{"id":97786,"date":"2023-10-24T15:44:45","date_gmt":"2023-10-24T10:14:45","guid":{"rendered":"https:\/\/anchanto.com\/a-guide-to-the-philippines-e-commerce-industry-all-that-you-need-to-know\/"},"modified":"2024-11-14T17:36:56","modified_gmt":"2024-11-14T12:06:56","slug":"a-guide-to-the-philippines-e-commerce-industry-all-that-you-need-to-know","status":"publish","type":"post","link":"https:\/\/prod-qa.anchanto.com\/en-my\/a-guide-to-the-philippines-e-commerce-industry-all-that-you-need-to-know\/","title":{"rendered":"A Guide to the Philippines E-commerce Industry: All that You Need to Know"},"content":{"rendered":"

1. The Dynamic Landscape of the Philippines E-commerce Industry<\/h2>\n

According to market research, the Philippines is a fast-growing e-commerce market in Southeast Asia[1]. Revenue from online retail is expected to show an annual growth rate of 12.93% (CAGR between 2023 to 2027), which is expected to project a market volume of US$29.54 billion by 2027[2].<\/p>\n

The Philippines is a rapidly growing market for e-commerce and presents a huge opportunity for businesses looking to expand their online presence.<\/p>\n

But at the same time, this market is fragmented and ever changing. As a result, you need to keep up with the latest trends in the country\u2019s e-commerce, top platforms and carriers to partner with, insider tips, and more.<\/p>\n

To help you with this, we\u2019ve put together a comprehensive guide to the Philippines e-commerce industry<\/strong>.<\/p>\n

2. Trends in Philippines’ Online Retail Market<\/h2>\n

Adaptation is key to survival in the Filipino e-commerce market. In this section, we will dive into the ever-evolving world of Philippine\u2019s e-commerce. From the unstoppable surge of social media commerce to the seamless integration of online and offline sales, we\u2019ve covered all of the top trends to equip you with the knowledge you need.<\/p>\n

\"trends-in-the-philippines-e-commerce-industry\"<\/p>\n

a. Social media is becoming a main selling platform<\/h3>\n

Consumers in the Philippines are active social media users who spend nearly 10 hours per day[3], seven days a week on different social platforms. Filipino consumers use Facebook the most with 67 million active users on the platform. This is followed by YouTube (58.5 million active users), TikTok (43.4 million active users)[4], and Instagram (14 million active users).<\/p>\n

Each of these platforms offers online shopping options, but lately, TikTok shop has taken the lead in social commerce. It is an easy way to set up shop and start selling your products to the millions of users on the platform. Moreover, TikTok Shop enables you to reach a large audience, increase brand awareness, and the potential to generate sales.<\/p>\n

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\u201cThe use of TikTok is rising quickly in the Philippines. A few months ago, after launching their business on TikTok shop, some of our clients in the region received 4,000+ orders from the platform on top of their combined 6,000 orders from Shopee and Lazada,\u201d says Abhinandan Arkade, Senior Director of Product Management, Anchanto.<\/p>\n<\/blockquote>\n

b. Click and collect omnichannel<\/h3>\n

The online and offline shopping experience is currently integrated through omnichannel strategies in the Philippines. This requires retailers to perform e-tail activities and accept the challenge to level up. In an attempt to do so many brands are offering click and collect options.<\/p>\n

Click and collect is a form of e-commerce that allows consumers to buy products online and pick up these purchases themselves from a designated store, storage facility, or other location.<\/p>\n

A few months ago, online pharmacy, Watsons launched its 1,000th store to offer a modern and stylish shopping environment. It also provides an immersive and interactive online and offline experience for customers. For their omnichannel initiative, they provide click-and-collect shopping[5]. Decathlon Philippines also encourages click-and-collect. To use this feature, consumers must become members for various benefits[6] like 365-day returns and refunds and a 2-year warranty. Homegrown businesses like SM Retail and Primer Group also provide click-and-collect.<\/p>\n

c. E-commerce is marketplace driven<\/h3>\n

Shopping through online marketplaces is very popular in the Philippines. It\u2019s the preferred means of buying online and according to SimilarWeb\u2019s ranking[7], Shopee, Lazada, and Amazon are the top 3 e-commerce and shopping websites in the country (as of March 2023).<\/p>\n

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\u201cConsumers in the Philippines also love e-commerce sales and comparing prices across different online marketplaces to find the best offers. This reinforces the need for brands to strengthen their presence on multiple channels and invest in unifying sales channels to bring coherency to the omnichannel experience,\u201d says Abhinandan Arkade, Senior Director of Product Management, Anchanto.<\/p>\n<\/blockquote>\n

d. Brands have high expectations for e-commerce enablers<\/h3>\n

Brands no longer want enablers to serve as their connection to online retail. The former expects enablers to be an extension of their team by caring about the final outcome, understanding the brand, and evolving based on expectations.<\/p>\n

To provide an excellent shopping experience and offer brands relevant capabilities, enablers will need to invest in suitable tech infrastructure. That\u2019s because they lack the means to provide brands flexibility, visibility, and end-to-end solutions.<\/p>\n

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\u201cMany retail businesses are diverging into last-mile delivery and now fulfillment services too. To do this, they are acquiring warehouses to offer end-to-end fulfillment services. But, they need to be mindful of how they can make these services worth the money they\u2019ve invested. Technology can provide them with the support they need,\u201d suggests Abhinandan Arkade, Senior Director of Product Management, Anchanto.<\/p>\n<\/blockquote>\n

e. Live shopping is trending<\/h3>\n

Filipino consumers are used to making purchase decisions after seeing items and testing them. This requirement is taken care of through live stream selling or live shopping. With live demonstrations of products, consumers feel they understand a product better.<\/p>\n

Ninja Van Philippines claims that 47% of Filipino sellers conduct live sessions[8] daily in the region. More Filipino businesses also believe that live selling brings in new business as 74% say that attracting new customers is a top driver for conducting live selling. About 52% of Filipino sellers also say that live selling is more profitable than posting products on marketplaces and apps.<\/p>\n

f. Fashion, cosmetics, food and beverages and consumer electronics will lead the industry<\/h3>\n

In the Philippines, the top online retail product categories[9] include:<\/p>\n