The e-commerce industry in the Philippines is constantly evolving, with new players and innovations emerging every day. More and more Filipino shoppers are buying goods online, so e-commerce businesses must work hard to stay ahead of the competition. In this blog post, we’ll discuss two recent news stories that piqued our interest. The first is Amazon’s free shipping offer for Filipinos who spend over $25 on purchases. The second article is regarding Shopee’s recent downsizing of operations in the Philippines. We will give you more information about what led to this and how it affects the e-commerce scene in the Philippines.
Although the Philippines has its own e-commerce platforms, Amazon dominates on American holidays such as Black Friday. Given that shipping products overseas can be extremely expensive in addition to the purchase cost, Filipinos have gone above and above to have their online purchases delivered. Some people prefer third-party couriers, while others prefer asking for favors from their balikbayan relatives.
Filipinos no longer have to worry about costly global shipping fees when ordering from Amazon. The e-commerce platform announced that it would offer free shipping to the Philippines. On the website of Amazon, the e-commerce giant announced that if customers spend at least $49 on their order (around ₱2,881), delivery for select products will be free.
Which Items Are Eligible for Free Shipping?
Amazon made it clear that not all goods are qualified for free shipping to the Philippines. Customers are encouraged to look for the tags “FREE Shipping to Philippines” or “Your order qualifies for FREE Shipping” when shopping. Shipping fees may be applied to the order if it contains ineligible items or your cart does not meet the required item amount. Product categories where free shipping may apply include computers and accessories, books, beauty, fashion, home, and toys.
Shopee Philippines, which announced a loss of $931.2 million in the second quarter of 2022, laid off some of its workers to “optimize” operations in the local market. Previously, the company has begun reducing its workforce in Singapore and China. The company has closed its Indian office and laid off 300 workers due to governmental interventions by the Indian government. Shopee Philippines has not released an official statement regarding the matter, but job postings on their website have been suspended.
Several factors may have led to Shopee’s decision to downsize its operations in the Philippines. First, the COVID-19 pandemic has decreased demand for online shopping, as many consumers are cutting back on spending. Second, competition from other e-commerce platforms, such as Lazada and Amazon, has become more intense recently. According to a source, “These changes are part of our ongoing efforts to optimize operating efficiency with the goal of achieving self-sufficiency across our business. We are extending support to our affected colleagues during this transition.”
Amazon’s free shipping promo is a great deal for Filipino shoppers. On the other hand, Shopee’s downsizing is a big loss for the Philippine e-commerce industry. It is a reminder that the industry is still young, and many challenges must be addressed. Despite these challenges, the future of e-commerce in the Philippines remains bright.