E-commerce

AQUINO, Kristine D.
ROQUE, Rachel Ann Q.
BSA 3A
A. E-commerce defined

E-commerce (electronic commerce or EC) is the buying and selling of goods and services, or the
transmitting of funds or data, over an electronic network, primarily the internet. Electronic commerce
operates in all four of the major market segments: business to business, business to consumer, consumer
to consumer and consumer to business.

Statistical data of usage in the country (as of January 2016):

101.47 million is the population of the Philippines.
There are:
47.13 million active internet users (46%),
48 million active social media users (inclusive of double accounts) (47%),
119.21 million mobile connections (117%), and
41 million active mobile social users (40%).
29% of internet usage is spent on online shopping, gaining a revenue of 1,318, 300 USD
(for the year of 2015) in the Philippines
The firms involved in it (Examples)
1. Lazada - The no. 1 visited shopping site in the Philippines as of up to date. They have the
20% of market share in e-commerce. (founded by Rocket Internet
[German company] in Singapore as an South-East Asian Amazon in 2011)
The largest in East-Asia too. Launched in Indonesia, Malaysia, the
Philippines, Thailand and Vietnam 2012, 2014 in Singapore.

2. OLX Philippines, (merged

companies of Sulit.com.ph and Ayosdito) a leading classifieds platform
which provides local communities in high- growth markets with vibrant
online marketplaces: OLX connects local people to buy, sell or
exchange used goods and services by making it fast and easy for
anyone to post a listing through their mobile phone or on the web.

3. Cebu Pacific
Philippine airline company Cebu Pacific launched in 1996,
but took off in earnest as a low-cost carrier in the mid-2000s. It has
since offered customers discounted etickets they can purchase
online using a credit card. It was one of the early local ecommerce options in the Philippines, and
continues to be patronized by consumers for its promos.

4. Zalora (a shopping site which typically caters products

relating to fashion and beauty) Zalora is another Rocket Internet-funded
ecommerce company that has expanded fast in Asia, with funding of
US$238 million to date. The three-year-old website focuses on fashion
and footwear. Last year, it launched a marketplace for independent
merchants to sell their products through the store. It also features Zalora
Magazine, a content blog that offers tips on fashion, beauty, and lifestyle.

5. Grab (an online transportation network company) - The company is

a ride-hailing platform which offers a wide range of services through its app in
Southeast Asia,

B. Pros and Cons of e-commerce and its effect in the economy

Pros / Advantages
Convenient and time-saving with discounts and customer loyalty programs

Increase in sales, costumers & market reach and decrease in inventory cost
Easier to audit, monitor and transfer payments
Transactions 24/7, everyday
Wide range of options and easy price comparisons
 The biggest advantage of e-commerce is that it doesnt need a huge capital before starting it
(in small businesses). There are already platforms like Facebook, Instagram and OLX, that could
be used to post their products.

Cons / Disadvantages
Need of internet connection / mobile subscription
Uncertainty in quality, privacy, and hidden charges and delivery of goods

Availability of payment methods together with its security and credit card issues

Extra expense and expertise in e-commerce technology and need for logistics
High initial cost and ongoing changes and developments
The main problem in such cases is that e-commerce is being considered by the business as a silo. And in
so doing, it ends up being treated as a threat to the other silos of the business, which are the stores. But
in reality, from a macro perspective, the success of any of these so-called silos contributes to the success
of the entire company, whether it is online or offline.