Lazada and Shopee, two major Southeast Asian e-commerce platforms, each has its own unique characteristics and competitive advantages. This article will compare and analyze their origins, traffic, brand strategy, number of sellers, commissions, logistics timeliness, main categories, store levels, loan cycles, and payment order types to help sellers better understand the two platforms so that they can make a wise choice.
Background and Development
1. Lazada was founded in 2012 and is headquartered in Singapore. It covers six Southeast Asian countries including Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam, serving about 500 million consumers. In 2018, Alibaba invested US$2 billion and held 83% of the shares, making Lazada an Alibaba platform, replacing AliExpress’ role in the Southeast Asian market.
2. Shopee was created by Sea Group, which became the first technology company in Southeast Asia to be listed on the New York Stock Exchange in 2017. Shopee entered the e-commerce field in 2015, and its GMV reached US$1.9 billion and US$2.2 billion in the first and second quarters of 2018, respectively, with rapid growth.
Traffic competition
1. In terms of traffic, Lazada has a larger overall traffic, but not Taiwan. In the Indonesian market, Shopee has a stronger traffic performance. The total traffic of the top three markets of the two platforms has exceeded Wish.
2. Lazada is implementing the “six sites in one” plan to achieve the interconnection of traffic at each site.
Brand strategy
1. Lazada tends to have a high-end image, pays attention to seller brand building, and emphasizes the professional standard of pictures.
2. Shopee’s brand strategy is more similar to Taobao, focusing on the C-store route and product price advantages.
Number of sellers
1. According to the statistics of super store managers, taking the Malaysian site as an example, the number of **Shopee** stores is 230,000, while the number of **Lazada** stores is 140,000, and the number of sellers on Shopee is 1.5 times that of Lazada.
Commission
1. The commissions of the two platforms are not much different. Lazada’s commission is generally 1% to 4% (6% to 8% in Vietnam) + 2% (payment fee), while Shopee’s commission is 3% to 5%. The lower commission encourages sellers to actively join.
Logistics Timeliness
1. Lazada uses the official logistics LGS, and the timeliness is about 10 days for signing. Sellers can also choose to ship by themselves.
Main categories
1. The main categories of the two platforms are highly overlapping, mainly including daily necessities, electronic products and fashion products. At the same time, 60% to 70% of users are young women.
Store level
1. Lazada stores are divided into ordinary stores, brand flagship stores and official self-operated stores.
2. Shopee stores are divided into ordinary stores, preferred stores and mall stores.
Loan cycle and payment order type
1. The loan cycle of both platforms is relatively short, about 10 days.
2. Both platforms are divided into online payment orders and cash on delivery orders, and sellers can freely choose whether to enable cash on delivery.
Conclusion
Comprehensive analysis
Lazada and Shopee are competitive giants in the field of e-commerce in Southeast Asia. They have their own characteristics in terms of traffic, brand strategy, number of sellers, commission, logistics timeliness, main categories, etc. Sellers can choose the right platform according to their business needs and goals. No matter which platform you choose, you need to have a deep understanding of its characteristics and rules to ensure success in the highly competitive market.