Cross-border shopping plays a crucial role in the electronic commerce landscape in the Philippines, constituting a significant portion of total e-commerce sales, according to Glenn Penaranda, assistant secretary of the Department of Trade and Industry (DTI).
Citing a JP Morgan report, Penaranda told the Global E-Commerce Summit in Pasay City yesterday around 50 percent of online shoppers in the Philippines engage in cross-border shopping, with sales accounting for 24 percent of the entire e-commerce market.
According to Penaranda, China, the United States and South Korea are among the most popular countries for cross-border purchases, as highlighted by recent report from JP Morgan.
Penaranda also cited a UNCTAD report which said e-commerce in the Philippines is estimated to reach $24 billion, with 17 percent growth through 2025.
He said e-Commerce contributed 3.4 percent or $12 billion to the country’s GDP in 2020. In 2021, the Philippine e-commerce market sales reached $17 billion, largely contributed by the 73 million online active users.
According to Global Data, the Philippines is poised for further e-commerce growth, with a projected annual increase of 15.8 percent in transaction value from 2022 to 2025.
By 2025, e-commerce transactions are estimated to reach an impressive P495.2 billion ($9.7 billion), a substantial increase from the nearly P270 billion recorded in 2021.
