Sunday, August 4, 2013

Lazada: A new phase in Ecommerce

It's actually overwhelming to see that online shopping is now starting to become popular in the Philippines. This was actually difficult for online users to accept going a couple of years ago. One of the reason is that we have a high fraud rate for both offline and online in the Philippines. In the end, this made online transaction the least option to many local online users. In the local online space, local online classified websites were the premiere local websites closest to Ecommerce. Local online classified websites pave way to the Ecommerce's arrival in the Philippines. A community of marketplace was eventually built thanks to these local online classifieds.

During the time online classifieds were unavailable, local online users didn't know where to go when they want to buy something online. Online users are using it as their measurement in pricing. These expanded how online users can be fully maximized.  A lot of people go to their websites to buy and sell on their own. The local traffic is actually dealing with third party resellers and the website itself. Customers usually prefer and go with offline transaction. Local online users made an impact to local online users. They paved way for upcoming Ecommerce websites in the country. At the time that Ecommerce websites arrived in the country, local online users were already prepared. Online shopping to local online users have more upside than downside. The risk of online to offline shopping is incomparable. Conventionally, customers are required to pay first in online before their orders are processed and delivered to the customer’s address. This is puts the customer’s on the ropes as they need to pay first without having any assurance about their orders if it will arrive late or not at all.

A lot of convincing deals was offered by group buy websites, which can't be found anywhere. A lot of deals are being offered way lower than it is supposed to by group buy websites, making it harder for customers to ignore. It was a year ago when website like Lazada arrived in the Philippines. One of the online mall ventures that is launched in South East Asia. It is venture under the Rocket Internet umbrella that is owned by the famous Samwer brothers. With Lazada's payment methods, it helped them impact the local Ecommerce in the Philippines. With so many payment methods available, this allowed online customers to be in control. It is usually credit card or PayPal that allowed to be used for paying online by online malls. These conventional online payments restrict customers to avail what they want since most of us don't have our own credit card or PayPal account. Local online consumers were introduced with Cash on Delivery as their alternative payment method online. In the Philippines, it allowed the untapped market to be tapped by them. It is the majority of the local consumer market in the country. Moreover, by tapping on this market, the Ecommerce have grown exponentially.


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