Alongside a 71% rate and its users persisted in 10 hours and 2 minutes a day on
regular, the Philippines’s eCommerce industry stands out as a moving market for any
international eCommerce merchant.
Revenue in the eCommerce market in the Philippines is projected to reach US$3,370m
in 2020. Revenue is expected to show an annual growth rate (CAGR 2020-2024) of
18.3%, resulting in a projected market volume of US$6,610m by 2024.The market’s
largest segment is Electronics & Media with a projected market volume of US$941m in
2020. User penetration will be 35.5% in 2020 and is expected to hit 46.5% by 2024. The
average revenue per user (ARPU) is expected to amount to US$86.68.
Like its neighbouring countries in ASEAN the Philippines is self-assured to undergo
remarkable growth in eCommerce over the next few years. Online travel, online media,
and ride-hailing, was valued at approximately US$7 billion in 2019, growing from US$2
billion in 2015. Furthermore, these industries are estimated to grow by more than 3x to
US$25 billion in 2025.
The Department of Trade and Industry (DTI) in the Philippines has reaffirmed their
commitment to facilitating this growth in the E-Commerce market.
The coming years
will be bullish for Philippine E-Commerce and come 2020, our strategies and plans
for the industry will exhibit a 20/20 vision— utterly perfect and accurate.
The
coming years will be bullish for Philippine E-Commerce and come 2020, our strategies
and plans for the industry will exhibit a 20/20 vision— utterly perfect and accurate,
Undersecretary Prudencio Reyes Jr. declared in the recently concluded E-Commerce
Forum.
However, while under strict quarantine measures as a result of COVID-19, e-commerce
and online transaction activity in the Philippines has shown resilience to the downturn,
indicating that the Philippine economy is continuing its shift towards digitalization that
has come to the eye of the Government. The Philippines House of Representatives has
introduced a Bill,1 the Digital Economy Taxation Act of 2020, which aims to subject the
value created in the digital economy to withholding/income tax and value-added tax.