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