E-commerce Industry in the Philippines

E-commerce Industry in the Philippines

The Philippines has seen significant growth in its e-commerce sector in recent years, with sales reaching $17 billion in 2021. In the same year, the number of online sellers increased from less than 2,000 in March 2020 to over 93,000.

E-commerce sales in the Philippines is expected to grow to $15 billion by 2025, which makes this year a good time for businesses to scale their online stores with Shopify e-commerce SEO.

Furthermore, the Department of Trade and Industry (DTI) intends to raise the e-commerce contribution to the country’s GDP from 3.4% in 2020 to 5.5% this year. It launched the E-Commerce Philippine 2022 Roadmap to help boost e-commerce performance. 

E-Commerce Philippines 2022 Strategy Map (Source: https://ecommerce.dti.gov.ph/madali/strategy_map.html)

Summarized in the word “madali,” the roadmap is meant to create a clear image of Philippine e-commerce as “easy, simple, and fast.” It was designed to encourage a greater number of small to medium businesses to engage in e-commerce while also boosting consumers’ preference for online shopping. 

Why e-commerce is strong in the Philippines

There are many reasons for the strong presence and increased growth of e-commerce in the Philippines. Firstly, the country has a constantly increasing number of internet users, expanding the reach of online sellers, especially if they observe the best Shopify e-commerce SEO practices. 

 Number of internet users in the Philippines, including forecasts (Source: https://www.statista.com/statistics/221179/internet-users-philippines/)

Moreover, these online shops offer enticing deals such as mega sale campaigns, free shipping, and flexible payment options, including mobile wallets and cash on delivery, making e-commerce platforms highly attractive to consumers.  

The cash payment option is especially relevant to online shoppers who are unbanked or cannot make online transactions, which make up the majority of the population. By 2023 though, the Bangko Sentral ng Pilipinas aims to have 70% of Filipino adults banked

As for mobile wallets, they have become the most preferred payment method in the country, accounting for over 30% of e-commerce payments in 2021. 

Monthly sale events such as 8.8, 9.9, and so on, along with payday promotions and other discount opportunities, contribute to the high participation of consumers in e-commerce events and reinforce their online shopping habits. 

Another reason e-commerce is strong in the country is that the Philippines has learned to adapt well in shifting to online shopping since the pandemic. Usage of shopping apps increased, and web traffic in electronics category sites grew as the Philippine demand for gadgets rose. The country has even become the fastest-growing app market in Southeast Asia. 

Even now, in the post-pandemic stage, many Filipinos still plan to go for e-commerce platforms after having experienced the convenience and ease of online shopping. 

Next, the Philippines has a robust infrastructure for e-commerce. The country has a good network of roads and highways, which makes it easy to ship goods around the country. Additionally, the Philippines’ industrial and logistics sector has grown along with the demand for urban logistics, providing reliable and efficient delivery services.

Lastly, the Philippine government supports the e-commerce sector and is taking steps to promote its growth. As mentioned, DTI launched the E-Commerce Philippines 2022 Roadmap. Through this roadmap, DTI is working to improve the regulatory environment for e-commerce businesses and provide support for businesses looking to enter the sector.

How to take advantage of these e-commerce strengths

Ride this e-commerce growth and boost sales by scaling your online store. Utilize the Shopify e-commerce SEO services of a good digital marketing agency. E-commerce SEO is essential because it will help your business attract customers and increase sales outside paid media channels. Shopify e-commerce SEO does the same thing, except it works specifically on the Shopify e-commerce platform. 

LeapOut has a team of Shopify SEO e-commerce experts who can help you grow your e-commerce store by driving intent-driven visitors to your website. They have worked with top e-commerce retailers, making a difference using digital marketing strategies that create impact, provide better customer insights, and address SEO issues that hinder conversions.

Find the right e-commerce SEO pricing for your business, rank your target keywords, and increase your search visibility in Google’s organic results. Watch your revenue grow and scale your business effectively. 

The future of e-commerce in the Philippines 

The strong growth of e-commerce in the Philippines is expected to continue in the coming years, especially given Filipino consumers’ preference for online shopping, the growing number of online sellers, the expansion of payment solutions, and substantial support from the government. This growth will provide opportunities for businesses that are looking to enter the Philippine e-commerce market or want to increase their visibility and conversions online. 

Take advantage of this e-commerce growth and achieve your e-commerce business goals with the right SEO package. Talk to LeapOut’s Shopify SEO e-commerce experts today.