Understanding E-commerce in the Philippines
Philippine e-Commerce in Numbers
Filipinos are among the heaviest users of the internet and social media, yet have among the lowest conversion to e-commerce sales. The majority of the population remains unbanked and, therefore, unable to make online transactions. Nevertheless, this is being mitigated by the emergence of payment facilitators that allow cash-on-delivery transactions.
English-speaking Filipino youth drive up online media usage and e-commerce at a compounded annual growth rate (CAGR) of 27% and 58% from 2019 to 2020. On the contrary, online travel faces headwinds amidst the Covid19 pandemic.
e-Commerce and Media offsets contraction in Transport and Food and Travel
Compared to its neighbors, the Philippines has the most room for growth - with the internet economy contributing around 2.1% of GDP. Although buoyed by large deals in the digital financial service sector, programs to encourage local innovation and startup investments are much needed.
UNCTAD Business to Consumer Index 2019
In business-to-consumer (B2C) transactions, progress has been made in terms of logistics reliability, internet usage, and citizens with online accounts.
However, internet infrastructure has not caught up with the needs of consumers. We have a long way to go, compared to nations that are pushing the frontiers of B2C e-commerce.