research about online selling in the philippines

E-commerce in the Philippines - statistics & facts

“add to cart”: key e-commerce trends, security challenges at the height of e-commerce adaption, key insights.

Detailed statistics

E-commerce share of total retail APAC 2022, by country or territory

Number of e-commerce users SEA 2024-2029, by country

Digital economy gross value added Philippines 2022, by sub-sector

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Current statistics on this topic.

Key Figures of E-Commerce

Gross merchandise value of e-commerce Philippines 2019-2030

B2C E-Commerce

E-commerce spending on consumer goods Philippines 2023, by category

Leading payment method in the Philippines 2021

Related topics

Recommended.

• Internet usage in the Philippines
• Social media in the Philippines
• Mobile internet & apps in the Philippines
• Food retail industry in the Philippines
• Coronavirus (COVID-19) pandemic in the Philippines

Recommended statistics

• Premium Statistic E-commerce share of total retail APAC 2022, by country or territory
• Premium Statistic E-commerce revenue SEA 2024-2029, by country
• Premium Statistic Number of e-commerce users SEA 2024-2029, by country
• Premium Statistic GMV digital economy Philippines 2019-2030
• Premium Statistic Digital economy gross value added Philippines 2022, by sub-sector

E-commerce share of total retail in the Asia-Pacific region in 2022, by country or territory

E-commerce revenue SEA 2024-2029, by country

Total e-commerce revenue of selected countries in Southeast Asia from 2024 to 2029 (in billion U.S. dollars)

Total number of e-commerce users of selected countries in Southeast Asia from 2024 to 2029 (in millions)

GMV digital economy Philippines 2019-2030

Gross merchandise value of the internet economy in the Philippines in 2019, 2021 and 2022, with forecasts for 2023, 2025, and 2030 (in billion U.S. dollars)

Gross value added of the digital economy in the Philippines in 2022, by sub-sector (in billion Philippine pesos)

Key indicators

• Premium Statistic Gross merchandise value of e-commerce Philippines 2019-2030
• Premium Statistic E-commerce gross value added Philippines 2018-2022
• Premium Statistic E-commerce gross value added growth Philippines 2018/19-2021/22
• Premium Statistic E-commerce GVA share to digital economy Philippines 2018-2022
• Premium Statistic Most popular online purchase categories Philippines 2022
• Premium Statistic E-commerce spending on consumer goods Philippines 2023, by category
• Premium Statistic E-commerce spending growth on consumer goods Philippines 2022-2023, by category

E-commerce market size in the Philippines in 2019, 2021 and 2022, with a forecast for 2023, 2025 and 2030 (in billion U.S. dollars)

E-commerce gross value added Philippines 2018-2022

Gross value added (GVA) of e-commerce in the Philippines from 2018 to 2022 (in billion Philippine pesos)

E-commerce gross value added growth Philippines 2018/19-2021/22

Growth rate of the gross value added (GVA) of e-commerce in the Philippines from 2018/19 to 2021/22

E-commerce GVA share to digital economy Philippines 2018-2022

Share of e-commerce in the gross value added (GVA) of the digital economy in the Philippines from 2018 to 2022

Most popular online purchase categories Philippines 2022

Market share of leading e-commerce segments in the Philippines in 2022

Estimated value of e-commerce expenditures on consumer goods in the Philippines in 2023, by category (in million U.S. dollars)

E-commerce spending growth on consumer goods Philippines 2022-2023, by category

Estimated growth of e-commerce expenditures on consumer goods in the Philippines between 2022 and 2023, by category

Demographics

• Basic Statistic Number of users of e-commerce Philippines 2018-2027
• Basic Statistic Penetration rate of e-commerce Philippines 2018-2027
• Premium Statistic Users of e-commerce Philippines 2023, by age group
• Premium Statistic Share of e-commerce users Philippines 2023, by gender
• Premium Statistic Share of e-commerce users Philippines 2023, by income

Number of users of e-commerce Philippines 2018-2027

Number of users of e-commerce in the Philippines from 2018 to 2027 (in millions)

Penetration rate of e-commerce Philippines 2018-2027

Penetration rate of e-commerce in the Philippines from 2018 to 2027

Users of e-commerce Philippines 2023, by age group

Distribution of e-commerce users in the Philippines as of June 2023, by age group

Share of e-commerce users Philippines 2023, by gender

Distribution of e-commerce users in the Philippines as of June 2023, by gender

Share of e-commerce users Philippines 2023, by income

Distribution of e-commerce users in the Philippines as of June 2023, by income

Leading e-commerce sites

• Premium Statistic Leading e-commerce websites Philippines Q2 2022, by monthly web visits
• Premium Statistic Leading B2C e-commerce sites Philippines Q2 2022, by monthly web visits
• Premium Statistic Shopee monthly web visits Philippines Q1 2019-Q2 2022
• Premium Statistic Lazada monthly web visits Philippines Q1 2019-Q2 2022
• Premium Statistic Zalora monthly web visits Philippines Q1 2019-Q2 2022

Leading e-commerce websites Philippines Q2 2022, by monthly web visits

Leading e-commerce websites in the Philippines as of 2nd quarter 2022, by monthly web visits (in millions)

Leading B2C e-commerce sites Philippines Q2 2022, by monthly web visits

Most popular B2C e-commerce sites in the Philippines as of 2nd quarter 2022, by monthly web visits (in millions)

Shopee monthly web visits Philippines Q1 2019-Q2 2022

Monthly visits to the Shopee website in the Philippines from 1st quarter 2019 to 2nd quarter 2022 (in millions)

Lazada monthly web visits Philippines Q1 2019-Q2 2022

Monthly visits to the Lazada website in the Philippines from 1st quarter 2019 to 2nd quarter 2022 (in millions)

Zalora monthly web visits Philippines Q1 2019-Q2 2022

Monthly visits to the Zalora website in the Philippines from 1st quarter 2019 to 2nd quarter 2022 (in millions)

Payment methods

• Premium Statistic Payment method distribution in online shopping Philippines 2022
• Premium Statistic Digital payments transaction value Philippines 2023, by segment
• Premium Statistic Card scheme distribution in online shopping Philippines 2022
• Premium Statistic Card payment transaction value Philippines 2021-2023
• Premium Statistic BNPL spending on e-commerce Philippines 2021-2026
• Premium Statistic Share of bank transfer in e-commerce transaction value Philippines 2021-2026

Payment method distribution in online shopping Philippines 2022

Leading payment method in e-commerce transactions in the Philippines in 2022

Digital payments transaction value Philippines 2023, by segment

Transaction value of the digital payments market in the Philippines in 2023, by segment (in billion U.S. dollars)

Card scheme distribution in online shopping Philippines 2022

Distribution of card schemes used for e-commerce transactions in the Philippines in 2022

Card payment transaction value Philippines 2021-2023

Total value of card payment transactions in the Philippines in 2021 and 2022, with a forecast for 2023 (in trillion Philippine pesos)

BNPL spending on e-commerce Philippines 2021-2026

Buy Now, Pay Later (BNPL) spending on e-commerce in the Philippines in 2021 with a forecast for 2026 (in billion U.S. dollars)

Share of bank transfer in e-commerce transaction value Philippines 2021-2026

Share of account-to-account (A2A) payments in the e-commerce transaction value in the Philippines in 2021 and 2022, with a forecast for 2026

• Premium Statistic Share of suspected e-commerce fraud Philippines 2019-2021
• Basic Statistic Most frequent consumer fraud schemes Philippines Q4 2023
• Premium Statistic Personal experiences with digital fraud attempts Philippines Q4 2023

Share of suspected e-commerce fraud Philippines 2019-2021

Percentage of suspected e-commerce fraud in the Philippines from 2019 to 2021

Most frequent consumer fraud schemes Philippines Q4 2023

Most frequent fraud schemes targeting consumers in the Philippines as of 4th quarter 2023

Personal experiences with digital fraud attempts Philippines Q4 2023

Personal experience with digital fraud attempts in the last three months in the Philippines as of 4th quarter 2023

Shopping behavior

• Premium Statistic Weekly online shopping activities of internet users Philippines Q3 2023
• Premium Statistic Most popular items purchased online in the Philippines 2023
• Premium Statistic Influences on online purchasing decisions in the Philippines 2023
• Premium Statistic Shopping apps with the most downloads Philippines 2023
• Premium Statistic Challenges to online shopping in the Philippines 2023

Weekly online shopping activities of internet users Philippines Q3 2023

Online shopping activities each week of internet users in the Philippines as of 3rd quarter 2023

Most popular items purchased online in the Philippines 2023

Most popular items purchased online among consumers in the Philippines as of January 2023

Influences on online purchasing decisions in the Philippines 2023

Sources that influenced online purchasing decisions among consumers in the Philippines as of January 2023

Shopping apps with the most downloads Philippines 2023

Leading shopping apps based on downloads in the Philippines in 2023 (in millions)

Challenges to online shopping in the Philippines 2023

Leading challenges to online shopping in the Philippines as of January 2023

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Best Research About Online Selling in The Philippines

Research about online selling in the Philippines shows that there is a consumer-driven economy, that’s the reason the use of eCommerce platforms has been increasing. According to research about online shopping, Filipinos will spend almost $12 billion on eCommerce platforms by 2025. So, the rapid growth of online shopping indicates tremendous opportunities for eCommerce players.

