Friday, September 13, 2013

Lazada Philippines: A change of times in online shopping

Internet usage’s demand is ever growing with the help of mobile penetration; it catapulted Internet into the necessity side for most of local online users. The rise of Internet involves the explosion of social media and Ecommerce.  A good example is online shopping were it is taking its share in popularity among the local online users in the Philippines. Most of us never thought the local online market would accept it if we go back two to three years ago. It's actually expected since the rate of fraud in the country is high both in online and offline.

As a result, everyone in the country always reconsiders transactions online. Top websites in the country were local online classified ads in the buy and sell industry. They showed the ropes to the arrival of online malls by allowing online users to buy and sell on their website. In the marketplace industry, a community was created because of these buy and sell websites. The local audience didn't know where to go if they went to buy something when local online classifieds still did not exist in the country. Online users are using it as their measurement in pricing. It changed how online users perceive Internet connection on a more diverse aspect. These online ads website became an online place for local online users to buy and sell.

Local online users deal with third party resellers, unlike in Ecommerce. Customers usually prefer and go with offline transaction. Group buying websites also has its fair share for the local online user behavior. It paved way for the Ecommerce industry in the country. People were already familiarized with Ecommerce websites upon their arrival. People consider online shopping probably due to the fact that the reward is higher than risk. Customers who experience shopping on group buys websites found deals that can only be found on group buy deals. Their prices were way below the SRP that customers will have a hard time to pass. It was only last year when website like Lazada Philippines was launched in the Philippines. It is an "Amazon" type of venture present across South East Asia.

The Samwer brother owns this venture along with the other ventures under Rocket Internet as well. They made significant impact in the local Ecommerce industry with their offering of unconventional offline payment methods. The online payment methods they offer provide customers to be in control. Customers are only allowed paying via credit card or PayPal by most online malls. However, with this payment method alone, it limits the customers in making a transaction with online stores. Local online users first introduced C.O.D. or Cash on Delivery. This payment method helps them to tap the untapped marketing in the country. The majority markets are these customers who are unable to pay online the conventional way. This allowed the Ecommerce industry to reach new heights now that this market is tapped for online. It is one of the key executions they did in order for them to change how Ecommerce is now from before.



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