Corporate News and Tips

Online Shopping: The Future of Business in the Country

pinoy-shirts

With traffic here and there the Pinoy consumers are now shifting to shop online to avoid traffic going to malls. They prefer online shopping because they can shop anywhere and anytime using their computers or mobile devices.

Regardless of the nature of your business and its size, local entrepreneurs are encouraged to adopt e-commerce strategies to take advantage of the growing online market. Simple items like posting in Classified ads website like olx.ph, creating a Fanpage on Facebook/Google+ and posting to other avenues to where usually your target consumers are hanging out are just simple things you can do to provide your voice about your product or services. While, nobody beats daily flash sale websites that offers the best source in showcasing the bargain price to any given product or services in their site.

Robert-Gantuangco
Robert Gantuangco DCOM Co-Founder

Robert Gantuangco, director and co-founder of Digital Commerce Association of the Philippines (DCOM.ph) said there is robust potential for e-commerce to grow in the Philippines, on the back of the country’s strong 41 percent Internet penetration rate.

With the continuous rise of smartphone users in the country, digital currency is also increasing from – App purchasing, mobile banking and online shopping all of them are given a chance to make their businesses work.

“Almost all Filipinos now are mobile, with 25 percent of the population smartphone users. This makes the Philippines a prime market for e-commerce,” said Gantuangco during the recently held Cebu ICT-BPM Conference.

With this development, DCOM’s director said that local entrepreneurs must embrace e-commerce so they could grow their businesses and expand their target markets (including overseas).

“The digital tide is rising. A lot of merchants now, especially in the Philippines, are selling cross-border,” said Gantuanco. “And the trend will continue with a lot more people shifting online.”

Also noted, that since the birth of the digital economy in 2000, e-commerce websites have become the most visited destinations by Filipino Internet users. PayPal users shared 39 percent versus other local online banking websites.

With its popularity option of buying things, local retailers are slowly shifting online to broaden their customer base. Today, many Pinoy merchants are now selling various items to countries like Canada, United States, Thailand, Russia and the Middle East. Talking about young entrepreneurs on the other hand is also taking advantage of social media platforms to jumpstart their business.

Abroad online shopping market is already increasing in terms of time and money showing this chart report from 2013:

bii-ecomm-demo-new

As for demographics – it shows that twenty-five percent of online activity is doing online shopping with the most active online shoppers are ranges between 25 to 34 years old. On location, 65 percent of online shoppers are from Manila while 29 percent are from other Luzon provinces, also including from Visayas and Mindanao region who are mostly females.

pinoy-shopping-shoesTop five items females buy online are apparel and accessories, electronics and computers, shoes, household products, and beauty and wellness items. The top picks for males include electronics and computers, apparel and accessories, discounts and deals, household products and shoes.

Asked if security on credit card payments is still a big issue for online retailing to thrive in the country, Paulo Campos, co-founder and managing director of Zalora Philippines said it isn’t a big problem since payment modes these days are not limited to credit cards. Paying online purchases can now be done to your reputable establishment (e.g. 7-eleven branches) or even in Cash-on-Delivery scheme.

“The rise of online retailing paved the way for the emergence of alternative payment solutions. Use of credit card only accounts for three percent,” he said.

To help consumers stay secure, you can check these two tips:

  • Always, update your browser to the latest version, which addresses the most current online risks;
  • If your browser gives you a message about an untrusted security certificate for a website, don’t proceed.

To remain successful in online retailing, Gantuanco said retailers have to build their own community, invest in reliable Internet connection and increase the selection of their products.

Pinoy-SMEs

E-commerce also opens business opportunities in sales and after-sales support service, warehouse and shipping, payment collection, import and exports.

You may also checked out our previous post about online shopping.

 

article reference: sunstar.com.ph and businessinder.com 
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