Back to BusinessMindedPinoy.com

Lazada / Shopee Parcel Drop-Off (PUDO) Business Guide (Philippines)

Practical, step-by-step guide to starting a Lazada/Shopee parcel drop-off (PUDO) point business in the Philippines, including two business models, legal registration, partner onboarding, typical startup costs, and a ready-to-use operations checklist.

What you'll learn in this parcel drop-off (PUDO) guide

This Lazada/Shopee parcel drop-off point (PUDO) business guide explains the two main models (retail PUDO partner vs courier franchise/agent), the legal registrations required, how to apply to partner programs, realistic fee ranges, and daily operations you need to manage.

For legal and tax setup, you may also want to read our Business Registration & Bank Account Guide, Barangay/LGU Business Permit Guide, and BIR Business Registration Guide.

Para ma-planong mabuti ang PUDO startup budget, daily tasks, at parcel tracking, puwede mong gamitin ang Budget Calculator para sa capital at buwanang gastos, ang Task Management System para sa daily cut-off at rider coordination, at ang Delivery Management System para i-track ang bookings at payouts.

Quick overview — two ways to run this business

1) PUDO / parcel drop-off partner

Sign up as a parcel drop-off (PUDO) partner for courier networks that handle Lazada/Shopee shipments. This has the lowest startup cost — you act as a collection point in your area and earn per-parcel incentives.

Examples: J&T Express PUDO partners, Ninja Van retail partners, SPX, Xend, etc.

2) Courier franchise / agent / branch

Buy a courier franchise or agent/branch package (LBC, branded J&T branches, etc.). Startup costs are much higher but you get more control and higher revenue potential. Public franchise quotations often reach hundreds of thousands to millions of pesos depending on brand and territory.

Step-by-step checklist

1) Choose your model & do quick market research

Decide between a PUDO partner (low cost, small space) and a franchise/agent (big cost, bigger obligations).

Check demand near markets, sari-sari stores, seller clusters, terminals, and schools. Count how many existing PUDO points or courier branches are already nearby.

PUDO partners (Ninja Van, J&T, SPX, Xend, etc.) typically recruit retail partners with small space, while full franchises like LBC or branded J&T branches require much larger investment and store fit-out.

2) Legal business registration (required for PUDO & franchise)

Even for a micro PUDO point, you should register formally to be accepted by courier networks and open a business bank account. Order and fees below are approximate and vary by city.

  1. DTI Business Name (sole prop) — register via BNRS. Fee depends on territorial scope (barangay ≈ ₱200, city ≈ ₱500, higher for regional/national).
  2. Barangay Clearance — small application fee (often around ₱300–₱500). Required before Mayor’s Permit.
  3. Mayor’s / Business Permit — fees vary widely by city; first-year total can range from a few hundreds to several thousands of pesos depending on assessed tax and LGU. Expect line items for garbage, sanitary, fire, and signage.
  4. BIR Registration (Form 1901 for sole prop / 1903 for corporation) — pay Documentary Stamp Tax (~₱30 per stamp), register books, and arrange for receipts/invoices. Use BIR’s NewBizReg portal or visit your RDO.
  5. SSS / PhilHealth / Pag-IBIG (if you employ staff) — standard employer registration and monthly contributions.

These registrations are foundational for operating legally and being accepted by courier partners and banks.

3) Prepare your location & equipment

Minimal setup for a basic PUDO drop-off point:

  • Small counter or dedicated shelf for parcels.
  • Android phone or computer for partner apps, plus stable internet or mobile data.
  • CCTV (often required or strongly recommended by couriers).
  • Optional thermal/receipt printer, weighing scale, label supplies, and basic stationery.
  • Signage and simple shelving/boxes to organize parcels by courier/date.
  • Petty cash float for change, rider fees, or COD payouts (if you handle COD).

Estimated one-time cost (basic PUDO): ₱5,000–₱50,000 depending on whether you use existing space, second-hand equipment, and affordable CCTV/signage.

Franchise startup (LBC, J&T, other big brands) can reach ₱700,000–₱1,000,000+ in public examples, including branding, systems, and fit-out.

4) Apply to courier / e-commerce partner programs

You generally don’t enroll directly with Lazada or Shopee as a courier. Instead, you sign up with courier or logistics networks that handle their parcels, or with marketplace pickup/collection programs when available.

  • Lazada Drop-Off / DOP — partner onboarding usually goes through official logistics partners (e.g., Pickmee and other Lazada logistics partners). Flow: inquiry → site audit → training → go-live.
  • J&T PUDO / PUDO Partner — retail shop owners can join the J&T PUDO network and earn per-parcel incentives.
  • Ninja Van Retail / PUDO partners — apply as a retail partner; they evaluate location and send onboarding guides.
  • SPX, Xend, LBC, Xpress — each courier has its own "partner/agent" or "service point" programs with online forms.
  • Shopee SPickup / collection point — Shopee operates pickup/collection point programs in some markets; you apply via their logistics/partner forms or through their logistics partners.

Tip: visit each courier’s partner or service point signup page, submit your details, and expect a location assessment plus training.

5) Typical partner requirements

  • Proof of business registration (DTI/SEC), barangay clearance, and often Mayor’s Permit.
  • Stable internet and an Android phone or PC to run partner apps.
  • CCTV (mandatory for some, recommended for most partners).
  • Set operating hours and at least one staff member to accept and organize parcels.

6) Fees, payments & revenue

Enrollment and partner fees

  • PUDO/retail partner models usually don’t charge heavy upfront fees; couriers instead pay you per-parcel incentives and provide training and signage.
  • Franchise/agent packages can require large upfront capital (public LBC franchise/agent quotes often start around hundreds of thousands up to ₱900k+ or more).

Per-parcel incentive / commission

Couriers pay a small incentive per parcel handled. Exact amounts vary by company, volume, and region, and are usually disclosed only during partner onboarding or in the contract.

Other ongoing costs you shoulder

  • Rent or contribution to rent (if you use part of another business).
  • Internet / mobile data and utilities.
  • Staff salaries or allowances (if you hire).
  • Insurance (especially if handling high COD volumes or valuable parcels).
  • Accounting/tax compliance and bank fees.

7) Example minimum budget (ballpark)

PUDO model (lean, in-store): around ₱5,000–₱50,000 for equipment (phone, basic printer, CCTV, signage). Monthly running costs ~₱5,000–₱20,000 for internet, electricity, and a small rent contribution (depending on location and scale).

Franchise / branch: around ₱700,000–₱2,000,000+ depending on brand and territory, often including franchise fees, fit-out, systems, and training.

8) Operations: how to handle Lazada / Shopee parcels

  • Use the courier’s partner app to create/scan shipment barcodes and record parcel status; many platforms integrate directly with marketplace seller accounts.
  • Keep clear shelves labeled by courier and date to speed up sorting and rider pick-ups.
  • Set and publish operating hours (Facebook, Google Maps, simple signage) so sellers and buyers know when they can drop off parcels.
  • Track payouts and reconcile against courier reports. Payout cycles are often monthly but may vary; confirm timelines with each partner.

9) Practical next steps (next 7 days)

  • Decide between PUDO partner and franchise/agent model.
  • Apply for DTI (or SEC) registration and get barangay clearance started.
  • Contact 2–3 courier partners (J&T PUDO, Ninja Van, SPX, Xend, LBC) and submit their online partner forms or inquiries.
  • Prepare basic equipment: Android phone, internet, small counter, simple CCTV setup (if required).
  • Document your planned service and pricing (e.g., pure per-parcel incentives vs adding a small handling fee) and clarify COD handling rules with the courier.