Did you know that the Philippines’ e-commerce market will grow by 17% by 2025? What’s even more impressive is that over 70 million Filipinos will shop online next year, fueled by the surge in digital shopping after the pandemic. With promising e-commerce forecasts, 2025 presents a golden opportunity for sellers to tap into the latest trends and consumer behavior patterns.
As an e-commerce business owner in the Philippines, staying ahead of these trends is key to gaining a competitive edge and unlocking new sales opportunities.
So, what’s next for e-commerce? Let’s dive into the top trends you’ll need to watch in 2025.
Top E-commerce Trends in the Philippines 2025
The Philippines’ e-commerce market is growing quickly thanks to a tech-savvy population. With better internet access, higher incomes, and the convenience of online shopping, more Filipinos are turning to digital retail every day.
The rise of e-commerce has made it easier than ever to compare prices and find the best deals, with many shoppers prioritizing low prices and free shipping. Double-day sales, in particular, have become major events on the Philippine retail calendar, offering significant discounts across a wide range of products.
These sales drive a sharp increase in online shopping, with platforms like Shopee and Lazada leading the charge. In fact, in April 2024 alone, sales revenue from these platforms reached around USD 630 million, underscoring their importance during key promotional events.
So, how can you tap into this growth? To stay ahead, it’s key to understand the top e-commerce trends in the Philippines for 2025 and keep that competitive edge!
Social Commerce
Integrating social media platforms with e-commerce functionalities has led to the rise of social commerce. It is crucial to tap into this e-commerce trend now, as revenue from social commerce will likely reach 569.2 million U.S. dollars by 2029!
Social media platforms like Facebook, TikTok, and Instagram, with built-in social commerce features, contribute to this surge by promoting interactive shopping.
With over 3.2 million Android app downloads, TikTok Shop is a prime example of this online shopping trend. Also, TikTok’s algorithm increases the reach of live shopping events, leading to high engagement and sales.
Juggling order and inventory management platforms is not easy. Locad’s integration with social commerce platforms, like TikTok, provides sellers with a seamless experience. With fulfilment centers distributed across the Asia-Pacific region, online sellers can cater to customers no matter where they are!
Struggling to manage TikTok sales?
Locad’s TikTok integration simplifies fulfillment across Southeast Asia!
Personalization with AI
AI enables Hyperpersoanalization, where the customers receive highly personalized shopping recommendations. More than 80% of customers will be ready to make an instant purchase when they experience such nudges during cart review.
If you look at it, Filipino consumers are becoming increasingly selective with their purchases. Lazada saw a massive increase in AI interactions during their recent 12.12 sale. Their recent press release stated that over 92% of customers preferred an AI-powered platform that understood their needs.
Reports state that 78% will walk away from brands that fail to deliver personalized interactions! This sets a growing expectation for brands to use AI, study consumer behavior patterns, and meet individual preferences.
This shows that personalization can increase sales tenfold! During a surge in online shopping, e-commerce sites must meet rising demand and deliver on time. Locad’s logistics engine ensures that your orders are always met on time.
Plus, you can boost engagement with Locad’s partnership with Zevi, the AI-based shopping assistant, to personalize the shopping journey in online stores!
Over 49% of shoppers crave personalized experiences!
Meet this demand with Locad’s Zevi integration and boost conversion.
Augmented Reality and Live Shopping Experiences
Augmented reality and Live shopping have made a massive wave in the Philippines’ e-commerce. With more than 9% of the mobile subscriptions being 5G users, the country is all set to take on this trend in the coming years. The AR/VR market revenue in the Philippines is expected to cross US$181.6m in 2024!
Shopping with virtual try-ons and augmented reality offers a 94% higher conversion rate. All the leading marketplaces, such as TikTok, Lazada, and Shopee, have added AR as one of their sales channels.
With AR integration, a need to cater to multiple SKUs arises as every product variation (size, color, style) has to be tracked precisely. Locad’s inventory management system allows businesses to assign unique SKUs to each product variant, making monitoring stock levels and fulfilling orders easier.
Locad also helps separate inventory into organized batches through the inbounding process. This means that all product variations are appropriately logged and stored at picking centers, reducing the chance of error during the pick-and-pack process of order fulfillment.
Boost conversions by up to 40% with AR tech
Scale your business with Locad’s inventory management and swift order fulfillment!
Sustainability
Sustainability is one of the most important e-commerce trends in the Philippines that every online store must invest in. Filipinos are highly focused on their sustainability initiatives. The country’s commitment to net-zero emissions has inspired numerous companies to set sustainability goals.
TikTok has committed to achieving net zero emissions by 2030 and plans to transition to renewable energy sources for their data centers. Shopee, on the other hand, launched an Xpress Circular Packaging Program to reduce packaging waste.
Retailers like Lazada have seen a 40% reduction in greenhouse gas (GHG) emissions! So, it’s not just about tapping into the market here- it’s more about doing something good for a better quality of life while enjoying all the perks of e-commerce.
Green logistics plays a significant role in e-commerce sustainability. Companies in the Philippines are trying to optimize delivery routes and use eco-friendly packaging.
Locad has fulfillment centers in Metro Manila, Cebu, and Davao. These centers store products closer to customers, allowing for faster delivery times. With products stored locally, you can offer same-day or next-day delivery options without relying on expensive express shipping.
This not only speeds up fulfillment but also helps lower your overall transportation costs, making it easier to scale efficiently while reducing your carbon footprint. Our eco-friendly approach includes optimized routing to decrease fuel use and partnering with carriers to prioritize sustainability.
