Lazada is an eCommerce marketplace in Southeast Asia. It started in 2012, and got acquired by Alibaba in 2016. Currently, Lazada operates in Singapore, Malaysia, Philippines, Indonesia, Thailand and Vietnam. For most of the countries, sellers only sell on the local platform. However, sellers in Malaysia may also sell in Singapore as Cross Border Sellers, and sellers invited to be on board Lazada’s Cross Border scheme may sell their products in all 6 countries.
During the Covid 19 pandemic outbreak, many brick and mortar sellers in these countries have considered posting their products on Lazada to improve sales. Along the way, many sellers may question if being on Lazada is better or starting their own eCommerce website works better for them. Here’s some advantages of selling on Lazada.
Lazada spends alot of money on marketing, especially during their campaign seasons. The season that brings the most sale is 11.11 (11th of Nov every year), when Lazada splurges on all kinds of marketing activities to boost sales. Getting your products on Lazada means you ride on their marketing spend, without even having to spend a single cent. You may argue that even with all these marketing efforts you need to still compete with the rest of the sellers on the platform. This is true, and that means you should put in more effort in listing details and making sure your products are attractive. On usual days, you may also find your listings appearing on Google searches due to Lazada’s marketing efforts on Google as well. It’s all free for you. Why not?
Hosting your own eCommerce website can mean spending money on hosting fees and the fees are dependent on how many products you list, as well as your traffic. You may also need to attend to potential problems with servers going down during sale periods. However, selling on Lazada frees you up from such problems. You may totally ignore any technical problems and Lazada will ensure that the website is up and running especially during sale seasons. In fact, Alibaba prides itself as being able to keep their website running even with crazy high traffic during sale seasons.
Access to Other Markets
Lazada currently does not allow many sellers to get on board as Cross Border sellers. However, once you get familiar with selling on Lazada in one country, it’s easy to replicate this skillset and knowledge to the rest of the markets once you find an open door. The interface is 95% similar. In fact, if you can register a company in China and get your products to Lazada’s fulfilment warehouse in China, you can register a Cross Seller account with Lazada and sell to all 6 countries in Southeast Asia.
In the long run, we definitely encourage every eCommerce business to ultimately start their own websites. This is when your brand gets more recognition and you know that there is a market for your products. However, for a start, getting on Lazada is the best move for market testing of your products. Your barrier of entry is almost zero, and you get immediate exposure to more consumers. As long as you put in effort in decorating your listing and store, and maybe, even spend some ad dollars within Lazada to get faster exposure if you wish, you will definitely see some fruits out of your Lazada listing.
Hope this helps! Feel free to connect with me to learn more about selling on Lazada, whichever country you are from! 🙂