Module 10: e-Commerce

Introduction

In the digital age, commerce has evolved beyond traditional boundaries, giving rise to electronic commerce or e-Commerce. It has transformed how businesses operate, how consumers purchase goods and services, and how economies adapt to technological innovation. As more Filipinos gain access to the internet, especially through mobile devices, e-Commerce is rapidly becoming a staple of everyday life. This module will explore the concepts, tools, and practices surrounding e-Commerce, its various types, and its growing importance in the Philippine and global economies.

Objectives

By the end of this module, learners will be able to:

1. Define and explain the concept of e-Commerce.
2. Identify various goods, services, and platforms involved in e-Commerce.
3. Recognize the different payment methods used in e-Commerce transactions.
4. Describe the types of e-Commerce.
5. Discuss common e-Commerce activities in the Philippines.
6. Analyze the current state of e-Commerce in the Philippines and around the world.

Opening Activity

Think-Pair-Share:
Think of the last item you bought online. What platform did you use? How did you pay for it? Share your experience with a partner, then discuss with the class:

• What are the advantages and challenges of buying online?
• Do you trust online sellers? Why or why not?

Discussion

What is e-Commerce?

Electronic commerce, commonly known as e-Commerce, refers to the buying and selling of goods and services using electronic systems, primarily the internet. It also involves the transfer of money and data to execute these transactions (Laudon & Traver, 2021). E-Commerce encompasses a wide range of data, systems, and tools for online buyers and sellers, including mobile shopping and online payment encryption.

Goods and Platforms for e-Commerce

E-Commerce enables the sale of a variety of products and services, ranging from physical goods like clothing and electronics to digital products such as eBooks, music, software, and online courses. Services like food delivery, hotel bookings, and telemedicine also fall under this category.

Popular platforms include Lazada, Shopee, Zalora, Carousell, and Facebook Marketplace in the Philippines. These platforms provide digital storefronts, customer service tools, and payment gateways to facilitate transactions between buyers and sellers (Statista, 2024).

Payment Methods for e-Commerce

Payment systems are a crucial component of e-Commerce. Some of the commonly used payment methods include:

• Cash on Delivery (COD): Still preferred by many Filipinos for trust reasons.
• Credit/Debit Cards: Visa, Mastercard, and other cards enable secure and convenient transactions.
• E-Wallets: GCash, Maya, and GrabPay are popular for their ease of use and instant transactions.
• Bank Transfers and Online Banking: Used for larger purchases or business-to-business transactions.
• Buy Now, Pay Later (BNPL): A growing trend allowing consumers to pay in installments (Bangko Sentral ng Pilipinas [BSP], 2023).

Types of e-Commerce

There are several types of e-Commerce, categorized based on the nature of transactions:

1. Business-to-Consumer (B2C): Transactions between businesses and individual consumers, such as buying clothes from Shopee.
2. Business-to-Business (B2B): Wholesale or bulk transactions between businesses, often involving suppliers and retailers.
3. Consumer-to-Consumer (C2C): Individuals selling to other individuals, often through platforms like Carousell or Facebook Marketplace.
4. Consumer-to-Business (C2B): When individuals offer services or products to businesses, such as freelancers providing digital services.
5. Mobile Commerce (m-Commerce): A subset of e-Commerce using mobile devices for transactions (Chaffey, 2019).

For additional information about the types of e-Commerce, please follow this link. https://bloomidea.com/en/blog/types-e-commerce

Common e-Commerce Activities in the Philippines

In the Philippines, e-Commerce is heavily driven by online retail, particularly fashion, electronics, and beauty products. Food delivery services like Foodpanda and GrabFood have also seen tremendous growth. Social media platforms play a big role; live selling on Facebook and TikTok is increasingly popular. Moreover, small businesses have embraced e-Commerce through online marketplaces and social media pages (Department of Trade and Industry [DTI], 2022).

The Situation of e-Commerce in the Philippines and in the World

Globally, e-Commerce is a trillion-dollar industry. In 2023, global e-Commerce sales surpassed $6 trillion, driven by markets in China, the US, and Southeast Asia (Statista, 2024). In the Philippines, the e-Commerce sector grew significantly during the COVID-19 pandemic and continues to expand with increased internet penetration and mobile usage. The Philippine E-Commerce Roadmap 2022–2025 aims to make the country a competitive player in Southeast Asia by improving logistics, digital infrastructure, and SME participation (DTI, 2022).

Despite growth, challenges persist—such as lack of digital literacy, cybersecurity issues, and poor logistics in rural areas. However, ongoing government support and public-private partnerships are addressing these gaps.

Abstraction

E-Commerce is more than just shopping online. It represents a shift in how we think about business, trade, and even communication. It connects buyers and sellers across distances and provides new opportunities for economic growth, especially in developing countries like the Philippines. Understanding how it works, from platforms and payment systems to its types and societal impacts – is crucial for students, entrepreneurs, and consumers alike.

References

Bangko Sentral ng Pilipinas. (2023). Financial inclusion dashboard. https://www.bsp.gov.ph

Chaffey, D. (2019). Digital business and e-commerce management: Strategy, implementation and practice (7th ed.). Pearson Education.

Department of Trade and Industry. (2022). Philippine e-Commerce roadmap 2022–2025. https://www.dti.gov.ph

Laudon, K. C., & Traver, C. G. (2021). E-commerce 2021: Business, technology, society (16th ed.). Pearson Education.

Statista. (2024). eCommerce – Worldwide. https://www.statista.com/outlook/dmo/ecommerce/worldwide