Looking to take your eCommerce brand cross-border? Shipping to the Philippines can be a great way to do just that! Here’s a closer look at some market insights and other key information you need to know about how to ship to the Philippines.
Rapid eCommerce Growth in The Philippines
Currently, the Philippines boasts a $304.91 billion GDP with a GDP per capita of $3,430, a figure estimated to grow to $4,937 by 2022.
The revenue generated by the eCommerce market in the country has increased rapidly in the past few years. In 2015, it was $2 billion but grew to $5 billion in 2018. It’s expected to skyrocket to $21 billion by 2025, indicating strong growth.
There are also approximately 76 million Internet users in the Philippines, with Internet penetration being high at 71 percent. 70 percent of these users shop online regularly. Mobile eCommerce is a key trend that’s catching on quickly in the country.
There are also 41.9 million online shoppers in the Philippines - a number estimated to grow to 53.8 by 2022.
Local, Global Online Marketplaces Popular in The Philippines
A number of major online marketplaces, both global and local in scope, are popular among online shoppers in the Philippines. A few of these include:
Filipinos Have Diverse Online Buying Habits
Electronic and media items are the top product category in the country, though Filipons do in fact have diverse online shopping habits. Other popular product categories in the Philippines include:
- Electronics and media products
- Toys, hobby and DIY items
- Furniture and appliances
- Food and personal care items
Cash On Delivery, Bank Transfers are Top Payment Methods in The Philippines
Cash on delivery is widely used in the Philippines, though bank transfers are also commonly used. A closer look reveals that:
- 47 of Filipinos opt for cash on delivery
- 42 percent prefer bank transfers
- Credit card payment chosen by 11 percent of online shoppers
- One percent of online shoppers use PayPal
Shipping to The Philippines
The most important decision you have to take before expanding your business to the Philippines is about how to specifically handle the shipping to the Philippines. There are many local and international couriers and fulfillment centers available that cater to almost every kind of business.
Understanding the country’s import restrictions and required taxes and duties. Here’s a look at all that - and more!
Local and International Couriers in The Philippines
Many international couriers provide simple and affordable shipping solutions for shipping to the Philippines from the U.S. and other countries.
Local couriers are especially useful for the last leg of the order fulfillment and delivery. A few that serve the Philippines include:
- Ninja Van Philippines
- Couriers Worldwide
- FSC Delivery Services
- Okey Express International Philippines
Does Amazon Ship to The Philippines?
Yes, Amazon delivers certain products to the Philippines.
If you search by country filter, then only the products that can be delivered will be displayed. Because of the distance and time difference, they have specific shipping timings for Asia and the Pacific Islands. You can better manage your shipping by keeping in mind this schedule.
Does eBay Ship to The Philippines?
Yes. eBay.ph is one of the top platforms for online shopping and selling in the Philippines.
Shipping Restrictions and Prohibitions in The Philippines
Understanding the prohibitions and restrictions is very important to better understand how to ship to the Philippines. A look at some restricted and banned imports includes:
- Animal products
- Motor vehicles
- Movie and TV products
- Drugs, such as cocaine, heroin, opium and morphine
- Hazardous and non-hazardous chemicals
- Dynamite and firearms
- Medical samples
VAT and Import Duties in The Philippines
Before you start shipping to the Philippines, it’s crucial to understand its tax and import duty system!
The country uses a CIF calculation method and has a VAT rate of 12 percent. Many tech products, such as mobile phones, tablets and computers, face no import duties, though fashion products face a 15 percent import duty along with audio/video equipment, luggage and home gardening supplies. Pet accessories and toys are taxed at 20 and seven percent, respectively.
Be sure to use the Easyship tax and duty calculator to provide full transparency when it comes to understanding the full cost of shipping to the Philippines.
Ship to the Philippines Today!
Shipping to the Philippines can be a great way to grow your online business, especially considering its rapid eCommerce growth in recent years! Try to Easyship shipping rates calculator and be sure to sign up today to access our global courier network of 250+ shipping solutions and obtain rate discounts of up to 70 percent!