Are Filipinos e-commerce savvy?

Filipinos have already embraced the world of e-commerce.

E- commerce is defined as the buying and selling of products or services over electronic systems such as the Internet and other computer networks. With the increasing Internet usage in the Philippines, more and more Filipinos are engaging themselves in e- commerce.

A case in point: A good number of enterprising Filipinos are building online stores and are more engaged in online shopping. Multiply (www.multiply.com) is a social networking website that has now turned into an online  “tiangge”. The website sells products of sorts- laptops, cell phones, clothes, and even cupcakes and contact lenses. Claudio Pinkus, executive chairman of Multiply Inc., said that of the approximately 5 million Filipinos using Multiply, 26,000 are registered sellers.

Multiply’s Terms and Conditions state that the website is not for commercial use, Pincus, however, said that Multiply is now considering shifting its focus to the e-commerce side of Multiply. This plan started in early 2009 as the number of online sellers continues to grow in the Philippines. He said 42% of Multiply traffic in the Philippines was to the online storefronts. An online survey of Multiply users in early 2010 also showed that 65% of users have bought an item from a Multiply store.

An online store proves to be advantageous to both buyers and sellers. Although physical stores and malls provide a unique shopping experience- air-conditioning being a plus for Filipinos, online retail stores offer convenience, discounts, variety and novelty. Often, products that are sold online are imported, hand- made and personalized. These also come cheaper because of the relatively low cost incurred in bringing the products to the market. Product options are also no longer limited by distance. Buyers can shop for products all over the world. For the sellers, it provides them convenience as they can work from home. It is also less expensive than renting a space, building a physical store, hiring salesmen and paying for utilities. Opening and closing shop is also just a click away.

E- commerce’s popularity has not only found its way to small- time sellers or entrepreneurs but also to established businesses. Popular retail chains such as Rustan’s and SM Supermarket sell groceries online; Powerbooks, National Bookstore and Goodwill are successful online book retailers; LoyolaPlans.com has had success in using the Internet to sell life and non-life insurance. In the travel industry, air carriers such as Philippine Airlines, Cebu Pacific and Air Philippines have introduced online bookings and electronic ticketing for domestic and international flights.

E- commerce has already penetrated other industries like banking and financial services, bill payments, and even government services.

E- commerce will become more viable in the years to come. Easier access to computers, cheap Internet cafes, and affordable Internet access, increases internet penetration. Recent studies place Internet use at about 27%, ranking the country within the top 20 global Internet populations. E- commerce also becomes more viable because transactions are not limited to the use of credit cards. Various payment options now like Globe G- Cash, Smart Padala and Paypal facilitate e- commerce.

If you want to have your own taste of e- commerce, check out my online store at http://hautehues.multiply.com/ ☺

Sources:

Royal Pingdom (2010) The top 20 countries on the Internet, and what the future might bring. royal.pingdom.com/2010/07/27/top-20-countries-on-theinternet

http://www.abs-cbnnews.com/lifestyle/05/18/10/multiply-shifts-gears-focuses-social-shopping