Online shopping
has been around for quite some while now in the country. A lot of the local
consumers have already diverted to online shopping and barely does offline
shopping already. With the emergence of online malls here and there, online
shopping is reaching all-time high in popularity in the local online community.
The great thing about this trending is that online malls are way convenient
than traditional malls like SM. On these offline malls, we usually get tired
just walking around and at times end up realizing that what we want to buy is
not available. This is the advantage of online shopping as you can do it
whenever you are.
One website that
is established in the local online stage is Lazada Philippines. They just
launched last year but already is the main player in the local Ecommerce
industry. At the time of their arrival, online shopping was still not this big.
It only started to rise after they arrived in the Philippines. Since they
arrived in the country, other competitors were launched out of nowhere. It’s a
great change for us in online scene where we usually just go online to
communicate or if we are in need of information and watch videos. But now we
can also go online to shop, how cool is that? It has been around dating back in
the early 2000. However, the country didn’t adopt along with the other
countries where it’s already a lifestyle. We only adopted last year. Despite
that span, the growth and results of Ecommerce tremendously increased while
dramatically supplanted previous year’s Ecommerce growth combined.
I think a lot of
this has to do with payment method that is available in the country.
Traditionally, it’s via credit card or paypal account that a customer can pay
online. But in our country, we also have other unconventional payment methods
such as Cash on Delivery or much well known as C.O.D. This payment method is
very unusual to be offered online. It has been a successful payment method
already before Internet was even born in the country. Although it was only
offered for food delivery to customers only then, offering this same payment
method online is a different story.
The risk of
offering Cash on Delivery in online gives the business a very high risk. The
reward for this is very high on the brighter side. This also quickens their
credibility to their customers since they won’t need to worry if the online
store they are buying from is a scam. In case orders don’t get delivered, they
still get to keep their money. Unlike the other way around, if a fake customer
orders from them, they have already spent money on delivery and even paid for
the item in advance in case they run out of stock and bought it from their
supplier. It’s the reason why it is rarely offered in online.
The good thing
about Lazada is that it actually was a success for them. It quickly built their
brand and fast-forward their success in less than a year. Thanks to their
efforts and initiative it opened the local customers eyes to online shopping.