However, the continued rise in eCommerce platforms means you need to understand the intensified competition to make a better position in the competitive market. To stand in the highly competitive market, you need to sell the right products and understand the marketing strategies timely. 

In the Philippines during pandemic, e-commerce giants such as Lazada and Shopee are becoming more prominent in the market at a gradual pace. Despite the more relaxed situation then, many Filipinos remain alienated from online shopping. 

It wasn’t until a few months ago during the lockdown that online shopping has been amplified further and integrated further into the lives of Filipinos. In fact, a report published by Facebook has found that the e-commerce industry has been propelled further by the pandemic.

Related: What is SWOT Analysis in Online Business?

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What is The Best Online Selling in The Philippines?

From the looks of how things are going, it seems like online shopping is here to stay, and it will grow even bigger moving forward. Here are 6 best online selling in the Philippines.

This is a leading platform that has listed all the products under an umbrella. Founded in 2011 by Rocket Internet and is open in Indonesia, Malaysia, Singapore, Thailand, and Vietnam.

A few years ago, the Chinese eCommerce giant Ali Baba acquired a great share and controlled Lazada and its operations in Southeast Asia.

Lazada has more than 3000 brands, which marks its huge spread of products available with them.

There is a wide variety of products offered ranging from clothing, electronics, pet foods, and other daily essentials.

This website provides a unique web experience and is present in Singapore, Malaysia, Thailand, Indonesia, Vietnam, and Taiwan.

Shopee was launched in the year 2015, in less than 2 years it had more than 11,000 sellers on the platform. It’s one of the largest platforms in Southeast Asia.

This website caters to the needs of Filipinos across the nation. It is amongst the top 10 based on the users and the traffic generated by the visitors.

The idea behind the Carousell was a mobile platform. The users were allowed to sell the products by selling any of their products.

Carousell is widespread across Malaysia, Singapore, Indonesia, Taiwan, Australia, and Hong Kong. Carousell was earlier known as OLX.

The company arranged for selling car accessories, tools, and appliances and extending to clothing, shoes, books, and craft supplies.

Presently they have jobs and services listed which can be availed by the users as a service for their business or home.

The eCommerce website is structured to provide all general product categories as it expanded to business-to-sales.

Initially, eBay is one of the leaders of US eCommerce websites that was locally available to Filipinos as eBay Philippines.

Consumers can find a host of products and can buy on a bidding basis or instantly can select the products.

There are chances of sellers choosing to sell the items they do not need. There is a security system, a buyer protection program, and also a feedback system in place.

Globe Online Shop

Globe online shop is an online store of Globe corporation which is one of the largest corporations in the Philippines.

Globe online shop is an online platform that offers products ranging from gadgets, mobile devices, apparel, and many offers.

They also offer products from the world-leading brands for their customers, thus increasing their base.

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Why is Online Selling Trend Nowadays?

Selling directly online increases your reach. With an online store, your profits are no longer limited by the number of customers that can physically visit your brick and mortar location. You can sell across towns, states, and even across borders, removing all geographical limitations.

Your online store also allows you to cater to shoppers who find it more convenient to browse and buy at times when retail locations are not traditionally open. 

From the local studies research, online shopping can save time for both the buyer and retailer, reducing phone calls about availability, specifications, hours of operation or other information easily found on company and product pages.

An ecommerce system provides real time data and analytics about your products and your customers. You can see how people interact with the site, what products interest them, what they left in their cart and how much the average purchase was. 

Valuable metrics that allow you to make adjustments to meet your customer’s needs. Even if your product(s) don’t appear ideal for online sales, an ecommerce presence will help buyers discover your business.

See also: What is the Business Model Canvas?

How Popular is Online Selling in The Philippines?

Online shopping has been a growing craze in the Philippines in the past few years. A study conducted as early as 2015 found that 9 out of 10 Filipinos customer satisfaction towards online shopping.

The same study found that convenience, cheaper prices and special deals were the leading reasons for the respondents’ preference for online shopping.

The market has rapidly grown since then. According to Eshopworld.com, the quantitative research about online shopping in the Philippines shows that there are at least 37.7 million e-commerce users in the country in 2018 from the 30.2 million estimated in 2016. The number is expected to rise to 53.8 million by 2022.

Statista’s e-commerce outlook henceforth estimates that there are currently at least 47.3 million e-commerce users in November 2018, yielding a revenue of $840 million.

The news about online selling in the philippines report published in May 2018 found that despite its growing popularity, the Philippines lags in terms of growth of e-commerce sales in the Southeast Asian region.

Related: Why is Online Business Good in the Pandemic?

Online shopping has many sites here in the Philippines. You can choose and find all you need without wasting your time traveling to the store or going to the mall to find the item or product you want. You only sit and have your computer with the internet and that’s it you can choose whatever website you want and see their sale item and discount product. 

Online selling in the Philippines during pandemic nowadays is very useful and helpful to those Filipinos who have no time to go out and shop. It is very convenient and sometimes it is cheaper compared to the mall price.

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Online Selling in the Philippines: Strategies, Trends, and Tips 

Disclosure: Small Business Philippines strives to provide relevant and accurate information in all its articles. However, some information in our articles may differ or might be outdated from what you can see or read directly from the establishments’ or businesses’ websites. Please get in touch with us directly for any discrepancies.

Online selling has become a critical component of the business landscape, particularly in the Philippine market. As the country continues to embrace digital technology, e-commerce is growing at an unprecedented rate.

In this comprehensive guide, we’ll dive into the world of online selling in the Philippines, discussing key strategies, trends, and actionable tips for success. We’ll simplify complex concepts and provide real-world examples to help you understand the opportunities and challenges in the industry.

Let’s get started!

The Impact of Social Media on Online Selling

Identifying your target audience, segmenting your market, choosing the right platform, creating an engaging and user-friendly website, crafting compelling product descriptions, maximizing the impact of product images, using keywords for search engine optimization (seo), social media marketing, influencer marketing, email marketing, streamlining the order fulfillment process, handling customer inquiries and complaints, tracking key performance indicators (kpis), continuous learning and adaptation, mobile commerce, personalization, sustainability and social responsibility, key takeaways and actionable tips for online selling success in the philippines, the growth of online selling in the philippines.

Online selling in the Philippines has grown exponentially in recent years. Factors contributing to this growth include increased internet penetration, improved logistics and payment solutions, and a young, tech-savvy population. The COVID-19 pandemic has also accelerated the shift to e-commerce as more consumers turn to online shopping for convenience and safety. According to a 2021 study by Google, Temasek, and Bain & Company, the Philippines’ internet economy reached $7.5 billion in gross merchandise value (GMV) and was expected to grow to $28 billion by 2025. This growth presents a significant opportunity for businesses to tap into the Philippine online market .

Social media platforms play a vital role in the growth of online selling in the Philippines . With over 89 million active social media users, platforms such as Facebook, Instagram, and TikTok have become essential tools for businesses to promote their products and services . Leveraging the power of social media influencers and targeted advertising campaigns, businesses can reach a wider audience and drive sales.

