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Manila Bulletin devider Business devider Filipinos favor 'free shipping' for online purchases—study

Filipinos favor 'free shipping' for online purchases—study

Published Jul 11, 2024 05:34 am

Free shipping emerged as the biggest factor influencing online purchase decisions among Filipinos, according to a report by e-commerce platform Shopify.

Based on the Southeast Asia Retail Report 2024 published by Shopify, a staggering eight out of 10 Filipino online shoppers regard free shipping as a necessity when making their purchases.

Free shipping ranked well ahead of the other two "must-have considerations" for Filipinos, with convenient mobile apps scoring only 46 percent and free returns at 45 percent, the Shopify report showed.

With the current economic condition, Eugene Chua, Secretlab Global E-Commerce and Sales executive head, noted that customers are becoming more discerning and particular about their spending habits.

The Shopify report showed that inflation and the increasing cost of living have led a large majority of Southeast Asian consumers, including Filipinos, to trim down on non-essential expenses, such as shipping fees.

However, Shopify said that the price of goods remains the primary driving force behind purchase decisions for shoppers.

Nearly all surveyed consumers in Southeast Asia (96 percent) stated that they would exhibit loyalty to a brand if offered an incentive, with consistently competitive prices or promotions being a major attraction for 70 percent of respondents.

While pricing plays a crucial role in fostering loyalty and reducing customer turnover, relying solely on price competitiveness is not a sustainable strategy, Shopify said.

This leaves retailers to compete on various aspects of value, such as enhancing the customer experience.

Shopify also said that navigating the complexities of online retail can be challenging for businesses, given the popularity of platforms such as Shopee and Lazada. 

However, the report also showed that 81 percent of Southeast Asian consumers believe that a company with its own brand website is more trustworthy and credible particularly when considering big purchases.

Moreover, Shopify said physical retail stores continue to play a vital role despite online channels are the preferred choice for most Southeast Asian shoppers.

About 28 percent of consumers stated that they derive as much enjoyment from in-store shopping as they do from online shopping, while an additional 19 percent actually prefer the in-store shopping experience.

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