With the ongoing pandemic bringing a “broad, deep, and irreversible” shift to online for businesses and consumers, e-commerce platform Shopee has outlined three key predictions for the Philippine e-commerce market.
Shopee sees the trends emerging in the areas of payments, logistics, and digitalization.
- Increased adoption of digital payments
Digital payments are the preferred mode of transaction for e-commerce. As more people become accustomed to e-commerce, it will also drive the cashless movement offline.
Shopee said it continues to offer a wide range of digital payment options to cater to evolving needs, including its mobile wallet, ShopeePay. In fact, Shopee said it saw a 4X uplift in the total number of orders completed by its mobile wallets across the region. The greatest increase recorded in most markets was for users above 50 years of age. The company said this is a testament to ShopeePay’s ease of use, given that users in this age group typically find it harder to adapt to digital payments.
In a region where most consumers do cash transactions, the pandemic has greatly accelerated the need to move towards a cashless society. In line with movement restrictions and continued social distancing efforts, consumers and businesses have increasingly embraced digital payments for greater convenience and security.
- Logistics will come to the forefront
Logistics will become even more important as consumers continue to rely on e-commerce platforms and develop greater expectations for efficient deliveries. The increase in demand is particularly significant for daily necessities and household essentials. In the Philippines, Shopee said it saw an 8.5X increase specifically in food-related items shipped from the Shopee Warehouse.
Brands and sellers need to make effective use of technology to ensure that parcels are delivered in a timely and cost-effective manner. One way to achieve this is to tap into the extensive and integrated networks of e-commerce platforms.
Shopee said it enables brands to scale efficiently and focus on growth by taking care of the entire process, including the continuous strengthening of its logistics network and warehouse capabilities. In 2020, Shopee Express, Shopee’s express delivery service, expanded its geographical coverage to reach even more users, including those in rural areas. Shopee also said it saw more brands tapping on its efficient logistics infrastructure with a three-times increase in brand items shipped from its warehouses in 2020.
- Brands and sellers will implement innovative retail strategies
The pandemic pushed all businesses to quickly implement digital strategies in order to continue reaching customers amidst the lockdown. As online selling becomes a bigger revenue channel for brands and sellers, e-commerce platforms need to implement innovative retail strategies. This will help them engage customers in a differentiated manner and grow their online presence.
Today, there are more than 20,000 leading global and local brands on Shopee Mall, offering shoppers a wide selection of authentic products. Shopee said it works closely with these brands to constantly push the boundaries and create new, exciting, and unique shopping experiences.
For example, Shopee said it worked with POND’s to integrate its AI-powered beauty tech solution, Skin Advisor Live, into the online shopping experience. This allowed shoppers to enjoy a free personalized skincare analysis, helping them make more informed purchase decisions. POND’s was also able to tap into Shopee’s engagement tools, such as live streaming, to interact with their target audience.
“2020 was an especially transformative year for e-commerce,” said Martin Yu, director at Shopee Philippines.
“As consumers adhered to social distancing measures and stayed home, they turned to online platforms for their daily needs and entertainment and interaction. It led to online shopping evolving from a purely transactional experience to a more social experience, with e-commerce platforms integrating more interactive elements such as games and live streaming to engage users.”