Lazada e-commerce platform has rapidly emerged in the past two years and has become a rising star in the Southeast Asian market. However, along with it came various false rumors about the platform in the market. Although the Southeast Asian market is a blue ocean market, as long as sellers are careful enough, they can effectively avoid these problems. Let’s take a deeper look at the advantages and disadvantages of Lazada e-commerce platform.
1. Advantages of Lazada e-commerce platform:
1. Low cost investment: Lazada has a lower initial investment compared to other e-commerce platforms. Sellers do not need to pay annual fees and deposits, and the platform only charges a 1%-4% commission. In addition, sellers do not need to worry about tariffs. As long as a single package does not reach the tariff amount, it will not be affected. Sellers only need to invest in the purchase cost of the product, and the logistics cost will be paid by the Lazada platform, and then deducted from the product loan later.
2. Reasonable logistics price: Lazada sellers can ship from domestic, and the logistics cycle is usually around 7-15 days. In addition, overseas warehouses do not charge storage fees, but only charge operating fees based on product weight.
3. The platform releases money quickly: Since Lazada uses official logistics for delivery, sellers can get money on Friday after the logistics shows that the goods have been delivered. The period from delivery to loan release does not exceed three weeks. For local stores, as long as the seller delivers goods quickly, the loan release period will be shorter.
2. Disadvantages of Lazada e-commerce platform:
1. Insufficient platform service: Currently, Lazada platform does not have a dedicated investment manager to connect with sellers, and new sellers can only consult through the platform customer service. However, the untimely response cycle of customer service is a big test for new sellers.
2. Limited platform data: When selecting products, sellers usually need to understand market demand through platform data analysis. However, Lazada involves local and cross-border sellers, resulting in more confidential data information. At the same time, industry data is not public, and for cross-border sellers, future development is an unknown.
3. Payment method issues: Currently, Lazada adopts cash on delivery in most areas, which may lead to some return problems.
As an emerging hub, the Southeast Asian market is one of the fastest growing regions in the world. With the rapid development of the Internet, the average time spent on the Internet per capita in Southeast Asia is also increasing. Although the Lazada e-commerce platform has some disadvantages, sellers can still succeed in this market full of opportunities and challenges by fully understanding and avoiding them. I hope that sellers can make good use of the Lazada platform to open up a broader market, realize more business opportunities, and also be able to efficiently respond to some challenges of the platform.