How to Start an Online Store in the Philippines — Complete Step-by-Step Guide (2026)

The Philippines' ecommerce market is booming. With over 85 million internet users, a rapidly growing digital economy projected to reach $35 billion by 2026, and one of the highest social media usage rates in the world, there has never been a better time to start an online store in the Philippines. Whether you want to sell fashion, food products, beauty items, electronics, or handcrafted goods, this guide will walk you through every step of launching your ecommerce business.

Filipinos are among the most active online shoppers in Southeast Asia, with ecommerce growing at over 20% year-on-year. Platforms like Shopee and Lazada have made online shopping mainstream, and now consumers are ready to discover and buy directly from independent online stores. The opportunity is massive — and the barrier to entry has never been lower.

In this comprehensive guide, we will cover: choosing a niche, business registration (DTI/SEC and BIR), selecting an ecommerce platform, setting up payments with Xendit, configuring your dedicated delivery partner app, VAT 12% tax compliance, launching your mobile app, and marketing your store with Facebook Ads, TikTok, and Google.

Step 1: Choose Your Niche and Products

The first step is deciding what to sell. The Philippines is a market of over 115 million people with diverse tastes and growing purchasing power, especially among the young digital-native generation. Choosing a specific niche is critical — a focused store grows faster than one that tries to sell everything. Here are some of the most popular and profitable ecommerce niches in the Philippines:

• Fashion and Clothing — Streetwear, Korean-inspired fashion (K-fashion), local designer brands, plus-size clothing, activewear. Filipino consumers are highly fashion-conscious and trend-driven.
• Beauty and Skincare — Korean skincare (K-beauty), local Filipino brands, organic and natural products, hair care, cosmetics. The Philippine beauty market is one of the fastest-growing in ASEAN.
• Food and Beverages — Snacks, coffee, dried goods, healthy food products, sauces and condiments, pasalubong items. Filipinos love trying new food products, and food is one of the easiest categories to start with.
• Electronics and Gadgets — Phone accessories, earbuds, smart home devices, gaming peripherals, laptop accessories. High demand driven by the Philippines' young, tech-savvy population.
• Home and Living — Home decor, kitchen tools, organization products, bedding, small furniture. Growing demand as more Filipinos invest in their living spaces.
• Health and Wellness — Vitamins and supplements, fitness equipment, essential oils, organic health products. Wellness is a major trend among Filipino consumers.
• Baby and Kids — Baby clothing, toys, educational materials, maternity items, kids' school supplies. The Philippines has one of the youngest populations in Asia.
• Arts and Crafts — Handmade jewelry, local artisan products, customized gifts, Filipino handicrafts. Great for supporting local artisans and tapping into the "proudly Pinoy" market.

Pro tip: Start with a specific niche rather than trying to be a general store. A store focused on "Korean skincare for oily tropical skin" will outperform a store selling "everything beauty" because you can target your Facebook Ads more effectively, create more relatable content, and build a loyal community of repeat buyers.

Step 2: Register Your Business (DTI for Sole Prop, SEC for Corp)

Before you start selling online in the Philippines, you need to register your business properly. This protects you legally, builds customer trust, and is required for payment gateway approval. The registration path depends on your business structure:

Step 3: Get Your TIN from BIR

Your Tax Identification Number (TIN) from the Bureau of Internal Revenue (BIR) is mandatory for all business activities and tax compliance in the Philippines. Here is what you need to do:

Step 4: Choose Your Ecommerce Platform

This is the most important decision you will make. Your ecommerce platform determines your website, admin panel, payment processing, shipping management, and customer experience. You need a platform that handles everything so you can focus on selling, not on managing technology.

Here are the main options available for Philippine businesses:

Our recommendation: FlexiCommerce — from just ₱1,499/mo, 500+ features, 3 mobile apps, Xendit (GCash, Maya, Cards) built-in, dedicated delivery partner app included, VAT 12% compliant. Your store can be live in 20 minutes. See full pricing details here.

Why not just sell on Shopee or Lazada? Marketplaces are great for visibility, but they charge 5-15% commission on every sale, you do not own your customer data, you cannot build a brand identity, and you are competing with thousands of other sellers on the same page. Having your own online store gives you full control over pricing, branding, customer relationships, and profit margins. The smartest strategy is to have both — your own store for direct sales (higher margins) and marketplace listings for discovery.

