Better connectivity unlocks opportunities for Pinoy online retailers

The e-commerce landscape in the country in benefiting from three significant factors that present online retailers new opportunities, according to UPS Philippines, citing a recent study in online shopping.

There are now more smartphone users in the country and a new generation of tech-savvy consumers who enjoy better connectivity, Chris Buono, UPS Philippines managing director, said Wednesday.

“Better internet connections, increased smartphone use and a new generation of more tech savvy consumers means the e-commerce landscape in the Philippines is becoming increasingly competitive,” he noted in a statement.

“This is unlocking new opportunities for online retailers in the Philippines to grow both their domestic and international customer base,” Buono emphasized.

The UPS Pulse of the Online Shopper study allows retailers to tap in to this growth by offering deeper insight into customer purchasing behaviors across the region, as well as leverage the patterns and trends revealed to ensure overseas customers are receiving the service they expect.

“This maximizes the potential for repeat business and even greater growth opportunities,” Buono said.

The research commissioned by UPS showed that consumers in Asia Pacific seek visibility throughout the purchase cycle and incentives that add value to the shopping process, the logistics company said.

Now in its seventh year, the study sheds light on consumer online shopping behavior. It also, for the first time, features insights into the buying habits of business purchasers. Conducted in Australia, China, Hong Kong and South Korea, as well as 11 other markets across the Americas, Europe and India, the study tracks evolving trends and demands from e-commerce customers.

“Consumers in Asia Pacific are increasingly knowledgeable about the options available to them when shopping online, and this is driving a demand for complete clarity and access to information throughout the purchase journey, as well as greater flexibility in both the shopping and shipping process,” said Sylvie Van den Kerkhof, vice president of marketing, UPS Asia Pacific.

“As consumers are presented with more options to buy online and competition increases, expectations are becoming more refined and retailers need to be agile enough to stay ahead of the trends. The ability to offer incentives not just in the form of a unique product offering but also in the shipping and delivery experience will be crucial to success in the evolving e-commerce landscape, Kerkhof added.”

A significant 90% of all consumers globally research their product before proceeding with a purchase. While price is the most commonly researched information worldwide, by comparison it is less important for consumers in Asia Pacific (74%), than for those in the Americas and Europe (both 81%).

Shoppers may cancel a purchase when they find out the retailer is based internationally, if they were unaware of this initially, according to the study.

Seventy-seven percent of shoppers in China have done this, as well as 65% in Australia, and 60% in Hong Kong and South Korea.

At the same time, 75% of all shoppers in Asia Pacific have knowingly made purchases from international sellers, suggesting that online shopping is situational and, with international purchases likely taking longer to arrive, how long a customer is willing to wait may depend on what they are buying. —VDS, GMA News