In a recent report by e-commerce giant Shopify, free shipping has emerged as the most significant factor influencing online shopping decisions among Filipino consumers.
The Southeast Asia Retail Report 2024 highlights that 8 out of 10 Filipino online shoppers consider free shipping a necessity when making their purchases. The report also indicates that free shipping ranks far ahead of other important considerations for Filipino shoppers. Convenient mobile apps were a priority for only 46% of respondents, while free returns were essential for just 45%.
Secretlab Global E-Commerce and Sales Executive Head, Eugene Chua, commented on the trend, stating that with the current economic conditions, customers are becoming increasingly discerning and conscious about their spending. This observation aligns with the Shopify report, which found that the rising cost of living and inflation have led many Filipinos, like other Southeast Asian consumers, to cut back on non-essential expenses like shipping fees.

Despite the importance of free delivery, the report also emphasized that the price of goods is still the main concern of shoppers when it comes to purchase decisions. 96% of the consumers surveyed in Southeast Asia stated that they would remain loyal to a brand/company if given an incentive, with 70% highlighting consistent promotions as well as competitive prices are major drivers.
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While competitive pricing is important for increasing loyalty and reducing customer turnover, Shopify cautioned that relying on price competitiveness might not be a sustainable strategy for many businesses. To prevent this from happening, retailers are encouraged to compete on other aspects of value, including enhancing the customer experience and packaging.
With the dominance of shopping platforms like Lazada and Shopee, there are plenty of challenges for retailers online. But the study says that 81% of customers are more likely trust a brand with its own website as they relate it to credibility.
Interestingly, despite the preference for online shopping channels, physical stores still have their place in the market. Around 28% of surveyed consumers said that they get the same enjoyment from in-store shopping as they do from online shopping. In addition, 19% stated that they still prefer the old school in-store, offline shopping experience.