Ecommerce in the country was a
struggling industry going back to late 90’s and 2000’s. Although it was a
thriving industry for most rich countries then when it just started, countries
like the Philippines was still unable to adapt to it. Basically, we are not yet
ready for that kind of technology since we were behind technology wise. It only
started to change when online mall like Lazada Philippines arrived in the country
last year. Actually, numerous online malls were launched in the country and
online shopping started to be a popular option for consumers ever since the
Philippines’ Online Shopping Mall arrived in the country. Looking a few years
back when they weren't around online, Ecommerce was a flat industry in the
Philippines.
Most local online users, online
shopping is not highly considered option for them. For local consumers who may
want to buy second hand items, they usually visit local online classified ads.
Traditional malls are often visited by customers who want to buy brand new
items. It's actually inevitable for us to visit traditional offline malls when
we want to buy something since we grew up that way. With online shopping, local
online consumers can actually save their time and money.
So how can these help us in our
shopping needs? They can shop online as they please, wherever that may be.
Expenses can go down since local consumers won't need to spend travel expense
on going to traditional offline malls. It was an issue that was long endured by
local customers that Lazada wanted to solve for them. It's also challenging for
them to be able to tap the untapped market in online of the Philippines. Most
of the population in the country is actually non credit cardholders; therefore
they are unable to pay online. Having a culture that doesn't trust online
transactions also has contributions to it.
With Internet, online frauds and
scams will always be present in online transactions. The local Ecommerce in the
Philippines is now starting to grow. The Philippines’ Online Shopping Mall is
just over one year of operation but they managed to make an impact on the
Ecommerce industry. Their recent appearance on TVC from top local TV networks
during primetime just shows how legit and credible they are to the local online
customers. What did they do to break the Ecommerce limitation in the country?
They first introduced Cash on Delivery or C.O.D. as an alternative payment
method.
It's a payment method that is not
just offered typically by online malls. This payment method is risky from a
business standpoint for most online business owners. It is not a requirement
for their online customers to pay right away with this payment method. They
only require customers to pay as their orders are handed over to them. This
enables customers to keep their money up until their orders are handed over to
them in real time. This is more of insurance for customers that they are
actually a legit online store.
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