Understanding Your Target Market

To succeed in online selling, it’s crucial to understand your target audience. By identifying their needs, preferences, and pain points, you can create a product or service that meets their expectations. Start by conducting market research to gather data on your potential customers, including their age, gender, location, interests, and purchasing habits. You can use online tools such as Google Analytics, Facebook Insights, and surveys to collect this information.

Once you have a clear understanding of your target audience, segment your market to create more targeted and effective marketing campaigns. Market segmentation involves dividing your audience into smaller groups based on specific criteria, such as demographics, behaviors, and psychographics. This allows you to tailor your marketing messages, products, and services to better address the needs of each segment.

Setting Up Your Online Store

There are several e-commerce platforms available for online sellers in the Philippines , each with its features, benefits, and limitations. Some popular options include Lazada, Shopee, Shopify, and WooCommerce. When choosing a platform, consider factors such as ease of use, customization options, fees and commissions, and available integrations.

Your online store should be visually appealing , easy to navigate, and responsive on all devices. Invest in high-quality product images and descriptions, and ensure your website loads quickly. Implement a simple and intuitive checkout process, offering multiple payment options to cater to different customer preferences. Providing excellent user experience (UX) is crucial to retaining customers and encouraging repeat purchases.

Optimizing Your Product Listings

A well-written product description can significantly impact a customer’s decision to purchase. When crafting your descriptions, focus on the benefits and unique selling points (USPs) of your products. Use persuasive language and highlight the value your product offers, addressing potential customer concerns or questions. Keep your descriptions concise, using bullet points and subheadings to break up the text and make it easier to read.

High-quality product images are essential for convincing potential customers to make a purchase. Invest in professional photography or learn how to take appealing product photos yourself. Use multiple images to showcase your products from different angles and in various settings. When possible, include images of your products being used by real people, as this helps customers envision themselves using the item.

To increase the visibility of your online store, you need to optimize your product listings for search engines. Conduct keyword research to identify relevant search terms that your target audience is likely to use when looking for your products. Incorporate these keywords into your product titles, descriptions, and image alt tags to improve your search engine ranking and attract more organic traffic to your store.

Effective Marketing Strategies for Online Selling

As mentioned earlier, social media plays a vital role in online selling in the Philippines. Develop a robust social media presence on platforms relevant to your target audience, such as Facebook, Instagram, Twitter, and TikTok. Create engaging content that showcases your products and highlights their benefits, using a mix of images, videos, and user-generated content. Run targeted ad campaigns to reach potential customers who fit your target demographic.

Collaborating with social media influencers can help you reach a broader audience and build credibility for your brand. Identify influencers who are popular among your target market and align with your brand values. Partner with them to create sponsored content, product reviews, or giveaways, ensuring they disclose the partnership to comply with advertising guidelines.

Email marketing remains an effective way to communicate with your customers and promote your products. Build your email list by offering incentives, such as discounts or freebies, in exchange for signing up. Segment your list and send targeted email campaigns based on customer interests and behaviors, ensuring your content is relevant and valuable to the recipient. Monitor your email marketing performance and adjust your strategy accordingly.

Providing Excellent Customer Service

A smooth order fulfillment process is essential to ensuring customer satisfaction. Implement an efficient system to manage your inventory , process orders, and handle shipping and returns. Partner with reliable logistics providers to ensure timely delivery of your products. Offer tracking information and proactive updates to keep customers informed about their order status.

Promptly and professionally addressing customer inquiries and complaints can significantly impact your online store’s reputation. Train your customer support team to handle various issues, from answering product questions to resolving delivery problems. Offer multiple communication channels, such as email, live chat, and social media, to make it easy for customers to reach you. Regularly review customer feedback and make necessary improvements to your products, services, and processes.

Monitoring and Measuring Your Online Selling Success

To evaluate the effectiveness of your online selling strategies, you need to track relevant KPIs, such as website traffic, conversion rates, average order value, and customer lifetime value. Use tools like Google Analytics and your e-commerce platform’s reporting features to monitor these metrics regularly. By analyzing your data, you can identify trends and areas for improvement, helping you optimize your strategies and grow your online store.

The online selling landscape is continually evolving, with new trends, tools, and technologies emerging regularly. To stay ahead of the competition, you must be willing to learn and adapt. Stay informed about industry developments and best practices, and regularly evaluate and update your online selling strategies. Attend webinars, read industry blogs, and engage in online communities to expand your knowledge and stay connected with other online sellers facing similar challenges.

Future Trends and Opportunities in Online Selling in the Philippines

With the increasing number of smartphone users in the Philippines, mobile commerce is set to play an even more significant role in online selling. Ensure that your online store is mobile-friendly and consider developing a mobile app to enhance the shopping experience for your customers. Mobile wallets and contactless payment options will continue to gain popularity, so ensure your store is compatible with these methods.

Personalization is becoming increasingly important in online selling, as customers demand more tailored and relevant shopping experiences. Utilize customer data to create personalized product recommendations, marketing campaigns, and special offers. Implementing chatbots and artificial intelligence (AI) can further enhance personalization by delivering real-time, tailored support and recommendations.

Consumers are becoming more conscious of the environmental and social impact of their purchases. Embrace sustainable practices in your online selling operations, such as using eco-friendly packaging, reducing waste, and partnering with ethical suppliers. Communicate your commitment to sustainability and social responsibility through your marketing efforts and consider supporting relevant causes to further align your brand with consumer values.

In conclusion, online selling in the Philippine market offers numerous opportunities for businesses to thrive .

To succeed in this competitive landscape, it’s essential to:

• Understand your target market and segment it for more effective marketing campaigns.
• Choose the right e-commerce platform and create a user-friendly, visually appealing online store.
• Optimize your product listings with compelling descriptions, high-quality images, and relevant keywords.
• Implement effective marketing strategies, including social media marketing, influencer marketing, and email marketing.
• Provide excellent customer service by streamlining your order fulfillment process and handling inquiries and complaints promptly.
• Monitor and measure your online selling success through relevant KPIs and continuous learning.
• Stay informed about future trends and opportunities, such as mobile commerce, personalization, and sustainability.

By following these guidelines and implementing the strategies discussed, you’ll be well-equipped to navigate the ever-evolving world of online selling in the Philippines and achieve lasting success.

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Filipino Online Shopping Behavior: Statistics & Trends You Need to Know

Over the past couple of years, online shopping experienced meteoric growth worldwide, and it’s here to stay. The International Trade Administration reported that ecommerce’s global retail sales went from 13.6% of the market share to 18% in the first year of the pandemic. 

With more people embracing online shopping, businesses around the globe are rethinking their retail strategies and ramping up their digital presence. The Philippines is no exception to this trend. Despite returning to near pre-pandemic levels, online shopping in the Philippines continues to grow, but that means so is the competition.

If you want to rise above your competitors or get a head start in the industry, you need to understand Filipino online shopping behavior to help you strategize your next move.

Read on, as this infographic lists everything aspiring and veteran online retailers need to know about ecommerce in the Philippines.

Also Read: Top 10 Digital Marketing Trends in the Philippines 2022

An Overview of the Philippine Ecommerce Market

Achieving success in ecommerce starts with understanding where the market is currently. Here are some online shopping statistics in the Philippines worth noting to help you strategize your brand’s next ecommerce efforts.

Demographics

To get started, you should know the demographics of your shoppers and your competition. This information can help you target your marketing and sales efforts more accurately. 

Millennials are the main drivers of ecommerce.

The younger generations will always lead the charge when embracing new things, which holds for ecommerce.

According to research, 52% of Filipino online shoppers are in the 25-34 age range. If you combine them with the 18-24 shoppers, they make up nearly 80% of all shoppers. Millennials likely edge out Gen Z due to adulthood’s increased spending power and responsibilities.

Adapting your sales and marketing initiatives to target these age groups can significantly improve the number of customers your business receives.

72% of Filipino online shoppers are female.

Records show that Filipinas heavily outspend their male counterparts when it comes to ecommerce. One potential reason for this significant disparity is that women generally use social media more, a primary vehicle for ecommerce in the Philippines.

