Updates on E-commerce News in the Philippines: What to Expect in 2021?
With the global pandemic disrupting the way businesses operate, the e-commerce industry in the Philippines has seen a significant shift towards online transactions. In 2020, the country’s Department of Trade and Industry reported an increase of 57% in the number of online businesses registered. As we head into 2021, the e-commerce market in the Philippines is expected to further evolve and grow.
Rise of Social Commerce
Social media platforms such as Facebook and Instagram have become popular hubs for online shopping. With the ease of browsing and buying, social commerce is seeing a surge in the Philippines. In fact, a recent report by eMarketer predicts that social commerce sales in the country will grow by 24.4% in 2021 and reach $1.24 billion in value. This shift in consumer behavior presents an excellent opportunity for businesses to expand their reach and sales through social media.
Creation of a Digital Economy
As the e-commerce industry continues to thrive, the Philippine government is taking steps to invest in the creation of a digital economy. In 2020, President Rodrigo Duterte signed the Innovative Startup Act, which provides support and incentives to startups, including those in the e-commerce industry. This move is in line with the government’s vision to build a digital economy that fosters innovation and entrepreneurship.
Push for Cashless Transactions
With the pandemic highlighting the need for contactless payment methods, the Philippine government is encouraging cashless transactions. In November 2020, the Bangko Sentral ng Pilipinas launched the National QR Code Standard, which allows customers to make transactions by scanning a QR code. This move is expected to promote financial inclusion and increase the adoption of digital payments in the country.
Challenges in Logistics and Infrastructure
Despite the growth of e-commerce in the Philippines, the industry still faces challenges in logistics and infrastructure. With the archipelagic structure of the country, delivering packages to remote areas can be costly and time-consuming. Moreover, the lack of reliable internet connectivity and limited access to electronic payment systems in some areas hampers e-commerce growth. However, the government’s efforts to improve digital infrastructure look set to address these challenges in the future.
Conclusion
The e-commerce industry in the Philippines has come a long way, and 2021 looks set to be another year of growth and innovation. From the rise of social commerce to the creation of a digital economy, businesses can look forward to new opportunities in the market. However, it’s also essential to remain mindful of the challenges in logistics and infrastructure and work towards overcoming them. As the world continues to navigate the global pandemic, e-commerce in the Philippines remains a reliable, secure, and convenient way to do business.
