Quick answer
Start where your buyers already are, usually Facebook and a marketplace. Once you have repeat customers, add your own online store: no commission on every order, your own customer list, and a brand people can find on Google. Accept GCash (by QR or through a payment gateway) plus cash on delivery, ship with a courier that offers COD, and register with the DTI and BIR like any other business.
1. Facebook, marketplace or your own store?
Most Filipino sellers start on Facebook or a marketplace like Shopee, Lazada or TikTok Shop, and that's a smart start. Each option is good at something different:
| Facebook / Instagram | Marketplace | Your own website | |
|---|---|---|---|
| Cost to start | Free | Free to list | One-time build, plus a yearly domain and hosting |
| Fee per order | None | Commission and transaction fees | None, or a small payment-gateway fee |
| New buyers | From your followers and ads | Strong: millions already shopping there | From Google, social media and word of mouth |
| Your customer list | Partly, in Messenger | Mostly stays with the platform | Yours: names, numbers, order history |
| Your brand | Limited | Next to hundreds of competitors | Fully yours, no competitors on the page |
| Biggest headache | Answering every order by chat | Fee changes, price wars, platform rules | You need to bring in your own traffic |
The honest answer for most small businesses: don't choose just one. Use the marketplace and Facebook to be discovered, and your own store for repeat customers, bulk orders and anyone who searches your brand name on Google.
2. The commission math that makes your own store worth it
Marketplace fees change often, so check the current rates in your seller center. But here's how to see what they cost you, using a simple example where fees add up to 10% of each order:
| Average order | ₱1,500 |
|---|---|
| Fees per order at 10% (example) | ₱150 |
| Repeat-customer orders a month | 100 |
| Fees on repeat customers, per month | ₱15,000 |
| Per year | ₱180,000 |
Those are fees on customers who already know you. Moving even half of them to your own website, where a GCash QR costs nothing and a payment gateway costs a few percent at most, can pay for the whole website within months. A typical online store website in the Philippines costs ₱30,000 to ₱200,000+ depending on size (see our website cost guide), and smaller stores can start well below that.
3. What a good online store needs
Most Filipino shoppers browse on their phones, so everything below has to work well on a small screen first.
- Clear product pages: real photos, the price, sizes or colors, and whether it's in stock.
- Search and filters once you have more than a dozen products: by category, price and material or size.
- A cart that remembers what the customer added, even if they leave and come back later.
- A short checkout: name, mobile number, address and payment, with the delivery fee shown before they pay. Every extra step loses buyers.
- Payment options Filipinos use: GCash first, then Maya, cards and cash on delivery.
- Order updates by SMS or email: received, shipped (with tracking) and delivered.
- A Messenger or Call button on every page, because many buyers still want to ask before they pay.
- Simple policies: shipping times, returns and a privacy policy. Under the Data Privacy Act, you're responsible for the names, numbers and addresses you collect.
- An easy way for you to manage it: add products, update stock and see new orders without calling a developer.
Want an online store like this for your business?
We design a free homepage preview for your shop first, so you can see the look before you pay anything. Online stores with a cart and GCash checkout are quoted after a free consultation, based on how many products you have and how you deliver.
4. Getting paid: GCash, Maya, cards and COD
GCash by QR code (simplest, no fees)
Show your GCash QR at checkout with the exact amount and the order number. The customer scans, pays and sends a screenshot, and you confirm it by hand. There's no fee for you, but you have to check each payment before shipping, which takes time once orders grow.
A payment gateway (automatic)
Services like PayMongo, Xendit and Maya Business let customers pay by GCash, Maya, bank or card right on your checkout, and confirm the payment automatically. They charge a small percentage per transaction, usually a few percent depending on the payment method, so check each provider's current rates. It's worth it once you have more orders than you want to confirm by hand.