If you want to target female customers, research which avenues of promotion are more likely to reach the targeted audience. For example, 75% of Pinterest’s users are female, so ads on the site may perform better.

38% of all ecommerce transactions occur in Metro Manila.

Despite efforts from the government and ecommerce platforms, sales in Philippine provinces are still catching up. Of the regions, Cavite has the next largest customer base at 9%, Cebu has 6%, and Pampanga, Davao, and Rizal have 3% each.

While it makes sense for you to focus on selling to the largest audience, it might be wise to begin selling to provinces. Because they’re underutilized, you might find an eager audience to receive your business.

Majority of independent online sellers have finished high school.

Most online sellers have a high school diploma, which emphasizes the role of knowledge in ecommerce. While a degree isn’t everything, schooling may equip you with the skills and tools to better understand and utilize the capabilities of technology.

Of course, no amount of schooling can beat practical experience, so don’t let this fact discourage you from building an ecommerce store . After all, the world is full of highly successful multi-millionaires who struggle with formal education.

Shopping Habits

Now that you know your audience base, it’s time to determine consumer buying behavior towards online shopping in the Philippines and the factors affecting them.

Filipinos are on social media 10 hours a day, seven days a week .

There’s a reason why people call the Philippines the social media Capital of the World . Advertising and selling on social media are so effective because many Filipinos are already on these platforms—and businesses know this, which is why it’s very rare for a company to have no social media presence.

With this information in mind, it would help if you capitalized on Filipinos’ borderline obsession with social networking sites to achieve your business’s full potential.

Mega Sale Days affect consumer shopping behavior.

Like retail stores, ecommerce platforms hold regular site-wide sales called Mega Sale Days, which Filipinos love. In fact, 76% of year-end shoppers enjoy discovering items they weren’t actively looking for. In particular, near-holiday sales like 10.10, 11.11, and 12.12 events significantly boost fashion, food, and health and beauty purchases. 

Offering discounts during these sales is a great way to pull interested customers who are already looking for great deals.

86% of Filipino online shoppers pay via cash on delivery.

Cash is still the most popular payment method for online shoppers, specifically in the Philippines. The other payment methods, in descending order, include mobile wallets, mobile payment apps, credit and debit cards, and bank transfers.

It would be best to offer a variety of payment methods to minimize friction and last-minute cancellations.

92% of Filipino online shoppers prefer using their smartphones when transacting.

Mobile is far and away the most frequently used device for Filipinos of all ages. This figure will likely only grow as phone availability increases. To use this, ensure that you optimize your product listings and advertisements for phone screen sizes.

Ecommerce Sales

Now for the bigger picture: how is the Philippine ecommerce market performing? Here are some facts and figures you need to know about the industry in the country.

The Philippines has had the highest online shopping growth in Southeast Asia (SEA) over the pandemic.

In the country, 54% of consumers made their first online purchase during the pandemic, and 73% of new online shoppers plan to continue buying online after restrictions lift. Even from its lower starting area, the country quickly catches up to its neighbors within the SEA region.

The Philippine ecommerce market sales are projected to hit $24 billion in 2025 .

After the initial shock, online shopping in the Philippines continues to grow steadily, hampered only by the need for more technological and financial infrastructure in more remote areas. As the market overcomes these challenges, you can expect even faster growth in the near future.

Shopee has the highest monthly traffic estimate in the Philippines, with 74.91 million .

Of all the ecommerce platforms, Shopee is the most popular, with almost 75 million web visitors monthly. Facebook Marketplace is a close second, with Lazada and Carousell trailing behind. Cross-posting on these platforms will expand your reach and close more deals for your brand.

Electronics are the most spent items in the ecommerce space at $6.85 billion .

Across all ecommerce platforms, electronic products outperform the next type (personal and household care products) by more than double. It might be challenging to carve a space in the electronics market, so don’t think you need to sell what everyone else is selling.

Emerging Online Shopping Trends in the Philippines

Based on the available ecommerce statistics for businesses, below are a few emerging digital retail trends in the Philippines for 2023 your organization can explore!

Rise of more value-centric customers

As society becomes more conscious of social issues, more people buy from brands that reflect their values. In the Philippines, this trend expresses itself in Filipinos who purchase sustainable products and support smaller local businesses over large corporations.

More discerning buyers

With the growing number of businesses entering the online marketplace, Filipinos have a wider range of options, which has led to a greater emphasis on value. Because of this, retailers are forced to make their products less expensive or more unique to remain competitive.

Prioritization of customer service

Businesses recognize the need to prioritize customer service to retain customers and keep up with other services. Customer service is a critical battleground where sellers offering similar products can differentiate themselves by providing Filipinos with a seamless and tailored buying experience . 

Expanded cashless payment options

The shift towards cashless payment options in the Philippines is gaining momentum, with digital wallets and other methods becoming increasingly popular. The convenience and safety these cash alternatives offers are the main reason businesses and the government push this transition.

Increased importance on delivery times

The convenience of online shopping is one of its largest draws, but slow and unreliable delivery is a speed bump for future growth. In response to this challenge, ecommerce platforms and online retailers partner with logistics companies to improve delivery capacities, speed, and reach.

Expansion into provinces

Businesses are recognizing the potential of the country’s provinces as an untapped market for online shopping. The drive towards improving delivery capacity is partially to gain a new customer base. However, there are many infrastructural challenges that ecommerce platforms and sellers need to overcome.

Implementation of new technologies

With the widespread use of mobile devices in the Philippines, ecommerce companies are experimenting with ecommerce tools like artificial reality (AR) and artificial intelligence (AI) to improve the customer experience. AR allows customers to visualize products before purchasing. AI has many potential applications, too, including data analysis and automation.

The State of This Digital Nation

The online shopping industry in the Philippines is experiencing tremendous growth and showing no signs of slowing down anytime soon. In such a fast-paced market, ecommerce retailers must understand online shopping behaviors to improve their business strategies and operations and keep up with the rapid shifts.

If you want to elevate your brand in this increasingly digital nation, consider partnering with Spiralytics! We are a digital marketing agency offering top-notch pay-per-click advertising in the Philippines and other performance marketing support to bring your business into the spotlight and help you navigate today’s competitive online space!

Skip the guesswork in improving your digital marketing performance, and contact us today to get started!

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Analyzing the impact of online selling in the Philippines

July 15, 2022 February 10, 2023

Getting into E-commerce in the Philippines is one way for brands to reach a wider audience and showcase their offerings. When online marketplaces were first introduced, Filipinos were quick to explore these platforms because of the great deals and discounts they offered. However, many still preferred visiting traditional brick and mortar stores, with only 2% of the online population making online purchases.

When the pandemic broke out and restrictions were put in place, many saw the potential of exploring E-commerce. Merchants and customers alike turned to online selling in the Philippines for their essential needs because they couldn’t go out. Thus, a new generation of shoppers and shopkeepers were born.

Rise of the digital marketplace

During the height of the pandemic, E-commerce activity grew as physical movements and mobility continued to be limited. This saw local E-commerce transactions reaching PHP229.8B in 2020, and estimated to have reached PHP264.5B in 2021. This is proof of how businesses and consumers coped with online selling in the Philippines.

Because of the restrictions, some businesses scaled down physical stores. This was followed by expansions online while many startups also came into the digital fold. The Department of Trade and Industry even reported that online merchants have grown from only 1,700 in March 2020 to over 93,000 in January 2021.

Whether it’s on social media like Facebook and Instagram, online marketplaces like Shopee and Lazada, or on merchants’ own websites, online selling in the Philippines is thriving thanks to technology. Not only did costs decrease, but merchants are also able to maximize expenditure on other things. This includes increased inventory, storage, and even advertisements for different marketing promotions.

Growth of digital payments

The rise of online selling in the Philippines also saw the jump in digital payments. Because they were not able to go to banks and bayad centers, consumers had to learn how digital banking worked to manage their finances and online purchases.

Despite being a cash-driven market, Visa revealed that 60% of Filipinos carried less cash during the pandemic, while another 84% tried going cashless. There was also an increase in preference for mobile wallets, online card payments, in-store card payments, and quick response (QR) payments.

