The Philippines’ e-commerce industry has been experiencing remarkable growth in recent years. In fact, according to market research firm Global Data, it is expected to grow at 17% (CAGR) through 2025, supported by the rising number of social media users and digital natives in the region.
This trend has led to the emergence of various e-commerce marketplaces, each offering its own unique features and benefits. If you want to stay competitive in this ever-changing market, it’s important to understand the e-commerce ecosystem and choose the right marketplace for your business.
Whether you’re a seasoned online retailer or a newbie looking to dip your toes into the world of e-commerce, this guide will help you navigate the top marketplaces in the Philippines and enable you to make informed decisions about which platforms to use to reach your customers.
Top E-commerce Marketplaces in the Philippines
Here are the top e-commerce marketplaces in the Philippines that offer a wealth of opportunities for both buyers and sellers:
Founded in 2012, Lazada has quickly risen to become one of the most prominent marketplaces in the Philippines. Lazada’s impact on the retail industry in the Philippines has been significant, thanks to its commitment to delivering a seamless online shopping experience to millions of customers.
In 2021, Lazada’s Gross Merchandise Volume (GMV) reached an astounding $21 billion, cementing its position as a household name for Filipinos who prefer to shop online.
- Commission Structure: Ranging from 1% to 5%, depending on the product category
- Shipping: Fulfillment by Lazada (FBL). Lazada’s courier partners include Ninja Van, Entrego, Ximex Delivery Express, JRMT, and QDX.
- Monthly Web Visitors: Around 37 million
- Top Selling Categories: Electronics, fashion, home and living
Many businesses have had success selling on Lazada and have shared their stories online. For example, Mayette Jequinto, CEO of Plus Size Boutique, shares how Lazada has been instrumental in the growth of her business.
Launched in Singapore in 2015, Shopee has successfully expanded across Southeast Asia, including the Philippines, attracting millions of buyers and sellers. One of the key reasons behind Shopee’s success is its user-friendly interface, which enables buyers to browse products seamlessly and sellers to set up their online stores quickly and efficiently.
According to Shopee’s financial report for the third quarter of 2021, the company’s GMV in the Philippines reached $6.2 billion, representing a 74.3% year-over-year increase.
- Commission Structure: Ranging from 2.5% to 4% (Applicable to local Marketplace sellers with ≥ 100 completed orders)
- Shipping: Fulfillment by Shopee (FBS). Shopee courier partnerships include J&T Express, XDE, and 2GO. They also offer free shipping promotions to incentivize customers.
- Monthly Web Visitors: Around 72 million
- Top Selling Categories: Electronics, fashion, and beauty. Local brands such as Cherry Mobile and Human Nature are popular in electronics and beauty, respectively.
Big brands such as Unilever have recognized the significant impact of e-commerce platforms like Shopee in the Philippines. According to Jackie Manago Nepomuceno, the Digital Commerce Marketing Manager at Unilever Philippines, Shopee is a strategic partner that helps drive a seamless shopping experience for the omnichannel shopper.
Zalora is a popular lifestyle marketplace that has been operating in the Philippines since 2012. While Zalora’s market share is not as significant as Lazada’s, it has still managed to establish a loyal customer base in the Philippines.
The platform offers a wide range of products across various categories, including fashion, beauty, and lifestyle, and has become one of the leading online retailers in the country.
- Commission Structure: Ranging from 10% to 30%, depending on the type and range of the products
- Shipping: Zalora uses different courier partners such as LBC, Entrego, 2GO, 7-Eleven, and DHL to deliver customer packages.
- Monthly Web Visitors: Around 1.8 million
- Top Selling Categories: Fashion, beauty, and sportswear. Some local brands popular on Zalora are Penshoppe, Bench, Mango, and more.
This global marketplace has firmly established itself in the Philippines, providing retailers with a reliable platform for selling their products. The platform’s extensive user base and global reach provide an unparalleled opportunity for sellers to connect with a vast pool of potential buyers.
Popular for its auction-style listings, eBay also offers a more conventional B2C marketplace through its eBay Store feature. It allows merchants to offer their products alongside established brands, providing a diverse selection of goods for shoppers.
- Commission Structure: Ranging from 8% to 10% on the total transaction value. It is important to note that eBay Philippines also charges additional fees for certain services such as listing upgrades, international selling, and PayPal transactions.
