Ecommerce Philippines - An E-commerce Primer for the Global Pinoy


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E-commerce in the Philippines offers geat opportunity for Pinoy. Grab a copy of this this book because this explains the potential income that the Ecommerce industry can give such as working less and the lifestyle compromises that corporate success requires. For more info visit

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Ecommerce Philippines - An E-commerce Primer for the Global Pinoy

  1. 1. This is only a demo copy - Purchase a full copy on this ebook at E-commerce Primer for the Global Pinoy Live Wealthier Series This book is published by Visit us at ©An E-commerce Primer for the Global Pinoy All rights reserved. 2013
  2. 2. This is only a demo copy - Purchase a full copy on this ebook at Table of ContentsForeword: Get a life! 4Chapter 1: I know why you’re reading this book 7Chapter 2: Go global – and get someone to show you how 12Chapter 3: Investment possibilities in the Philippines 16 The Internet and economic freedom Wrong assumptions in e-commerce Blogging Success rates in e-commerce in the Philippines Three types of online sellersChapter 4: Structure of trading physical products 26 Drop shipment Buy and Sell Produce Your Own ProductChapter 5: Structure of selling digital products 37 Software creation/digital information Membership sites Resell rights 2
  3. 3. This is only a demo copy - Purchase a full copy on this ebook at 6: Structure of providing outsourced services 43 Commissioned/ Professional services Consultancy services Offline skillsChapter 7: Affiliate Marketing 47 What is affiliate marketing Drop shipment vs affiliate marketing How to make money in affiliate marketingChapter 8: The 8th Sense: Your Intuition Online 50Chapter 9: Create a Paypal account for your business 60Chapter 10: Protect your Paypal acccount from social engineering 64Chapter 11: The Last Word 69Appendix Recommended 102 Ecommerce Consultants 70 Testimonials 74About Ecommerce 102 75About the Author 77Live Wealthier 78 3
  4. 4. This is only a demo copy - Purchase a full copy on this ebook at Get a life! Foreword I used to be one of the “overworkers” and “underpaids.” Working late night shifts at a BPO while being a mom was not fun. Like many Pinoys, Iwanted to go abroad to earn more and find a new life. In the Philippines, I was working hardbetween 12-15 hours a day with overtime. The money I was earning wasn’t commensurate tothe kind of effort I was making. I was making between 30,000 to 50,000 pesos inclusive of bonuses for each month, andmy health was going down the drain, I looked haggard, I had a zero social life and I did not havethe time to spend with my infant daughter who was quickly growing up without me by her side. At work, I couldn’t go to the toilet when I wanted to because of timed calls; my skin wasalways dull and pale; my blood sugar levels were fluctuating at dangerous rates and I wasconstantly feeding on high fat and high sodium fast food because those were the only ones Ihad access to; I was constantly anxious because of misunderstandings from superiors andrapidly changing quality assurance standards that didn’t make sense. What kind of a life was that? I knew it had to stop. Again, I thought about joining the bandwagon of OFWs just as myparents had done 20 years ago. But I knew that wasn’t the best option. I was an OFW baby. From the age of 10, I had the freedom to do anything I wanted, hadloads of cash and had no one tell me what to do. My guardians had their own problems anddidn’t care as much about me. I learned vices early. This is what happens to many OFW childrenwhen their parents are far away. I also know the heartaches, loneliness and discrimination my parents suffered as aliensin a foreign country. I knew this wasn’t the life I wanted for myself nor the legacy that I wantedto pass on to my kid. Then I met Eireen Diokno Bernardo and Edison Victorino who invited me to join theEcommerce 102 Fast Track program. 4
  5. 5. This is only a demo copy - Purchase a full copy on this ebook at Eireen has been running online stores on eBay for Philippine collectibles with herhusband, Angelo in the last 12 years and has been so successful that she became a power sellerand one of just two Certified eBay Specialists. Today she is a well-known e-commerce educationspecialist who has been teaching people of all ages and from all walks of life in the Philippinesand from other countries on how to set up profitable merchant spaces online. Edison was a software engineer and developer by profession before he found hispassion as a successful social media entrepreneur and Internet network marketer.In 2009, hestarted running a printing business that made him realize how difficult traditionalentrepreneurship was. After that he learned to use technology to leverage his efforts and hasntlooked back since. These guys lead a personalized mentoring program that showed me how to use incomegenerating ideas with technology. Now I am using the principles to build income sources fromhome. These days I spend quality time with my family. I eat healthy food because I now havethe time and the luxury to make home-cooked healthy meals. I slimmed down rapidly when Igot the fast food out of my system, and I can rest when I need to. I have a