Step 5: Set Up Xendit Payments (GCash, Maya, Cards, Bank Transfer)

Xendit is a leading payment gateway for online businesses in Southeast Asia, including the Philippines. Trusted by thousands of businesses across the region, Xendit supports every payment method that Philippine consumers use:

• GCash — The most popular e-wallet in the Philippines with over 80 million registered users. GCash is used for everything from online shopping to bill payments. Supporting GCash is absolutely essential for any Philippine ecommerce store. Processing fee: ~2.5%.
• Maya (formerly PayMaya) — The second largest e-wallet in the Philippines, popular among younger consumers and used extensively for online purchases. Maya supports QR Ph payments and in-app payments. Processing fee: ~2.5%.
• Credit and Debit Cards — Visa, Mastercard. While card penetration is lower in the Philippines compared to Western markets, it is growing rapidly, especially among professionals and higher-income consumers. Processing fee: ~3.5% + ₱15.
• GrabPay — Grab's e-wallet, popular among Grab users for seamless checkout. Processing fee: ~2.5%.
• Bank Transfer — Direct bank transfers via BPI, UnionBank, and other major Philippine banks. Popular for larger purchases where customers prefer direct bank-to-bank payments. Processing fee: varies.
• Over-the-Counter (OTC) — 7-Eleven, Cebuana Lhuillier, M Lhuillier, and other payment centers. Essential for reaching the unbanked population who prefer to pay in cash at convenience stores and remittance centers. This is a critical payment method in the Philippines.
• Cash on Delivery (COD) — Still extremely popular in the Philippines, especially among first-time online buyers, provincial customers, and those who prefer to inspect products before paying. FlexiCommerce supports COD with OTP verification to reduce fake orders and return-to-sender rates.

FlexiCommerce comes with Xendit pre-integrated — simply create your Xendit account at xendit.co, connect your API keys in the FlexiCommerce admin panel, and all payment methods are automatically available to your customers. No coding, no plugins, no complicated setup. The entire process takes less than 30 minutes.

Xendit Registration Requirements

• Valid government-issued ID (passport, driver's license, PhilSys ID, etc.)
• DTI or SEC business registration certificate
• BIR Certificate of Registration (Form 2303)
• Business bank account for settlement (BPI, BDO, UnionBank, etc.)
• Proof of business address
• Website URL or store link

Step 6: Set Up Your Dedicated Delivery Partner App

Delivery is one of the most critical aspects of running an ecommerce business in the Philippines. The country is an archipelago of over 7,600 islands, which creates unique logistics challenges. FlexiCommerce takes a different approach from relying on third-party couriers — it includes a dedicated Delivery Partner App that gives you full control over your delivery operations.

• Real-time GPS Tracking — Your delivery partners are tracked in real-time via GPS, so both you and your customers always know where the order is. Customers receive live tracking updates directly in the Customer App.
• Route Optimization — The delivery app provides optimized routes for delivery partners, reducing delivery time and fuel costs. This is especially valuable for multi-stop deliveries within Metro Manila and other congested cities.
• Automated Assignment — Orders are automatically assigned to available delivery partners based on proximity and workload. No manual dispatching needed — the system handles everything.
• OTP Verification — Delivery confirmation requires OTP verification from the customer, ensuring that orders are received by the right person. This dramatically reduces fake delivery claims and return-to-sender rates.
• Photo Proof of Delivery — Delivery partners capture photo proof upon delivery, creating a verifiable record for every order. Essential for resolving any delivery disputes.
• COD Collection — Delivery partners can collect Cash on Delivery payments securely through the app, with automatic tracking and reconciliation in the admin dashboard.
• Earnings Dashboard — Delivery partners can track their earnings, completed deliveries, and performance metrics directly in the app — keeping them motivated and transparent.
• KYC Management — Onboard and verify delivery partners with document verification (driver's license, vehicle registration) directly through the admin panel.

FlexiCommerce's Delivery Partner App is included in the Business plan — giving you complete control over your delivery operations. You can set flat-rate shipping, free shipping thresholds, or zone-based delivery fees. No third-party courier contracts or API integrations needed.

Delivery Tips for Philippine Ecommerce

• Offer free shipping above a certain order value (e.g., "Free shipping on orders over ₱1,500"). This increases average order value significantly. Filipino consumers are very responsive to free shipping offers.
• Build your own delivery fleet — With the Delivery Partner App, you can onboard your own riders for faster, more reliable service with lower per-delivery costs than third-party couriers.
• Always provide tracking — Filipino online shoppers expect real-time tracking. FlexiCommerce sends automatic tracking updates via the Customer App with live GPS location.
• Package securely — Philippine delivery involves various conditions. Use bubble wrap, corrugated boxes, and waterproof packaging, especially during the rainy season (June-November).
• Offer COD wisely — COD drives conversions but has a higher return rate (10-20%). Use OTP verification (built into the Delivery Partner App) to reduce fake orders and RTS (return to sender) rates.

Step 7: Configure VAT 12% and Invoicing

The Philippines has a 12% Value Added Tax (VAT) that applies to the sale of goods and services. Understanding and properly handling VAT is essential for legal compliance and avoiding BIR penalties. Here is what you need to know:

FlexiCommerce handles VAT calculation automatically — 12% VAT is calculated on every order, clearly shown on invoices, and reported in your admin dashboard. No manual spreadsheets or separate tax software needed. The platform supports both VAT-inclusive and VAT-exclusive pricing modes.

Step 8: Launch Your Mobile App

The Philippines is a mobile-first country. With 76% of internet users accessing the web primarily through smartphones, and Filipinos spending an average of 5+ hours daily on their mobile devices (one of the highest in the world), having a dedicated mobile app is not optional — it is essential for ecommerce success. Mobile apps deliver 3x higher conversion rates compared to mobile websites because of faster loading, push notifications, and a native user experience.