The company even went on to say that the preference for cashless payments is clearly gaining momentum. “More Filipinos are confident to get by without cash and for longer periods of time — with more than half feeling confident to get by for a week or longer, as cashless payment options grow,” it shared.

Multiplier effect in other industries

Demand for logistics service providers also soared as online selling boomed in the Philippines. As businesses and consumers dominated the digital marketplace, they also grew to cater to the surge in customers. This has led to more employment opportunities for Filipinos and access to untapped markets.

Similarly, this growth also impacted warehousing as E-commerce accounted for nearly half the total demand in early 2021. This shows not only the increased investment in storage spaces, but the potential of serving a bigger market in the metro and in rural areas.

Technology has indeed enabled a lot of opportunities to ensure a thriving local retail industry. If you’re looking to leverage these, then now’s the right time to explore and take your shot. 

With Payo’s solutions, you can break into the Philippine E-commerce scene effectively and seamlessly. These include Marketplace Optimization , Warehousing , Fulfillment , Last Mile Management , Cash-on-Delivery Integration , and so much more. 

Want to scale your business in the Philippines through online selling? Sign up with Payo today or send us a message at [email protected] . Your journey into the digital marketplace starts here!

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The “New Normal” of Increased Online Business

The “new normal” of increased online business transactions, and revisiting revenue memorandum circular no. 55-2013.

by: Renz Homer S. Arreola

The COVID-19 pandemic has taken a significant toll on economies and people of all nations and of all ages, from all walks of life, across the globe.

Social media and virtual meetings, domestically and across the globe, have become the “new normal” as people strive to keep normalcy in their lives amid pandemic restrictions. Here in the Philippines, Digital 2020 April Statshot report by Hootsuite and We Are Social revealed that 64% of Filipino internet users are spending more time on social media, with 23% indicating an increased activity in their online shopping activity.

With consumers resorting more to online shopping amid pandemic restrictions, entrepreneurs have embraced the digital phenomenon for online shopping even more. E-commerce websites such as Lazada and Shopee are at the forefront of these online shopping platforms with expected surges in sales revenues in millions of pesos. Technology has already transformed online business transactions into an infinite marketplace where conducting business has become more convenient and efficient for both vendors and vendees. The COVID-19 pandemic has made this marketplace a more obvious necessity.

With this surge in online sales and business activity, the government looks to remind online sellers of their tax obligations, with the Bureau of Internal Revenue’s (BIR) issuance of Revenue Memorandum Circular (RMC) No. 60-2020 entitled “Obligations of Persons Conducting Business Transactions Through any Forms of Electronic Media and Notice to Unregistered Businesses.”  The Circular basically mandates all business owners who are engaged in an online business platform in any form, whether digital or electronic, to register their businesses with the BIR and pay taxes on their sales.

Under this RMC, online business entities and constituents are encouraged to register their businesses no later than July 31, 2020 to avoid penalties for late registration. In addition, they are encouraged to voluntarily declare their past transactions, and pay the taxes due thereon, without corresponding penalties if the declaration is done no later than July 31, 2020.

The above Circular is explicit that it covers not only partner sellers, but also other stakeholders, such as the payment gateways, delivery channels, internet service providers, and other facilitators. Do note that if online sellers are already registered with the BIR, but were not previously doing business online, these online sellers should revise their certificates of registration (with the BIR), to include “online selling”.

The Department of Finance (DOF) and the BIR were quick to explain that this RMC is a reminder to register, and pay the appropriate taxes due, referring to RMC No. 55-2013, dated 05 August 2013. Given this reference, it would be best to review RMC No. 55-2013.

Revisiting RMC No. 55-2013 reveals that online sellers and other facilitators of online trading have different functions and responsibilities. Individuals who have obligations relative to online business transactions are not limited to those who are e-commerce business owners that possess websites and sell their goods and services online, but it includes those “online intermediaries” who are third parties that offer intermediation services between the online sellers and buyers. The intermediaries receive commissions as they act as channels for goods or services offered by a supplier to a consumer. The relationship between the intermediaries and the online sellers is akin to that of principal-agent relationship. All considered, their obligations and duties to different types of online transactions are entirely different. And what are online transactions? RMC No. 55-2013 refers to the following as the more common online transactions: (A) online shopping or retailing, involving consumers directly buying goods or services from a seller over the internet without an intermediary service; (B) online intermediary service, involving an intermediary/third party offering intermediation services between two trading parties (as discussed above); (C) online advertisement/classified ads, involving a form of promotion that uses the internet to deliver marketing messages to attract customers, and (D) online auctions, which are auctions conducted through the internet via an online service provider that specifically hosts such auctions.

RMC No. 55-2013 likewise provides for more detailed instructions on the obligations of the parties to online transactions with regard the issuances of ORs, depending on the manner of payment to the online seller, whether it be through cash on delivery, through bank deposits, or through credit cards. These instructions likewise consider the details of the abovementioned online transactions.

Finally, RMC No. 55-2013 details the BIR administrative obligations of parties to online transactions as: (1) registration with the BIR; (2) securing the required Authority to Print (ATP) invoices/receipts and register books of accounts for use in business; (3) issue the required invoices or ORs, manually or electronically; (4) withhold the applicable taxes and remit the same to the BIR; (5) file applicable tax returns on or before the due dates, pay correct internal revenue taxes, and submit information returns and other tax compliance reports; and (6) keep books of accounts and other business/accounting records within the time prescribed by law. These obligations are generally restated in RMC No. 60-2020.

Given the lack of details in RMC No. 60-2020, and the public outcry the RMC has generated, maybe the BIR can consider the following to clarify this reminder: (a) issue an extension of the deadline for registration; (b) provide specific details on income tax and value-added tax exemptions, and the qualifications for exemptions, whether it be in the Tax Code or in special laws, like the Barangay Micro Business Enterprises (BMBEs) Act of 2002; (c) reiterate the specific obligations with regard the issuance of invoices/ORs, so that all parties to online transactions will be informed, and (d) the specific requirements for filing of the various returns. Surely, the just enforcement of tax laws merits the detailed clarification of the laws, rules and regulations imposed on taxpayers.

Renz Homer S. Arreola is a Supervisor from the Tax Group of KPMG R.G. Manabat & Co. (KPMG RGM&Co.), the Philippine member firm of KPMG International. KPMG RGM&Co. has been recognized as a Tier 1 tax practice and Tier 1 transfer pricing practice by the International Tax Review.

This article is for general information purposes only and should not be considered as professional advice to a specific issue or entity.

The views and opinions expressed herein are those of the author and do not necessarily represent the views and opinions of KPMG International or KPMG RGM&Co. For comments or inquiries, please email [email protected] or [email protected] .

© 2024 R.G. Manabat & Co., a Philippine partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit https://kpmg.com/governance .

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Online Selling in the Philippines: 6 Important Steps to E-commerce Success

Are you thinking of starting an online business in the Philippines? With the increasing popularity of e-commerce platforms in the Philippines , now is the perfect time to take advantage of this growing trend. According to a report by Google and Temasek, the e-commerce industry in Southeast Asia is projected to be worth $200 billion by 2025, and the Philippines is expected to be one of the fastest-growing markets in the region.

One of the main advantages of selling online is convenience. With just a few clicks, customers can easily browse and purchase products from the comfort of their own homes. This has led to a significant increase in online sales, with a study by iPrice Group reporting a 57% growth in e-commerce transactions in the Philippines in 2020.

So, how can you start your own online business in the Philippines? Whether you’re new to online selling or looking to improve your existing business, here are some steps to help you get started and succeed in this competitive market.

6 Essential Steps to Successfully Sell Online

Selling online can be a lucrative venture if done right. Here are 6 essential steps to guide you towards success:

• Know your motivation – Why do you want to sell online? Identify your goals and motivations to help you stay focused and motivated.
• Choose your products wisely – Conduct market research to determine which products are in demand and have the potential to sell well online.
• Know your customer – Determine your target audience and tailor your marketing efforts to them.
• Research the market and timing – Keep yourself updated with market trends and find the best timing to launch your products.
• Address customer needs through feedback – Listen to your customers and their feedback to improve your products and services.
• Partner with a trusted delivery firm for safe and timely deliveries – Work with a reliable delivery service to ensure your products are delivered safely and on time to your customers.

