For cross-border e-commerce sellers, thoroughly understanding Philippine overseas warehouse fees is key to controlling costs. These fees primarily consist of the following components:
Core Fee Structure:
Warehousing Fee: Calculated based on space occupied by goods (cubic meters/day). Note the “rent-free period” and “tiered pricing” to avoid high costs from long-term unsold inventory.
Handling Fees: Includes inbound processing (unloading, shelving) and outbound processing (picking, packing). The latter directly correlates with order volume and is a key cost control point.
Local Delivery Fees: Shipping costs from warehouse to customer, influenced by weight, volume, and destination region.
Value-Added Service Fees: Such as label replacement or custom packaging. Select only as needed to avoid unnecessary expenses.
Three Smart Cost-Cutting Strategies:
Compare Total Costs, Not Unit Prices: Calculate end-to-end costs encompassing “initial shipping + warehousing + handling + delivery.” Select providers with transparent pricing.
Optimize Inventory, Boost Turnover: Adopt small-batch, frequent replenishment and regularly clear slow-moving items to fundamentally reduce storage and capital pressure.
Negotiate Smartly, Leverage Services: Bundle logistics requirements to negotiate better rates with providers; intelligently select value-added services like packaging based on product value.
Selection Recommendations:
Price isn't the only criterion. A partner with an efficient management system, stable service, and professional logistics advice can help you reduce costs long-term and enhance logistics efficiency in the Philippine market.
