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Consumer confidence in online transactions is high in the Philippines alongside an advanced digital payment ecosystem, strong foundations for e-commerce growth, according to market research firm Blackbox
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However, logistical challenges in an archipelagic country and regulatory bottlenecks are undermining that growth potential
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Blackbox said “collaborative solutions” in the industry is needed to address the transport and logistics obstacles
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The Philippine’s regulatory environment puts local sellers at a disadvantage to their foreign competitors
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The government must adopt a cohesive strategy that considers the dynamics of overseas trade, and design compliance mechanisms that are supportive of micro, small, and medium enterprises
Consumer confidence in online transactions is high in the Philippines alongside an advanced digital payment ecosystem, but this fertile environment for rapid e-commerce growth is hampered by logistical challenges due to the country’s archipelagic geography as well regulatory barriers, according to market research firm Blackbox.
“If the country can resolve its operational and regulatory bottlenecks, it could unlock the full potential of its digitally-savvy consumer base and translate its high growth optimism into sustainable, inclusive market expansion,” said the Singapore-based company specializing in south east Asian economies, citing 80% of experts surveyed in its October 2025 Insights Report titled “The Next Leap for E-Commerce in Southeast Asia.”
Blackbox noted that the Philippines holds an advantage in terms of widespread adoption of digital wallets and a general confidence in online transactions over its regional peers, where cash-on-delivery and payment security fears remain major barriers.
However, serving a market spread across more than 7,600 islands “creates intense logistics friction” with “last-mile delivery inefficiencies” as the predominant friction.
Blackbox said “collaborative solutions” in the industry is needed to address the transport and logistics obstacles.
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In addition to the logistical hurdles, the Philippine’s regulatory environment puts local sellers at a disadvantage to their foreign competitors.
“This disparity is particularly acute in areas like taxation and regulated products, where unclear policies and enforcement often impose greater compliance and tax requirements on local sellers and platforms than on their overseas counterparts,” the Blackbox report said.
A logistics leader interviewed for the report said many micro, small and medium enterprises (MSMEs) are contending with laws and other government requisites such as the Internet Transactions Act under Republic Act No. 11967 and the recently-introduced E-Commerce Philippine Trustmark requirement under the Department of Trade and Industry’s Administrative Order No. 25-12.
“Platforms and e-markets are adjusting, implementing compliance infrastructure and facing increased liability. Many MSMEs and smaller sellers are still grappling with unclear requirements, bureaucratic delays, and uneven support as the compliance deadline came into effect,” the logistics industry leader said.
A policy adviser, on the other hand, said while stricter tax and customs regulations may deter market participation, “having a clear foundation will be beneficial” in the long term for both government and private companies.
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Blackbox recommended that: “To successfully navigate these structural and regulatory hurdles, the government must adopt a cohesive strategy: proactively considering the dynamics of overseas trade to ensure a level playing field, and designing compliance mechanisms that are proportionate and supportive of MSMEs across the entire digital ecosystem.”
It estimates that Asia’s e-commerce market is moving toward a valuation of US$1.5 trillion by this year and could hit past US$2 trillion by 2030, with cross border e-commerce as the next stage of expansion.
“Our experts were unequivocal: 100% agreed that harmonising cross-border regulations is the critical enabler for the next phase of growth. The future lies in ‘regulatory sandboxes’ — a strategy backed by 78% of policy advisers to test new trade rules safely.”
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