Philippines Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in Philippines, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals.
eCommerce
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Market Overview

The Philippines’ eCommerce market continues to expand, driven by increasing internet connectivity, smartphone adoption, and digital payments. In 2024, the country’s eCommerce market was valued at approximately $28 billion and is expected to continue growing at double-digit rates over the coming years.

The top Philippine eCommerce platforms are Shopee, Lazada, TikTok Shop, and Zalora. Products from Asia-Pacific markets with free trade agreements with the Philippines are widely available on these platforms, with the leading product categories including beauty, consumer electronics, fashion, home and living, health, and household care. The country’s over 97 million internet users primarily access these platforms through smartphones, making mobile commerce the dominant online shopping channel.

Cross-border eCommerce continues to grow, with China remaining the largest source of imported online goods, followed by the United States, South Korea, and Japan. While regional trade integration continues to improve cross-border commerce, logistics and last-mile delivery remain key challenges.

Digital payments continue to gain traction. According to the Bangko Sentral ng Pilipinas (BSP), 54 percent of retail payment transactions were conducted digitally in 2024, exceeding the government’s target. Filipinos increasingly use GCash and Maya for online purchases, although cash-on-delivery remains available, particularly outside major urban areas.

Legal and Regulatory

The Philippine Government issued the Electronic Commerce Act (RA 8792) in 2000 and an E-Commerce Philippines Roadmap in 2022 to support eCommerce growth.

Foreign retailers can work with the top Philippine eCommerce platforms to sell in the Philippines. A foreign retail company can open a Philippine office with $200,000 equity for 100 percent ownership. A business permit is required, and companies should register with the Philippine Tax Bureau, Department and Trade and Industry, and Securities and Exchange Commission for incorporation. Additional product licenses and registration may be required by the Philippine Food and Drug Administration and interrelated entities.

With the rise of eCommerce activities, in 2022, the Philippine government issued Joint Administrative Order 22-01 to reiterate all existing regulations that online businesses must comply with and to further protect consumers against fraudulent online transactions and hazardous products. The Philippines created an eCommerce Bureau under the Department of Trade and Industry in 2023, which oversees eCommerce in the Philippines, including ensuring that eCommerce platforms and online merchants comply with regulations. Additionally, the Department of Trade and Industry established the web-based Philippine Online Dispute Resolution System (PODRS) and Consumer Complaints Assistance and Resolution (CARe) System to automate and streamline the government’s services in resolving consumer complaints. 

In October 2024, the Philippines passed the Digital Service Act, applying a 12 percent value-added tax (VAT) on digital transactions involving both local and foreign digital service providers, including eCommerce platforms.  

eCommerce Intellectual Property Rights

The Philippines Cybercrime and Data Privacy Laws support the eCommerce industry. However, a system is not yet in place to handle electronic transaction cases with agencies such as the Department of Justice, the Philippine National Police, and the local courts.

The National Privacy Commission (NPC) leads enforcement of the Philippines Data Privacy Law and encourages locally registered companies to designate data privacy officers. NPC leads the Philippines’ compliance with international privacy agreements such as the European General Data Protection Regulation and APEC Cross Border Privacy Rules.

Although the Philippines is not listed on the United States Trade Representative’s (USTR) Special 301 Watch List, Philippine eCommerce platforms remain leading sources of intellectual property (IP) violations. The Intellectual Property Code and Special Law on Counterfeit Products mandates eCommerce platforms to enforce the rights of IP holders and take down counterfeit products or contents.  The Intellectual Property Office of the Philippines (IPOPHIL) is the implementing agency of the IP Code, including regulations on eCommerce. 

Consumer Behavior

  • Digital Marketing and Social Media: Filipinos are prolific social media users and actively use platforms for 10 hours per day, seven days a week. The best platforms to reach Filipino consumers are Facebook (80.3 million users), YouTube (61 million users), Instagram (17.6 million users), Twitter (11.8 million users), and LinkedIn (13 million users). The 2023 Global Digital Report by Meltwater and We Are Social showed that there were 84.4 million social media users in the country in January 2023 and that 46 percent of Filipino social media users aged 16 to 64 follow influencers. It should be noted that the total number of social media users in the Philippines are not necessarily unique individuals. 
  • Major Buying Holidays: The top eCommerce platforms organize double-digit monthly promotions and mega campaigns such as platform birthday, midyear, 9.9, 11.11, and 12.12 events. eCommerce platforms also offer campaign packages for participating retail companies. 
  • Mobile eCommerce: In 2022, Philippine telecommunication companies recorded 159 million mobile subscribers.  The Philippines is the fastest-growing app market in Southeast Asia.
  • Online Payment: According to the Philippines Central Bank, the country’s use of digital payments has gained significant momentum. In 2022, the share of digital payments vis-à-vis total retail payments in terms of volume reached 42.1 percent from 30.3 percent the previous year. In terms of value, the share of digital payments over total retail payments is 40.1 percent ($78 billion). High-frequency, low-value transactions through merchant payments and person-to-person fund transfers boosted the adoption of digital payments in the country. 
     

Industry Associations: 
Digital Commerce Association in the Philippines
Philippine Retailers Association 

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

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As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

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