Help­ing mer­chants cater more on­line shop­pers

Manila Bulletin - - Business Tech -

Filipino on­line shop­pers are es­ti­mated to reach up to 42 mil­lion by 2025 and will spend about P918-B in pur­chases on­line. This is as fore­casted by a study con­ducted by Google and Te­masek in 2017, prov­ing the con­tin­u­ous de­vel­op­ment of the coun­try’s ecom­merce mar­ket.

As this hap­pens, it opens many op­por­tu­ni­ties for lo­cal mer­chants, es­pe­cially since it is not sat­u­rated yet. In fact, the De­part­ment of Trade and In­dus­try (DTI) is push­ing for more de­vel­op­ments in the on­line re­tail scene through its Philip­pine E-Com­merce Roadmap. By 2020, it aims to con­trib­ute at least 25 per­cent of the coun­try’s gross do­mes­tic prod­uct (GDP).

DTI also re­vealed that with the coun­try hold­ing the fastest in­ter­net users growth, a young pop­u­la­tion, and a grow­ing pur­chas­ing power in Manila and other cities in the coun­try, e-com­merce now holds a great po­ten­tial to be­come big­ger than ever.

To­day, mer­chants reach out to cus­tomers not only from the coun­try’s ma­jor e-tail­ers, like Lazada, Zalora, and Shopee, but also through so­cial me­dia sites, like Face­book and In­sta­gram.

Ac­cord­ing to Ofri Ka­dosh, CEO and founder of Payo, to­day’s Filipino con­sumers have the abil­ity to shop any­thing at any given time. It has pro­vided them the con­ve­nience of be­ing able to browse through items while at the com­fort of their own homes or even when trav­el­ing.

How­ever, de­spite the boom­ing ecom­merce in­dus­try, many mer­chants are still far from fully lever­ag­ing on the op­por­tu­ni­ties to meet the de­mands of the coun­try’s on­line shop­pers. Ka­dosh noted that “this is due to the low credit card pen­e­tra­tion in the coun­try, where only eight per­cent of Filipinos are credit card hold­ers while 72 per­cent still do not have bank ac­counts—a chal­lenge that mer­chants in the Philip­pines have to face.”

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