Cash on delivery
Many Filipino buyers still prefer to pay when the parcel arrives, so COD can lift your sales. The risk is the buyer who refuses the parcel, which leaves you paying shipping both ways. To reduce it:
- Confirm COD orders by text or call before you ship.
- Add a small COD fee, or offer a discount for paying by GCash.
- Ask for GCash prepayment on custom, made-to-order or high-value items.
5. Shipping and delivery fees
Couriers like J&T Express, Flash Express, LBC and Ninja Van deliver nationwide, and several handle COD collection for you. For same-day delivery in your own city, Lalamove and Grab Express work well. Then pick a fee rule your customers can understand at a glance:
- Flat rate by area: for example, one fee for your city, one for the rest of Luzon, Visayas or Mindanao.
- Free delivery over a minimum order: for example, free over ₱2,500. It's one of the easiest ways to raise your average order, because buyers add one more item to reach it.
- Store pickup: free, and useful for local customers who want the item today.
Whatever you choose, show the delivery fee in the cart before checkout. Surprise fees at the last step are one of the most common reasons people abandon an order.
6. Registering your online business
Selling online is treated like any other business. The BIR has required online sellers to register since 2020, and the Internet Transactions Act of 2023 expects online merchants to show who they are and how to reach them. For a small sole proprietor, the usual steps are:
- DTI business name registration (can be done online).
- Barangay clearance and mayor's permit from your city or municipality.
- BIR registration so you can issue receipts and file your taxes.
- Put your business name, contact details and policies on your website.
Requirements and fees differ by city and change over time, so confirm the current steps with your city hall and BIR office, or ask an accountant. This guide isn't legal or tax advice.
7. Getting your first website customers
A new website won't get traffic on its own. These bring in your first buyers:
- Send your existing customers there. Add the link to your Facebook page, Instagram bio, marketplace shop name card and parcel inserts, with a small first-order discount.
- Set up your Google Business Profile so people searching your shop name or products near them find you.
- Write proper product pages, describing what it is, the size, material and who it's for, so Google can match them to searches.
- Collect reviews and photos from happy buyers and show them on your product pages.
- Reward repeat buyers with a code they can only use on your website.
If you want help being found on Google, see our SEO service for small businesses.
8. See an example store
We built Habi & Co., a sample online store for handwoven Filipino bags and home goods, to show what a small-business store can do. Try it on your phone:
- Filter by category, material and price, and sort by price or newest
- Save items to a wishlist and open a quick view with colors and quantity
- A cart that slides in, remembers your items and shows how close you are to free delivery
- A 3-step checkout with GCash QR or cash on delivery, and an order confirmation
It's one of our custom web apps and business systems. Every store we build is designed around your products and how you deliver, and you see a free homepage preview before you decide.
9. Frequently asked questions
Do I need to register my business to sell online in the Philippines?
Yes. The BIR requires online sellers to register, the same as physical stores. Most small sellers register their business name with the DTI, get a barangay clearance and mayor's permit, then register with the BIR so they can issue receipts and file taxes. Check the current steps with your city hall and BIR office, or ask an accountant.
Can I accept GCash on my own website?
Yes, in two ways. The simple way is to show your GCash QR at checkout and ask customers to send a screenshot of their payment, which you confirm by hand. The automatic way is a payment gateway such as PayMongo, Xendit or Maya Business, which confirms GCash, Maya and card payments for you in exchange for a small fee per transaction.
Should I stop selling on Shopee or Lazada if I have my own website?
Usually not. Marketplaces are good at bringing new buyers. Your own website is better for repeat customers, because there is no commission per order and you keep their contact details. Many sellers use both: the marketplace for discovery, and their own store for loyal customers, bulk orders and promos.
Is cash on delivery worth offering?
For many Filipino buyers, yes, because some still prefer to pay when the item arrives. The risk is returned parcels when buyers refuse the order, which costs you shipping both ways. Many sellers offer COD only for confirmed orders, add a small COD fee, or ask for GCash prepayment on big or custom orders.
