Viability of E-commerce in the Philippines

Information technology and the use of the internet have rapidly changed the way businesses are conducted. From the time e-commerce was introduced, more and more Filipinos have accepted it, businesses use it as a way to improve their activities and reach customers, and buyers turn to it in search for best buys. This proves the viability of e-commerce in the Philippines.

Many researches show that the use of ecommerce in the Philippines will grow even more than double in the next years mainly because of the integration of information technology in schools and the growing number of educated middle class population. With the increase of internet use, more things can be done conveniently online, such as transferring funds in the bank, purchasing items, travel bookings and even transacting with government agencies. However, there are still factors that limit the growth of e-commerce in the country- the unavailability of computers and internet in the lower class sector and the many conservative Filipinos who are afraid to divulge information such as credit card in the internet.

The Philippine legislature has enacted RA 8792 of 2000 or the Electronic Commerce Act. The law recognizes the legally binding effect of electronic documents and signatures made electronically and its admissibility as evidence in court. However, this law lacks teeth in regulating most violations in the internet like fraud, content and privacy issues. When it comes to intellectual property rights, more than the current IP laws, the Philippines also adheres to rules of World Intellectual Property Office (WIPO), which prohibits cyber squatting and protects domain names so as to avoid the use of internet to violate the rights of others.

With the fast growth of e-commerce, the government should be prepared and be ready to address issues connected to it by coming up with concrete rules or policies that will regulate the activities and will identify the dos and don’ts. This will give way to the full penetration of ecommerce and will benefit especially local businesses.

Personally, I have used the internet as a medium to advertise and sell items aside from maintaining a weekend store in Taguig. The wide reach of internet helped me establish customers especially those who buy in bulk not only in Metro Manila but also in provinces. Setting policies for e-commerce will surely help me maximize its potential and will assure me that all transactions made through the internet is valid and legal.