Lazada, as one of the most influential e-commerce platforms in Southeast Asia, mainly focuses on B2C, that is, the sales model of business to customers. After entering Lazada, sellers can upload their own products and display them to the majority of users, which provides sellers with a high-quality product display platform. At the same time, Lazada also provides official logistics LGS, which ensures efficient logistics distribution, and the cost is more economical than third-party logistics.
On Lazada, sellers usually have two main business models to choose from: distribution and boutique operation. These two models each have their own advantages and disadvantages. Sellers need to choose the appropriate model according to their own situation to achieve the best results.
1. Distribution model.
The distribution model is an option for many novice cross-border sellers. In this model, sellers do not need to prepare and select products in person, but obtain a large amount of supply from platforms such as 1688 through tools such as ERP systems, and then put these products on the shelves in batches in their own stores. This method reduces cost pressure, while helping to attract more potential customers and help stores develop rapidly.
Although the distribution operation is relatively simple, it requires a lot of work. First of all, some products may lack traffic because they do not meet the needs of buyers, so sellers need to regularly update, remove, and re-distribute products to ensure that the products are purchased. In addition, the requirements for suppliers are relatively high because a stable supply of goods must be ensured.
2. Boutique operation mode.
In recent years, more and more sellers have adopted the boutique operation mode on Lazada. This refined operation method has high profit potential and is relatively easy to create best-selling products, thereby bringing more conversions and revenue to the store.
Boutique operation requires that the number of products in the store is not high, usually around 30-40 pieces, because the most important thing is the selection of products. Only by selecting the right products and then carefully polishing them can best-selling products be created and a best-selling product group be formed, thereby bringing greater benefits to the store.
However, boutique operation has relatively high requirements for operators and requires strong data analysis capabilities. Sellers need to use data analysis to understand which products may be liked by buyers to ensure that there will be buyers to buy the products after they are put on the shelves. This is different from blindly listing products on the shelves, and traffic needs to be attracted through active promotion and exposure.
It should be noted that Lazada’s distribution and boutique operation models each have their own advantages and disadvantages, and no model is better than the other. Which model to choose depends on the seller’s specific situation and business strategy. Sellers should carefully understand Lazada’s business model to determine which model is most suitable for their store, so as to increase competitiveness, attract more traffic and improve conversion rate.
In summary, as an e-commerce platform full of opportunities, Lazada provides sellers with a variety of business model options. Both the distribution and boutique operation models have their own unique features. Sellers can choose the most suitable model according to their own situation and business strategy to achieve success and achieve sustainable development of the store. No matter which model is chosen, sellers need to continue to learn and improve to adapt to the ever-changing market environment, improve their own competitiveness, and provide customers with a better shopping experience.