Filipinos are among the most active online shoppers in the world. In fact, the Philippines is one of the fastest-growing e-commerce markets in Southeast Asia. According to Shivani Gupta, senior banking payment analyst at Global Data, the country’s e-commerce market is expected to reach P968.9 billion ($19.0 billion) in 2026. The Filipinos’ online shopping behavior surely played a huge role in these findings.
But what really drives Filipinos to continue shopping online? What are their unique needs and shopping preferences? Ultimately, how can businesses like yours cater to this growing market?
Understanding Filipino online shopping habits is essential for businesses that want to succeed in this growing market. By understanding the needs and preferences of Filipino online shoppers, businesses can develop a more targeted and effective e-commerce strategy.
But don’t worry, you don’t need to open multiple tabs and read a thousand-word research. We made the hard task for you, so you can have more time to craft your strategy. On this page, we will unveil the latest e-commerce statistics and trends in the Philippines that can guide your e-commerce strategy.
Millennials are the drivers of the Philippines’ E-commerce
The younger generation, specifically the Millennials, is the main driver of the e-commerce sector of the Philippines. This is not a surprise as the younger generation tends to adapt and embrace faster new developments.
This is supported by the latest study of Statista in June 2023. Their survey revealed that the majority of Filipino online shoppers or 35.6% are in the 25-34 age range. Moreover, 29.3% of online shoppers in the Philippines are in the 18-24 age range. When combined, these younger generations make up 64.9% of all shoppers.
To compare, only 11 percent of e-commerce users were aged 45-54 years. In addition, 24 percent of Filipino online shoppers are in the 35-44 years gap.
This online shopping behavior in the Philippines tells a lot about how your sales and marketing strategies should be tailored to specific age segments. You need to understand the preferences, needs, and expectations of each age group, to create more effective and appealing campaigns.
There Are More Male Online Shoppers in The Philippines in 2023
Several reports in the past claimed there are more Female Shoppers in the Philippines. Like this report. Unfortunately, this report may not be up-to-date today. In fact, according to recent research by Statista, there are now more male online Shoppers in the country than their female counterparts.
The latest Statista Consumer Market Outlook revealed that as of June 2023, most of the e-commerce consumers or 57.2% in the Philippines were males. Meanwhile, the remaining 42.8% of online shoppers are female.
Growing E-commerce Sales in the Province
Metro Manila has the most e-commerce transactions in the Philippines with 38%. This is not a surprise anymore. But, what’s noteworthy is that e-commerce sales in other provinces are also increasing.
Cavite and Laguna have the highest record of sales with 9%. This is followed by Cebu and Pampanga with 6%. Rizal and Davao have 6% record sale. Finally, Iloilo and Batangas have both 2%.
Filipinos' Changing Payment Method Preference for E-commerce
In June 2022, data from Rakuten Insight which was published on Statista page revealed that 86% of Filipinos paid via cash on delivery for their online shopping. This is no surprise as Filipinos want to guarantee and check the product first before paying. However, the e-commerce trend is changing.
According to data provided by PPRO on the Statista website in April 2023, e-wallets dominated online payments in the Philippines which accounted for 31% of e-commerce transactions. The survey also revealed that card payments were more popular than cash-based payments for online purchases.
Filipinos Prefer Smartphones for Online Shopping
Filipinos shop online using mobile devices. According to Rakuten Insight data in 2022, 92% of Filipino online shoppers used smartphones for online shopping. In addition, 9% of the respondents used tablets to shop online.
This Filipino online shopping habit highlights the importance of having a mobile-responsive website for online businesses. Specifically, product listings and advertisements should be optimized for phone screen sizes.
Most Popular Online Purchase in the Philippines
A survey conducted in the Philippines in 2023 revealed that 65.07% of respondents purchased clothes and footwear online, making it the most popular online purchase. Additionally, only about 5% of survey participants shopped for luxury goods online.
This Filipino e-commerce trend doesn’t tell you to limit yourself to the fashion and clothing sector. Also, you don’t need to sell what everyone else is selling, as competing in such a crowded market can be difficult. Instead, consider carving out your own niche and offering unique products that will attract customers to your site.
Improve your E-commerce Performance in this Digital Age
Every year the Philippine E-commerce market continues to grow, with no sign of stopping any time soon. We can only expect emerging e-commerce trends and preferences. In this ever-changing market, it is important that you understand the online shopping behaviors of your market. This allows you to adapt and stay competitive regardless of rapid change.
If you want to stay ahead of the competition, consider partnering with an e-commerce enabler you can trust. Be Global E-commerce Corporation offers comprehensive e-commerce solutions from online store management and inventory management to marketing and fulfillment. Our team will work closely with you to understand and achieve your needs and goals.
Contact us today to learn more about our E-commerce services.
