How to Start an eCommerce Business in the Philippines

$17 billion. 73 million online active users.

Those are the numbers released by the Philippines eCommerce market sales for 2021. And according to experts, the e-commerce business is expected to grow by at least another 17% by 2025.

This surge in online shopping was partly due to the Covid-19 epidemic lockdowns that restricted traditional brick-and-mortar businesses from selling directly to customers and shifting to an online medium. But since then, customers have gotten used to the ease and convenience of shopping on the e-commerce platform. And they’re not likely to reverse this habit.

In fact, online selling is no longer seen as something intrusive. Consumers are actually craving it. They want to spend their money on the internet and look for online stores that provide them with such an opportunity.

But it doesn’t mean running an eCommerce business is about getting a quick buck. On the contrary, your goal when starting an online business is to build something sustainable, scalable and, most importantly, lasts.

Allow us to share with you some industry tips and know-how.

 

What is an eCommerce business?

First, we need to understand what an eCommerce business is before we can even talk about the strategies and tactics. An eCommerce business is defined as a company or individual that uses the internet to sell goods and services.

In other words, it is a form of online selling where your customers can purchase products or services from you on the internet. This can be done through various channels, including:

 

• • Website: Customers can browse your product catalog and purchase on your website.
  • Mobile app: Customers can download your mobile app and shop on the go.
  • Social media: Customers can find you on social media platforms like Facebook and Instagram and purchase there.
  • Marketplaces: Customers can discover you on third-party marketplaces like Shopee and Lazada and buy from there.

 

The good news is that starting an eCommerce business in the Philippines is relatively easy and inexpensive. All you need is a computer, an internet connection and an online website builder platform to sell your products on.

What are the Different Types of eCommerce Businesses?

Now that we know what an eCommerce business is, let’s take a look at the different types of options:

1. Business-to-consumer (B2C): This type of eCommerce business sells products or services directly to consumers. The transaction is between the business and the customer.

2. Business-to-business (B2B): This type of eCommerce business sells products or services to other businesses. The transaction is between the business and another business entity.

3. Consumer-to-consumer (C2C): This type of eCommerce business allows consumers to sell products or services to other consumers. The transaction is between two individuals.

4. Consumer-to-business (C2B): This type of eCommerce business allows consumers to sell products or services to businesses. The transaction is between an individual and a business.

5. Business-to-government (B2G): This type of eCommerce business sells products or services to government organizations. The transaction is between the business and the government.

 

How to Choose the Best eCommerce Business for You

The first step in starting an eCommerce business is choosing the right business type for you. And the best way to do that is to assess your skills, interests and resources.

Here are some questions to ask yourself:

 

1. 1. What are my strengths?
   2. What are my weaknesses?
   3. What do I enjoy doing?
   4. What am I good at?
   5. What are my available resources?

 

Once you’ve answered these questions, you should better understand which type of eCommerce business is best for you. If you’re still unsure, we suggest talking to an industry expert or consultant who can help you make the final decision.

 

Decide What You Want to Sell

The product you decide to sell will influence your business model: inventory organization, payment structure, marketplaces you use most often, and even choice of marketing tools.

At the start, it’s perfectly normal not to have a core product. But at some point, it’s recommended to focus on a specific range of products or niches.

For example, let’s say you want to sell clothes. But what kind of clothes? Men’s clothes? Women’s clothes? Kids’ clothes? Clothes for pets? The possibilities are endless. And the more specific you can be, the better.

Why? Because when you’re selling a specific type of product, you can target a specific group of people with your marketing efforts. And that will save you time and money in the long run.

To help you get started, we’ve put together a list of eCommerce business ideas you can pursue:

 

1. 1. Start a clothing line
   2. Sell handmade goods
   3. Create an online jewelry store
   4. Launch a home decor line
   5. Be an online cosmetic retailer
   6. Create a pet supplies store
   7. Sell vintage toys to collectors
   8. Start a personal care product store
   9. Launch a fruits and vegetables business
   10. Offer specialised services

 

 

Selecting a Business Model that Suits You

There are many types of eCommerce businesses with complexity and challenges. Depending on your experience, resources, and time availability, it’s recommended that you choose the model that suits you best.

