FACTS NEED TO KNOW ABOUT THE PHILIPPINES E-commerce MARKET

09/05/2022

In an emerging e-commerce market like the Philippines, doing business online is more than simply having a digital presence. Owning e-commerce tools is equally important for sellers, and that is a unique aspect of this market.

1. Philippine e-commerce still relies on convenience stores:

In the Philippines, especially in rural areas, infrastructure remains a concern. In addition to fragmented geographical factors, transport companies also face difficulties in accessing customers because the road system has not been invested in repair. In addition, in urban areas, freight services are relatively expensive, sometimes up to 10% of the total value of items purchased online.

To solve this problem, many e-commerce sellers have set up direct pickup points, usually a convenient location such as shopping malls or convenience stores, where customers have can come and pick up the goods they have ordered on digital platforms. Not only that, but this form of shopping is so popular that some places have even turned into "digital hubs", where shoppers will be assisted by an online shopping agent. line. Obviously, because home delivery can be quite expensive for consumers in this island nation, in areas such as rural areas..., many e-commerce companies and businesses decide to switch to sell items in established stores to make them more accessible to potential customers.

2. Filipinos don't really trust e-commerce:

The popularity of the above hybrid form of e-commerce (e-commerce combining both online and offline forms) has pointed out a big but often overlooked problem, which is the distrust of Filipinos in e-commerce. .

According to a study pointed out by Tech in Asia, some Filipinos still doubt the legitimacy and quality of goods sold on online commerce platforms, and that is a perfectly valid concern. department. Even the country's two largest online shopping platforms, Shopee and Lazada, have set up "Mall" certified stores to help shoppers differentiate between official product distributors and retailers. small retail stores.

3. Cash payment upon receipt is still very important to Filipinos:

In the Philippines, or as with most emerging e-commerce markets, the full presence of the actors involved in the purchase and sale of goods remains essential to assuring customers that a transaction has been completed. presently. This is reflected in the research of the Central Bank of the Philippines that: despite the increasing number of Filipinos choosing to use e-wallets, the majority of Internet users in the Philippines still do not see this as a form of payment. their top account due to safety and security concerns.

In the near future, hybrid e-commerce is expected to continue to grow and take an important position in the e-commerce sector in Southeast Asian countries, especially the Philippines. Although offline factors will be gradually reduced, it is still necessary for the commodity trading market here to keep up with the development of e-commerce. In addition, experts also think that they will play a decisive role for brands that want to succeed in this island nation.