CHAPTER I

IMPACT OF THE POPULARITY OF E-COMMERCE

PLATFORMS TO THE ORDER
SALES OF ONLINE SELLERS IN STA. ROSA LAGUNA

Almayan, Marie Joyce U.

Baccay, Jasmin Claire B.
Magno, Mar C.
Lapas, Rhenalyn
Cruz, Chynna
Torralba, Karylle B.

12-ABM2

Ms. Maria Jonnalyn Caramay

Subject Facilitator
 TITLE: IMPACT OF THE POPULARITY OF E-COMMERCE PLATFORMS TO THE ORDER
SALES OF ONLINE SELLERS IN STA. ROSA LAGUNA
CHAPTER I
Introduction
Ecommerce is a business model that involves transactions of purchase and sale of goods through the internet. On
popular transaction is online shopping, where customers can buy online through desktops, laptops, smartphones,
tablets, or smartwatches. Like consumers, entrepreneurs' way of doing business also changed drastically where
they choose to open and expand their businesses digitally. Convenience is also key to why vendors choose to sell
online.
Social media and virtual meetings, domestically and across the globe, have become the “new normal” as people
strive to keep normalcy in their lives amid pandemic restrictions. Here in the Philippines, Digital 2020 April
Statshot report by Hootsuite and We Are Social revealed that 64% of Filipino internet users are spending more
time on social media, with 23% indicating increased activity in their online shopping activity. (Arreola, 2020).
Ecommerce websites such as Lazada and Shopee are at the forefront of these online shopping platforms with
expected surges in sales revenues in millions of pesos. Technology has already transformed online business
transactions into an infinite marketplace where conducting business has become more convenient and efficient
for both vendors and vendees. The COVID-19 pandemic has made this marketplace a more obvious necessity.
The COVID-19 pandemic has taken a significant toll on economies and people of all nations and of all ages, from
all walks of life, across the globe. (OECD,2020)
RMC No. 55-2013 refers to the following as the more common online transactions: (A) online shopping or
retailing, involving consumers directly buying goods or services from a seller over the internet without an
intermediary service; (B) online intermediary service, involving an intermediary/third party offering
intermediation services between two trading parties (as discussed above); (C) online advertisement/classified ads,
involving a form of promotion that uses the internet to deliver marketing messages to attract customers, and (D)
online auctions, which are auctions conducted through the internet via an online service provider that specifically
hosts such auctions.
RMC No. 55-2013 likewise provides for more detailed instructions on the obligations of the parties to online
transactions with regard the issuances of ORs, depending on the manner of payment to the online seller, whether
it be through cash on delivery, through bank deposits, or through credit cards. These instructions likewise consider
the details of the abovementioned online transactions. (Arreola, 2020)
The online presence of businesses proved most useful during the pandemic as physical restrictions continue to be
observed. Facebook's Emerging Trends Research showed that marketers who were able to pivot digitally amid
the health crisis gained profits and it is more likely that consumers will continue to choose online shopping for
their convenience. About 12,500 people across 14 countries, including the Philippines, were studied for changes
in consumer behavior in 2020. According to a survey conducted by Rakuten Insight in the Philippines, 63 percent
of the respondents stated they increased their online purchases because of a closure of all non-essential businesses
as of May 2020. At the same time, the respondents wanted to minimize their time outside of the house and
practiced social distancing.
“Online shopping and marketing platforms will play a bigger role in the new normal as businesses and consumers
increase the use of electronic transactions, including cashless payment systems and other financial technology
platforms. Businesses need to innovate and make full use of technology to resume operations and cater to
consumer needs and preferences while still managing risks of Covid-19 infection. Online transactions will now
become the new standard for engaging with clients, buyers, and suppliers. Therefore, both public and private
sectors need to invest in digital technology.” According to Acting NEDA Secretary Karl Kendrick Chua.
The government supports expediting eCommerce growth, as evidenced by their Philippine E-Commerce
Roadmap 2016-2020. It aims to address or reform challenges and barriers that hinder the country's full potential
for eCommerce development. Part of the expectations we see in the future would be a more systematic
government regulation for proper taxation, protection of consumers, and infrastructure improvements.
The growth of many e-commerce platforms is the effect of the transition from traditional shopping channels to
online platforms during quarantine. The coronavirus disease 2019 (COVID-19) pandemic has caused the rise and
fall of several industries worldwide. Even though e-commerce platforms have long been on the rise, the process
was fast-tracked when quarantine guidelines were put into place. With the absence of traditional shopping
channels, customers have flocked to e-commerce platforms to secure purchases and transactions. Many stores
and restaurants have also transitioned online to serve their target market. (Mallorca,2020)
The researchers come up with a study of the E-commerce platforms specifically to the order sales of online sellers
in the City of Santa Rosa, Laguna. Smartphones now play an important role in connecting to the internet.
Consumers may now access online purchasing sites from any location, including the office, while traveling, or at
home. Because of the popularity and easy access of the net on smartphones, various companies also launch their
products through virtual stores.
Background of the Study
Online shopping has become a popular way of shopping for consumers. This new innovation for shopping not
only brings a great number and variety of merchandise to potential consumers but also offers numerous business
activities and a huge market. Social media is no longer known only as a media that facilitates its users to present
themselves on the internet but also as media to sell some products to consumers known as an online shop.
Consumers acknowledge the need for buying some products. They usually will look up to the internet to shop
online and start to search for information about the things that they will buy and look for all the alternatives and