Online Selling Step #1: Ask yourself why you want to sell.

Before you dive into the world of online selling, it’s important to ask yourself why you want to sell. This will not only help you set goals, but it will also give you a clear understanding of your motivation and purpose.

Ask yourself these questions to help clarify your motivation:

• What problem are you solving?
• What unique perspective or value do you bring to the market?
• What personal interests or passions can you incorporate into your business?
• What are your long-term goals for the business?

Once you have answered these questions, you can use this information to create a mission statement that will guide your business decisions and keep you focused on your goals.

How to address this problem:

• Write down your answers to the questions above and create a mission statement that encapsulates your motivation and purpose.
• Make sure your mission statement is specific and unique to your business.
• Use your mission statement as a guiding principle when making business decisions and setting goals.

Online Selling Step #2: What you want to sell?

Now that you have identified your motivation for selling online, it’s time to choose the products that you want to sell. Keep in mind that the products you choose should not only be something that you are interested in, but they should also be profitable.

Here are some things to consider when choosing products:

• Find a product niche that interests you: It’s easier to sell products you are passionate about. This will help you stay motivated and engaged in your business.
• Research product demand: Conduct market research to identify which products are in demand. This will help you choose products with a higher chance of selling and can increase your chances of success.
• Research your competition: Before you start selling a product, research what other businesses are offering in the same niche. Look for opportunities to differentiate yourself and offer something unique.
• Consider profit margins: Choose products that offer a good profit margin. Calculate your expenses, such as the cost of goods, shipping fees , and marketplace fees, and make sure you can still make a profit after deducting these costs from the sale price.

By choosing your products carefully, you can set yourself up for success in the online selling world.

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Online selling step #3: who is your customer.

Knowing your target audience is crucial to any business, including online selling. You may struggle to effectively market your products and address their needs without understanding your customers. 

To define your customer, you must consider factors such as age, gender, income level, location, interests, and shopping behaviour.

One way to understand your customer is by conducting market research. You can start by gathering data from social media platforms, online forums, or survey tools to learn about their preferences, pain points, and behaviour. You can also analyse your competitors’ customer base to gain insights into the market.

Once you better understand your target audience, you can tailor your products, marketing strategies, and customer service to meet their needs. For example, if your target audience is young adults passionate about sustainability, you can offer eco-friendly products or packaging and highlight your sustainable practices in your marketing messages.

Remember that understanding your customer is an ongoing process, and you need to stay updated with the latest trends and preferences to remain relevant and competitive in the market.

Here is the summarisation of how to find whom to sell to:

• Identify your target audience or ideal customer
• Conduct market research to understand their needs and preferences
• Consider factors like age, gender, location, interests, and purchasing power
• Use this information to tailor your product offerings, marketing strategies, and customer service to appeal to your target audience better.

Online Selling Step #4: Where are your suppliers?

When you have a clear idea of what you want to sell, the next step is to find reliable cross border suppliers who can provide you with quality products at a reasonable price. If there’s one thing the property industry can teach any online seller, it’s “location, location, location.” That means knowing where to source your products .  

If you’re selling homemade products, you still need to know where to get your raw materials (or ingredients if it’s food). You must do your due diligence on where you will get your products, how to transport them, and the cost that comes with them. This can be challenging, especially if you’re just starting, but there are several ways to find good suppliers:

• Attend trade shows and connect with suppliers in your niche.
• Search for suppliers on online marketplaces like Shopee, Lazada, or AliExpress.
• Check social media platforms like TikTok, Facebook and Instagram for local suppliers.
• Ask for recommendations from fellow entrepreneurs.

Once you’ve found potential suppliers, assessing their reliability and reputation is important. Look for reviews, ratings, and feedback from previous customers to ensure the supplier is trustworthy.

In addition to finding reliable suppliers, it’s also important to consider transportation costs. This includes not just the cost of shipping the products to you but also the cost of delivering the products to your customers.

Make sure to factor in shipping costs when setting the prices for your products. If the shipping costs are too high, looking for local suppliers or adjusting your pricing strategy may be more cost-effective.

Finding reliable suppliers and managing transportation costs is crucial to the success of your online selling business. Take the time to research and choose your suppliers wisely to ensure you’re providing quality products at a fair price to your customers.

Online Selling Step #5: When do you sell?

Now that you have chosen the products you want to sell and have found reliable suppliers, it’s time to research the market and timing. Identifying your target market and understanding their preferences, interests, and purchasing behaviour is essential. Knowing your customers can help you tailor your products, pricing, and marketing strategies to meet their needs and stand out from your competitors.

Market research can help you identify trends, demand, and competition. You can check out online marketplaces, social media, and forums to get insights on what’s currently selling well and what gaps you can fill in the market. Timing is also crucial in online selling. 

You should know seasonal trends, holidays, and special occasions that may impact your sales. By being prepared and strategic, you can take advantage of these opportunities and maximise your profits.

To summarise, here are some key steps for researching the market and timing:

• Identify your target market and understand their preferences and purchasing behaviour.
• Check out online marketplaces, social media, and forums to identify trends, demand, and competition.
• Consider seasonal trends, holidays, and special occasions that may impact your sales.
• Be prepared and strategic to take advantage of market opportunities and maximise your profits.

Online Selling Step #6: How do you deliver your products?

A crucial aspect of running an online selling business is ensuring that the items purchased by customers are delivered to them safely and on time. This is where partnering with a reliable delivery firm comes in.

Here are some reasons why choosing the right delivery partner is essential:

• Customer satisfaction: Customers expect their purchases to arrive on time and in good condition. A good delivery partner can ensure that your customers receive their e-commerce orders promptly and in excellent condition, increasing customer satisfaction and loyalty.
• Brand reputation: The delivery experience can significantly impact your brand reputation. A reliable delivery partner can help enhance your brand image by providing a positive delivery experience to your customers.
• Cost-effectiveness: Working with a reliable delivery partner can save you time and money by streamlining your delivery process and reducing the need for in-house delivery personnel and equipment.
• Tracking and transparency: A good delivery partner should provide real-time tracking and updates to customers, ensuring they are always aware of the delivery status of their orders.

When choosing a delivery partner, it’s important to consider factors such as delivery speed, reliability, cost, and customer service. You can also check online reviews or ask for recommendations from other online sellers to help you make an informed decision. Partnering with a trusted delivery firm can help you build a successful and sustainable online selling business.

Starting an online selling business in the Philippines? Follow these six steps for success:

• Know your motivation
• Choose your products wisely
• Know your customer
• Find reliable suppliers and consider transportation costs
• Research the market and timing
• Partner with a trusted delivery firm for safe and timely deliveries.

In addition, it’s important to differentiate your products, ensure their quality, and manage customer feedback to improve and tailor your products to your customers’ needs. Furthermore, you must research the market, stay updated on trends, and use social media and e-commerce platforms to reach potential customers.

Pricing Comparison Tools For E-commerce Sellers

There are a number of pricing comparison tools that e-commerce businesses can use to track the prices of their competitors and ensure that they are offering competitive prices. Here are a few of the most popular pricing comparison tools:

PriceGrabber: PriceGrabber is a popular price comparison tool that allows users to compare the prices of products from a variety of retailers. PriceGrabber also offers a number of features for e-commerce businesses, such as price tracking and competitor analysis.

PriceSpider: PriceSpider is another popular price comparison tool that allows users to compare the prices of products from a variety of retailers. PriceSpider also offers a number of features for e-commerce businesses, such as price alerts and product reviews.

Shopzilla: Shopzilla is a price comparison tool that allows users to compare the prices of products from a variety of retailers. Shopzilla also offers a number of features for e-commerce businesses, such as product listings and marketing tools.

Google Shopping: Google Shopping is a price comparison tool that allows users to compare the prices of products from a variety of retailers. Google Shopping also offers a number of features for e-commerce businesses, such as product listings and ad campaigns.

Amazon Business: Amazon Business is a pricing comparison tool that allows users to compare the prices of products from a variety of retailers. Amazon Business also offers a number of features for e-commerce businesses, such as volume discounts and business accounts.

