Filipino sellers ready to invest — but expect ROI, logistics efficiency, and ecosystem support in return

Only 1% of e-commerce sellers in the Philippines say they face no challenges in maintaining business resilience or sustainability. For the remaining 99%, resilience is a constant balancing act of managing costs, competition, and ever-changing consumer expectations. These findings show that such challenges are nearly universal, reflecting how tough yet determined the country’s micro, small, and medium enterprises (MSMEs) truly are.

The biggest concerns among sellers are competition from overseas sellers (45%), keeping up with buyer demands (44%), and rising logistics costs (41%). Together, these issues paint a clear picture: sustaining growth in the Philippines’ fast-moving online market requires more than individual effort. Sellers are calling for stronger collaboration between platforms, logistics providers, and government institutions to build a more supportive and sustainable ecosystem.

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Sellers with ambition, facing real-world limits

The seller base in the Philippines reflects a generation of young, ambitious entrepreneurs. The segment skews female (55%) and is dominated by professionals aged 18–34 (68%), many of whom run small- to mid-sized online businesses. While 73% are confident their sales will grow steadily or significantly in the next one to two years, rising operational costs and limited marketing visibility constantly test that optimism.

Facebook Marketplace remains the most used platform (58%), followed by Shopee (52%) and TikTok Shop (46%).  The data also highlights a clear multi-platform approach among sellers — many operate across several channels to maximize visibility and reach. Facebook’s continued dominance suggests that sellers are drawn to its flexibility as a social media platform, making it less regulated compared to full e-commerce platforms that provide integrated services such as payments and logistics. With fewer compliance obligations under the new regulations surrounding e-commerce, Facebook Marketplace offers a lower barrier to entry for smaller or informal sellers. Most sellers process fewer than 50 orders a month but show strong intent to scale. They sit in a “balanced growth” phase: experienced enough to survive, yet still striving to grow sustainably.

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Shared growth mindset: Co-investing in sustainability

A standout finding is that 77% of sellers believe resilience is a shared responsibility, and one that requires co-investment from sellers, platforms, and policymakers. This signals a shift in mindset: sellers no longer see themselves as passive beneficiaries, but as partners in growth.

Still, they expect accountability and transparency in return. 46% are willing to pay higher platform fees if they can see a clear link to business outcomes like increased sales or better tools. Another 39% accept performance-based fees when the benefits are tangible. But when fees rise without visible improvements, confidence fades. Sellers view fees as investments, not costs, when they’re tied to innovation, buyer trust, and long-term business impact.

This changes the narrative around fees. Philippine sellers aren’t fee-sensitive; they’re value-conscious. The difference is that it’s not just about paying the lowest fees, but getting the best value for their investment in their business. They’re ready to co-invest in an ecosystem that gives back.

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Buyer-first policies are growth drivers

Sellers are also clear about what drives sustainable growth: buyer trust. Product authenticity checks (59%), secure payment protections (51%), and on-time delivery standards (51%) top the list of valued features. Sellers directly link these policies to better business performance: improved loyalty (59%), higher repeat purchases, and stronger store ratings (52%).

These insights challenge the idea that buyer protection is just a compliance measure. For Filipino sellers, buyer-first policies are revenue engines- they build trust, strengthen retention, and grow order value. When buyers feel protected, sellers grow faster.

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Navigating uncertainty: the policy challenge

Even as optimism stays high, policy uncertainty is emerging as one of the biggest threats to seller resilience. More than half (53%) of respondents say new government policies are either harmful or irrelevant: 32% feel less confident because of them, 15% say these changes have weakened their readiness, and 6% admit they aren’t even aware such policies exist.

These findings point to a clear issue: policy changes are moving faster than the guidance and support MSMEs receive, leaving many unsure about how to stay compliant.

More than a third of sellers (36%) cite changing or stricter regulations as one of their main barriers to growth. Yet, their intent is clear: they want to follow the rules, but need more help doing so. Over half (52%) say they want government programs that make compliance easier, whether through clearer guidelines, practical training, or funding for compliance tools.

Altogether, the findings reveal a widening “confidence gap” in the regulatory landscape. Sellers understand that sound policies can strengthen long-term trust and market stability, but when rollouts happen without proper consultation or clear support, and with a very narrow timeframe for compliance, those same policies risk holding them back instead of propelling them forward.

To build true sustainability, resilience has to be a shared effort. Platforms and policymakers must work hand in hand to help sellers adapt, through joint training, better compliance support, and more predictable rollouts, so that policy progress strengthens, rather than weakens, digital business confidence.

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The logistics bottleneck

Logistics remains the toughest operational barrier. Over half of sellers (53%) cite late deliveries as their top pain point, followed by lost or damaged packages (44%) and limited coverage area for deliveries (39%). These problems have direct consequences, such as negative reviews (40%), lost sales (39%), and declining buyer loyalty (36%).

Confidence in platform logistics is also uneven. Only 32% rely solely on default platform shipping, while the rest mix third-party or self-delivery options. Nearly half (46%) believe platforms should hold logistics providers more accountable, signaling the need for stricter performance standards and stronger end-to-end support.

Beyond logistics, many sellers struggle with financing (38%) and lack access to training (25%), making it harder to adapt to changing platform tools or expand operations sustainably. Fast, reliable logistics and accessible enablement programs are not just operational needs—they’re pillars of long-term resilience.

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Competing in a global marketplace

The competitive pressure from overseas sellers is intense. 62% of local sellers feel high or very high pressure from foreign competitors, mainly due to pricing (49%) and visibility loss (44%). While 40% try to stand out with locally relevant products, only 29% feel ready to compete on price.

Sellers are thus asking for stronger local support: faster domestic logistics (55%), platform-backed vouchers (57%), and campaigns that spotlight Filipino sellers (46%). On the policy front, they want tax reliefs (56%), tighter trade policies (46%), and stronger consumer trust measures (45%).

The message is clear: 85% believe global competition threatens local business survival unless platforms and policymakers step in.

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What platforms and policymakers should do next

Seller voices in the Philippines point toward six clear priorities for shared, sustainable growth:

1. Redefine fees as co-investment: Show sellers how fees fuel innovation, marketing visibility, and buyer experience improvements.
2. Strengthen logistics accountability: Enforce stricter performance standards to ensure reliability in cost, speed, and parcel handling.
3. Prove ROI through meaningful tools: Focus on features that genuinely drive reach and conversions, not just adoption metrics.
4. Turn buyer-first policies into growth engines: Continue investing in trust-based features that also improve sales performance.
5. Champion local sellers in a global marketplace: Support Filipino MSMEs with campaigns, vouchers, and logistics that highlight their edge.
6. Build stronger public–private scaffolding: Expand access to financing, training, and tax relief to make growth both inclusive and resilient.

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The takeaway

Filipino sellers are redefining what it means to be resilient. They’re not waiting for help, they’re ready to co-invest, to partner, and to grow together.

Their message is clear: sustainability is a shared responsibility. When sellers, platforms, and policymakers invest in one another, growth becomes not just possible, but sustainable, scalable, and shared.

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