 

Dropshipping

Dropshipping is an eCommerce business where you don’t have to keep any products in stock. When someone orders something from your store, you simply contact the supplier, who will then ship the product directly to the customer. This is a good option if you don’t have much money or space to store products.

 

White Label

In white label, you don’t have to keep any products in stock. When someone orders something from your store, you contact the supplier, who will ship the product directly to the customer. This is a good option if you don’t have much money or space to store products.

 

Affiliate Marketing

Affiliate marketing is an eCommerce business where you promote other people’s products in your store and earn a commission for each sale. This is a good option if you’re not interested in creating or selling your own products.

 

Manufacturing

Manufacturing is an eCommerce business where you create your own products. This is a good option if you’re creative and have experience in product design or development.

 

Setting Up your Online Store

Now that you’ve chosen the best eCommerce business for you, it’s time to set up your online store. If you’re selling physical products, you’ll need to create a product catalog and take quality photos of your products.

If you’re selling digital products, you’ll need to create an e-book or video course. And if you’re selling services, you’ll need to create a portfolio of your work.

The good news for aspiring entrepreneurs today is that launching an online store is not as expensive as it used to be. In the past, you would need to hire a web designer and a web developer to custom-code a website for your business.

Today, many free online store builders are available that are convenient and easy to use. In fact, the Shopboxo app is completely free and managed from your phone.

If you’re familiar with social media apps like Instagram or TikTok, you’ll be at home with Shopboxo since its user interface is intuitive and beginner-friendly. This instantly removes one of the biggest obstacles for any new eCommerce business owners – the technical aspect.

Instead, all you have to do is open the app, click a few buttons such as choosing your preferred website theme, upload images of your products, list down your store’s name and connect your social media accounts and you’re ready to start selling online.

 

Tips for running a successful ecommerce business

As you can see, starting an eCommerce business in the Philippines doesn’t have to be scary, rather, it can be a challenging and rewarding experience. That said, here are a few more tips to help you turn this from an experiment into a successful one:

1. Make sure your website is mobile-friendly: More and more people are shopping on their smartphones, so it’s important to ensure your website is mobile-friendly.

2. Offer free shipping as a bonus: Free shipping is a great way to encourage customers to buy from you.

3. Provide excellent customer service: Excellent customer service is essential for any business, but it’s especially important in eCommerce because you’re not dealing with customers face-to-face. As much as possible, you want to reduce any friction they might face.

4. Use social media: Social media is a great way to promote your eCommerce business and stay connected with your customers.

5. Be prepared to invest in digital marketing: Digital marketing is a great way to reach customers and increase sales.

 

Conclusion

Running an eCommerce business can be challenging, but it can also be very rewarding. With the tips in this article, you can set up a successful online store and start selling to customers worldwide.

 

Common Questions About Staring an eCommerce Business

What is an eCommerce business?

An ecommerce business is a business that operates online, typically selling products or services. Customers can purchase items through a website or an app, and businesses can ship them directly.

How can I start an eCommerce business?

You’ll need to take a few steps to start an ecommerce business. First, you’ll need to choose the type of products or services you want to sell. Next, you’ll need to create a product catalog and take quality photos of your products. Finally, you’ll need to set up your online store and connect it with your social media accounts.

Which eCommerce Business is Best?

Your best eCommerce business will depend on your interests, skills, and budget. If you’re interested in fashion, you could start an online store that sells clothes or accessories. If you’re good at marketing, you could start an eCommerce business that helps other businesses market their products online. And if you have a limited budget, you could start a dropshipping business, which doesn’t require any inventory costs.