The main study area is "An Evaluation of an Open Source e-Commerce Tool for Philippine Small and Medium Enterprises in Makati City" and the objective of the study was to examine the relevance, acceptability and competency of the FreeCRM tool as assessed by the Owners, IT Administrators, and CRM users' based on their needs such as business requirements, cost, ease of use and reliability. It identifies the problems encountered by the respondents while using the FreeCRM tool and also proposes an action plan that will benefit the SMEs in the Philippines. The research methodology used is a descriptive method of research; the researcher used Nonprobability Sampling method thru Convenience Sampling which relies upon convenience and access. The respondents were Owners, System administrators and CRM users they were approached were given and Questionnaire used in the data gathering technique. Data were treated using Percentage and Frequency Distribution, Standard Deviation, Ranking and Weighted Mean. The findings revealed that the Open Source c-Commerce Tool (FreeCRM) is generally acceptable to the respondents in terms of their business requirements, cost, ease of use and reliability.