With over 73 million active online users, the eCommerce industry of the Philippines is steadily on the rise. In 2021, the country’s eCommerce market totaled $17 billion, and research predicts that this figure is expected to increase by 17% come 2025.
The eCommerce surge in the country resulted from the constant entrance of technological innovations and the COVID-19 pandemic's influence. More consumers and businesses are also seeing the benefits of online shopping and utilizing online selling opportunities.
These numbers show that the modern marketplace is now online, and it's high time you take your business in the digital landscape. Now that the future of eCommerce in the Philippines is bright, you should be aware of the latest trends in the country’s eCommerce space to attain business success without delay.
Online Business Trends: The Future of eCommerce in the Philippines
1. Mainstream integration of social media as a primary selling platform
Social media is becoming more ingrained in the lives of Filipinos. As of 2022, there are 67 million active Filipino users on Facebook, 58.5 million on YouTube, 14 million on Instagram, 9.3 million on Twitter, and 9.2 million on LinkedIn.
Online shopping features of these social media platforms emerged in response to the industry's growth, with Facebook Marketplace, Instagram's Shopping tab, and TikTok Shop. Brands may also go live to broadcast their products or connect their social media pages on third-party platforms.
These social media sites, which turned into online marketplaces, thrive in delivering both entertainment and convenient shopping.
2. Mobile-friendly shopping experience
In 2020, there were 79 million smartphone users in the country, with increased estimations of 91.5 million users by 2023.
A vast majority of your online market access online platforms via their smartphones, so you must also optimize your eCommerce experience to smartphone use, including your website, app, or other third-party platforms.
Around the world, 97% of mobile shopping carts are abandoned due to distracting elements on brands' eCommerce sites. So, ensure that all your online platforms are easily accessible on mobile, allowing seamless shopping and checking out experience for your customers.
3. The increasing number of millennial and Gen Z online users
The number of Filipino online users, especially from the Gen Z demographics, is still expected to increase over the years. It shouldn’t come as a surprise, given that they make up 45% of the country's population.
With this number in mind, it’s not a stretch to say that the needs and preferences of Gen Z shoppers determine how the business landscape trends. Therefore, it's time to start learning this generation's dynamics. Knowing their characteristics and buying habits by heart will help you build meaningful relationships and eventually turn them into advocates of your brand.
4. Established trust in online shopping
In the past, customers were skeptical of online shopping. But when the pandemic happened, everyone turned to eCommerce since physical stores closed. Customers eventually found comfort in online shopping. In turn, online shopping platforms also ensure the safety of online eCommerce transactions to build trust and loyalty.
Eventually, eCommerce in the Philippines thrived into the massive industry it is today. As a business owner, going into the digital landscape requires you to ensure the same, if not better, level of security and seamlessness among online transactions to keep your customers.
5. Increased adoption of cashless payments
eCommerce's rise led to the further relevance of cashless payments. Customers are now used to cashless payments since this option provides much more convenience. Numerous platforms on digital payments, such as PayMongo, PayPal, Maya, Dragonpay, and GCash, are being used by various businesses, so you should make it a point to provide cashless payment options.
In 2021, 92% of Filipinos used cashless methods of online shopping. These digital payment platforms even penetrated rural areas of the country, making traditional coins and bills the secondary payment mode now. Aside from riding this trend, work on your eCommerce strategies to maximize your sales.
6. Operations anchored on brand advocacy
Consumers are becoming mindful of the brands they choose to work with. They’re now opting for brands with strong and consistent advocacies, such as sustainability and local collaborations.
The increase in Gen Z consumers initiates a more progressive market, and now 82% of consumers prefer to make transactions with brands that have values aligned with theirs.
In addition, 3 in 10 consumers say that brand advocacy on environmentalism influences their decision to purchase from a brand. Given these numbers, the future of eCommerce in the Philippines significantly depends on brand advocacy.
7. Personalized shopping
eCommerce also allowed businesses to gather customer data, creating more customized shopping experiences, such as product recommendations and automated payout processes.
Take advantage of this trend with your eCommerce business by offering loyalty memberships, rewards, and incentives to your customers, given that 60% of consumers reportedly spend more on brands they have a loyalty membership with.
Take the Trendy Route in Your eCommerce Business
eCommerce has conquered the country’s retail industry, and signs suggest that online shopping will remain relevant for years. Since a vast portion of your audience is now online, it's only apt to expand your business in the digital space.
Make the digital move and build your eCommerce business today. With the proven benefits of eCommerce, your success is only a matter of strategizing your actions and choosing the best eCommerce platform possible. Take the next step and explore your eCommerce software options with Rush!