finally make a purchase that is the best price for their needs (Rangampet, 2015). Before making the final purchase,
consumers are influenced by several factors which limit them before making the final decision as advertising and
language.
In 2021, the Philippines’ eCommerce market sales reached $17 billion, largely contributed by 73 million online
active users. This is estimated to reach $24 billion, with 17% growth through 2025. The COVID-19 pandemic
increased the eCommerce demand, with Filipinos working and studying from home. Global technology company
Visa is confident that digital transactions in the Philippines will continue to improve after a study showed that
more Filipinos shopped online for the first time last year. Visa Country Manager for the Philippines and Guam
Dan Wolbert said the firm’s latest Consumer Payment Attitudes study showed that more Filipinos started to go
on digital commerce platforms and make cashless payments in 2020. “More Filipinos are using e-commerce for
the first time to make purchases. This admittedly is a new habit for many Filipinos,” he emphasized. According
to the study, 52 percent of Filipinos shopped online through apps and websites for the first time during the
pandemic, and 43 percent of them made their first online purchase using social media channels. Online shopping
activity also expanded in the past year as close to 9 in 10 Filipinos increased their online shopping activities on
websites or apps, while 7 in 10 were shopping more on social media channels.
Unlike a physical store, all the goods in online stores are described through text, photos, and with multimedia
files. Many online stores will provide links for much extra information about their product. On the other hand,
some online consumers are adventurous explorers, fun seekers, and shopping lovers, and some are technology
muddlers, who hate waiting for the product to ship. Consequently, online consumer behavior (user action during
searching, buying, and using products) became a contemporary research area for an increasing number of
researchers to understand this unique nature of online shopping. (Molnar, 2018)
The Philippines ranked second just behind neighbor Indonesia, from which 57 percent of the shopping buzz came.
Online shopping has been a growing craze in the Philippines in the past few years. A study conducted as early as
2015 found that 9 out of 10 Filipinos preferred online shopping. According to Eshopworld.com, there are at least
37.7 million e-commerce users in the country in 2018 from the 30.2 million estimated in 2016. The number is
expected to rise to 53.8 million by 2022.
According to a report published by Data Reportal, 62.5 percent of respondents in the Philippines stated that they
purchase a product or service online. Filipino online consumers are turning to e-commerce platforms for their
retail purchases. These platforms provide more variety in terms of shopping and offer competitive prices. The
Philippines is a fast-growing retail e-commerce market and the most popular retail e-commerce platforms include
Lazada, Shopee, Zalora, eBay, and Kimstore. It is all according to the Philippines- E-commerce International
Trade Administration.
Reliability is a quality that measures how a customer trusts an online website. With the presence of reliability, an
online store earns the trust and loyalty of customers and consumers. If the online website is performing well and
continuously reaching the customers’ needs, reliability is present. It is necessary for consumers to know the risks
of purchasing products online. To check the reliability of an online website, consumers do some research first
about the online shop, provide and double-check their complete information to the website, check if their payment
is secured, and also the website or seller’s private and returns policy (Vella, 2013).
Online shopping platforms are popular. In relation to this, the researchers would like to find out the impact of the
popularity of eCommerce platforms on the order sales of online sellers and the researchers chose the City of Santa
Rosa Laguna as the locale of the study. This quantitative study aims to fully understand the e-commerce
platform’s impact on the business world by systematically describing it.
Statement of the Problem
This research aims to identify the variables that affect the impact of the popularity of E-commerce Platforms on
the order sales of online sellers in Santa Rosa, Laguna. This research aims to respond to the following query. 1.
What is the E-commerce platforms used by the respondents in terms of:
1.1 Facebook
1.2 Shopee
1.3 Tiktok
1.4 Lazada
1.5 Others______
2. What are the differences between online shops with physical stores in terms of:
2.1 Quality
2.2 Feedback
2.3 Price
3. How does the popularity of E-commerce affects order sales in terms of:
3.1 Online Reviews
3.2 Product Quality
3.3 Shipping Time
3.4 Competitive Pricing
Scope and Delimitation of the Study
The aims of this study were to determine the impact of the popularity of E-commerce platforms on the order sales
of online sellers in Santa Rosa Laguna. Researchers choose this city to present in this research because Santa
Rosa is one of the cities that has many online sellers of online shopping platforms. The researchers focus on online
shopping platforms because since the Covid-19 pandemic comes here to our country, all of us were restricted to
roam outside our houses and that’s how the E-commerce platforms such as Amazon, Lazada, Shopee, Zalora, etc
become popular. The respondents and locale of this study are residents in Santa Rosa Laguna 30 online sellers
either male or female. The survey will only be answered by online sellers since they are the ones capable of
helping determine the impact of eCommerce popularity on their order sales. The survey will be conducted and
answered depending on the free time of the respondents and researchers. The Snowball sampling method will be
used in this quantitative study. By asking respondents to name others in their community who are also online
sellers, researchers can study the impact of the popularity of eCommerce on order sales of online sellers.
Significance of the Study
This study can be used as a reference or guideline for some research related to the topic. The platform is one of
the most useful components when it comes to online purchases since it is where the transaction begins. Individuals
with no employment will also benefit; either they will choose to sell or deliver; either way, they will benefit
