Notes

Discuss the current state of e-commerce in the philippines including growth trends and market size:

The global coronavirus pandemic prompted a swift change in consumers’ shopping behavior in the Philippines, contributing to a fast-growing e-commerce market in recent periods. As most brick-and-mortar establishments were temporarily shut down, several companies and brands started offering online products and services. Thanks to increasing internet penetration and improved infrastructures, the potential for online shopping in a country with the highest average daily internet usage in the region remains promising. e-commerce player Shoppee launched an in-app, live-streaming platform in the Philippines in June 2019 through which sellers can build a following to promote their products and offer discounts to viewers.

Explain the unique characteristics and challanges of the Philippine e-commerce market:

With the rise of online shopping in the Philippines, small businesses have increasingly faced tough competition from large conglomerates. Matching their pricing, wider product ranges, and larger marketing budgets is impossible. Small eCommerce businesses that experience rapid growth may struggle to scale their operations fast enough to keep up with increased order volumes. This can lead to logistical challenges in managing inventory, especially with seasonal or trending products, and can result in out-of-stock orders and backorders.
Smaller businesses also often face higher shipping costs due to their lack of negotiating power and shipping volume with logistics providers. Small eCommerce businesses often prioritize other essential expenses over website maintenance due to limited financial resources. However, it is crucial to have a modern, user-friendly, and optimized e-commerce website to prevent cart abandonment, encourage trust, and increase conversions. Even simple features like guest checkout can reduce friction for time-crunched buyers.
Small eCommerce businesses often prioritize other essential expenses over website maintenance due to limited financial resources. However, it is crucial to have a modern, user-friendly, and optimized e-commerce website to prevent cart abandonment, encourage trust, and increase conversions. Even simple features like guest checkout can reduce friction for time-crunched buyers.
Bigger companies have larger marketing budgets, allowing them to create strong branding, run extensive ad campaigns, and retain customers. You don’t have to match their efforts, but you need to have a deep understanding of who your target customers are to market to them effectively. Consider hiring a marketer or consultant to help you develop a strategy, which may include improving your SEO, paying for lead-gen ads, redesigning your website, and partnering with other brands.
Agility is an organization’s ability to quickly adapt to changing market conditions and circumstances. For eCommerce businesses, agility is crucial because they often face seasonal fluctuations in sales, long payment cycles, and unexpected expenses that can disrupt their operations.