How Ecommerce has Changed the Logistics Industry in the Philippines During A Global Pandemic

Thanks to the consumer behavior of Filipinos and the logistical problem presented by most business brought about by the Pandemic, the Philippine logistics and trucking sector is expected to increase 8.2 to 8.8 percent between 2018 and 2024, according to The Lobien Realty Group (2020). By 2023, it is expected to be worth PHP 1 trillion.

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Thanks to the consumer behavior of Filipinos and the logistical problem presented by most business brought about by the Pandemic, the Philippine logistics and trucking sector is expected to increase 8.2 to 8.8 percent between 2018 and 2024, according to The Lobien Realty Group (2020). By 2023, it is expected to be worth PHP 1 trillion.

Ecommerce Outlook in The Philippines

The Philippines' e-commerce business has been steadily growing in recent years, as seen by sales statistics for 2020. Even though revenue growth is still low compared to other Tiger Cub economies in Southeast Asia, the potential for online shopping in a country with the most daily internet time is promising in this country. Consumers in the Philippines used a merchant's website or shopping applications to buy items or services on any device, according to a recent poll. e-commerce expenditures in the nation surged because of the convenience that an online shop provides, as more and more Filipino customers are opting to buy from an online store.

According to figures from the Philippine Department of Trade and Industry (DTI), e-commerce contributed 3.4 percent of the country's GDP in 2020, or US$12 billion (PHP599 billion). Increase e-commerce income from US$17 billion (PHP850 billion), or 4.3 percent of GDP, to US$24 billion (PHP1.2 trillion), or 5.5 percent of GDP, by 2021 and US$24 billion (PHP1.2 trillion), or 5.5 percent of GDP, by 2022, as the Philippines' present objective.

By 2021, the DTI hopes to have 750,000 and one million e-commerce enterprises, respectively, from 500,000 in 2020 to 750,000 and one million by 2022.

Because more individuals adopt social distance and continue to work from home, it's normal for them to choose to purchase online to avoid being in the presence of a lot of people. This has resulted in the expansion of E-Commerce enterprises, which has increased the need for Philippine logistics during the epidemic.

Philippine Logistics Industry

By keeping the supply chain flowing, a transportation logistics industry is important to long-term economic development and recovery from the COVID-19 issue. For starters, it aids in the effective transport, storage, distribution, and handling of COVID-19 vaccinations that are temperature sensitive.

The market for logistics transport services in the Philippines is expected to be worth $11 billion, according to the analysis. The industry contributes 4% of the gross domestic product, with road transport accounting for 40% and sea transport accounting for 35% of freight transportation income. Road transport is mostly utilized to convey products to and from ports on the country's many islands. Both domestic and foreign cargoes are transported by sea.

Another issue that isn't evident at the present is how the logistics business will evolve as the epidemic subsides and progresses. When people become bored of being confined to their houses for so long, will we witness an increase in shopping mall traffic? Or will consumers continue to rely on E-Commerce and home delivery convenience? The most likely consequence is the latter choice. Modern technology is presently being used to the logistics industry's operations in 2022. Truckers are looking for a more cost-effective way to find clients and earn money. 

Looking for a third party Logistics partner? Watch out for Eclectus Technologies Inc. “LARGA” to be launched November of 2022.

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"13 people used to manage our time keeping records for 400 employees which took 5 days to process and verify. With Capataz, it now only takes 2 people and 1 day to process!”

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