Sunday, August 11, 2013

Lazada expanded the local online market in the Philippines

Online shopping phenomenon in the country just keeps on growing everyday. Two years ago, online shopping was in a different place, a place was people don't consider them at all. One factor is that both online and offline scams have a high rate here in the country. It made online users shy away from even considering online transaction. Initially, local online classified ads were the top websites in the country in the buy and sell industry. Local classified websites helped prepare the arrival of local online malls. They somehow conditioned the local online customers to get a feeling on what is like to do conduct shopping online regardless if payment was done offline or online.

These top local classifieds online created a marketplace community in online. The local audience didn't know were to go if they went to buy something when local online classifieds still didn’t exist in the country. Mainly it was used for price comparison for items they are planning to buy these expanded how online users can be fully maximized.  It turned to be a buy and sell platform for most local online users. Unlike Ecommerce, these are third party resellers who deal with the website visitors. It's most likely that transaction is being done offline by third party resellers. It actually became the online platform were buy and sell enthusiast meet up and check what each one of them has to offer. At times, they even offer for a swap instead of an actual sell.

Group buying websites also influenced the local online users. This strengthens the preparation of local online users for the Ecommerce industry. In the Philippines, local online users were already familiar by the local Ecommerce websites were launched. Local online users have a lot to gain than loss. Customers who experience shopping on group buys websites found deals that can only be found on group buy deals. Their offered deal was at rock bottom price that it made local online users not to miss out on their deals. It was a year ago when website like Lazada arrived in the Philippines. The Philippines’ Online Shopping Mall is actually an online mall that is part of a venture in South East Asia. It is powered by Rocket Internet, which is owned by the Samwer brothers. They made significant impact in the local Ecommerce industry with their offering of unconventional offline payment methods.

The online payment methods they offer provide customers to be in control. Traditionally, credit card payments and PayPal payment are the most common payment method allowed by conventional online stores. This hampers the customers in availing the items they want since they are limited in paying online the conventional way. The online payment method Cash on Delivery helped customers to avail online payment more. This allowed them to tap the untapped markets, which are the non-credit cardholders or PayPal account users delete the majority market are these customers who are unable to pay online the conventional way. Moreover, by tapping on this market, the Ecommerce have grown exponentially.

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