FlexiCommerce includes 3 mobile apps at no additional cost:

All three apps are published to the Google Play Store and Apple App Store under your own brand name and logo. Your customers download your app — not a generic third-party app. Push notifications alone can drive 20-30% of your revenue by bringing customers back for repeat purchases, flash sales, and abandoned cart reminders.

Step 9: Digital Marketing (Facebook Ads, TikTok Shop, Google)

Your store is live — now it is time to get customers. The Philippines has unique digital marketing characteristics that set it apart from other markets. Filipinos spend more time on social media than any other country in the world (averaging 3+ hours daily), making social commerce and social advertising extremely effective. Here are the most effective marketing strategies for Philippine ecommerce businesses:

• Facebook and Instagram Ads — Facebook is the dominant social platform in the Philippines with over 85 million users. Run targeted ads with product images, video ads, and carousel formats. Use Facebook Shops and Instagram Shopping to tag products directly. Filipino consumers trust Facebook heavily — many treat it as their primary internet. Budget recommendation: Start with ₱500-₱1,000/day and optimize based on ROAS (Return on Ad Spend).
• TikTok Shop — TikTok has exploded in the Philippines, especially among Gen Z and younger millennials. TikTok Shop allows you to sell products directly within the TikTok app through short-form video content and live selling. Live selling is absolutely huge in the Philippines — sellers can generate ₱100,000+ in a single live session. Create product demo videos, unboxing content, and behind-the-scenes footage.
• Google Ads — Run Google Shopping ads targeting product-specific keywords. Also run search ads for queries like "buy [product] online Philippines", "best [product] Philippines", and "[product] shop online". Google Ads captures high-intent buyers who are actively searching for products to purchase.
• SEO (Search Engine Optimization) — Optimize your product titles and descriptions with relevant keywords. Write blog content targeting "how to", "best", and "where to buy" searches. Focus on Filipino search patterns — many Filipinos search in a mix of English and Tagalog ("best skincare for oily skin Philippines").
• Facebook Messenger Marketing — Filipinos love messaging. Set up a Messenger chatbot for your Facebook Page to answer common questions, showcase products, and drive traffic to your store. Many Filipino consumers prefer to ask questions via Messenger before purchasing.
• Influencer Marketing (KOL) — Partner with Filipino micro-influencers on Instagram, TikTok, and YouTube. Micro-influencers (10K-100K followers) often deliver better ROI than celebrity endorsements. Look for influencers in your niche — beauty, fashion, food, tech. Payment ranges from ₱1,000-₱20,000 per post for micro-influencers.
• Launch Promotions — Offer a special discount for your first 100 customers (e.g., "Use code LAUNCH20 for 20% off"). Run flash sales, free shipping promotions (Filipinos love free shipping), or bundle deals. Create urgency with limited-time offers. Consider "Payday Sale" events around the 15th and 30th of each month when Filipinos receive their salary.
• Mega Sale Events — Participate in the major Philippine ecommerce sale events: 6.6, 7.7, 8.8, 9.9, 10.10, 11.11, and 12.12. These monthly double-digit sales drive massive traffic and purchases. Also capitalize on Pasko (Christmas) season — the Philippines has the longest Christmas season in the world (September to January), and gift-giving drives enormous ecommerce volume.

Total Cost to Start an Online Store in the Philippines

Compare that to Shopify where you would pay ~₱2,200/month ($39) just for the platform, plus USD-denominated theme and app costs, plus transaction fees. With FlexiCommerce, your monthly subscription is less than what Shopify charges — and you get far more. 3 mobile apps, 500+ features, Xendit payments, and a dedicated delivery partner app all included.

Frequently Asked Questions

Conclusion

Starting an online store in the Philippines in 2026 is more accessible and affordable than ever. With the right platform, you can go from zero to a fully functional ecommerce store with mobile apps in under a week. The key steps are: choose a focused niche, register your business (DTI + BIR), pick an ecommerce platform that handles everything, set up Xendit for payments (GCash, Maya, Cards), configure your dedicated delivery partner app, set up VAT 12% compliance, launch your mobile app, and start marketing with Facebook Ads, TikTok Shop, and Google.

FlexiCommerce makes this entire process seamless. Platform from just ₱1,499/mo (or ₱1,199/mo with annual billing) + hosting from ₱799/mo — you get a complete ecommerce ecosystem — website, 3 mobile apps, admin panel, Xendit payment gateway (GCash, Maya, Cards), dedicated delivery partner app, VAT 12% compliance, and 500+ features. Zero commission on sales, and your store can be live in as little as 20 minutes.

The Philippine ecommerce market is growing at over 20% annually. Filipino consumers are increasingly comfortable buying online, and the payment and logistics infrastructure has matured significantly. Whether you are selling fashion, food, beauty products, or electronics — there is no better time to launch your online store. Start today and capture your share of this rapidly expanding market.