Ready to try online selling?

Remember, succeeding in online selling takes more than having great products and a user-friendly website. By following the steps we’ve outlined and partnering with a trusted logistics and fulfillment provider , you can stay ahead of the competition and grow your online business in Southeast Asia.

Delivery is one of the most crucial aspects of an online selling business. After all, you wouldn’t want your customers to receive their orders late or, worse, damaged. This is where Locad, a logistics and fulfillment engine for e-commerce companies in the Southeast Asia market, can help you.

Locad can provide a wide range of delivery options that suit your needs, from same-day shipping and next-day delivery to scheduled deliveries and pick-up points. Locad also offers a real-time tracking system so you and your customers can monitor the status of your deliveries. With Locad, you can ensure that your deliveries are safe, timely, and hassle-free, giving your customers the best online shopping experience possible.

What products can I sell online in the Philippines?

You can sell almost any product online in the Philippines, from everyday items to more specialised ones. The key is choosing products with market demand and that you have access to reliable suppliers.

Do I need experience selling online to start my e-commerce business?

No, you do not need any prior experience selling online to start your e-commerce business. However, it is important to educate yourself on the basics of online selling, including knowing your motivation, choosing your products wisely, finding reliable suppliers, researching the market and timing, addressing customer needs, and partnering with a trusted logistics and fulfillment provider.

How can I find reliable suppliers for my online store?

There are various ways to find reliable suppliers for your online store, such as attending trade shows, browsing online marketplaces, asking for recommendations from industry peers, and conducting online research. Establishing a good relationship with your suppliers is important to ensure a steady supply of products and a mutually beneficial partnership.

What is the importance of addressing customer needs through feedback?

Addressing customer needs through feedback is crucial for the success of any e-commerce business. By listening to customer feedback and making necessary adjustments to your product offerings, pricing, and customer service, you can improve the overall customer experience and retain customers for the long term.

How can a logistics and fulfillment provider like Locad help my e-commerce business in the Southeast Asia market?

Locad can help your e-commerce business in the Southeast Asia market by providing a reliable logistics and fulfillment engine, enabling you to focus on growing your business while leaving the logistics and fulfillment operations to the experts. With Locad’s advanced technology and fulfillment centres strategically located across the region, you can ensure safe and timely deliveries to your customers, ultimately leading to a positive customer experience and increased customer loyalty.

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• Online Shopping Research For The Philippines

Research About Online Shopping In The Philippines: The e-commerce industry in the Philippines is changing. With this change comes new challenges and opportunities. So whether you’re looking for research about online shopping in the Philippines because you are opening up a store or a student studying business, you will find some surprising findings about the online shopping market in the Philippines in today’s article.

We have comprised several research studies, independent data, and case studies below to showcase the newest and most important forms of research about the online shopping market in the Philippines. Additionally, we have linked to development studies and authorities if you’re looking For more information.

Table of Contents

Research About Online Shopping In The Philippines

1. philippines e-commerce stores face many challenges.

A fantastic website named MarketResearchPhilippines.com has provided some unique information about the challenges e-commerce stores, and online shopping markets face in the Philippines.

Their article goes into depth about the challenges that face e-commerce store owners, which also affect online shopping in the Philippines. Unfortunately, infrastructure such as warehousing, WIFI, and delivery remains a big problem for the Philippines. There are options available, but the logistics of the e-commerce industry in the Philippines are complex. Therefore, the industry would benefit from greater options some store owners suggest.

However, one benefit is that many e-commerce stores in the Philippines can utilize available online technology . This software can solve many time-consuming challenges that we found during our research about online shopping in the Philippines. These systems include automatic inventory ordering, direct delivery, and several other tasks.

Additionally, one challenge that affects online sellers in the Philippines and consumers is the speed of the Internet. This falls under the category of infrastructure, As mentioned above.

2. E-commerce Accounted For 3% Of The Philippines Retail Sales

In 2021, Statista surveyed each Asian Pacific region and compared their e-commerce sales to their retail sales. Interestingly China’s sales from e-commerce reached just under half at 45%. But when looking at research about online shopping in the Philippines, they found e-commerce accounts only for 3% of the retail sales of the Philippines.

So when looking at different types of research about e-commerce in the Philippines, what does this research show us? This can be taken in many ways, but it suggests a lack of trust from other data we have gathered. As we know, scams are very common in the Philippines, especially online, and this (as well as other factors) results in a lower overall percentage of results.

3. COVID-19 Resulted In More Views And More Sales

Due to the ongoing pandemic , many stayed at home and worked/studied. During that time e-commerce industry experienced a boom. From looking at page views, app downloads, and independent feedback, it is clear that certain industries in the Philippines, including the e-commerce industry, boomed.

From research regarding online shopping in the Philippines and online shopping behavior, we can see that more and more trust has been placed in the e-commerce industry. With this added trust and the ongoing pandemic, the value of the commerce industry in the Philippines is expected to have a compound annual growth rate of 17% between now till 2025, GlobalData suggests.

Additionally, the Philippines Department of Trade and Industry recently announced that the number of online sellers increased from 1,700 in March 2020 to an outstanding 93,318 in early January 2021.

4. Predictable Growth Rates Look Extremely Positive

Many factors can impact the overall growth rate for an industry as large as e-commerce in the Philippines. For example, as we discovered earlier, many shoppers stayed home when we looked at some independent research about online shopping in the Philippines. Therefore the e-commerce industry has increased, but this is only one factor.

When we look at data from 2017, we can see that the e-commerce value is around 120 billion pesos. At present, the value is over double compared to 2017. Some predict that in 2030 the total value will reach 600 billion pesos which will be double the value it is today.

5. Government Departments Want E-Commerce To Succeed

The Philippines’ E-Commerce Road Map was introduced in 2021. The road map aims to promote e-commerce with the general public, help small and medium-size e-commerce businesses, and boost the general public’s confidence in online shopping in the Philippines.

Government officials also announced that they are looking to increase the overall GDP contribution to 5.5%. In 2021 this was 3.4%. We also found similar research about government departments supporting the e-commerce industry, which looks promising to store owners and online shoppers in the Philippines.

5. The Battle For E-Commerce Dominance In The Philippines Continues

From the latest statistics of e-commerce websites in the Philippines, Shopee has taken first place, with Lazada coming in second and Amazon third. Even though the most viewed e-commerce store in the Philippines is Shopee, Lazada is close behind.

Carousell ranks as the fourth most popular e-commerce store in the Philippines, with Alibaba being the 5 th . This is from present data over the last 30 days and is regularly updated. Therefore, this list would likely change from previous historical data about e-commerce in the Philippines.

Both Lazada & Shopee are continuously battling to be the Philippines’ #1 eCommerce store. This has many advantages for online sellers and the general public as competition gives alternative options for both sellers and consumers.

6. Social Media Increases Conversion

From various case studies and independent data, it is clear that social media positively impacts e-commerce stores and online shopping behavior in the Philippines. In our latest article discussing business marketing , we explored the findings of the international journey of business law and education.

Their research concluded that websites, social media, and emails are the most popular and widely used means of buying online products in the Philippines. This suggests that small and medium-sized businesses should invest more in these types of marketing. In addition, social media has additional benefits for the e-commerce industry in the Philippines.

One of the most powerful influences on purchases in the Philippines is social proofing. Social proofing is commonly used to verify a product’s quality and is very important for Filipino consumers. High social proofing on social media shows a dramatic increase in the likelihood of sales in the e-commerce industry.

Furthermore, the Philippines has been the leading country in social media usage over the last few years. Many social media companies offer a free platform, so In other words, a free platform with a large audience is an opportunity for small e-commerce sellers in the Philippines.

7. COD – Cash On Delivery Is Essential For Online Selling

According to a detailed report released by Bangko Sentral ng Pilipinas ( BSP ) back in 2019, 51.2 million Filipino citizens do not use banks. This can cause a slight issue for online sellers in the Philippines and consumers.

However, when looking at research for online shopping in the Philippines, services are available to combat this problem, such as the cash and delivery option, using other nonbanking systems ( e-wallet, etc.).

