E-commerce in the Philippines is expected to grow 1,800% by 2025

Data shows that by 2025, the Philippines' e-commerce business will grow by more than 1,800% to US$9.7 billion, by which time local micro , small and medium-sized enterprises ( MSMEs) will all enter online sales.

Earlier, Department of Trade and Industry ( DTI) Secretary Ramon Lopez said at the Amazon Southeast Asia Online Seller Summit that the agency had achieved 1,539 business name registrations for online retail in January .

Lopez also introduced that the total number of online retailers registered with the DTI has exceeded 86,000 by the end of 2020. In the Philippines , small and medium-sized enterprises are the backbone of the economy and should be enabled to pivot digitally to make them more innovative and competitive.

It is understood that the DTI has been working with Amazon to support MSMEs in expanding their market.

Liang Yong, Amazon's head of recruiting new salespeople in Southeast Asia, said that by 2025, the scale of e-commerce in the Philippines may surpass that of Malaysia , Singapore and Vietnam, and the Philippines' e-commerce industry may surge to US$9.7 billion from US$500 million in 2015.

Liang Yong also said that during the COVID-19 pandemic , sellers in the Philippines saw a surge in sales of homes , clothing , dietary supplements and mobile accessories, which means that most sellers were able to capture rapidly changing consumer trends.

Meanwhile, the Department of Trade and Industry has set a target of P850 billion for the e-commerce industry by the end of 2021 under its e-commerce roadmap, which also aims to increase e-commerce’s share of the economy to 4.3% this year from 3.4% in 2020.

In addition, Shopee expects digital payment adoption in the Philippine e-commerce market to increase in 2021, the logistics industry to grow significantly , and brands and sellers to implement innovative retail strategies.

As digital payments are the preferred payment method for online transactions, consumers will become increasingly accustomed to electronic payment systems, and consumers and businesses are increasingly accepting the convenience and security offered by digital payments amidst transportation restrictions and continued social isolation policies .

Shopee also said that logistics will become more important as consumers continue to rely on e-commerce platforms and place higher expectations on efficient delivery. These growth in demand are especially important for daily necessities and household necessities. Other data show that in the Philippines, orders for food and other related items shipped from Shopee warehouses have increased 8.5 times.

These data and information can also provide a reference for small and medium-sized sellers to enter the Philippine market. However, due to the instability of the e-commerce environment, sellers can also learn more about local policies and consumption trends.

Shopee Platform

Cross-border e-commerce market

the Philippines