Advisory Firm Calls Government for Implementation of an E-Commerce Regulatory Framework
YCP Solidiance Philippines urges the government to set up a regulatory framework that guarantees the safety of online transactions to boost the e-commerce market.
YCP Solidiance Country Manager Anna Rellama stated, “Consumers need assurance that their digital purchases are made safely to enhance their confidence in online transactions.”
She added, “[Perhaps] we would need some regulatory framework or some assistance that whatever you do online is a governed transaction that is safe, secure, and is not a scam.”
More consumers are engaging in online transactions and purchases due to consistent lockdown restrictions caused by the pandemic. That said, businesses are switching and improving their business framework to cater to the ever-changing public behavior towards purchasing.
Rellama expressed that the e-commerce market of the Philippines is still small, given that the country has a population of over 100 million people.
She noted, “This only means there’s a lot more room for e-commerce and digital solutions that will be supporting that to actually grow.”
As explained by the YCP official, the Philippine digital economy can grow significantly if all sellers could facilitate digital platform processes.
She continued, “We still see a lot of people coordinating on Facebook for transactions, but still doing the transaction offline in a way. That’s good because we have that first step of doing the initial outreach and connection online. But the next step is actually doing the payment transfer, that booking, that purchase online directly.”
Moreover, she added that this is a reason to encourage businesses to change to online platforms. However, they need help like capacity building to fill the gaps in the e-commerce domain.
Rellama noted, “They [merchants] can be aware of the solutions, but if they don’t have access to the needed funding, they [will] need connections that can facilitate this.”
The Department of Trade and Industry (DTI) is currently drafting a joint administrative order (JAO) that aims to boost consumer confidence in e-commerce transactions in the Philippines. At present, the agency is awaiting further comments and suggestions from relevant sources.
The JAO directs online e-commerce sellers to comply with the laws and regulations implemented for the sale, distribution, production, importation, marketing, sale, and transport of products.
DTI expressed that the agency aspires to raise the contribution of the e-commerce sector to ₱1.2 trillion by 2022.