because the path they chose is popular due to the outbreak. Furthermore, shopping online is convenient for
purchasers, as they save time and effort, can shop from home, and can choose from a wide selection of items at
reduced prices.
The research is made with the aim to provide crucial information and knowledge regarding the chosen topic from
the respondents, recent studies, and related sites needed for the expected importance to the individuals as follows:
Online sellers can use this study as a guide to improve their marketing strategy to satisfy their customers. They
will provide security services to customers, are easy to use, and provide management.
E-commerce will benefit from this study because they have a huge part in the economy and is vital to businesses
to sell their products or services online. They give businesses the ability to reach more customers than traditional
retail.
The customers will benefit from this study because they lead to more sales due to the recommendations they give
to others. They will help to create a positive working environment.
In order for online shopping platforms and merchants to earn more money, this research will offer information on
which markets to target. Hopefully, this study will provide a deeper understanding of how the popularity of e-
commerce platforms affects order sales of online sellers in Santa Rosa Laguna.
Theoretical/Conceptual Framework
Despite the growth of online shopping, there is a lack of theoretical research. According to Eun-Jung to Choi, this
study proposes a new shopping choice model for the context of online shopping called “The Shopping Continuum
Theory (SCT). Comparatively to previous literature. SCT emphasizes affect as an equal attribute to cognitive for
customers’ decision-making based on a tripartite approach. Using the Cognitive Continuum Theory as a
foundation. SCT offers a thorough understanding of shopping tasks, including goal-, experimental-, and search-
oriented tasks, as well as the interaction of cognitive and effective perceptions of online stories. It explains how,
based on their shopping task orientations, online customers cognitively and successfully interact with the
information and shopping environments given by online retailers, and how the interaction affects shopping
decisions. Because decision-making typically falls into a continuum, SCT hypothesizes that consumers have a
heuristic decision-making process and tend to make a buying decision that is consistent with their shopping task
orientation.
The emergence of e-commerce has prompted many studies, but theoretical electronic commerce research appears
to be in its infancy, particularly in terms of consumer behavior (Cowles, Kiecker, and Little, 2002). According to
the Theory of Reasoned Action (Fishbein and Ajzen, 1975), most recent online shopping studies seem to integrate
salient attributes of online shopping (Fishbein and Ajzen, 1975). TRA has some limitations, however, as Fishbein
and Ajzen (1975) acknowledged, since it does not explicitly address the distinction between goals and behaviors
and consumer behavior under multiple-choice situations (Sheppard, Hartwick, and Warshaw, 1988). Conversely,
from the perspective of theoretical orientation, formality of attitude has historically been controversial. In studying
these attitudes, two major theoretical perspectives have emerged: the unidimensional perspective and the tripartite
perspective (e.g., Lutz, 1991).
The unidimensional approach, on which TRA is based, dis-display causal flow (with a hierarchy of effects through
attitude-related elements to account for consistency across cognition-related conception (beliefs), affect (attitude),
and conation (behaviors). The notion is incorporated into the tripartite view. consistency for the formality of three
components' (cognition, affect, and conation) attitude. Because these three elements are essential as aspects of
attitude, they are frequently difficult to distinguish empirically (Lutz, 1991). Additionally, as revealed by
numerous prior studies, consumer vision-making is subject to different heuristic decision-making processes. goal
situations because of the consumers' asymmetrical characteristics and limited rationality information (e.g.,
Simonson and Tversky, 1992).
The tripartite view could offer a better logical explanation for these decision heuristics and theoretical justification
of consumer decision-making processes. As a result of this deficiency of theoretical growth for consumer
decision-making in circumstances with goals and a tripartite feature, the goal of my research is to create a new
purchasing choice theory that can explain consumer behavior. circumstances that people might experience while
shopping are listed under
The purpose of the researcher's work is to create a new shopping choice theory based on cognitive Continuum
Theory (CCT) (Hammond, 1988), a tripartite view-based theory. Even despite the fact that the influence of effect
on decision-making has been thoroughly examined in numerous prior effects been inappropriately regarded as a
mediator for decision-making in studies. It is it's important to investigate how cognitive and affective factors
interact. Factors on environmental cues in stores to comprehend how affected cognition interacts during the
decision-making and how interactions affect shopping preferences. Hence, the goal of the study is to introduce
the "Shopping Continuum Theory (SCT)" as a new theory. Comprehend why consumers choose to make
purchases online; investigate connections between both cognitive and affective aspects of online shopping tasks
and online shopping environments; and to offer online shopping meaningful managerial implications. This theory
clarifies how people interact with shopping and make decisions linked to their purchase situations in
cognitively and effectively.
The "Shopping Continuum Theory" (SCT) and the research topic are related. Giving consumers additional
information, opportunities to compare items and prices, and as well as convenience and ease of finding desired
things online, as well as a wider product selection. It also illustrates how consumers connect mentally and make
decisions relating to purchasing effectively in a retail setting. When it comes to the "Cognitive Continuum
Theory" (CCT), gives an understanding of how Santa Rosa Laguna locals think theoretically. Execute dynamic
activities and make wise decisions based on complex information. It's a paradigm of decision-making based on
human judgment, or just the people of Santa Rosa Laguna.
 Independent Variable Dependent Variable

