The e-commerce market in the Philippines experienced robust growth in 2024, with an estimated growth reaching $25.4 billion (PHP1.4 trillion) in 2024. That’s a 23.3% increase from the previous year.
The Philippines has seen significant growth in e-commerce penetration in the country since the pandemic of 2020 with the penetration rate expected to reach close to 20% this year.
This level of penetration could not have been made possible without the massive adoption of GCash and Maya, along with a few other local players like DragonPay and international giants like Paypal.
However, compared to other ASEAN countries, the Philippines still lags behind Singapore, Indonesia and Malaysia. With increased collaboration, we can hope to reach and perhaps even surpass that 20% estimate, realizing the full potential of this industry.
As online shopping continues to reshape how we buy and sell, it’s crucial that all players work together to create a safe and thriving digital marketplace. Building a secure e-commerce ecosystem requires shared responsibility and collaboration among platforms, sellers, consumers, and government agencies.
Each stakeholder plays a vital role in fostering safety and integrity within the digital marketplace. This united effort is essential to address emerging challenges such as counterfeit goods, fraudulent sellers, and non-compliance with regulations.
Government agencies like the Intellectual Property Office of the Philippines (IPOPHL) and the Department of Trade and Industry (DTI) are critical in setting and enforcing standards for marketplace safety, product compliance, and intellectual property protection. Their certification processes, such as the Philippine Standards (PS) License and Import Commodity Clearance (ICC), ensure that products meet quality and safety benchmarks. By working closely with e-commerce platforms, these agencies can streamline monitoring and enforcement processes, ensuring consistency and transparency across the digital marketplace.
Once the Internet Transaction Act of 2023 becomes fully implemented, there will be increased regulation that might make it harder for merchants and sellers to onboard. While doing online and offline retail can be complementary, this collective approach will ensure the growth of the e-commerce industry and contributing more to the Philippine economy.
Sellers, as the lifeblood of e-commerce, have a big responsibility too. They need to follow local laws, provide accurate documentation, and adopt ethical selling practices. By actively protecting their brands and intellectual property, sellers contribute to the overall integrity of the marketplace. It’s important for them to use resources from industry groups and platforms to keep improving their operations and build consumer trust. Likewise, it is equally important that sellers adhere to the policies of the e-commerce platform.
Consumers also play a crucial role as informed advocates for trust. By staying vigilant, choosing verified sellers, and reporting suspicious activities, shoppers directly contribute to maintaining marketplace safety. Consumer advocacy groups empower individuals with the tools and knowledge needed to make informed decisions and demand transparency from both sellers and platforms.
Take, for example, TikTok Shop. They’ve stepped up their game in the e-commerce space in the Philippines. TikTok Shop has invested over USD 500 million globally in tools, technologies, and personnel to safeguard its platform. This includes proactively rejecting and removing non-compliant products, releasing an Intellectual Property Rights (IPR) Report, and ensuring compliance with local regulations like the DTI-BPS requirements for regulated products.
TikTok Shop is also serious about educating its sellers. They’ve implemented a rigorous onboarding process and educational programs. The TikTok Shop Academy and their @sellwithtiktokshop_ph TikTok account provide sellers with valuable resources on policies, compliance, and best practices. This helps create a culture of responsibility and professionalism among merchants.
On the other hand, Shopee Cares PH is an online community platform that educates customers on vulnerabilities and provides tips on avoiding fraud, including phishing scams, money and gift card scams, and third-party seller scams.
Starting February 3, 2025, Shopee will update its Counterfeit Listings Policy to immediately freeze sellers’ accounts found to be selling counterfeit items. Similarly, Zalora ensures that all products sold are 100% authentic and original, working directly with brands to verify product authenticity.
Similar to Lazada, Tiktok Shop has also partnered with government agencies like IPOPHL, DTI, BIR, and PNP. There are also private sector initiatives with organizations such as GoNegosyo, San Miguel Foundation, and GCash. These partnerships aim to empower MSMEs, drive economic inclusion, and create new opportunities for Filipino entrepreneurs and online sellers alike.
To further strengthen trust and safety, TikTok Shop has implemented enhanced reporting mechanisms and public awareness campaigns. Their comprehensive feedback systems allow for swift action against policy violators, with over 2 million seller accounts deactivated for violations in 2024. Initiatives like the #TikTokShopSmart campaign here in the Philippines empower shoppers with tools to make informed purchasing decisions, reinforcing the platform’s commitment to user safety.
The future of e-commerce is all about teamwork. By cultivating partnerships between platforms, sellers, consumers, and regulatory bodies, we can create a digital marketplace that’s not only economically vibrant but also safe and trustworthy. Having a proactive approach is setting a good example for the industry, showing how collaboration can drive innovation, ensure compliance, and benefit everyone in the e-commerce ecosystem.
Here’s what I want to see e-commerce platforms improve upon in 2025:
1) Efficient reporting and feedback mechanisms, whether it’s about a defective product, failed transaction, or outright scam, an effective reporting mechanism offers a level of confidence that the transaction can be resolved and the experience be improved next time around.
2) Tight cooperation between the platform, payment gateway, and law enforcement when it comes to fraudulent transactions or outright scam operations by 3rd parties. No more pointing fingers as to who is responsible for what.
3) Immediate response. This is a no-brainer. An immediate response means urgent relief which, ultimately, creates more trust.
It’s now up to other platforms, businesses, and regulatory bodies to follow suit and embrace this collaborative spirit. Only by working together can we build an e-commerce landscape that truly serves the needs of all stakeholders while promoting economic growth, digital innovation and, most importantly, consumer trust.