Before,
online malls in the country can’t be barely counted or none at all. Competition
in online malls started to show up and online shopping started to be noticed by
local online users ever since Lazada came into the picture in the Philippines.
The industry of Ecommerce in the Philippines was quite low before they arrived
in the country. Online shopping was actually not a highly regarded option for
most users in the past. For local consumers who want to buy second hand items,
they usually visit local online classified ad websites. Conventionally,
customers prefer to go on traditional mall when they want to purchase something
brand new. It's actually not surprise since we all grew up going to traditional
offline malls when we need something.
In
online shopping, we fail to realize that we can actually save our time and
money. How can online shopping actually give us more benefits? Local customers
can actually shop anywhere you want with online shopping. They can actually
save more in gas expense since no longer will they need to visit the mall's
location. It is one of the issues that Lazada was facing when they established
their online mall website in the country. They are also facing an issue on how
they can tap the untapped local online market in the country. This was a large
portion of the population that is almost over 80% of the people in the country.
This is the reason why previous Ecommerce business in the country failed to
thrive since they were unable to tap the entire or most of the market in the
country disregarding if its offline or online.
It
was probably due majority of the population no owning a credit card, which is
the most common payment method in online. Having a culture that doesn’t trust
online transactions also has contributions to it. Probably it is because we are
aware of the existence of online frauds and scams. The online shopping industry
in the country is actually on the rise. To see the progress of Lazada online
mall making an impact on the local Ecommerce is quite amazing. One proof to
realize that they are as legit as they can be is they can be seen on TVC during
primetime from top local TV networks in the country.
Given
the limitations in Ecommerce, how did they solve it? They offered Cash on
Delivery or C.O.D. to their customers as an alternative payment method. It's an
online payment option that is not offered by online stores usually. It's
actually a very risky payment method that not all online stores are willing to
gamble. Customers are not actually required to pay upfront; instead they can
pay once their orders are delivered at their homes. They only require customers
to pay as their orders are handed over to them. No need for customers to worry
since they get to keep their money up until they receive their orders. This is
to kill the perception of local online users that shopping at their mall is
safe and secured.
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