Discount-frenzy in e-commerce boom

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    A digital platform giving discounts or cashback to consumers in electronic commerce sites is also experiencing a boom.

    Shopback sees gross merchandise volume (GMV) transacted via its cashback platform doubling in the second half of the year to about P10 billion from P5.6 billion in the first half, according to Prashant Kala, country manager of ShopBack Philippines.

    Kala said in just five years, the Philippines has become the third or fourth biggest in nine markets where Shopback is present and is in the top five countries where the company will aggressively expand following a $13 million capital infusion of Temasek into the company
    Kala added Shopback is also seen to give P12 million to P13 million worth of discounts per month in November and December, more than double the P5 million to P6 million given in the same months last year.

    “We are in the time of boom; there is much to look forward to,” said Kala.

    He said sale events, addition of new features in the platform like price comparison as well products like banking and real estate will all contribute to Shopback’s growth in the Philippines.

    This will be boosted by the exponential growth of e-commerce due to the convenience and safety digital transactions give during this pandemic.

    The first half of 2020 has seen a 330-percent increase in Shopback transactions compared to the same time last year. This growth is mainly driven by the surge of customer spending on essential items, food and grocery deliveries, which was brought about by the shift in consumer behavior amidst the global health crisis.

    By September 1 , users can compare the prices of over 10,000 products on ShopBack and choose the best store available online for it.

    Launched in the Philippines in 2015, the company has awarded over P200 million to almost four million Filipino users, and continues to expand with an average of 150,000 downloads per month. Since the lockdown in March, Shopback has added over 140 stores to their roster of over 400 international and local partner stores as of July.