Thursday, August 29, 2013

Lazada: A move that shook the local Ecommerce

We usually go online to get information when it first started. Eventually, it evolved more than its original purpose such as a medium to communicate and eventually retail.  Online shopping is taking its share in popularity among the local online users in the Philippines. Just a couple of years ago, shopping online was a risk to most of us a couple of years ago. Most of the frauds and scams happen online beside offline in the Philippines. This made online transactions unattractive for most local online users. Local online classified websites were the preferred websites by local online users when they want to shop the arrival of local online malls in the country was actually prepared by these local online classifieds.

An online marketplace was eventually created because of their online presence. When people want to buy something online, they didn't have option yet when local online classifieds didn't exist yet. It became a venue for pricing benchmark on the items that user want to buy. This usage allowed Internet users to find online more diverse in use. More online users go to these types of websites in search for buy and sell prospects. Local online users deal with third party resellers, unlike in Ecommerce. Third party resellers on these kinds of websites usually conduct Offline transactions. Group buying websites also had the same influence on the local online users. It helped the customers be prepared in online payment for the arrival of Ecommerce websites in the country.

By the time of Ecommerce website launching, local online users were already prepared. One reason why online shopping was ever considered is because they can gain more than what they are risk. Group buy websites showcased great deals that can't be found from others. With the great deals being offered by group buy websites; it makes it harder for customers to refuse them. Lazada Philippines was eventually launched in the country last year. They are an online mall venture available in South East Asia. Rocket Internet owned by the Samwer brother’s supports them. The Philippines’ Online Shopping Mall significantly helped the local Ecommerce in the Philippines through their diverse payment methods. These online payment methods help customers decide which is more suiting on their payment capabilities.

Online stores usually only accept PayPal or credit card payment from their customers. The conventional way of online payment is actually hard for most local customers since they don't have either of the two conventional payment method online. They were one of the first online malls to offer Cash on Delivery or C.O.D. as a alternative form of payment method. The payment method allowed this online store to tap the untapped market in the Philippines. As a matter of fact, this is the majority market in the country.  This allowed the Ecommerce industry to reach new heights now that this market is tapped for online. The growth of Ecommerce in the country was evident ever since they made their move.

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