The Philippine eCommerce industry has experienced massive growth, especially in the last five years. What exponentially propelled online shopping was the COVID-19 pandemic. As a result, the digital economy increased by about 55% in 2020. This 2022, eCommerce is expected to make up half of the country’s Gross Domestic Product (GDP). It is expected to grow four times higher by 2025, amounting to $9.7 billion.
Another Philippine eCommerce market trend now is the Buy Now Pay Later (BNPL) payment solution. This BNPL payment adoption is expected to increase to reach US$ 9476.8 million by 2028.
The Convenience of Online Shopping
The most commonly mentioned reason for online shopping is that the customer can buy goods without leaving their homes or their workplace. The hassles of heavy traffic, lack of parking space, or getting lost en route is not a problem anymore. Online shopping is a plus, what with the continued soaring prices of fuel. Also, since there are no crowds in online shopping, it eliminates the (still) ongoing threat of COVID-19 infection.
Other advantages of online shopping are:
1. Convenience
Consumers can shop anywhere, anytime. No long lines to the cashier and the shopping takes minutes. You can buy the products as soon as released like e-books or music. There are no limitations due to geographical location, you can shop outside the country without spending the airfare. Even more convenient, online shops are open 24/7.
2. No Pressure
No sales representatives are trying to talk you into buying a certain product or model.
3. Save Money
Sellers offer discounts and lower prices since most products come from manufacturers. Shoppers can easily compare prices and product quality when buying online. You can choose the product that falls into your budget range.
4. Wide Range of Products
The majority of companies display their entire range of products. The latest styles are available with a wider choice of sizes and colors. Most goods or brands are on display. Even when items are out of stock, some shops accept orders and ship them as soon as they are available.
5. Product Comparison
When sellers display all their goods, it is easier for buyers to research and compare which is most suited for their needs. Price, model, features, detailed information, and even ratings and reviews are available.
6. Tracking your Order
Customers can track their orders online. Buyers can view the delivery status of their shipped items.
The more common disadvantages of online shopping are:
1. Problems in delivery
This is the most frustrating drawback. Sellers have no direct control over this issue. Even the best courier companies have their bad days and might cause delays in the delivery of goods. Products can get damaged, lost, or even delivered to the wrong address.
2. Lack of assistance
Many people are not tech-savvy and often get confused about which button to click. No sales attendants mean you have to explore on your own. Inexperienced buyers usually commit mistakes and make blind purchases.
3. Scams
There is a greater risk of fraud when shopping online. This includes phishing, identity theft, hacking, fake goods, and credit card scams.
4. Intangible display
One of the biggest concerns of online shopping is that you cannot touch or try on the product. Some images can be misleading. If you fail to read the product description, you might end up buying the case instead of the item itself.
Despite these perceived disadvantages, the country’s consumer preferences for online shopping have steadily increased. GlobalData forecasts the Philippine eCommerce value will grow at a strong compound annual growth rate (CAGR) of 17% between 2021 and 2025.
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