News dalla rete ITA

17 Aprile 2020

Filippine

WHY PHILIPPINE ECOMMERCE STILL RELIES ON CONVENIENCE STORES

In an emerging market like the Philippines, being “online” means more than simply having a digital presence. Having ecommerce enablers is just as important.In much of the country, especially in rural areas, infrastructure remains an issue. Aside from faulty internet service, logistics companies find it difficult to access plenty of homes due to the lack of good roads. Outside urban areas, shipping services remain expensive, at times costing as much as 10% of the total value of the items bought online.Ecommerce platforms and startups have addressed this problem by setting up pickup points, usually a central establishment like a mall or a convenience store, where customers can collect the goods they’ve ordered online. Some of these places have even turned into “digital hubs,” where shoppers can be assisted by an agent who will make the online purchase for them.The country’s largest convenience store, 7-Eleven, has installed point-of-sale (POS) counters in every branch under the brand CLiQQ. Initially meant for the online payment of bills, CLiQQ eventually introduced an ecommerce service that allows shoppers to buy products that are not usually found in a convenience store. The items would then be shipped to the branch to be picked up by the customer after a few days.Digital services aggregator Posible.net has also enabled small neighborhood retailers, or what Filipinos call sari-sari stores, to be “malls” in their own right through the Posible app, which allows sari-sari store operators to order goods online on behalf of customers. The platform was also initially developed for payment services.In both cases, instead of delivering orders to homes that may be too costly to reach, ecommerce sites could just drop off items in established stores that are usually found in a more accessible area in a rural town. The popularity of this system points to an issue that’s often overlooked, which is the Filipinos’ distrust of ecommerce.Hence services like Posible’s somehow alleviate the doubt Filipino customers have for online services since transactions are facilitated by a person they trust, such as the owner of the sari-sari store at the street corner.For the foreseeable future, hybrid commerce, or ecommerce that relies on the services of offline channels, will still be evident in countries like the Philippines. Physical components are still needed for the market to be able to adapt to ecommerce entirely, and they will remain important to brands who wish to build a bigger presence in the age of online shopping. (ICE SINGAPORE)


Fonte notizia: TechinAsia, 15 April 2020