- Shipping: eBay Philippines does not have a specific shipping type or carrier that sellers are required to use. Instead, sellers are free to choose the shipping method that works best for them and their buyers.
- Monthly Web Visitors: Around 28 million
- Top Selling Categories: Consumer electronics and gadgets, Fashion and clothing, and Health and beauty products.
Check out what Jeptall and Agsbeagle have to say about how selling on eBay has helped them maintain a work-life balance.
5. TikTok Shop
TikTok’s massive user base in the Philippines made it an attractive platform for businesses to sell their products; therefore, it has recently launched its own e-commerce feature called TikTok Shop. The innovative e-commerce marketplace brings together sellers, buyers, and creators, all within the TikTok app.
It offers an integrated shopping experience, enabling users to discover and purchase products without leaving the app. Local brands and businesses are also leveraging TikTok Shop to reach a broader audience and grow their sales.
- Commission Structure: To incentivize online retailers, TikTok only charges 1% payment service fees and 0% commission fees.
- Shipping: Sellers can choose their own logistics partner or opt for TikTok Shop’s logistics services. TikTok Shop courier partnerships include Ninja Van for SEA logistics.
- Monthly App Visitors: Over 43 million
- Top Selling Categories: Fashion, clothing, beauty, and home decor
Many online businesses have experienced remarkable success by selling their products on eBay. Check out what Grace Mauyao, the CEO of Botanical Boon Health and Beauty Products, has to say about how eBay simplified their online selling.
6. FB Marketplace
Despite being less hyped than other platforms, Facebook Marketplace is a popular choice for local buyers and sellers to connect. With just a few clicks, users can snap a photo of the item, add a description, set an asking price, and publish their listing.
The integration with Facebook Messenger further simplifies the process, allowing for easy communication and negotiation between parties.
- Commission Structure: Unlike other e-commerce platforms, Facebook Marketplace does not charge fees for listing or selling products.
- Shipping: The seller ships the item directly to the buyer.
- Monthly Web Visitors: Around 79.6 million
- Top Selling Categories: Fashion apparel, furniture, home decor, and electronics.
Carousell is a highly popular B2C and C2C online marketplace where people can buy and sell both new and secondhand goods. Carousell is renowned as one of the leading e-commerce sites in the Philippines, with a large following in Malaysia, Indonesia, Cambodia, Taiwan, Hong Kong, Macau, Australia, New Zealand, and Canada.
Thanks to its user-friendly interface, easy-to-navigate categories, and extensive range of products, Carousell has become a go-to destination for people looking to buy and sell goods online.
- Commission Structure: Sellers have to pay a fee to post ads, and costs vary by category.
- Shipping: Carousell courier partnerships include GrabExpress, Lalamove, AngkasPadala, MrSpeedy, Transportify, LBC Express, 2GO Express, and DHL Express.
- Monthly App Visitors: Around 2.3 million
- Top Selling Categories: Cars, property, fashion, home and living
Metrodeal is an undisputed market leader in Southeast Asia when it comes to discount vouchers for retail, dining, leisure, and travel. The easy-to-use platform makes it simple to upload your deals and reach a massive audience of deal-hunters.
It is primarily a platform for purchasing vouchers for products and services rather than physical products. You just have to visit the website to register and fill-in the needed details. The account executives will contact you as soon as they have available slots.
- Shipping: Shipping type will depend on the seller and the product being shipped. Metrodeal may offer various shipping options, such as standard shipping, express shipping, or local pickup.
- Monthly Web Visitors: 77,000
- Top Selling Categories: Travel deals, dining deals, health and beauty deals.
Let’s Make Selling Easy!
Meanwhile, as you look for the right marketplaces to sell on, it’s also important to be ready with the right technology provider to help you streamline your orders, inventory, and warehouse. This will give you the ease and flexibility to sell on multiple marketplaces, making your business more efficient and profitable.
Whether you’re a small business owner just starting out or a large enterprise looking to expand your reach, the Philippines’ e-commerce marketplaces offer plenty of opportunities for growth and success.
So go ahead and explore the options available, weigh the pros and cons, and take the leap toward expanding your business in the world of e-commerce. Who knows, you might just find the perfect marketplace to take your business to new heights!