How Lazada Helped Local e-commerce Take-off

There have been a lot of things happening lately in the local e-commerce industry. There is a company called Lazada Philippines  which seems to always come up in any conversation regarding local e-commerce. But what is e-commerce and why is it making such a big noise both locally and internationally. We are going to go through several definitions of e-commerce so that we will have a better understanding of what e-commerce is all about, how it affects the economy and the consumers. There have been a lot of studies made about e-commerce and multitudes of people have given various definitions to it. One of those organizations defines e-commerce as the operations, processing and technology that takes place when business transactions or interactions are done in an automated fashion over networks using information technology as the primary vehicle to facilitate those business interactions. Yet another trade organization defines e-commerce as the creation, production, marketing, distribution, sale or exchange of goods, products and services via electronic methods. E-commerce is the business method of the future and that future is happening now. It has been widely touted as one of the biggest technological and business innovation to ever hit or modern society. It is gradually capturing emerging markets as it progresses and it is slowly engulfing all economies including the developing ones. Even economies on developing nations that has been deemed as too backward for e-commerce are now embracing it as a normal way to do business. The widespread popularity of e-commerce can be widely attributed to the improvement in telecommunications infrastructure and proliferation of internet service providers over the years that offers cheap and convenient ways to connect to the World Wide Web. The rapid influx of gadgets that are internet ready and enables internet connection easily also contributed to the widespread popularity of the internet thus consumers are more inclined to try out new things that comes along with this technological revolution and one of those new things is e-commerce and online shopping. Let us talk about the online shopping website Lazada Philippines and how it affected the local e-commerce economy positively. Lazada has several characteristics that make it a perfect fit to local consumers, the following attributes pertains to how the company does its business and how each characteristic positively impacted the local e-commerce economy.

-The company sells mainly goods and products that are deemed as tangible which means that everything being sold on the website are categorized as hard goods. There are no services and other stuff that can’t be placed inside a box and packaged. That is why the company is classified as an online retailer.  

-There is no physical location or what other call shop. Everything is done online with the exception of the payment which in Lazada can be done through cash.

-Offer convenience, varied selection of goods and services as well as very competitive pricing. Competitive pricing has been made possible by the company because of lesser overhead costs compared to operating a fully functioning store that requires manpower, utilities, rent and other tangible resources to operate properly on a daily basis.

These positive attributes of Lazada made online shopping acceptable for many consumers and it helped online shopping and e-commerce take off the ground and get recognized as a legitimate way to do business transactions.