social life. I amalways available for my daughter, and I work with people that I like. I don’t have to sell my health (at a very cheap rate) to the devil. My friends told me I was “blooming.” I wanted to say: I’m not blooming! I just got rid ofthe SSDD (same shit, different day) lifestyle I had been living all these years! I realized that you CAN change things in your life. It doesn’t matter if majority of thepeople you know live a certain way. You don’t have to be overworked and underpaid like them.You don’t have to waste half of your life in traffic. You don’t have to exile yourself into a foreigncountry just to make a living. You can have the power to make money wherever you are, working on the things youare passionate about, having the ability to choose the people that you work with, and havingthe freedom to have your family with you through it all. This is an informative book that will share with you the how-to’s of e-commerce. E-commerce is a vast practice with plenty of possibilities. I’ll give you options and where you cango, from the first step. I’ll be talking about foundational theories and practical applications of afantastic phenomenon that allows people to make money from anywhere in the world. I just wish I heard about the Fast Track program a lot earlier. 5
  6. 6. This is only a demo copy - Purchase a full copy on this ebook at To the Pinoy OFW, the night-shift working mom, the stressed-out dad, the sick and tiredemployee, and the unemployed who can’t find a decent job: there is a way! Making moneydoesn’t have to take you away from your family or sell out in life. In this book I’ll be talkingabout the steps that will take you there. 6
  7. 7. This is only a demo copy - Purchase a full copy on this ebook at CHAPTER 1 I know why you’re reading this book … and that’s because you are one of four types of people: A. Unemployed (student, new graduate, housewife, retiree, or you got fired or laid off) B. An employee C. An aspiring or start-up businessman D. An established businessman looking to expand wants to make money or In other words, you’re either someone whowants to make even more money. There’s nothing wrong with wanting money. Money is a means to do great things, like provide for your family, educate your kids, travel the world, build things and work on projects that benefit people, share, be generous, and make your and other people’s dreams come true. And you’re reading this because you want to make money to do more things. Worthwhile things that make a difference. Okay that’s great. The problem is ... how are you going to do that? 7
  8. 8. This is only a demo copy - Purchase a full copy on this ebook at To answer that, a friend of mine asked another question: What business is low oncapital but high on hopes? This made me think. The answer to that could answer the firstquestion above. But the word hope caught my attention, so I told him: play the LOTTO.Buy a lotto ticket and have high hopes of winning. Because we aren’t talking about getting high returns on business, but having high hopesof winning something out of the twenty peso ticket that you bought at the Lotto. Sounds silly right? Fortunately Im not here to talk about strategies on throwing moneyaway, but strategies on how to make more money. I gave that anecdote to show you that when you look at an opportunity, measure itspotential on giving you high returns, not just high hopes. Now the good thing about being An Employee is that you get a regular paycheck everymonth. If you have social security benefits, health insurance, non-monetary freebies (maybe acar or rice allowance) and 6 figures in your salary, leaving your job would be the last thing onyour mind because of the perks and financial security you’re getting. The problem is, not all employees have it that good. By law, a typical, full-time, average wage-earning employee would need to spend 9hours a day at work, including the one-hour break, for a 5 figure (or worse, a 4 figure) salary.But in reality, if you are an employee, you actually spend more time: about 12-16 hours a dayjust to work. How’s that? When you get up from bed, you will have to shower, get dressed, eat, put on make-up,commute, get trapped in the rush-hour traffic, and do it all over again backwards when youleave work and go home, with more work tucked under your arm. Plus, thanks to our world-famous city traffic, you’ll manage to be late 2 minutes and will have to be penalized by the HRdepartment for that. There’s also a chance that you hate your boss. If you’re buddies with the boss, that’sgreat, but most of the time you’ll find that most workers hate their boss, or some co-worker orother that they can’t avoid, and you’re one of them. What’s worse is some people even have todeal with harassment issues with colleagues or a superior. Studies show that one of the biggestcauses of stress is a poor relationship with a boss. 8
