How the eCommerce Industry Sustains the Philippine Economy

In recent years, the extraordinary convenience of online shopping has resulted in the rise of the eCommerce industry. In turn, this heightened the demand for eCommerce web design and development services from a reliable company or agency.

As consumer behaviors evolve, businesses adapt to meet them. Globally, more consumers are shopping for products online than in person.

Source: Exploding Topics.

The Philippine eCommerce Economy, in Statistics

According to Digital 2024: The Philippines, the country is currently home to 86.98 million Internet users, resulting in an Internet penetration rate of 73.6%.

Recent years have witnessed the immense growth of online shopping in the Philippines. The International Trade Administration revealed that its eCommerce market sales stood at a staggering $17 billion in 2021. Also, it’s estimated to increase to $24 billion through 2025.

Instead of visiting a business’ physical location, consumers can freely browse products and make orders via online shops. Thus, implementing eCommerce platforms and websites can dramatically increase a business’ online sales.

The most popular online shopping platforms among Filipinos include:

• Shopee;
• Lazada;
• Zalora;
• Temu;
• eBay;
• TikTok Shop;
• Facebook Marketplace;
• Carousell, etc.

The eCommerce Industry as the Key to Success

By following industry trends, businesses can foster stronger audience relationships. Additionally, business owners in the Philippines can cater to customers by providing a convenient online shopping experience. Many popular eCommerce platforms fall under websites or applications.

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The Philippine eCommerce industry is key to business success for a variety of reasons. Firstly, the country has a high Internet penetration, and many Filipinos own desktop, mobile, or tablet devices. Due to this, the population is more inclined to shop online, especially considering the trend of recent years.

Fortunately, website owners can turn to reliable eCommerce web design and development services to set up a dedicated store. They offer businesses the following advantages:

• Scalability and flexibility;
• Reduced operational costs;
• No need to construct a physical store;
• Less staff is required to manage the location;
• Increased online marketing opportunities;
• Access to a broader range of customers;
• Easily view analytics from your eCommerce platform regarding customer behavior and sales performance, and
• Convenient communication and engagement with online shoppers.

Through professional web design and development, businesses can implement attractive yet functional eCommerce platforms on their websites to boost sales. However, some may run either a physical location, an eCommerce site, or both.

How eCommerce Can Sustain the Philippine Economy

eCommerce can sustain the economy in multiple ways, such as allowing businesses to sell goods and services online. Moreover, transactions can occur over any device with Internet connectivity.

In fact, E-Commerce Statistics of 2024 revealed that 91% of online shoppers make purchases via their smartphones.  Thus, your business can fully take advantage of the website-mobile app combination. As a result, a website with a mobile-first design can significantly boost eCommerce sales.

With eCommerce, people no longer have to visit physical locations or branches and can instead shop at any time. eCommerce can also be helpful for people who are discouraged by the idea of salespeople following them in the store.

In addition, online shoppers can purchase almost anything, including clothing, household appliances, books, etc. from a single platform. So, a web design and development company or agency can implement informative eCommerce product pages!

Consumers value independence and freedom of choice when searching for their preferred products. Therefore, eCommerce website development services can help your business site provide key information to online shoppers.

Source: Statista.

On top of Filipinos having robust digital lives, they also have a strong interest in particular products or goods, such as electronics and skincare products. Since eCommerce allows anyone to make purchases regardless of location, the industry is poised to meet Filipino consumers’ needs.

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Here are the many ways eCommerce can sustain the nation’s economy:

Collaboration Opportunities with Related Organizations

The first way eCommerce can maximize a business’ success is through relevant collaboration opportunities. Business owners have a variety of opportunities to partner with fellow brands for increased visibility and sales. As a result, eCommerce can positively impact all parties.

All parties involved in an eCommerce collaboration will enjoy:

• Even more success;
• Stronger relationships, and
• Additional opportunities for partnerships with other businesses or industries.

In addition, businesses can use digital marketing services to advertise their brand via social media platforms, such as:

• Facebook;
• Twitter;
• Pinterest;
• YouTube;
• Instagram;
• TikTok, etc.

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For instance, businesses can tap into social media personalities who fit specific niches via influencer marketing. Campaign Asia found that the Philippines has the highest percentage of users who follow social media influencers or other experts. 

Overall, there are many more opportunities to tap into the vast number of online shoppers in the Philippines. Consider what prospects best fit your brand and capitalize on unique yet relevant collaborations to capture your audience’s attention.

A Consumer Base with High Penetration Rates for Internet and eCommerce

One favorite pastime for Filipinos is browsing the Internet, especially social networks. However, the country has some of the slowest yet most expensive Internet services.

