Friday, June 21, 2024

Pinoy online shoppers wary of direct overseas purchases – study

Filipino online shoppers are the least likely to do repeat purchases from foreign websites, compared with their Southeast Asian neighbors, according to a recent e-commerce study conducted by international delivery service The Ninja Van Group in partnership with European parcel delivery network DPD Group.

Photo from Pexels

In their “E-Commerce Beyond Borders” report, Ninja Van and DPD surveyed some 9,000 respondents across Malaysia, Singapore, Indonesia, Thailand, Vietnam and the Philippines. Filipinos ranked second overall across the region in terms of average spending per purchase, tied with Malaysia at $33.

Source: Ninja Van Group and DPD Group

The report also noted that 89% of Filipino online shoppers were already buying from foreign websites, but lagged behind the rest of Southeast Asia in terms of the frequency of foreign purchases. Only 42% of Pinoy online shoppers were comfortable enough to make multiple purchases directly from foreign websites, although 27% — the highest percentage across all surveyed countries — was comfortable with making overseas purchases via local websites.

Source: Ninja Van Group and DPD Group

This apprehension may be attributed at least in part to the need to establish familiarity and trust between Filipino online shoppers and delivery services: as much as 92% of Pinoy respondents said they feel it is important to know who the shipping company is, with “real-time tracking” and “delivery where I am located” as important services.

Source: Ninja Van Group and DPD Group

Moreover, the report found two key barriers to the further growth of e-commerce in Southeast Asia: a divided regional market, and underdeveloped logistics across the region. In particular, the report said that cross-border delivery is an essential area for improvement, especially since only 24% of Filipinos believe that that overseas delivery and return services have become easier and more transparent.

Since the Covid-19 pandemic started in 2020, it is estimated that some 70 million people across Southeast Asia have taken to online shopping; this number is projected to balloon to 380 million by 2026, according to data from Facebook and Bain & Co.

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