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E-commerce on the Rise in the Philippines

The Philippines, the second-most populous country in Southeast Asia, is a large and rapidly developing e-commerce market. The Philippines has a digital population of more than 67 million people, with a low income but high growth, attracting both local and regional companies competing against a dominant player.

Despite this, e-commerce accounts for less than 1% of total sales in the Philippines, the market is expected to grow at a high double-digit rate in the coming years. Though not as mature as Malaysian e-commerce or as thriving as Indonesian e-commerce, the Philippines’ population of more than 100 million people makes the country very appealing.

The improving telecommunications infrastructure, as well as the growing proportion of the population with internet access, particularly via mobile phones, are some of the key factors that will position the Philippines as a major player in Southeast Asia e-commerce in the near future.

To address the increase in demand when it comes to e-commerce platforms, a Philippine IT solutions company introduced a service platform that is specifically designed to provide business owners and start-ups with ready-to-use templates and tools for building and designing an online store.

The company’s CEO and an e-commerce platform product manager felt that one key aspect that users are prioritising is the integration of logistics. To ensure that products are delivered safely and efficiently, the e-commerce platform is partnered with locally known couriers Grab and Entrego.

“Many e-commerce platforms make it easier for businesses to integrate their digital stores with logistic providers through API. We see such initiatives to last even after the pandemic as businesses become more open to innovative solutions to future-proof their enterprises. Going digital, like adopting e-commerce solutions and maximising tech integration, works wonders for companies that want to scale in the new normal,” noted the e-commerce platform manager.

He also mentioned that many businesses today are looking into ways to provide new services that they did not provide prior to the pandemic in order to stay relevant in the emerging business landscape. These businesses are increasing their demand for e-commerce platforms by prioritising technological adoption and facilitating a remote working environment.

In the same breath, an IT solutions company will need to continually upskill its workforce in order to meet the growing needs of its clients. To thrive in the face of the pandemic’s challenges, technology solutions, in general, will necessitate service providers upgrading workforce competency and improving processes.

“Our organisation enables both our technical and non-technical teams to remain competent through Yondu University’s training and certification programmes. Through this company-led initiative, we ensure our workforce continues to observe the best industry practises and our products and services remain relevant,” the IT solution company’s CEO shared.

According to one article, as of last year, more than one in every three digital service consumers began using a new online service as a result of COVID-19, and 94% intend to continue using the service after the pandemic is over. A sizable proportion of the new digital consumers come from non-metropolitan areas, particularly Malaysia, Indonesia, and the Philippines.

However, there has been a significant shift in the verticals contributing to the digital economy of the region. E-commerce has emerged as the largest vertical, increasing by 63% to US$ 62 billion in 2020, and is expected to continue its upward trend, reaching US$ 172 billion by 2025.

The rapid growth of electronic commerce around the world has prompted many to seek better methods of quantifying the phenomenon. As more countries and international organisations become involved, it is essential to develop plans to avoid unnecessary duplication of effort and to provide users with the data they need to make informed decisions as soon as possible.


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