Online shoppers pay more for better service

Filipino consumers are rewriting the rules of e-commerce in 2025, with service quality and transparency emerging as the proper measures of value, according to a recent nationwide study by Milieu Insight.

While bargains and discounts remain essential, a survey of 500 Filipino online shoppers reveals that buyers are increasingly rewarding sellers and platforms that offer reliable delivery, clear policies, and responsive customer service. Poor experiences, on the other hand, are swiftly punished with abandoned carts, negative reviews, and lost loyalty.

“Competitive pricing alone is no longer enough to win buyers,” said Juda Kanaprach, chief marketing officer and co-founder of Milieu Insight.

“Value today goes beyond low prices — Filipino shoppers are looking for fairness, transparency, and respect at every step. Our findings show that 55 percent would buy more from sellers who communicate responsively and give timely updates, while almost half return to those who consistently deliver quickly.”

Shoppers demand accountability

The study found that delays (47 percent), slow shipping (43 percent), and damaged or missing items (37 percent) remain the most common frustrations in online shopping. These service lapses have direct business consequences: 46 percent of buyers stop purchasing from the same seller, while 39 percent leave damaging reviews.

Consumers are also raising concerns over rising delivery costs and hidden fees. Nearly six in 10 (58 percent) said they would abandon their carts if surprise charges appear at checkout, while 49 percent believe higher delivery costs make online shopping less worthwhile.

Still, buyers show a willingness to pay more for certainty. A striking 88 percent said they are open to higher fees if these guarantee on-time delivery. Interestingly, 52 percent said they care little about which courier handles their package, as long as it arrives safely and on time. But expectations for accountability remain high: 89 percent believe marketplaces should hold logistics providers responsible for speed, reliability and costs.

“Filipino shoppers are less concerned about which courier brings their orders and more focused on whether deliveries are safe and on time,” Kanaprach added.

“That said, they still expect marketplaces to hold their logistics partners accountable in delivering on their promises.”

Returns and trust

Return and refund policies are another make-or-break factor. Contrary to fears among sellers that flexible options encourage abuse, Milieu Insight’s findings show that buyers generally act responsibly: 70 percent said they only request returns or refunds for serious issues such as damaged or incorrect items, while just 5 percent admitted to exploiting these policies whenever possible.

Appropriately handled, returns build loyalty. In fact, 87 percent of shoppers rated their most recent return/refund experience positively, underscoring that smooth processes strengthen trust rather than erode profitability.

Innovation must be practical

While Filipino consumers welcome innovation, they are clear about what matters most. Popular tools include Buy Now, Pay Later (40 percent), livestream shopping (35 percent), and easy return/refund features (33 percent). Looking ahead, shoppers want more practical solutions: real-time customer support (55 percent), flexible return options (53 percent), and more thoughtful product recommendations (43 percent).

Virtual product previews (41 percent) and platforms that support local sellers (42 percent) also stand out as priorities, highlighting that innovation works best when it is both practical and culturally relevant.

The research points to a fundamental shift in the Philippine e-commerce landscape: shoppers are no longer just bargain hunters, but value seekers. For businesses, this means competing on experience, not just price.

For sellers, investing in service is no longer a cost but a driver of growth. Platforms, meanwhile, are being called to strengthen logistics and accountability. And for policymakers, enabling fair practices and supporting innovation could sustain consumer trust and industry expansion.

As Milieu Insight’s data suggests, the path forward for Philippine e-commerce is clear: fairness, transparency, and service excellence will define success in 2025 and beyond.