  9. 9. This is only a demo copy - Purchase a full copy on this ebook at I had a very talented friend who worked at a major car manufacturing company as a salestrainer. She was a very organized and competent individual, but her female boss, who must have feltthreatened by her, made it a habit to take credit for her ideas and embarrass her in front of the staff.Eventually she was forced to leave her job even though she wasn’t prepared to do it at the time. Soundsfamiliar? You know what I’m talking about. This happens all the time. Probably, you might find this all worth it if you are earning a 6-figure sum. But howmuch pain are you willing to take for how much money? How much is your health worth? Iknow of a few “successful” people who gave into cancer or some serious disease caused bystress on the job. My former boss, who earned a nice salary and regularly went onbusiness/pleasure trips to Paris got a hysterectomy after a few years. You could give a medicalexplanation for her condition, but I don’t doubt that all the stress and the people badmouthingher behind her back contributed to her health condition too. Worse, if you’re just a regular guy, it’s more likely that you’re getting that kind of painfor far less. But then again, at least you have the security of a paycheck, don’t you? Wrong. One wise man once said that if he’s learned anything in this life, it’s that youshould not lay all your eggs in one basket. The sense of security employees feel is nothing but an illusion. You may be a 6-figure wage-earning employee, but you don’t own the company. I knewsomeone who was a vice-president of a big multinational company for more than a decade.Some major changes happened that shook up the organization and he became redundant. Allof a sudden he was forced to leave his very comfortable, high-paying post. That he was caughtby surprise over the turn of events is an understatement. Having a good job has nothing to do with financial security. If you’re employed, Im not saying that you should quit your job. I’m saying that youshould create other income sources. So if you’re an aspiring entrepreneur, you’re probably asking questions like, Whatbusiness can I get into? How much money do I need to get started? On the other hand, if you are already a businessman, you are probably concerned abouteither expanding your business or improving results because, maybe, the returns aren’t so 9
  10. 10. This is only a demo copy - Purchase a full copy on this ebook at Traditional marketing and advertising media is pretty expensive and may run into millionsin pesos. If you are a small and medium entrepreneur, you can’t afford to spend this much onads that cannot ensure results . Imagine all these big brands like McDonald’s, Jollibee, andCoca-Cola. How much do you think they’re spending on ads? If you aren’t a big fish in the sea like them, what do you think is going to happen to you? When it comes to business, there are three popular options: or otherwise known as the traditional, brick1. The pro-capital business and mortar kind of business. If you have a lot of money, you can do this. It’s not that easy to put all your life savings into a risky dream. Because of office space rent, furniture, supplies, stocks, business registration, marketing, manpower, a monthly maintenance, you’ll need somewhere between PhP 30,000 to PhP 5M, depending on the scale of your business. The only difference between this and no. 1 is2. The Franchise that you have someone to guide you through the steps, and for that, you need to pay in addition, a hefty franchise fee. You will be already selling a known brand, because you have the franchiser doing the marketing for you. So do you want your own McDonald’s or 7’11? They don’t come cheap, though. Anyone, from all walks of life, can do this. And3. Online business the best part is that you’re earning $ from the comfort of your own home. It doesn’t matter if you’re in Manila, Tuguegarao or New York. As long as you have a computer and a good Internet connection you’re good to go.Yes, you still have some costs, but they are minimal and you are cutting down on huge overhead 10
  11. 11. This is only a demo copy - Purchase a full copy on this ebook at costs. So there’s the good news. Cyberspace is a humongous universe where virtually anything and everything ispossible. Thanks to the Internet, you can enter new roads of money-making opportunity. Youcan start an online business with very minimal capital. The kind of capital you can borrow fromyour best friend, the pawnshop or your mom. And you can market, advertise and sell your stuffeffectively at very minimal cost. Take a look at multi-million dollar companies like and Facebook. They’repretty big now but Facebook started in a boarding house room in a university. Amazon startedrunning from someone’s garage. Maybe you can’t imagine being the next Jeff Bezos or Mark Zuckerberg, but how aboutlooking at ordinary people like you and me? My aunt, who lives in the U.S., came up with the idea of bringing parols to America. Shelooked for suppliers. She bought all kinds of lanterns, Christmas lanterns, capiz-shell lanterns,Boracay-style cloth lanterns, bamboo lanterns, and put them up for sale online. Her patronscame from the U.S. market. She did pretty well. My friend’s sister, when she gave birth, decided that she didn’t want to go back to workfor awhile because she wanted to take care of her baby. So she took her passion for designerbags, set up her collection on Multiply and sold it there. In no time at all, she started earning animpressive, steady income. When Edison Victorino started his online business, he didn’t spend so much on hiswebsite. He spent around 5-days worth of wages to get started on a business that sold gamecards, electronic load and other kinds of digital downloads. Eventually this became his breadand butter, which allowed him be a stay at home dad while earning a lot of money at the sametime. Before Eireen started earning thousands of dollars a month from their onlinebusinesses, her husband started it all by buying and selling local antiques via their DekadaCollectibles store on eBay. Two months later, they were flooded with the demands frominternational buyers, so he asked her to help him manage the logistics and the clients. Sixmonths later, they became one of the Filipino power sellers on eBay. Big or small, there’s definitely money within that wide world called the Web. 11
