of your products by storing them in unsuitable warehouses.
The best examples of such products are perishable goods, such as dairy products, frozen foods, and fresh produce. If your e-commerce business is dealing in these types of products you need to find a warehouse with climate-control technology that can control temperature and humidity accurately.
4. Location and Accessibility
The location of the warehouse is also a critical factor in finding the best warehouse for your e-commerce business. The goal is to bring your products closer to your customers. This is especially important if you have a large customer base in a specific province.
If you find the right location, you can reduce delivery time significantly and improve customer satisfaction. According to Fulfillment Lab, 50% of customers want fast shipping, with 3-5 days being the most acceptable wait time.
Keep in mind that you don’t need to focus on your customers’ location. Consider also the proximity of your supplier and distribution center. Our suggestion is to find a warehouse that is accessible to major transportation routes and ports.
5. Cost and Pricing Structure
Cost is an important consideration in finding warehousing services for e-commerce. Warehousing service costs continue to increase every year. According to Symbia Logistics, labor alone can take up between 40-60% of a business’s operating budget.
Choose a warehouse provider that offers competitive rates without compromising on quality and service standards. Pay attention to various fees involved, such as storage, handling, and value-added services. The best warehousing provider can provide you with a flexible and transparent pricing structure.
The Best Warehousing Service for E-commerce in the Philippines
Your warehousing service provider can either make or break your e-commerce business. You need a reliable partner who can store, pack, and ship your products efficiently and securely. That’s why Be Global E-commerce is here to help.
We offer flexible and scalable warehousing solutions that suit your specific needs and budget. Whether you need short-term or long-term storage or domestic or international shipping, we’ve got you covered. We also offer customized packaging and labeling to complete your fulfillment process.
Contact us today and let us take care of your warehousing needs.