The popularity of E-commerce

Platforms Order Sales of Online Sellers

Definition of Terms
For the purpose of achieving clarity of meaning, the following terms which are used in the study are operationally
and conceptually defined:
Business. It is an organization that seeks to earn profit from goods or service. According to one definition, it
refers to a company that offers goods and services to the public in exchange for money with the goal of becoming
profitable (Carey & Davis,2022)
Consumer. It refers to everyone who is involved in buying and using goods and services. In this study, it is
defined as an individual or business that buys and uses goods and services (Will Kenton, 2021)
E-commerce. It refers to the buying and selling of goods or services through the use of the internet. In this study,
it refers to the practice of maintaining connections and conducting business operations, such as the sale of
products, services, and information over computer networks (Vladimir Zwass,2022)
Online seller. This term refers to a person who uses digital means to sell their products and services to buyers.
In this study, it refers to a person who sells items, goods, or services online, whether to local or foreign customers
(Thom James Carter,2020)
Order Sales. It refers to a document used by a seller that confirms the customer’s order. In this study, it refers to
a legal document that is issued to a customer by a seller (Elea Almazora,2021)
Platforms. It refers to a Business strategy that facilitates transactions between two or more groups, typically
consumers and producers. In this study, it is referred to a collection of technologies that serve as a foundation for
the creation of new processes, technologies, and applications. (Techopedia. com,2020)
Physical store. It refers to an environment in which businesses require a physical space to sell their products. In
this study, it is defined as sales made in actual locations of real estate that the relevant business owns or rents.
(Lawinside.com)
Social media. It refers to online communication that allows you to communicate or interact with your customers.
In this study, it refers to a computer-based technology that makes it possible to share concepts, ideas, and
knowledge through online groups and networks (Maya Dollarhide,2021)
Transaction. It refers to an agreement between a buyer and a seller to trade goods, services, or financial assets
in exchange for cash. In this study, it refers to a process of exchanging products, services, or money for both
business and personal needs (Caroline Ntara,2021)
Quality. This term refers to a product when it met all the requirements, standards, and specifications. In this
study, it refers to how good something is compared to other similar things. (Marketbusinessnews.com)