Shopee Shares Three Predictions for the Philippine E-Commerce Market in 2021

Tuesday, February 9, 2021
The ongoing pandemic has brought about a broad, deep, and irreversible shift to online for businesses and consumers, a trend that will continue in the new normal. Shopee, the leading e-commerce platform in Southeast Asia and Taiwan, outlines three key predictions for the Philippine e-commerce market in the areas of payments, logistics, and digitalization.


Martin Yu, Director at Shopee Philippines, said, “2020 was an especially transformative year for e-commerce. As consumers adhered to social distancing measures and stayed home, they turned to online platforms for their daily needs and entertainment and interaction. 

It led to online shopping evolving from a purely transactional experience to a more social experience, with e-commerce platforms integrating more interactive elements such as games and live streaming to engage users. 


With advancements in technology, increasing internet penetration, and a fast-growing population of young, tech-savvy youths and middle-income families, we expect e-commerce to play an integral role in the way we live, connect, and do business.”

As the e-commerce momentum continues, Shopee shares three key predictions for the Philippine e-commerce market in 2021.

Increased adoption of digital payments

Digital payments are the preferred mode of transaction for e-commerce. As more people become accustomed to e-commerce, it will also drive the cashless movement offline.

Shopee continues to offer a wide range of digital payment options to cater to evolving needs, including its mobile wallet, ShopeePay. In fact, Shopee saw a 4X uplift in the total number of orders completed by its mobile wallets across the region. The greatest increase recorded in most markets was for users above 50 years of age. This is a testament to ShopeePay’s ease of use, given that users in this age group typically find it harder to adapt to digital payments.

In a region where most consumers do cash transactions, the pandemic has greatly accelerated the need to move towards a cashless society. In line with movement restrictions and continued social distancing efforts, consumers and businesses have increasingly embraced digital payments for greater convenience and security.

Logistics will come to the forefront

Logistics will become even more important as consumers continue to rely on e-commerce platforms and develop greater expectations for efficient deliveries. The increase in demand is particularly significant for daily necessities and household essentials. In the Philippines, Shopee saw an 8.5X increase specifically in food-related items shipped from the Shopee Warehouse.

Brands and sellers need to make effective use of technology to ensure that parcels are delivered in a timely and cost-effective manner. One way to achieve this is to tap into the extensive and integrated networks of e-commerce platforms.


Shopee enables brands to scale efficiently and focus on growth by taking care of the entire process, including the continuous strengthening of its logistics network and warehouse capabilities. In 2020, Shopee Express, Shopee’s express delivery service, expanded its geographical coverage to reach even more users, including those in rural areas. Shopee also saw more brands tapping on its efficient logistics infrastructure with a three times increase in brand items shipped from its warehouses in 2020.

Brands and sellers will implement innovative retail strategies


The pandemic pushed all businesses to quickly implement digital strategies in order to continue reaching customers amidst the lockdown. As online selling becomes a bigger revenue channel for brands and sellers, e-commerce platforms need to implement innovative retail strategies. This will help them engage customers in a differentiated manner and grow their online presence.

Today, there are more than 20,000 leading global and local brands on Shopee Mall, offering shoppers a wide selection of authentic products. Shopee works closely with these brands to constantly push the boundaries and create new, exciting, and unique shopping experiences.

For example, Shopee worked with POND's to integrate its AI-powered beauty tech solution, Skin Advisor Live, into the online shopping experience. This allowed shoppers to enjoy a free personalized skincare analysis, helping them make more informed purchase decisions. POND's was also able to tap into Shopee’s engagement tools, such as live streaming, to interact with their target audience.

Yu closed, “At Shopee, we are committed to improving the lives of people in the region using technology. I truly believe that our region has the potential to chart a new path forward in influencing the way businesses and consumers connect. We will continue to innovate to stay ahead of these evolving trends, and to drive the growth of e-commerce in 2021 and beyond.”

Download Shopee for free on App Store or Google Play Store.
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