Pinoys clog online shopping sites

by Louella Desiderio (The Philippine Star), 25 Mar 2021

MANILA, Philippines — The Philippines posted the second highest growth in online shopping site visits in Southeast Asia last year amid the pandemic, according to price aggregator iPrice Group.

In its Map of E-Commerce Yearend 2020 report, iPrice said the Philippines saw a 21 percent increase in online shopping site visits, the second highest in Southeast Asia following Singapore’s 35 percent uptick.

It said online shopping has become more in-demand due to the pandemic as overall website traffic of online shopping platforms across all Southeast Asian countries rose year-on-year.

In terms of product categories, iPrice said electronics sites, which saw traffic rise 59 percent in the first half of last year, registered a decline in the succeeding months.

It said web visits to tech e-commerce sites dropped 83 percent in the fourth quarter compared with the first quarter.

Meanwhile, fashion sites which were initially challenged, are gaining back momentum as visits rose 18 percent.

Filipinos also spent most on fashion products with an average basket size of $40 or about P1,947 last year.

“This goes to show that people are back to dressing to impress as the lockdowns started to ease,” iPrice said.

Amid increasing COVID-19 cases, the Philippine government imposed new restrictions including allowing only essential travel to and from National Capital Region, Bulacan, Cavite, Laguna and Rizal, as well as temporary closure of business establishments until April 4.

“Hence, as the second wave carries on, iPrice predicts that demand and purchase of fashion items may potentially decline again,” iPrice said.

While visits to online shopping sites in the Philippines went up last year, iPrice said the amount spent by consumers declined by four percent.

“This could just mean that there was a reallocation of needs as Filipinos are shopping more for essentials than expensive hobby items or non-essentials, especially since many Filipinos have either lost their jobs or received pay cuts,” iPrice said.

The Philippines’ average spending of $11 or P538 is lower than the entire region’s average spending of $32 or P1,557 per order last year.

This may be attributed to the costs of living, as well as shorter lockdowns or government-provided financial support in other countries.

Consumers in Singapore and Malaysia, saw the highest average basket size of $61 or P2,969 and $41 or P1,995, respectively last year.

“These unprecedented shifts in Southeast Asia have presented a sign of digital acceleration in online retail despite the global pandemic that affects consumers in the region. It is a matter of time that the Philippines catches up with the digitalization trend,” iPrice said.