8. Security Concerns With Online Transactions When Online Shopping

As somebody who has had the privilege to live in several countries, I can tell you that security concerns with online transactions are not only a big concern with Filipinos but also the world at large. However, with data breaches, online scams, and hacks continuing, it’s no surprise that security remains a concern for many online shoppers in the Philippines.

As e-commerce businesses grow, we found a strong likelihood of teaming up with branded financial systems ( 7/11, Gcash, etc.), which suggests that trustability remains the main point as e-commerce stores grow.

Some non-research about online shopping in the Philippines bought us to the topic of limited cards. I say non-research as this is based on independent feedback rather than a full case study. Nevertheless, we found that more and more consumers use limited cards (A.K.A virtual bank cards that can only be debited a small amount such as 50, 100, 200 Pesos) to overcome security concerns.

9. Demographics Of Online Shoppers In The Philippines

Research from LPU-Laguna found some unique findings in the study on online shopping in the Philippines. Results concluded that most respondents were between 19 to 30, which made up 42% of the participants. On the other end of the scale, the smallest respondent group was 41 years and above (9.2%).

In terms of gender, they found that 56% were males and 44% were females. Additionally, just under 70% of the respondents were single. As a result, it can be concluded that most sellers from their survey were younger single people.

Over the years, there have been additional case studies and research about online shopping in the Philippines, concluding that females purchase more from online stores than males, but this was a small study. Additionally, the type of product influences the statistics. Therefore, some suggested larger studies are needed to give a wider picture of the demographics of online shoppers in the Philippines.

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How online selling is thriving in the new normal

By Hannah Mallorca , Features Writer, The Philippine STAR

The growth of many e-commerce platforms is the effect of transition from traditional shopping channels to online platforms during quarantine

The coronavirus disease 2019 (COVID-19) pandemic has caused the rise and fall of several industries worldwide. Even though e-commerce platforms have long been on the rise, the process was fast-tracked when quarantine guidelines were put into place.

With the absence of traditional shopping channels, customers have flocked to e-commerce platforms to secure purchases and transactions. Many stores and restaurants have also transitioned online to serve their target market.

To discuss the current state of online selling in the new normal, The Philippine STAR’s Career Guide shared insights on the progress of e-commerce platforms and other online means during this time.

The online discussion featured Entrego retail director Xervin Maulanin, PurpleBug Inc. president and CEO Marlon Gonzales, La Carnita Modern Mexican Cantina co-founder Lenlen Mesina, Lazada Philippines head of business development Petrus Carbonell, and Seven Days of Greens co-founder Roel Uy Chan.

Growth of e-commerce platforms

Even though various e-commerce platforms were established pre-pandemic, its identity strengthened since the start of quarantine. Mr. Carbonell shared that Lazada has witnessed significant growth.

“So far, we see a lot of demand. We’re also seeing people who are more interested in starting their businesses online,” he added. “I think this will continue even after quarantine and if you think about it, these trends have always been present. Ang nangyari lang ngayong quarantine , na-accelerate siya .”

According to Mr. Carbonell, some of the most popular products in Lazada’s platform are groceries, medical items, and ready-to-eat products.

Mr. Maulanin noted that the transition from traditional shopping methods into online has pushed e-commerce platforms to sell more essential goods and daily needs. He added that delivery personnel are also considered as frontliners due to their service during the quarantine.

“ Lumalaki ang volume natin compared to before. We’re still a long way to go before online shopping becomes the predominant channel for us, but I think we’re going to see a lot of acceleration there. We’re very excited to see ano’ng magiging trend nito,” he said.

Transitioning from traditional shopping methods to online

The pandemic has caused many businesses to transition to online to cater to its customers. Many restaurants have also moved towards delivery services to serve their target market.

According to Ms. Mesina, proper research and development are needed to ensure the quality of Cantina’s products even in the new normal.

“At the moment, what we’re trying to do, instead of dispensing or distributing the product, we had to come up with product lines that can be experienced by the customers in the comfort of their homes, that’s why we really value the support and the service of third-party suppliers when it comes to delivery,” she shared.

Ms. Mesina also noted that the quarantine is an opportunity for many businesses to understand how to navigate into e-commerce and to incorporate online payments.

“You need to make sure that you’re able to deliver what you’re promising to your online market and that the product is available from you. It’s also not just being available, the products must be consistent and of very good quality kasi ‘yun ‘yung magiging labanan when it comes to online selling,” she added.

On the other hand, Mr. Gonzales said that quarantine has challenged e-commerce platforms, restaurants and other online sellers to develop its services since it will reflect on customers.

“People will always buy if maganda ‘yung feedback na makikita nila . What we’ve noticed din karamihan ng returning customers namin are referrals so very important ‘ yung feedback na nakikita nila online,” he said.

Mr. Uy Chan stated that the new normal has also urged online sellers, e-commerce platforms and restaurants to refine collaboration methods with its partner channels to ensure quality service.

“The principle behind online selling is still intact and similar to traditional selling wherever you go. It’s still just a channel,” he added.

In addition, Mr. Carbonell noted that e-commerce platforms and online sellers would continue to grow, even in a post-pandemic society.

“In terms of the potential of people reaching success, I would say that the sky is the limit because we see new millionaire sellers every time that we run a campaign. I’m not saying that everyone who goes online will be successful, but we see many cases that the potential is huge,” he said.

Online selling platforms have witnessed significant growth in customer behavior during the pandemic. With this, it’s up to business sectors to improve its services to ensure loyalty among its target market.

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How to Watch ‘A Gentleman In Moscow’ Online

By Oscar Hartzog

Oscar Hartzog

If you purchase an independently reviewed product or service through a link on our website, Rolling Stone may receive an affiliate commission.

Quick Answer : Stream A Gentleman In Moscow on Paramount+ . Get a seven-day free trial here .

Count Alexander Ilyich Rostov is coming to the small screen in an adaptation of Amor Towles’ best-selling novel, A Gentleman In Moscow . The series stars Ewan McGregor as the Russian Count who winds up on house arrest in the Hotel Metropol following the October Revolution. Rostov does his best to make the imprisonment as aristocratic as he is (or, was ), and ends up foraging connections with a few of the lavish hotel’s occupants.

Whether you’re a fan of the book or just need a new series to enjoy, read on for a quick guide on how to watch A Gentleman In Moscow online.

How to Watch A Gentleman In Moscow Series Online

A Gentleman In Moscow is streaming on Paramount+ and airing on live TV later through Showtime. To stream A Gentleman In Moscow on Paramount+, you’ll need the service’s upgraded Paramount+ with Showtime plan. This package costs $11.99 a month after a seven-day free trial (there’s also a cheaper plan, Paramount+ Essential, but this one won’t let you watch A Gentleman In Moscow ).

Besides getting you access to the new series, the upgraded Paramount+ plan also includes other Showtime originals, live TV from CBS, and the ability to download shows for offline viewing. Other noteworthy content on Paramount+ includes the Yellowstone spin-off 1923 , The Offer , Tulsa King , and Billions . Because Paramount+ is part of CBS, you’ll also get access to live sports events including March Madness basketball, NFL games, and Champions League soccer.

Grab a seven-day free trial to Paramount+ with Showtime here to watch A Gentleman In Moscow . If you don’t want to pay to watch the show, you can wait until all episodes are released, get the free trial, and binge them all within the seven-day trial to avoid paying.

When Does A Gentleman In Moscow Come Out? 2024 Release Date

The first episode of A Gentleman In Moscow was released on Friday, March 29 on Paramount+. New episodes are being released every Friday until the finale on May 17. It will be eight episodes in total.

A Gentleman In Moscow Plot, Cast, Original Book

A Gentleman in Moscow sees Count Rostov (McGregor) stripped of his material wealth and put under house arrest at the grand Hotel Metropol in Moscow. Although technically under arrest, the Count is able to roam the hotel befriending guests, enjoying its restaurants, and trying to establish a routine. He ends up finding a lover in actress Anna Urbanova (Mary Ann Winstead), a friend in a young girl named Nina (Alexa Goodall), and other connections during his stay.

The series is based on the best-selling book of the same name , which was written by Amor Towles and published in 2019. You can buy the book on Amazon here , or get it as an Audiobook on Audible .

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