E-commerce barriers remain high–study
Trust in online shopping and digital payments in the Philippines is among the strongest in Southeast Asia, but logistics barriers and uneven regulatory enforcement are hampering the growth of small businesses, a regional study found.
A report by Singapore-based Blackbox Research said three in four Filipino e-commerce leaders view the country as ahead of its neighbors in digital payment maturity and consumer confidence.
However, they warned that inefficiencies in delivery, infrastructure and regulation are acting as a “hidden tax” on micro, small and medium enterprises (MSMEs).
“Filipino consumers have shown remarkable trust in the digital economy, but the systems supporting that trust have yet to reach full maturity,” said David Black, founder and CEO of Blackbox Research.
“The opportunity now lies in closing those structural gaps so that MSMEs can scale alongside consumer demand,” he added.
Barriers
The study interviewed 46 e-commerce leaders and experts across Southeast Asia.
Regulatory inconsistencies were cited as a major barrier in e-commerce industries, with 87 percent of respondents saying uneven enforcement allows some cross-border sellers to evade taxes and product certification requirements.
In the Philippines, logistical gaps remain one of the biggest hurdles. The cost of shipping accounts for 20 percent to 30 percent of the order value, double that of those in mature markets.
The 7,641 islands in the archipelago further complicate shipping. Delivery timelines vary from 24 to 48 hours in Metro Manila to as long as seven to 14 days for remote provinces.
And while investment into e-commerce technologies is high, the report said this focused primarily on visibility and customer acquisition instead of reliability, returns processing and customer support.
Optimistic
Despite these challenges, the Philippines recorded an e-commerce optimism score of 7.93 out of 10 for the next three years, among the highest ratings in Southeast Asia.
“If logistics bottlenecks and compliance burdens can be tackled, the country is well placed to convert digital confidence into inclusive, nationwide growth,” the report said.
To maximize the country’s potential, the study called for greater public-private investment in MSMEs, expanded regional logistics hubs and simpler compliance processes.
“For the Philippines, the task is clear: strengthen the systems that sustain consumer confidence and ensure MSMEs are not just participants but beneficiaries of the region’s digital transformation,” the market research firm said.
“Without decisive collaboration on logistics, regulation and innovation, the very trust that fuels growth today could become its greatest constraint tomorrow,” it added.