  12. 12. This is only a demo copy - Purchase a full copy on this ebook at Wherever you are in your life right now, if you are already an entrepreneur or someonewanting to be one, you should seriously consider an online business or creating an onlinepresence for whatever it is you want to sell. Not only is it cheap, but you reach out to morepeople than you can ever dream of and exponentially grow your income potential that way. 12
  13. 13. This is only a demo copy - Purchase a full copy on this ebook at CHAPTER 5 The structure of selling digital products If physical products are not your thing, you can sell digital products or virtualdownloads.Digital products can take on different forms. I will talk about three: 1. Software creation/digital information 2. Membership sites 3. Resale rights If you have the know-how, you can make money from these types of digital products. Let’s talk about creating software and other forms ofdigital information. When referring to the creation of digital products, we are talking about documents, e-books, word files, templates, edited images, design, graphics, software, video tutorials, mp3files, podcast lectures, original music, games, applications, androids, downloadables, and soforth. Weebly is a good example of a digital product. These digital products are anything that can be created by the use of a computer andwhich do not need a physical counterpart to exist. Facebook apps are one example of digitalproducts. These are created by IT and system engineers, and can be turned into products thatcan be sold, despite the absence of a physical form. The e-book you are reading right now is a form of digital product. I could always print itout and distribute it in its physical form, but I don’t have to. You can read this book just fine onyour computer screen. 37
  14. 14. This is only a demo copy - Purchase a full copy on this ebook at Start asking yourself: what kind of digital information do I have the ability to createwhich can later be sold for a profit? Let’s talk about membership sites. If you have a website that has interesting, specialized and exclusive information, you canmarket that by getting people to sign up for access to the contents of that website. You cancharge people for getting a membership, subscription, or limited access to certain parts of yourwebsite which holds all your uploaded content. The content of your access site depends on the kind of digital product that you want tosell. Of course, you should choose a product that has a high level of demand. There are loads of websites out there specializing in comprehensive content in differentfields: money matters, pre-school education and worksheets, craftwork tutorials, mp3downloads and movie access, musical instrument lessons, templates for business documents,software, manuals, teacher lesson plans, financial education, community access, etc. There canbe freebies or free trials for the new visitor, but access to special and comprehensiveinformation comes with a fee. This is a great way to earn passive income. All you have to do is to upload your productsonto your website, update it regularly, get a marketing campaign to drive traffic to your site,and invite people to sign up for a fee. Then they can make downloads or access videos or audiothat will impart to them the information that they want. You can automate this process andwatch your income grow. If your target audience recognizes that the content you provide is ofhigh quality and is in high demand, then you’ve got it made. Suffice it is to say that this kind of set-up works for specialized content. So there’s nopoint in creating a membership site access for information that can be freely accessed all overthe web. One perfect example is the Ecommerce 102 site, which is a digital product that operatesunder membership access. It’s not a club, a community, or a social networking site. It’s a secured e-learning facilitythat archives recorded webinars and online workshops that can be accessed at any time bymember students or any interested party for a fee. Eireen and Edison runs Ecommerce 102 by taking a team of specialists with them todiscuss topics and instruct students on different e-commerce strategies and technical 38
  15. 15. This is only a demo copy - Purchase a full copy on this ebook at The question is, why would clients from other countries seek your consultancy services?Most clients who engage in professional service providers in the Philippines are people who areinterested in business activity within that country. They will need consultancies expecting anexecution of these solutions within the Philippines, and you will be viewed as a specialist in thatregard. 46