Choose sustainable logistics that save time, money, and the planet!
With Locad, you can reduce your carbon footprint, offer faster delivery, and provide sustainable packaging—all at once!
Omnichannel Demand
The Philippines is seeing a big change in how retailers approach shopping. Stores are combining their online and physical shops to make it easier for customers to shop however they prefer. 77% of shoppers still like to buy unfamiliar products in-store, but they can’t resist the great deals and discounts they find online!
Keeping track of inventory is a big challenge here. Locad helps with real-time inventory tracking so your customers know exactly what’s available. Similarly, stock levels are constantly updated and replenished so that a surge in demand is met without any hiccups. With Locad, you can segregate the stock as buffer, reserved, and sellable.
50% of shoppers compare prices online before buying in-store
Keep your stock and prices synced in real-time with Locad!
Last Mile Delivery
As more people are shopping online, they want their orders fast! More than 25% of consumers are willing to pay extra for same-day delivery. The demand for quick deliveries is rising, with 1-3 day deliveries becoming the standard, especially in urban Manila.
But it’s not just about speed. Shoppers today want complete control over their delivery experience. Knowing where their packages are in real-time helps them plan their day, stay at home, and ensure they don’t miss the delivery.
With busy lifestyles, many consumers prefer staying in to receive their orders, reducing the hassle of rescheduling or missing deliveries altogether. Real-time tracking offers peace of mind, making shopping faster, easier, and more reliable.
While the last mile is considered the most expensive part of the transport chain, Locad partners with multiple last-mile carriers in the Philippines to remove that hurdle. With warehouses strategically located in different parts of the country, e-commerce merchants can reduce the cost of transport by choosing a fulfillment center closer to their customers.
The Locad logistics engine also allows sellers to auto-assign each order to the cheapest carrier to reduce costs and time delays due to manual intervention.
Cut last-mile costs with Locad!
We ship from the nearest warehouse and choose the most affordable carrier, saving you time and money!
Voice Search
Voice search is a major e-commerce trend, as the market has predicted its value will rise to $164 billion in 2025! Amazon leads the way with its Alexa-enabled devices, allowing users to order products simply by speaking.
A study shows that 40% of adults in the Philippines use voice search daily, making voice commerce a regular part of daily life. Interestingly, half of these searches are local—people are using voice search to find nearby businesses or services. This is important for local companies that want to attract more customers.
Studies show that nearly 95% of shoppers read reviews before making a purchase, and positive feedback can significantly boost your store’s credibility and trustworthiness. In fact, good reviews can directly impact your ranking on e-commerce platforms, making it easier for potential customers to find you, whether they’re browsing or using voice search.
Locad helps businesses optimize for voice search by keeping the inventory accurate and up-to-date across all platforms. With our integration into popular voice search platforms like Shopee, Lazada, and TikTok, we ensure your products are always visible and available when customers search locally. This boosts your rankings, increases visibility, and connects you with the right customers at the right time, driving more sales and growth.
Over 1 billion voice searches happen every month!
Locad’s integration with Lazada, Shopee, and TikTok Shop keeps your products voice search-ready with real-time inventory updates!
High Demand Industries
The fashion and electronics industry is set to shape the market in 2025.
People are also buying more organic products as they focus on healthy living. Electronics, like smartphones, laptops, smartwatches, and TVs, are especially popular with younger shoppers. In November 2024, the electronics market made $342 million in e-commerce sales!
Locad helps businesses manage their inventory smoothly. When products arrive, the team sorts them into batches to ensure everything is logged correctly and placed in the right spot. This prevents mistakes, especially for businesses with multiple KSUs, like skincare or electronics, where accuracy is vital to keep customers happy.
For products with dated shelf life and warranty, like organic skincare items, Locad’s system checks the dates before picking and packing. This ensures customers get fresh products with plenty of shelf life, reducing waste and improving satisfaction.
Struggling to keep up with fast-moving, high-demand products?
With Locad, you can streamline inventory, reduce waste, and deliver fresh products on time!
Cross Border Commerce
In 2024, nearly 1 in 5 Filipinos shopped from overseas sites every month. According to Visa, the number of Filipino shoppers on international platforms jumped from 27% in 2023 to 34% in 2024.
Solutions like Visa Direct enable real-time payment options across borders, making it easier for businesses to transact internationally.
International rules and regulations can be tricky, but Locad simplifies this with the IOR (Importer of Record) and SOR (Sender of Record) services. We take care of the paperwork and legal requirements, allowing businesses to focus on growth without the stress of managing international shipping details.
Locad’s freight management services ensure businesses can ship products globally at the best possible rates. With an extensive network and expertise, Locad helps lower shipping costs, making products more affordable and competitive internationally.
Cross-border commerce in the Philippines?
Locad’s IOR and SOR services simplify shipping, cut costs, and stay ahead of the competition.
Conclusion
The Philippine e-commerce market is set to grow significantly, with an estimated annual increase of 13.2% from 2024 to 2028. This growth will be driven by changing consumer preferences, supportive government policies, and the entry of new players in the market.
The country is also shifting towards mobile-first commerce, with more than 35% of the consumers using 5G and government initiatives being taken to boost the telecom infrastructure.
So how can e-commerce businesses in the Philippines remain competitive in 2025?
Keeping track of these online shopping trends and optimizing logistics to meet customer expectations is the best way out! Here, you need the help of an end-to-end fulfillment partner, and that’s where Locad comes in!
Locad helps you streamline operations and minimize overhead costs associated with warehousing and logistics, ultimately leaving you with happy customers.
