Electronic commerce (e-commerce) in the Philippines will continue to grow on improved incomes and increasing internet penetration.
Erin Tagudin, Shopee Philippines public relations head, in a presentation at a company event in Taguig City yesterday said e-commerce is a booming industry and the country remains one of the biggest markets in the region.
Tagudin cited a research which said e-commerce in the country is projected to post an annual growth of 13.2 percent from 2024 to 2028. Value is expected to reach $39 billion by 2028.
“This can be attributed to the increasing preference of online shopping and more robust internet penetration fostered by a growing number of middle-income Filipinos,” said Tagudin.
She also cited data from the Philippine Statistics Authority which said the annual household income of Filipinos increased by 15 percent in 2019. This, she said, signals an opportunity for brands to capture the emerging market of middle income Filipinos with growing affluence.
“This aligns with the trend we observed among our users who spend more on (certain) categories when shopping for branded items in Shopee Mall,” Tagudin said.
For example, mobiles and gadgets gained over 30 percent year over year increase in spending while fashion items like women’s apparels, accessories and men’s shoes posted an annual growth more than 60 percent. Makeup and fragrance recorded a substantial rise of over 40 percent in terms of spending.
Tagudin said Shopee continues to educate vendors in its platform to comply with the Information Technology Act particularly in registering their businesses with the Bureau of Internal Revenue for taxation purposes.
Tagudin added Shopee has a dedicated team that strictly monitors products sold in the platform and has rolled out an easy reporting system on infringing goods.
Sellers found to be selling fake products are banned from Shopee while customers are refunded three times the value of the item.
