Key trends in the e-commerce market
The most common forms of e-commerce in the Philippines were B2C and C2C models. In a B2C model, online consumers are offered competitive prices because of the unlimited marketplace. From a business owner perspective, it lowers their cost of doing business; hence, it enables them to reduce the transaction costs for customers. Through this model, a personalized relationship between the company and the customer is facilitated. On the other hand, a C2C model allows a customer to buy from another customer using a third-party business.
As of the 1st quarter of 2021, the leading B2C e-commerce websitein the Philippines was Shopee, with approximately 54.6 million web visits monthly. At the same time, the most popular C2C e-commerce website was eBay, with monthly web visitors of around 863.6 thousand.
Challenges faced in e-commerce
Although e-commerce has an undeniable potential to grow in the Philippine market, some setbacks have hindered its expansion. For example, slow internet hampers an online transaction, and Filipino consumers tend to pay by cash. In a recent survey conducted in the Philippines, about 47 percent of the respondents stated that they paid with cash for their online purchases, and only ten percent had used their credit card as a payment method in 2019.