Detailed explanation of Lazada’s operating model and its advantages in Southeast Asia’s e-commerce field
As a major e-commerce platform in Southeast Asia, Lazada has attracted the attention of the industry with its unique operating model and broad market coverage. The Lazada model is becoming the first choice for entrepreneurs and brand merchants to develop e-commerce in Southeast Asia. This article will take an in-depth look at Lazada’s operating model and its advantages in the e-commerce field in Southeast Asia.
Realistic Lazada model
The Lazada model focuses more on localized operations than other platforms. It has an in-depth understanding of consumer behavior and market needs in Southeast Asia and provides practical business solutions for brands and sellers. The following are several key features of the Lazada model:
a. The model is concise and clear
In Lazada mode, the order process is simple and efficient. The customer places an order, the seller delivers the goods, and the payment is settled. Sellers do not need to communicate directly with customers, which saves a lot of time and labor costs, allowing sellers to focus more on running their own stores.
b. Maintain seller reputation
The Lazada platform provides a relatively complete protection mechanism and attaches great importance to protecting the rights and reputation of sellers. Compared with the over-protection of consumers by some platforms, Lazada only intervenes in customer refunds and returns in cases of product defects, logistics errors, forced returns, inconsistent dispute resolution, etc. This method ensures that orders can only be shipped after being strictly inspected by the platform, providing sellers with a more stable and reliable trading environment.
c. Localized operations
For e-commerce in Southeast Asia, localized operations are crucial. The Lazada model fully takes into account the characteristics and cultural habits of each country’s markets and provides customized solutions. By cooperating with local logistics and payment partners, Lazada ensures a smooth delivery and payment experience and improves user satisfaction.
Lazada model with huge potential
Southeast Asia is considered the blue ocean of cross-border e-commerce, with huge potential and opportunities. E-commerce penetration in Southeast Asia is still low compared to other regions, but it is gradually growing.
The Lazada model has unlimited expansion potential in this market. It gives entrepreneurs and brand merchants an opportunity to quickly enter the Southeast Asian market and seize this rapidly growing opportunity. With the help of Lazada’s platform resources and localized operation model, brands and sellers can better meet the needs of Southeast Asian consumers and achieve rapid business growth.
Introduction to Lazada platform operating model
In the Southeast Asian market with a population of 550 million, Lazada took three years to build itself into the largest e-commerce platform in the region. In a situation where international e-commerce giants represented by Alibaba and Amazon have not yet begun their deployment, Lazada has used its localization advantages to blaze its own path in Southeast Asia, a huge market where opportunities and challenges coexist.
Lazada initially adopted a self-operated model, mainly focusing on 3C products (computers, communications, consumer electronics). After accumulating a certain number of users, the Lazada platform began to expand product categories, open it to merchants, and transformed into a platform type enterprise. In order to create a closed-loop ecosystem, Lazada also built its own logistics and payment systems to lay a solid foundation for the company’s future development.
Currently, Lazada’s annual operating revenue has exceeded the US$1 billion mark, with 60,000 registered users and more than 20,000 merchants. Since 2015, Lazada’s transaction volume has increased significantly. In March alone, the transaction volume reached US$1.3 billion, a year-on-year increase of 350%. It can be said that Lazada has established a huge leading advantage in Southeast Asia.
Positioned in the global market, Lazada has cross-border genes flowing in its blood. There are teams dedicated to the operation and management of the Lazada platform at different sites. They have a certain degree of independence, which ensures that Lazada can adapt to local conditions and manage flexibly. key. In addition, there are close connections between different sites on the Lazada platform. For example, they will be unified for purchase and investment by the cross-border business team located in Hong Kong, China.
Lazada currently uses an operating model that combines self-operation and an open platform. Both suppliers and merchants on the platform can sell their products to Southeast Asian countries on the Lazada platform. Lazada’s open platform operation method allows companies to draw on the power of many merchants to increase the category of platform products and expand the richness of SKUs.
Although Lazada started late compared to many international e-commerce giants, it has a huge late-mover advantage. Lazada can fully learn from these international e-commerce giants and draw on their successful experiences to enable itself to grow rapidly. For example, by learning from China’s e-commerce companies, Lazada has borrowed and adopted the logistics and infrastructure construction of JD.com’s platform and Tmall’s B2C operating model.