Challenges Towards the Efficient Implementation of E-Commerce: The Case of Hardware Supplies in the Philippines

The internet and the move to online purchasing are observing growth in the Philippines, and the hardware sector is not far behind. This sector has been for ages dominated by physical stores; however, there is a gradual shift as more retailers embrace e-commerce solutions for the hardware supplies category. This shift is driven by several factors:

Increased Internet Penetration

Demographics have also emerged as a factor since more Filipinos have been accessing the internet and are open to shopping online, with an average of 76 million internet users in 2023.

Convenience and Time-Saving

Students, employees, and homeowners can shop for a huge inventory of hardware supplies online at their own convenience, at any time of the day. This cuts the time that is used to move from home or other parts of town to physical stores, effectively cutting out time.

Competitive Prices and Wider Selection

Some of the advantages that web-based selling has over general selling include cheaper and/or better quality products since the service provider does not have to invest in establishing and maintaining a physical building that is accessible to the public. Further, as compared to actual stores, e-stores can disseminate several products covering a broad range of shelves to accommodate consumer necessities.

This trend benefits both customers and suppliers.

Customer Benefits

Customers are always guaranteed to enjoy easy and direct access to more products compared to traditional shops; the various products are offered at more affordable prices; and the home delivery services are an added bonus. Lately, online stores can also provide product descriptions, comments, and even lectures that help people make a final decision about buying.

Supplier Benefit

Yet, the B2B sales channel is extended through e-commerce, which offers the opportunity to reach new customers across the country. That enables them to de-concentrate their operations from physical locales, and it might decrease general expenditures. Besides, various online interfaces help in gathering information on customer choices and purchase behavior, which can be of strategic value to suppliers in their operations.

 

However, challenges remain:

Delivery logistics

To manage the various and large packages of related hardware items to the various parts of the Philippine archipelago, it is pivotal to have strong supporting logistic facilities.

Cash on Delivery (COD) Reliance

COD has not disappeared in the Philippines and is still widely used among customers. This is an advantage for the citizens, as the e-commerce platforms need to ensure trust and come up with secure approaches toward payment online.

Product visibility and customer experience

In the absence of the contact sense of touch, illusion, and feel of products, it is imperative that every image has a clear, detailed description provided with every product, followed by the customers’ feedback.

Nevertheless, it appears inevitable that more and more of the requirements for the Philippine hardware industry will shift to online platforms in the coming years.

Unfortunately, many of these accomplishments are handicapped by the previous concerns as Internet penetration marches on while e-commerce platforms fine-tune these obstacles; online hardware stores are already on the cusp of becoming Filipinos’s go-to shopping place for home improvement.