Future of Philippine E-Commerce: How Yello X Supply Chain is Powering Growth

Image courtesy of Mary Jean Pacheco. Undersecretary of DTI. May 6, 2025

Did you know the The Philippine E-commerce boom is here — and Yello X Supply Chain Solutions is paving the way. In a major move to support the growing needs of Filipino online sellers and brands, Yello X officially launches its E-commerce Division, a dedicated unit built to deliver faster, smarter, and scalable solutions across the entire value chain.

Led by E-commerce Division Manager — Marcus Francisco, the E-commerce team brings together digital marketing experts, tech innovators, and retail strategists to transform how businesses manage fulfillment, warehousing, inventory, and last-mile delivery.

According to a 2024 report by Mordor Intelligence, the Philippine e-commerce market is expected to grow from USD 15.51B to USD 29.57B by 2029. This image shows the expected growth of the Philippine e-commerce market from 2024 to 2029. 

Here are the key points:

• In 2024, the market is worth USD 15.51 billion.
• By 2029, it's projected to grow to USD 29.57 billion.
• 📊 That’s a Compound Annual Growth Rate (CAGR) of 13.78%, which means the market is growing fast and steadily every year.

What this means for MSMEs:

There’s a huge and growing demand for online shopping in the Philippines. More people are buying online, and businesses that get in early — like yours — can ride that wave of growth.

Why E-commerce? Why Now?

E-commerce in the Philippines is experiencing record-breaking growth, driven by mobile shopping, social commerce, and an increasingly digital-savvy population. But rapid growth comes with growing pains: delayed deliveries, inventory mismatches, and unscalable processes.

That’s where Yello X steps in.

“We built the E-commerce Division to address the urgent demand for more agile, tech-enabled, and customer-centric fulfillment solutions.” says Marcus Francisco.

This bar graph shows the percentage of consumers who prefer to buy these products online. They are ranked as the most popular among Filipino online shoppers according to Standard Insights, "What’s Driving eCommerce In the Philippines: Market Analysis and Consumer Trends,” 2023. Download the data here:    

As for the top online stores in the Philippines, based on traffic data from May 2025 the ranking is as follows:

Data from: (1) Statisca, E-commerce in the Philippines - statistics & facts, 2025

(2) ESCAP (Economic Social Commission for Asia and the Pacific), The landscape of B2C E-commerce Marketplaces in the Philippines, 2024.

For MSMEs to shift to the digital e-commerce era, there are challenges that hinder advancing their businesses. Here are some of the top problems they face:

Sources:  

1. DTI Philippines. Approved MSMED Plan 2023-2028 approved, 2024. 
2. Philippine Institute for Development Studies. Regulatory Challenges in the Philippine Logistics Industry, 2018.
3. Asian Development Bank. ADB Economics Working Paper Series. FACTORS AFFECTING MICRO, SMALL, AND MEDIUM-SIZED ENTERPRISE DEVELOPMENT IN DEVELOPING ASIA, 2024.

Other Identified Core Problems in the Market

1. Key government red tapes, execution of plans and policies 
   
2. Lack of localized e-commerce infrastructure in rural areas 
3. Poor digital payment adoptions that hinder financial growth and security

How does Yello X fit in today's world? 

At YX (Yello X Supply Chain Solutions), we recognize the critical role supply chain and value chain management play in helping businesses thrive. That's why we are excited to announce the official launch of our dedicated E-commerce Division — a bold step forward to empower micro, small, and medium enterprises (MSMEs) across the Philippines.

Whether you're a start-up merchant, a scaling brand, or a corporate seller on Shopee, Lazada, TikTok Shop, or your own webstore — Yello X now offers tailored e-commerce packages from cart to customer. 

The new department offers a full suite of services designed to streamline your operations and accelerate your growth:

• Order Fulfillment & Pick-Pack-Ship: Fast, accurate, and reliable
• Webstore Analysis & Management: Rolling out campaigns and revenue tracking
• Social Media Content & Digital Marketing: Building your brand, strategic advertisement placements and website augmentation
  
• Warehousing & Inventory Management: Real-time tracking and efficient storage
• Last-Mile Delivery & Returns: Nationwide reach with high customer satisfaction
• Custom API Integrations & ERP Solutions: Sync your store with our system in just a few days!
• Business Intelligence & Reporting: See insights that help you grow faster

Curated to your business plans, we offer great packages that suit your needs and scale your ambition! Know more here.

"With Yello X, you don’t just get logistics — you get a growth partner who understands the unique challenges of e-commerce in the Philippines."

From Interior home decors and accessories, B2C pet food suppliers to SaaS, Yello X’s E-commerce Department is already working with a diverse set of clients — helping them scale efficiently while maintaining control over their brand experience.

What’s Next?

This launch is just the beginning. Yello X plans to roll out more digital upgrades, regional warehousing hubs, workshops for MSME sellers and even those who want to dream on having a full business operations running in the coming months!

We are a partner in progress. With our tech-enabled systems, experienced team, and commitment to innovation, we’re ready to meet the growing demands of Philippine e-commerce. This new department is a reflection of our belief: the future belongs to businesses that are ready to move fast and deliver smart. We're here to make that future a reality — with you. 

Whatever it takes, we deliver.

Ready to Get Started?

Book a FREE consultation with our E-commerce team today and let’s build a smarter, more scalable business together.

Sources:

1. Mordor Intelligence. Philippines E-commerce Market Report 2024-2029.
2. Department of Trade and Industry (DTI). MSME Development Plan 2023-2028.
3. Rappler. Challenges MSMEs Face in the Philippines, 2024.
4. Training UP ISSI. Empowering Philippine MSMEs Through Digital Transformation, 2024.
5. OpenGov Asia. Digitalizing Logistics to Solve Supply Chain Challenges in the Philippines, 2021.
6. ITA. Philippines - Digital Economy, 2024. 
7. Philippine Institute for Development Studies. Regulatory Challenges in the Philippine Logistics Industry, 2018.
8. Asian Development Bank. ADB Economics Working Paper Series. FACTORS AFFECTING MICRO, SMALL, AND MEDIUM-SIZED ENTERPRISE DEVELOPMENT IN DEVELOPING ASIA, 2024.