The 12.12 mega sale this year is estimated to have made PHP 15 billion in total sales across major online shopping platforms, according to multi-channel e-commerce integrator and cloud logistics platform LOCAD.
This represents an uptick of more than 10 times the average daily e-commerce sales and is seen to be driven by strong e-commerce adoption and higher spending during the holidays.
Running the numbers
“Our estimate is that 12.12 sales have reached 298 million dollars or 15 billion pesos in single-day sales volume across all the sales channels online. This is massive – and a testament to the continued dynamism of the Philippine e-commerce market,” according to Constantin Robertz, CEO of LOCAD, an end-to-end fulfillment provider that integrates with top e-commerce platforms.
This computation sets the 2021 Q4 GMV of e-commerce at USD 4 billion or PHP 200 billion. With the higher consumer spending during this holiday season, this figure aligns with the e-Conomy SEA 2021 data of Google, Temasek, and Bain wherein e-commerce GMV for 2021 is reported at USD 12 billion.
The continued rise of e-commerce
Online shopping continues to rise in the country with e-commerce growing by 128% — the highest amongst all internet economy sectors in the Philippines.
Based on a report by Facebook and Bain, Filipinos are posting high customer satisfaction ratings with net promoter scores jumping from 26% last year to 64% this year. However, e-commerce brands should not be complacent as poor delivery experiences and difficult return processes are among the top complaints of detractors.
To combat this, partnering with end-to-end fulfillment solution providers such as LOCAD would help e-commerce brands deliver a great customer experience.
According to Robertz, “We visited our warehouses in the LOCAD network on December 12, and they were all very busy, bustling throughout the night. The morning after, LOCAD was able to fulfill 90% of the orders of 12.12 – most were dispatched already to the last-mile delivery providers.”
Through LOCAD’s multi-channel e-commerce integration, on-demand warehousing, and automated picking, packing, and shipping, e-commerce brands can be at peak performance whether it’s a normal day or during hectic seasons such as 12.12.