Posted: November 2021
The resident kings of Philippine e-commerce will stay in their thrones, counting their gold, but based on recent projections, it’s probably a great time to dabble into the industry.
According to a report released in late August 2021, the country’s ecommerce market may hit $15 billion in gross merchandise value by 2025 – Yes, you read that right. Billion dollars.
Given that it was at $4B by 2020’s end, that equates to an average increase of $2.7B per year, more than half of its most recent worth, and certainly a gigantic number that should catch the eye of startup, on-the-rise, and thriving online store owners, even ones who are still pondering. The market is simply huge that it’s almost a crime not to try.
What’s also interesting is all that is on top of a low ecommerce penetration rate in the country. For context, Southeast Asia’s average rate is at 6%, and Philippines is only at 5%, which is almost three times less than Singapore, who leads the region at 14%.
Imagine how good would the numbers be if more sellers and promotions are available? It’s bound to be a feeding frenzy out there.
A separate projection released in the same month predicted a slightly lower value at $12B, but that isn’t really a fall because we’re talking double-digit billion dollars. The report also explored the Buy Now, Pay Later trend, something that may sweep the online shopping world soon.
Know more about BNPL through our recent piece.
What’s with the spike?
It’s a combination of the pandemic’s restrictions that glues everyone in their phones and the still-rising influence of social media. Isn’t it crazy to see social media platforms go on a culture tear for a decade straight and not have any signs of slowing down?
One of its recent ‘cultural expansions’ touches ecommerce heavily. Along with introducing Marketplace, Facebook also opened up quite the airwave by allowing livestreams. Those two were quickly combined by eager sellers and lo and behold, livestream selling became a thing.
All that, plus all the other online businesses popping up, most probably led to the surge. As it stands, it’s anyone guess how much the momentum can grow.
It’s safe to assume that more online services will provide better support for ecommerce stores, and who knows what upgrades has social media in store for livestream sellers?
Payment acceptance flexibility is a must
To close things out, here’s a note to online store owners: things won’t be automatically fruitful just by having good products and a well-functioning website. Ramp things up on other areas as well.
You need a checkout page and a flexible online payment system that’s ready to accept multiple types of payment methods. Check out our online payment solution and browse on.
As VeritasPay continues to provide high-quality payment solutions and promote cashless transactions, the company is also dedicated in bringing in fresh and informative content. We’ll be continuing to share new articles about our products, services, and varying subjects within the industry as we move forward.
Contact us here to know more.