Sunday, August 11, 2013

Lazada Philippines: Expanding market reach in Ecommerce

There's no doubting that online shopping is a rising industry in the Philippines. Online users actually didn't find online shopping reliable a couple of years ago. One of the reasons is that we have a high fraud rate for both offline and online in the Philippines. It made online transaction unsafe to many of the local online users. Top websites in the country were local online classified ads in the buy and sell industry. 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 online classified weren't available yet, local online users didn't have an option online. Users go to these websites mainly to get an idea about market price of what they want to buy. It changed how online users perceive Internet connection on a more diverse aspect. Various visitors on these kinds of websites go there to buy and sell. This was very different from Ecommerce since it is being populated of sellable items care of third party resellers or suppliers.

Customers usually prefer and would highly likely go with offline transactions. This is the best way they can secure themselves on getting scammed as they deal in real time and face to face. Group buying websites helped influence the thinking of local online users. It paved way for the Ecommerce industry 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. Through group buy websites, local online users had a taste of great deals that is rarely found nowadays. Their deals were outstanding lower prices that any local online user would have a hard time refusing. Last year, Lazada Philippines arrived in the country. It is actually an online mall venture launched across South East Asia. The Samwer brothers own this venture under there German based company Rocket Internet. They are known for aggressively starting online business on rising economies all over the globe and provide them better service online.

With the Philippines’ Online Shopping Mall's payment methods, it helped them impact the local Ecommerce in the Philippines in a positive way. These allow customers to be in control since they get to choose from a lot of payment methods that was once unavailable to them. Conventionally, only via credit card or Paypal payment is allowed by conventional online malls. The conventional way of online payment is actually hard for most local customers since they don't have either of the two conventional payment methods online. They were one of the first online malls to offer Cash on Delivery or C.O.D. as an alternative form of payment method. As a result, this allowed them to tap the market that is still wary of online shopping. It is actually the majority of the population in the country. Ecommerce is now rising with this recently tapped market included in the customer mix.


    

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