  16. 16. This is only a demo copy - Purchase a full copy on this ebook at you get both the advantage of being a recommended consultant and a marketing affiliate.In that case you stand to profit from selling all products that are available on Ecommerce 102. As the rate of technology shifts rapidly, it’s important to be a participant in a course toknow how to effectively market it. It’s a way of earning that helps you to earn back the costyou spent in enrolling in a course. Another way of earning from the Ecommerce 102 affiliate program is attaching yourselfto marketing affiliation with a network of suppliers. Ecommerce 102 will soon be a provider ofvarious products and services which you can help market to receive commissions. Eventually, as an e-commerce practitioner, you end up benefiting on the other side ofthe Ecommerce 102 affiliate program as well. After complying with all the requirements of aFast Track course, you become a recommended consultant or service provider. You will berecommended as a website designer, social media practitioner, or any other service provider toany of Ecommerce 102’s clients. In this case, Ecommerce 102 will be sending clients to you,through the affiliate marketing program. If you look at it closely, you shall see that there are multiple combinations, strategiesand ways to earn, if you know how to position yourself in the e-commerce cycle. 49
  17. 17. This is only a demo copy - Purchase a full copy on this ebook at 4 hours on Facebook. Where business is concerned, it is a gold mine of contacts andpotential clients and customers, if you know how to use it. We already know that. That’s why Mark Zuckerberg is a rich man. But the trick is knowing how to use specific actions to take advantage of a hugelysuccessful platform and profit from it. First let’s put things in perspective. People and businesses including big brands havespent huge amounts of money in social media marketing because they dove into the arenawithout carefully studying their execution plan. For example some companies spend about PhP 175,000 on sponsor ads alone and thenpay an additional PhP50,000 to their social media handler who helps them get about 10,000likes for their fan page. Spend PhP 250,000 for 10,000 Likes? That sounds too expensive for unimpressive results. But I’d like to say that there is a wayfor people like you and me, for start ups and SMEs, to get much more out of social media than apittance of 10,000 Likes for much less cost. Other people use technical trend analysis to anticipate human behavior, such asstudying numbers, statistics, graphs and history, which is a similar approach in forex and stockmarket trends. But where Internet Marketing is concerned, those things work well when you domarketing with Google or other search engines. But there is an unpredictability factor in socialmedia that doesn’t make it function in the same way. Facebook - online marketing is a special kind of study distinctive from marketing viaSEO, which work best with corporations. But for SMEs, Facebook makes a good match in termsof cost and returns. By comparison, search engine optimization is expensive, and failure ratesare high. The following table represents corporate branding results of a marketing campaign. This is aclear example of what happens when you are able to maximize your 8 th sense and use it to youradvantage. 53
  18. 18. This is only a demo copy - Purchase a full copy on this ebook at Impressions are only valuable when it results into a sale. Online impressions resultingfrom a social media or sn online marketing campaign can result in immediate sales because animpression can lead to more clicks and a subsequent action involving an exchange of goods forpayment. Per click is an action you want them to do so that the audience will turn into leads. When someone clicks on your ad, it validates the fact that you are being liked. Theaudience will engage, or make a comment. They will share a picture of your brand. And we canconvert Likes into monetary value. That’s what makes this good. So 400 dollars for more than 14M worth of exposure is not bad. At all. In fact, it’s waytoo good. This is equivalent to a 91.3% result. Why? What is the element that made the results reach so high? That’s the power of the th8 sense. It’s a skill that allows you to create something to make people respond in the way youwant them to respond. Another example of using the 8th sense is knowing when a marketing approach worksand when it stops working. As I have said before, the 8th sense is not an exact science and hasnothing to do with following a set of rules. There are many factors that come into play and thatis why the rules are never the same. Remember the time when people selling online used to tag as many people as possibleto gain attention for their online posters? I remember when my Facebook friends would tag meon pictures of bags, toys, jewelry or tour packages to get me to see their promotions. I admit Iused to do that myself during the time I was selling and marketing CCTV cameras on Facebook. Iwas able to sell and receive inquiries that way. But if you do this approach now, you’re likely to get banned. Sensing and knowing thatwhat worked then may or may not work now is part of how the 8 th sense works. 55