Majority of Philippine electronic commerce merchants offer cash-on-delivery services to their customers, a recent report by Kuala Lumpur-based online shopping aggregator iPrice said.
The “State of eCommerce in Southeast Asia 2017” report highlighted similarities and differences in and examined online buying patterns in the Philippines, Indonesia, Malaysia, Singapore, Thailand and Vietnam.
The report leveraged proprietary data from more than 1,000 e-commerce players in these countries to reveal their citizens’ online shopping habits.
On payment solutions, merchants had to offer a more diverse range of payment methods, as low credit-card penetration in all countries except Singapore precluded a one-size-fits-all approach.
“Cash on delivery is offered by more than 80 percent of players in Vietnam and the Philippines. Bank transfer is very popular in Indonesia, Vietnam and Thailand, with 94 percent, 86 percent, and 79 percent of merchants in these countries offering it,” the report said.
Almost half of merchants offer offline point of sales in Thailand and Vietnam, while paying in installments is very popular in Vietnam and Indonesia.
E-commerce in Southeast Asia in 2017 had a gross merchandise value of over $10 billion.
Southeast Asian “eCommerce is a mobile-first economy, leapfrogging all the Western economies when it comes to the importance of mobile commerce in the traffic generated by each eCommerce operator,” the report said.
Improving the conversion rate—the percentage of website visits that translate into a product purchase—can have a dramatic effect on the profitability of a business, according to the report.
Vietnamese merchants have the highest conversion rate—30 percent higher than the average—followed by Singapore and Indonesia. The Philippines and Thailand tied in last place.
As to what time Southeast Asians shop the most, it’s between between 9 a.m. and 5 p.m. Singaporeans are the exception; their shopping peaks at 10 p.m.
“Consistently across countries, there is a dip between 5 p.m. and 7 p.m., [when]people typically commute and have dinner, before [resuming their]online shopping until 11 p.m.,” the report said.
View the full study here: State of eCommerce in Southeast Asia 2017