Sunday, June 30, 2013

Traditional Malls are more expensive than online malls

During the early years, investing on an Ecommerce industry business was really challenging to anyone in South East Asia. The capable to pay online market audience were actually still very low at that time. Majority of them are not even credit card owners. To make it worse, online transactions are only considered by a few credit card owners. Anyone in the Internet is actually aware of the existence of online frauds and scams. It's only logical for any person to trust offline business over online business. Since offline business is done in person, it gives us a security blanket over online transactions. But some of us are overlooking the other online stores who offer better discounts than traditional online stores.

Usually, online malls offer better discounts and pricing since they don’t pay for their store rent like how offline malls do. This makes online shopping malls more attractive to customers since they offer regular discounts and promos. This is actually an obvious tactic that they needed to do in order to lure customers to online shopping. Lazada, which is launched across South East Asia, is one of those ventures. Lazada is an online mall that offered one of the biggest selections in the country similar to what we see being sold on traditional malls. Their introduction of Cash on Delivery as an alternative payment method was the first time offered by an online store. This payment method actually helped them catapult to one of the leading players in the online industry. Despite just turning one year of existence last April, they managed to become of the key players in the market. Their competitors were launched only after Lazada was launched in the country early last year.

Upon their arrival in the Philippines, clearly showed that they now realize the potential of the local Ecommerce industry. Time will only tells us on how online shopping will become in the next coming years. With this mall's unusual approach in the local market, they managed to win the customer's side. Since C.O.D. is available, customers who are only able to pay online can become customers but anyone who can pay cash as well. It dramatically increased the number of potential customers since anyone can pay in cash. Besides have an awesome alternative payment method, they also offer free delivery availability as long as the transaction value exceeds one thousand pesos. Once the one thousand-mark transaction value is met, the Philippines’ Online Shopping Mall will waive the shipment fee. It makes it easier for customers to choose online shopping over offline shopping since they are offered Cash on Delivery with Free Delivery availability. This offer actually saves any customers a lot of money from unnecessary spending that we don’t usually realize when we do our shopping on traditional malls. There are mall dining, travel costs and worst of all, you tire yourself walking inside the mall. We also pay lower the price for items we buy online since it’s usually with a discount and promo.

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