Natatandaan mo pa ba? Online shopping in the past involved scheduling a meet-up with a seller by the nearest LRT station. Or spending half an hour at the bank just to deposit your payment into a seller’s account.
Today, more delivery options are available to make your purchase a hassle-free experience, and payments can be made online in a matter of seconds.
Changes in sectors like technology, finance, logistics and ecommerce have transformed the average Filipino consumer behavior. In other words, more Filipinos are shopping online, which can mean more opportunities for your online business.
The next thing to understand is their shopping behavior online.
What does an average online shopper in the Philippines look like?
Filipinos of all ages, genders and backgrounds have shopped online. However, here’s an in-depth look at the demographics of an average online shopper:
- Age: With more buying power than the younger Gen Zs and being more tech-savvy than Gen Xs, it’s no surprise that Millennials (those within the 25 to 34 age range) are making the most online purchases, getting 52% of the market share.
- Sex: Businesses whose target audience is mostly female will appreciate the large market online. 72% of Filipino online shoppers are female, according to a survey.
- Location: 38% of all ecommerce purchases are in Metro Manila. Because of geographical limitations, most logistics companies can’t deliver to all regional areas, so those outside urban areas have limited options.
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Why are more Filipinos motivated to shop online?
Online shopping platforms like Shopee and Lazada existed long before the COVID-19 pandemic kept people indoors and forced consumers to explore alternative shopping methods.
Before the pandemic, ecommerce technology was at its earlier stages and motivated many Filipinos to shop online for many reasons:
- Availability: Before online shopping, most people had to go to malls and stores and had to settle for whatever limited options were in stock. Online shopping provides a wide range of products available locally and abroad.
- Convenience: People who didn’t have the time to shop could easily order online. Customers could have their packages shipped to their home or work address or pick them up at designated locations.
- Cost-Savings: Online shops have lower overhead costs, which means sellers can list products at competitive prices compared to traditional stores. Many e-commerce platforms also provide discounts and promotions like free shipping.
Filipino consumer behavior: What are the common traits of online shoppers?
Filipino consumer buying preferences can be considered unique compared to the online shopping habits of other countries.
This can mean business owners adapting to consumer behavior in marketing and sales to maximize their revenue. These are some of the typical Filipino consumer behaviors seen more recently.
1. Cash-on-delivery is still popular
While more Filipinos are open to shopping online, many are still hesitant about the risk of financial cybercrimes and online scams. Thus, 86% opt for cash-on-delivery payments.
This means business owners will have to coordinate with couriers that can accommodate these types of delivery services if they want to reach the bulk of Filipino online shoppers.
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2. More shoppers are embracing cashless transactions
Despite the popularity of cash-on-delivery, there’s a growing trend of users opting for convenient cashless transactions. Although only 8% shop with credit cards, according to the Philippines Central Bank, 92% use digital wallets. It’s expected that, by 2025, most online shoppers will shift to digital payments.
3. More Filipinos are shopping with smartphones over laptops
Studies show that smartphones have now overtaken desktops for people browsing the internet. The same can be said for Filipino online shoppers, with 92% of users shopping through their smartphones.
This may be due to ecommerce platforms offering exclusive deals and discounts when users shop through their apps.
4. Discovering products on marketplaces or ads
While there may be some popular brands with successful online stores, customers are more likely to search for them on online marketplaces. As a result, more established brands are starting to sell their products on platforms like Lazada, Shopee and TikTok instead of investing in their own website.
from ads and browsing thru marketplaces.
5. The rise of double-day sales
Also known as Mega Sale Days, these are the sales scheduled on dates like January 1, February 2, March 3 (1.1, 2.2, 3.3), and so on. In particular, double-day sales close to the holidays see a big boost in sales, especially those in fashion, health and beauty categories.
Learn more about the Impact of Double Day Sales in the Philippines.
6. Value delivery times
Seeing most customers talk only about the fast shipping in the review section can be frustrating, but it shows how much Filipinos value swift delivery.
Slow fulfillment and delivery can dissuade customers from repurchasing, so online sellers need to consider the reliability of the logistics companies they work with.
Why does this matter to you?
Selling online isn’t easy, and you need to maximize your efforts to attract customers who can become repeat buyers or refer your business to their circle.
Your selling efforts should also target the attention of the Filipino E-shopaholics who are responsible for 47% of ecommerce sales in the country!
By understanding Filipino consumer behavior, you can take steps to cater to what they really want. Having said that, the following can also benefit your online business in the long run:
- Product quality and values. A big chunk of online shoppers are millennials, and they tend to be conscious of the brands they support. Providing sustainable solutions, marketing yourself as a small business, and providing unique and value-adding products are some ways to attract this group.
- More cashless payments. As more cashless payment options are becoming available, and better security measures are implemented to protect these transactions, shoppers are likely to be more comfortable making cashless payments.
Going beyond COD or selling on marketplaces that allow cashless payments can attract more customers. Learn more about Shifting to E-wallets and Payment Gateways for Ecommerce.
- Faster fulfillment and delivery: Avoid cancellations and unhappy customers by finding ways to streamline your order fulfillment and delivery processes.
If you find that you can’t keep up with demand, consider outsourcing your fulfillment with Ninja Van. We provide cost-effective warehousing, inventory management and speedy fulfillment for ecommerce businesses.
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