Better service tops the wishlist for Filipino online shoppers in 2025

88% will pay for better delivery, but 58% would walk away at hidden fees; 89% say platforms must police courier standards.

The Philippines’ e-commerce market remains one of the fastest-growing in Southeast Asia with millions of Filipinos now shopping online regularly (43% weekly/daily, 87% monthly). But alongside this growth, shoppers’ expectations are evolving. Value is no longer defined solely by the biggest discounts or lowest prices — it now hinges on a mix of cost, service quality, and overall shopping experience. For sellers, this shift has profound implications: rising delivery fees (58%), patchy logistics (delays 47%, slow 43%, damaged/missing 37%), and uneven service quality are threatening to erode loyalty.

Our recent study of 500 online shoppers across the country reveals that consistent, good quality experiences and buyer-centricity are no longer “nice to have”, they are now expected. And the impact is direct: shoppers reward positive experiences with loyalty and higher spending, while poor experiences push them to abandon carts, switch platforms, or avoid a seller altogether.

Growth hinges on reliability and service quality: Good experiences are rewarded, poor ones are punished

While online retail is now firmly entrenched in Filipino lifestyles, sellers must not be complacent, as data shows that poor service quickly pushes shoppers away. What’s clear, however, is that service quality strongly shapes purchasing behavior, both positively and negatively.

Nearly half (46%) said they would stop buying from sellers that do not allow returns or refunds, 36% would avoid those without flexible or secure payment options, and 27% would walk away from sellers that fail to deliver on time. Poor logistics causing delayed orders (47%), slow shipping (43%), and damaged or missing items (37%) don’t just trigger complaints; they drive shoppers to stop buying, leave negative reviews, or continue shopping with diminished trust.

But it’s not all negative. On the flip side, Filipino shoppers are willing to pay for better experiences. Almost two-thirds (63%) would spend more for improvements, including flexible returns or exclusive deals (28%), faster deliveries (18%), and personalized services such as dedicated support and recommendations (18%). Loyalty also hinges on service quality: 55% say they would shop again or spend more with sellers who offer timely updates, responsive customer service, and reliable fulfillment. Speed and innovation matter too - 47% would return to sellers that consistently deliver quickly, while 22% value innovative tools like AR/AI trials, sampling programs, or livestreams.

The takeaway is clear: sellers that deliver consistent, reliable service will be rewarded with loyalty and growth, while those that neglect service risk losing customers despite competitive prices. In a market where 65% refuse to buy from sellers without reviews, reputation is everything. One poor experience can end a relationship, while one good one can build lifetime value.

Returns policies are another make-or-break factor. While some fear that flexible returns encourage abuse, the data shows otherwise: 7 in 10 Filipinos say they only use these policies for serious issues such as damaged or incorrect items. Only 5% admit to using them whenever possible. This shows that the majority of buyers exercise responsibility and fairness, undermining the “abuse” narrative often used by sellers to avoid offering such options.

When return or refund processes work well, buyers reward sellers with trust. In fact, 87% rated their most recent return/refund experience positively - proof that smooth resolution builds confidence, rather than erodes profitability.

From “nice-to-have” to “non-negotiables”

Interestingly, Filipino shoppers care less about who delivers their packages than how well it’s done. 52% say the delivery provider’s name is irrelevant as long as the package arrives on time and intact. 89% believe marketplaces should hold logistics partners responsible for speed, reliability, and costs, and hold them accountable when their service falls short.

Similar to platform enhancements, shoppers are not unwilling to pay more. In fact, 88% say they are at least somewhat open to higher fees for guaranteed on-time delivery. What they will not accept are hidden charges or unclear policies. Nearly half (49%) feel that hidden fees and rising delivery costs make online shopping less worth it, and 58% would abandon their carts if surprise charges appear.

This emphasizes the expectations from buyers that reliable delivery and transparent pricing have become non-negotiables. Good deals alone cannot sustain growth if the shopping journey feels frustrating, and sellers who hide fees risk losing long-term trust.

Shoppers don’t want gimmicks, they want user-centric tools

Technology adoption is accelerating, but Filipino shoppers are quick to separate useful features from gimmicks. Buy Now, Pay Later (40%), livestream shopping (35%), and easy return/refund tools (33%) are among the most used. And importantly, they also increase satisfaction and spending.

Looking forward, consumers are calling for innovation that solves real pain points:

• Easily accessible, real-time customer support (55%)
• Easy and flexible return/refund options (53%)
• Smarter product recommendations that truly fit consumer needs (43%)
• Tools to preview product virtually (41%)

Taken together, appetite for virtual preview (41%) and support for local sellers (42%) shows that innovation must be both practical and culturally relevant.

The path forward: Sellers must start competing on experience, not just price

The message from Filipino buyers is loud and clear: treat us with fairness, respect, and transparency, and we’ll keep coming back. Price matters, but it is no longer the only measure of value.

For sellers, this means that investing in better customer experiences is not a cost, but a growth driver. Buyer-centricity is no longer a nice-to-have; it is the key to e-commerce success in the Philippines.

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