E-commerce in the Philippines: What to expect in 2021 and beyond

E-commerce in the Philippines: What to expect in 2021 and beyond

The COVID-19 pandemic has undoubtedly altered the way we live and do business. In the Philippines, the accelerating adoption of digital technologies has led to a significant spike in e-commerce transactions in 2020. According to a recent report by Google, Temasek, and Bain & Company, the country’s e-commerce sector is expected to reach USD 12 billion by the end of 2025.

As we enter a new year, let’s take a look at some trends and developments that will shape e-commerce in the Philippines in 2021 and beyond.

E-commerce platforms shift to ‘super app’ model
The ‘super app’ model is expected to gain traction in the Philippines e-commerce landscape. This model refers to platforms that offer multiple services in a single app. For example, Grab and Lazada have entered into partnerships with banks to offer financial services such as loans and insurance to their customers. By expanding their product and service offerings, e-commerce companies can increase their revenue streams and enhance customer loyalty.

Rise of social commerce
With social media penetration in the Philippines reaching over 70%, social commerce is set to take off in 2021. Social commerce refers to selling products directly through social media platforms. An increasing number of e-commerce companies are leveraging social media platforms such as Facebook, Instagram, and TikTok to reach their target audience. For example, Shopee has partnered with TikTok to launch a hashtag challenge that enables users to shop for products directly on the social media platform.

Increased focus on customer experience
In 2021, e-commerce companies will continue to prioritize customer experience. With competition intensifying in the market, companies that offer a seamless and personalized shopping experience will have an advantage. Providing excellent customer support, fast and secure delivery, and easy returns will be critical factors in building customer loyalty.

Digital payments adoption
The pandemic has accelerated the adoption of digital payments in the Philippines. Seventy percent of Filipinos now prefer to use cashless payment methods, according to a survey by Visa. This trend is expected to continue, and e-commerce companies will need to provide multiple payment options to cater to the diverse needs of their customers.

Rise of micro-entrepreneurs
E-commerce has provided opportunities for micro-entrepreneurs to sell their products and services online. In 2021, we can expect to see more micro and small businesses joining the e-commerce bandwagon. By leveraging e-commerce platforms, these businesses can reach a larger audience and tap into new revenue streams.

In conclusion, the e-commerce landscape in the Philippines is evolving rapidly, with several trends and developments set to shape the sector in 2021 and beyond. The rise of ‘super apps,’ social commerce, customer experience, digital payments adoption, and the growth of micro-entrepreneurs are just some of the key trends that will drive the industry forward. As e-commerce players adapt and innovate, we can expect to see a more dynamic and vibrant e-commerce landscape in the Philippines.

Speech tips:

Please note that any statements involving politics will not be approved.