Analysis and platform comparison of Amazon Lazada store opening in Southeast Asia

Lazada, as an e-commerce platform established in Singapore in 2013, relied on its deep understanding of the Southeast Asian market to become the largest e-commerce platform in the region in just three years. Its annual turnover has reached one billion U.S. dollars, its average daily views have reached 4 million times, and the number of merchants has exceeded 15,000. It is worth noting that since Amazon has not officially entered the Southeast Asian market, Lazada dominates the local market. Its transaction volume increased significantly in 2016, exceeding US$1.3 billion in a single month, a year-on-year increase of 350%.

Which sellers is it suitable for?

Lazada is considered by many to be the Amazon of Southeast Asia, but in fact it is more like a combination of Amazon and Wish – all Wish orders come from mobile applications, while Lazada develops both PC and mobile terminals. For sellers with Amazon or Wish operating experience, it will be very easy to open a Lazada store. However, if you are a seller from AliExpress or eBay, you need to adjust your business strategy. Lazada currently has six sub-stations, and except for Vietnam, the other five countries are open to Chinese sellers. New sellers will usually first settle on the Malaysian site, and based on performance, Lazada may invite other sites to be opened.

Requirements for opening a store

The threshold for opening a store on Lazada is not high. Only a company business license and a legal person identity certificate are needed to complete the registration. The information required to be submitted includes:

• Registration form (full names of the company and applicant in both Chinese and English are required, and the address must be filled in in English)
• New MP Seller Account Information form
• Copy of company business license
• Copy of legal person’s identity document

After the above materials are submitted and reviewed, the Lazada platform will send the online signing contract and registration link to the email address provided by the seller via email.

Comparison of Amazon, Lazada and Wish platforms

As international retailers have entered the Singapore market, they have provided local consumers with more diverse products and services. Among many platforms, competition among Amazon, Lazada and Wish is particularly fierce.

Amazon

As one of the world’s largest online retailers, Amazon offers a wide range of product categories, including but not limited to books, movies, music, electronic products, home furnishings, etc. Amazon is an ideal choice for Singaporean consumers looking to purchase goods from the United States or other international brands.

Lazada

Compared with Amazon and Wish, Lazada’s advantage is its ability to provide localized products, which means that products that can be found in physical stores can also be found on Lazada. In addition, Lazada also cooperated with Alibaba to introduce Taobao Selected Channel.

Wish

The Wish platform is known for its personalized shopping experience. Users can filter products based on personal preferences and receive corresponding recommendations. Many of the items on this platform come from China, so prices are relatively low, but the quality may not be as good as other platforms.

Comparison of logistics and distribution services

Amazon

Amazon has canceled its previous free shipping policy for orders over $125. Now consumers need to choose paid express delivery or become a Prime member to enjoy free shipping.

Lazada

Lazada offers free door-to-door delivery for orders over S$40. For products on Taobao’s selected channels, you only need to spend SGD 20 to get free shipping.

Wish

Sellers on the Wish platform often sell goods at low prices, but the shipping costs are relatively high.

To summarize, although the three platforms have some overlapping product categories, they still have their own characteristics: Amazon is suitable for buying American brand products, especially when buying high-priced products, and Lazada is more cost-effective because of its low shipping costs. Popular for its rich selection of localized goods; Wish is another place where you can find high-quality and affordable goods made in China.