According to Ookla, the Philippines’ median broadband speed is 94.50 Mbps, with the mobile speed at 32.12 Mbps. These numbers are a far cry from those of other countries’ Internet speeds. Still, this doesn’t stop Filipinos from using the Internet— especially to shop for particular products!

In addition, eCommerce is popular due to consistent promotion, particularly via social media advertising, such as on Facebook and Instagram. Considering these factors, the Philippines is an excellent market for eCommerce businesses.

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Fewer Geographical Barriers

Businesses that adopt an eCommerce model can significantly reduce overhead expenses. Since eCommerce businesses don’t require much physical space, they don’t have as many geographical barriers. 

Thus, businesses can take advantage of eCommerce website development services to create an online shop that’s not limited by its physical location. A professional eCommerce web design and development agency can create responsive websites or web applications that streamline business operations. 

With an attractive, responsive site, you can extend your brand reach far beyond your immediate location and tap into a broader consumer base. After all, eCommerce invites consumers to search for their desired products regardless of geographical location.

Online stores can also take advantage of automation since the eCommerce industry can get the most out of employing automation software. Here are some of the advantages of implementing automated systems: 

• Significantly improving the shopping experience;
• Further decreasing costs;
• Reducing margins of error for easier scaling, and
• Streamlines processes.

Count on an eCommerce web design and development company to construct an attractive and responsive online store that entices shoppers to make purchases!

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Reduce Expenses

eCommerce has positively impacted the Philippine economy in more ways than one. For example, it allows business owners to significantly decrease certain expenses while continuing to cater to consumer needs.

Traditionally, a business owner often needs a physical location to hold stock until a customer makes an order. As a result, a variety of costs are critical to the upkeep of brick-and-mortar businesses, including the following:

• Utilities;
• Storage costs;
• Maintenance;
• Staff expenses, etc.

Fortunately, eCommerce slashes most of these expenses, as businesses can display their products on their website rather than a traditional shopfront.  

Businesses can partner with a professional eCommerce web design and development company. They have the expertise to create an engaging online store that stands out amidst an industry teeming with competition!

Increasing Government Support

The Philippine government recognizes the importance of the eCommerce industry in the economy. It’s the reason why the Department of Trade and Industry (DTI) developed the Philippine eCommerce Roadmap 2016-2020. 

Under this roadmap, the government hoped to boost eCommerce in the country. One way was by ensuring that the Micro, Small, and Medium Enterprises (MSMEs) benefited from the initiative. 

Additionally, the Philippine government passed the Financial Consumer Protection Bill. It helps online shoppers or financial consumers under preferable conditions.

Furthermore, the Philippine government would continue this progress with their eCommerce Philippines 2022 Roadmap. Currently, a roadmap for 2024 to 2028 is being drafted.

Rising Popularity of Digital Technology

The Philippines is home to more than a hundred million people, with many having Internet access. Most consumers are tech-savvy Millennials and Gen Z. For this reason, digital technology has been rapidly growing in demand and, unsurprisingly, makes eCommerce popular. 

Of course, most Internet users prefer to browse websites and shop online, especially on their phones. This resulted in eCommerce platforms like Lazada and Shopee gaining prominence among consumers. 

As a result of all these factors, many companies, including those in the eCommerce industry, acquire website development services.

Naturally, a business of any size or industry can have an attractive eCommerce store with the help of a web design and development agency. A well-optimized website can convert traffic into paying customers with its helpful functionality and online visibility.

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Count on an eCommerce Web Design Agency to Set Up the Perfect Online Shop for Your Brand!

Though the Philippines’ eCommerce industry has only gained popularity in recent years, it has since made various contributions to the economy. In addition, it still has much potential for growth and development, considering that the nation has one of the highest eCommerce growth rates.

Many eCommerce channels are accessible and convenient for Filipino online shoppers. In particular, eCommerce gives MSMEs a digital edge since managing an online store requires fewer resources than a physical one.

As eCommerce thrives in the Philippines, the industry continues to grow, and businesses have ample opportunities to succeed online. This makes eCommerce website development an ideal solution to standing out amidst an industry teeming with competition.

An eCommerce web design agency or company can create the ideal digital representation of your business: an online storefront that allows you to reach your target market more effectively!

About Adam Tan

Adam is a charming geek who loves his family's Siberian Husky, enjoys the occasional night out with friends and, most of all, lives and breathes new trends and updates about the web and its technicalities. If you want to stay updated with changes or new trends on the web or learn about the technicalities that are involved, he's your guy. He's capable of writing cheesy stuff as well, but he'd rather stick with the manly stuff.

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