Are you looking to start and scale your own ecommerce business in the Philippines? If you want to learn how to start an ecommerce business, or if you already have one and want to further improve it, you’re in the right place.
The future of ecommerce in the Philippines is bright. The Philippine retail industry continues to grow with each passing year, growing by 5.9% in 2018, driven by rising spending power. Focus Economics also mentioned that the Philippine economy gained momentum in Q4 2019, driven by robust government expenditure. Unsurprisingly, this increasing consumer spending has also impacted the world of online retail and ecommerce.
The Philippine internet economy is expected to quadruple from $5 billion in 2018 to $21 billion by 2025. A few factors driving this growth include:
Further statistics reveal that revenue in the ecommerce market is expected to show an annual growth rate of 18.3%, resulting in a projected market volume of about $6.6 million by 2024. The market’s largest segment is Electronics and Media, with a projected market volume of $941 million in 2020. Furthermore, user penetration will be 35.5% in 2020 and is expected to hit 46.5% by 2024.
As with launching any new business venture, starting an ecommerce business can, at times, feel overwhelming. Whether you’re just starting out in the ecommerce industry or if you’re looking to expand your ecommerce business, we’ve prepared this step-by-step guide to help you get launch a successful ecommerce business.
For instance, you have to consider exactly what your ecommerce business is going to offer. Will you be selling services or products? If you’re selling products, are they digital or physical? Where will you source your products? Also, you’ll have to think about the type of business model you’ll want to employ – will you be offering single products, subscriptions, packages, or something else?
During this process, you’ll have to think on a broader scale as well. How will you get your services or products to your customers? Are there legal or other regulations on your service or product that you’ll have to accomplish? What will your startup costs look like?
Answering these questions, among others, is important to the beginning of your ecommerce business. It will also help you develop and write your business plan. Doing your research will give you a better sense of your specific goals and how you’re going to achieve them.
Having a strong brand name gives you an advantage when you’re first starting your business. The right name can be your most valuable asset – it can help differentiate you from your competitors and make you more memorable to customers. It’s important to find the right business name when setting up your ecommerce store to help it stand out from the crowd. Here are a few tips to help you find that great business name.
Also, while you won’t want to invest too much time on a website quite yet, it will be worthwhile to check out if your potential business domain name is still available. If your chosen domain name is currently being used, you may consider a different business name, or use a different domain extension, such as yourbusinessname.net instead of yourbusinessname.com.
Aside from understanding your customers, you also need to understand what sells best in your chosen niche. You need to understand what’s going on in the niche that you’ve chosen and the type of products that your customers enjoy. This is how you find product and/or service ideas that are already very likely to resonate well with your target customer base.
Still not sure what products and/or services to sell? Another way to figure out what you should be selling is by using social media to your advantage. Find relevant pages and groups that your target customer base follows. Join the same groups/pages and pay attention to what’s going on – observe what products they talk about, the types of posts they engage with the most, and so on.
Existing online marketplaces such as Amazon and eBay might seem like the best choice when you’re starting an ecommerce business, but these ready-made online storefronts can be more of a detriment than a benefit. Why? Because these platforms are easy to use, many first-time ecommerce entrepreneurs use them – but that’s also the downside: it’s almost impossible to stand out from the thousands of other sellers competing for your customers.
Looking for alternatives to existing online marketplaces? You can try using a hosted ecommerce platform! Essentially, a hosted ecommerce platform is a type of software as a service (SaaS) that hosts online stores – they are great for individuals or small- and medium-sized businesses that have little or no e-commerce development experience. Some of the best eCommerce platforms include Shopify, Bigcommerce, Volusion, and PinnacleCart – among others.
If you want a truly unique platform that’ll help you stand out from your competitors, consider building your own e-commerce website!
There are different marketing strategies that you can utilize – word-of-mouth, social media ads, Google ads, and more. At the most basic level, you’ll want to optimize your ecommerce website for SEO and take advantage of any online marketing tools that are included within your chosen ecommerce platform.
With that said, as your ecommerce business is up and running and you start to receive orders, you’ll want to monitor which marketing strategies are working and which aren’t – especially if you’re investing money in them. As time goes on, you’ll be able to change and adjust your marketing strategy to find out what works best for your business.
We’ve covered a lot of ground in this guide, so here’s your quick guide to starting an ecommerce business. Treat it as your checklist:
The future of ecommerce in the Philippines is bright. If you want to learn how to start an ecommerce business, or if you already have one and want to further improve it, make sure to consider the steps above.
Contact us if you are interested to start an online reseller e-commerce business.
Good luck with your e-commerce venture!