Research About Online Shopping in The Philippines

0 Review 08-19-2023

The Philippines' e-commerce market is shifting, according to research. With this transformation come new difficulties and possibilities. So, whether you're looking for information on online shopping in the Philippines because you're launching a store or a student studying business, you'll find some startling data regarding the online shopping industry in the Philippines in today's post.

We have included many research studies, independent statistics, and case studies below to highlight the most recent and essential kinds of study regarding the Philippine online retail business. In addition, we have included links to development studies and agencies if you are seeking further information.

According to a Meta survey, Filipino consumers are returning to physical businesses, but their internet purchasing habits acquired during the epidemic continue to outnumber in-store transactions.

According to Meta's most recent Seasonal Holidays Study, 67 percent of year-end 2021 consumers claimed they made in-store purchases, while 79 percent also made online purchases. The You Gov Meta research surveyed over 2,000 adults aged 18+ in the Philippines in December 2021 to evaluate their year-end purchasing attitudes and habits during Mega Sales or shopping holiday promotions in December. The online survey includes 18,189 respondents from 12 APAC regions, including the Philippines.

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Research About Online Shopping In The Philippines

1. E-commerce stores in the Philippines face several challenges.

Their post details the difficulties that e-commerce store owners encounter, which also influence online buying in the Philippines. Unfortunately, infrastructure such as storage, WIFI, and delivery continues to be a significant issue in the Philippines. There are possibilities, but the logistics of the Philippine e-commerce market are complicated. As a result, the sector would profit from more alternatives, as some business owners urge.

One advantage is that many e-commerce shops in the Philippines can use existing web technologies. This program can eliminate numerous time-consuming problems we discovered when researching internet purchasing in the Philippines. These systems automate inventory ordering, direct delivery, and various other operations.

Furthermore, Internet speed is difficult for online retailers and customers in the Philippines. As previously stated, this falls under the topic of infrastructure.

2. E-commerce accounted for 3% of retail sales in the Philippines.

Statista studied each Asian Pacific area in 2021 and compared e-commerce and retail sales. Surprisingly, China's e-commerce sales hit slightly under half, at 45%. However, according to data on online buying in the Philippines, e-commerce accounts for only 3% of total retail sales in the country.

So, what does this study reveal to us when we look at various sorts of studies regarding e-commerce in the Philippines? This may be interpreted in multiple ways, but it shows a lack of trust based on the other evidence we have acquired. Scams, as we all know, are frequent in the Philippines, particularly online, and this (together with other issues) results in a decreased level of trust.

3. COVID-19 generated more views and sales.

Because of the epidemic, many people stayed home and worked or studied. The e-commerce business was booming at the time. According to page visits, app downloads, and independent evaluations, various companies in the Philippines, mainly e-commerce, have thrived.

According to research on online shopping in the Philippines and online purchasing behavior, e-commerce is gaining popularity. According to Global Data, the value of the Philippine commerce business is predicted to climb at a compound annual growth rate of 17% between now and 2025 due to this increased trust and the ongoing epidemic.

Furthermore, the Philippines Department of Trade and Industry recently stated that the number of online vendors in the country climbed from 1,700 in March 2020 to an impressive 93,318 in early January 2021.

4. Predictable growth rates appear to be positive.

Many variables can influence the overall development rate of a massive sector like e-commerce in the Philippines. For example, we noticed that many shoppers stayed home when we looked at some independent data regarding internet buying in the Philippines. As a result, the e-commerce business has grown, although this is only one element 

According to estimates from 2017, the value of e-commerce is over 120 billion pesos. Currently, the matter has more than doubled since 2017. Some forecast that by 2030, the overall worth would have risen to 600 billion pesos, more than double its current level.

5. Government Agencies Want E-Commerce to Be Successful

In 2021, the Philippines' E-Commerce Roadmap was unveiled. The road plan intends to increase public awareness of e-commerce, assist small and medium-sized e-commerce enterprises, and build public trust in online buying in the Philippines.

Government officials have stated they intend to raise the GDP contribution to 5.5%. In 2021, this figure was 3.4%. We also discovered comparable studies concerning government offices assisting the e-commerce business, which appears promising to Filipino store owners and online buyers.

6. The Philippines' battle for e-commerce dominance continues.

According to the most recent data on e-commerce websites in the Philippines, Shopee has grabbed the top, followed by Lazada and Amazon. Although Shopee is the most popular e-commerce site in the Philippines, Lazada is just a little behind.

Carousell is the Philippines' fourth most popular e-commerce site, with Alibaba ranking fifth. This is based on current data from the previous 30 days and is frequently updated. As a result, this list is likely to differ from prior historical statistics on e-commerce in the Philippines.

Lazada and Shopee constantly compete to be the Philippines' number one eCommerce shop. This has several benefits for online retailers and the general public since competition provides other possibilities.

7. Conversion Rates Increase Due to Social Media

According to different case studies and independent research, social media favorably influences e-commerce shops and online buying behavior in the Philippines. In our most recent piece on business marketing, we looked at the conclusions of a worldwide voyage of business law and education.

According to their findings, websites, social media, and emails are the most popular and commonly utilized online purchasing methods in the Philippines. This implies that small and medium-sized firms should increase their investment in this form of marketing. Furthermore, social media provides extra advantages for the Philippines' e-commerce economy.

Social proofing is among the strong influencers on purchases in the Philippines. Social proofing is a method of verifying the quality of a product that is particularly significant to Filipino customers. In the e-commerce market, high social proofing on social media significantly increases the possibility of purchases.

Furthermore, the Philippines has been the top country in terms of social media usage in recent years. Many social media firms provide a free platform. Therefore, a free forum with a vast audience is possible for small e-commerce vendors in the Philippines.

8. Cash On Delivery (COD) Is Required For Online Selling.

According to a comprehensive analysis by the Bangko Sentral ng Pilipinas (BSP) in 2019, 51.2 million Filipinos do not use banks. This may present a little difficulty for online vendors and customers in the Philippines.

However, while researching online buying in the Philippines, services to address this problem are accessible, such as the cash and delivery option and various nonbanking systems (e-wallet, etc.).


For futher informations about online shopping you can visit this relevant blog post:
13 Common Problems with Online shopping apps Philippines

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