Ecommerce has been a big trend around the world, people taking to the internet to sell just about anything and everything. We often talk about ecommerce in the United States and Asia but rarely have we talked about it in other countries such as the Philippines. This is a big mistake as the Philippines is quickly becoming a big contender in the online sales world. Between 2015 and 2019, ecommerce in the Philippines jumped from a half-billion-dollar industry to a three billion dollar industry. That is only expected to continue to grow exponentially over the years to come.
Today we are going to take a look at ecommerce in the Philippines, its current state, and its likely future.
The Current Use of Ecommerce in the Philippines
According to Hootsuite about 76 million people (or 71%) in the Philippines use the internet and are thus exposed to advertisements for any number of online stores. This includes those who use social media, which is the majority of internet users in the Philippines. Whether through ads or through another source, 70% of the people who use the internet in the Philippines reported that they shop online (Also from Hootsuite). That number may have only gone up since the onset of COVID.
Online shopping is very convenient and widespread that it isn’t a surprise that so many people in the Philippines already utilize ecommerce stores. This has been one of the biggest pushes behind ecommerce worldwide.
Why Ecommerce Sellers are Interested in the Philippines
One of the biggest reasons that sellers are starting to show more interest in the Philippines is the large number of internet users. With how many people are using the internet there is a large potential to find new customers. This is further perpetuated by the fact that so many people in the Philippines use social media and thus it is easy to start using targeted ads. Social media ads have proven to be one of the biggest selling techniques in the current atmosphere.
Another reason why the untapped Philippines ecommerce market has become of interest is the fact that the level of wealth is on the rise in the country. More people are moving from the lower class to the middle class and those in the middle class are moving higher in the middle class. People in the country are having increasingly more funds to spend online and an interest to do so.
Digital shopping is also very easy. You can access goods from around the world at your home. This is something that will be used to help leverage Filipino internet users to become online shoppers and to look at ecommerce. With the interest in goods, the money to spend, the ease of access only sweetens the deal.
The Future of Ecommerce in the Philippines
It is expected that the number of people who shop online in the Philippines will grow significantly over the next few years. Google and Temasek believe that by 2025 over 12 billion dollars will be spent on ecommerce in the Philippines. Internet is constantly becoming more accessible around the world as are devices such as phones and computers, as this trend continues and more of the younger generation start accessing the web, the more people are going to want to shop online. As COVID continues that will also further drive ecommerce in the Philippines.
Naturally, as the number of people who shop online in the Philippines grows, it is likely that Filipinos will become further interested in being ecommerce sellers. Working from home and being your own boss appeals to everyone and as the platforms become more popular in the country, people will start to develop more and more creative ideas.
The Philippines has a lot of potential when it comes to ecommerce and has become a popular target for those who sell online. This trend is going to continue well into the future and it isn’t just the Philippines either. Countries around the world of all sizes are going to continue to fuel ecommerce.
