Can E-Commerce Sales in the Philippines Exceed PHP 1 Trillion by 2025?
According to the United States Department of Agriculture, more and more Filipinos are getting used to making both food and non-food purchases online.
In the latest market brief presented by the United States Department of Agriculture (USDA), more than 70 million online users in the Philippines participate in what is known as cross-border e-commerce (CBE). CBE is defined as “the process of selling products or services to an international audience, using an online or e-commerce store or platform.”
Given this number, it is not a surprise that the USDA predicts that e-commerce sales in the Philippines will reach $24 billion (approximately PHP 1.36 trillion) by 2025.
“Developments in CBE over the past two years, such as the emergence of freight forwarders and virtual platforms, have encouraged Filipino consumers to import food and beverage products for personal consumption,” says the USDA-Foreign Agricultural Service (FAS).
Online Food and Beverage Purchases
The USDA-FAS notes that purchases of food and beverage products amounted to $1 million (approximately PHP 56.77 million) last year. By 2025, this number is expected to grow to $5 million (approximately PHP 283.83 million).
“Developments in CBE over the past two years, such as the emergence of freight forwarders and virtual platforms, have encouraged Filipino consumers to import food and beverage products for personal consumption,” the agency explains.
Among last year’s top online food and beverage purchases are as follows:
- Baked goods
- Coffee and tea
- Dairy products, including cheese, flavored milk, and infant milk
- Flavored energy drinks
- Food supplements
- Olive oil
- Pet food
- Prepared vegetables
- Whey protein powder
- Wine, beer, and spirits
How to Stay Safe in the E-commerce Space
Given the predictions made by the USDA, e-commerce is not slowing down in the coming years. In fact, it will continuously grow as more and more people become more comfortable with making purchases online.
However, this comes with the risk of coming across fraud and scams. This applies to both sellers and buyers in the e-commerce space.
Buyers can protect themselves from fraudulent businesses by researching if the business they are transacting with is legitimate and double-checking the links and emails that they receive. On the other hand, businesses can protect themselves from fraudulent buyers by checking and reviewing personal information as well as payment and delivery arrangements sent by the buyer for any red flags.