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Month: April, 2013

Lazada: Service improvements that make it worthwhile for the customers


Rocket Internet is known for launching Ecommerce websites across the globe. Their most recent launch, Lazada was launched across South East Asia. They are available in countries like Philippines, Malaysia, Thailand, Vietnam and Indonesia. They are clone of Amazon in the United States. Lazada was just launched last year and a lot of people were very skeptic on how it will turn out. First of all, everyone knows prior to their arrival that Ecommerce isn’t that strong enough yet compared to other countries. Although a lot of other countries or region already adjusted to the idea of online shopping as their alternative destination when they want to shop.  In Asia, it is way different. To make it less complex, Asia was simply almost a dead Ecommerce industry. It’s amazing how the owners of Rocket Internet, Samwer brothers, envisioned a dream of putting up online stores all over Asia.


To me, Asia has great potential for businessman. The competition for them is really low at that time and that it’s something new for countries where they launched. In the Philippines, Lazada launched in the country and local Internet users are unaware of what exactly is Lazada. There was no competition for them in the country. The closest competition they with the local online business are top local classified ads and group buy websites.


Beyond that, the only online shopping mall offering enormous selection like no other in the country was only Lazada Mall. This online store came in the country prepared in my own opinion. When they arrived, they introduced the alternative payment method called Cash on Delivery or simply called C.O.D. Their overall service was focused mainly to bring the best online shopping experience a customer should get. By allowing Cash on Delivery option on their online store for customers to pay their orders, this allowed anyone to become customers of Lazada. Conventionally, when customers buy online they should have either their own credit card or at least a Paypal account to make transactions online. Since majority of the Filipino market are neither credit cardholders nor PayPal users, this made online transactions very challenging on a business standpoint. So what they did is they allowed anyone to pay in cash as well. Giving limitations and restrictions is bad for business. If the customer can pay in cash, why deprive them the online shopping experience. With the C.O.D. Lazada actually taps the untapped market in the Philippines. Anyone can buy what they want online in their website and pay Lazada later. What they only need to do is provide the shipment address and recipient name of their orders. Customers are only required to pay when their order is deliver right in front of their doorstep. This setup for customers obviously gives them advantage. It only shows how determined this online store is to convince locals that they are a legit online store and they can be trusted. Along the way there were a lot of weak points in their service, which they drastically already improved on


LazadaPH: Control is given to the customers


Ecommerce in the Philippines is on the verge of rising for the past couple of years now. I guess the growth of the Philippines’ economy helped. What truly amazes me is how online shopping is becoming an accepted alternative to Filipinos. In the past, online shopping was only available outside country.  I needed to pay extra fee for International rate shipment. All in all, it was actually expensive to buy from an online store then. I only choose online shopping for items that are not available in the Philippines. Beyond that, I go through the traditional offline shopping. But things changed for the past couple of year. Since the arrival of group buying websites, it paved way for local Internet users to get familiarized on how online shopping is done by the time they arrived in the country. Since Filipinos are already experienced in online shopping, it gave online stores an advantage since they don’t need to start from scratch in building up the online shopping trend in the country.


One particular online store that made a difference when they arrived is Lazada Philippines. This online store was only launched last year. They were one of the first online shopping mall that was launched in the country with a wide scale of online marketing support, which made their presence known to online Internet users way faster compared to its competitors. Lazada is actually modeled after the Amazon website which is having a huge success in the United States and recently Mexico. It’s actually launched across South East Asia. They are available in Thailand, Malaysia, Vietnam and Indonesia as well. What Lazada offers to customers that other competitors don’t have is their ability to offer Cash on Delivery. This alternative payment method allows customers to order from their website without worrying about paying them right away. Customers can order anything they want and have it directly delivered at their preferred shipping address. All the customer’s need to do is just provide the recipient name and shipment address without paying up front. Lazada usually takes two to five days for the delivery process.  One the order arrives, that’s the online time customers are required to pay in cash. This payment method was first introduced in the country by Lazada Philippines. By allowing this type of alternative transaction, it allows any Filipino to experience online shopping whether they are credit cardholders or not, which is usually the conventional payment method with online shopping malls. It’s actually one of the problems that made Ecommerce penetration difficult for some online stores. Sadly, majority of the population are unable to do online transaction. Either they don’t have credit card, Paypal account or just don’t trust online shopping at all. With C.O.D., it helps Filipinos that only have power to pay in cash to Lazada Philippines. This is also a safe alternative for anyone who doesn’t trust online shopping stores since they don’t require to be paid right away.



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