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E-commerce in the Philippines

Although traditional commerce is still present in the Philippine market, e-commerce has significantly penetrated the country by storm. In a country like the Philippines, going digital if you’re a business owner is beneficial, as the majority of consumers are internet-savvy. In the last decade, the number of internet users in the Philippines has surpassed other Asian countries. Across the globe, Filipinos are one of the largest populations using the internet, spending at least an average of 10 hours a day on the web. It tells a lot about the appetite of online consumers, and a large part of them gravitate to play video games and search for fashion trends and make-up.

A popular contemporary eCommerce, most commonly done in the Philippines, is a B2C and C2C model. Its classic example is an e-commerce platform called Lazada, which is a mix of both where it sells goods from its own fulfillment centers and also allows a third-party seller through its platform. Lazada is a regional flagship of Alibaba Group and operates within six countries, such as Indonesia, Malaysia, Philippines, Singapore, and Thailand. It is a one-stop-shop for any online consumers wanting to buy different products.

Online activities



A number of SMEs are emerging within the online retail market because of the popularity of online shopping. Local sellers have made it possible for consumers now to reach their products even though they do not have a physical shop or store. Social media platforms are used, like Facebook and Instagram, among small-scale entrepreneurs. Unsurprisingly, because of the recent COVID-19 pandemic in the country, turning to small-scale retail sellers have become popular because of the benefits it provides to both sellers and consumers. Another online activity most popular among internet users is video gaming. Those highly engaged in video gaming have purchased an app or have subscribed for a gaming subscription. As such, gaming-related purchases have been prevalent, and some even bought in-game added content, virtual goods, and gaming equipment.

Online payments



Within the Asia-Pacific region, cashless transactions like eWallet, credit card, and bank transfer payments were poised as the most popular e-payment methods. However, this is not the case in the Philippines, as most consumers are still inclined to pay by cash. Among internet users within Asia-Pacific, few people in the Philippines use mobile payment services. One reason that attributes to the lack of confidence in cashless transactions among consumers is identity theft.

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E-commerce in the Philippines

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