If you have been trying out your luck to put your name in Southeast Asia's progressive eCommerce market, surely, you have been contemplating this question for some time now: "Lazada or Shopee— which is a better choice for my business?"
Although, it is true that selling both platforms doesn't have much of a difference. However, carefully choosing between Shopee and Lazada as your launchpad is crucial to your business' initiation phase; and that begins when you maximize resources and browse through an online bookstore in the Philippines first. At the same time, these platforms are a great place to launch a business, and choosing between these two is more difficult than it seems.
To begin, keep in mind the important aspects to consider which mostly revolve around the following:
- What do you want to sell?
- The most comfortable marketplace fee pricing system
- The internal logistics system for shipping on each platform
- The typical operating time frame that each choice follows — and how to change or bypass it.
Take a look at the lowdown on the pros and cons of Shopee and Lazada:
(Photo from the wires)
Lazada
Due to its wide target audience, Lazada is usually preferred as the best platform to begin with. No wonder this has appealed to sellers ever since. In the eCommerce landscape, a bigger audience sometimes equates to many opportunities that pave the way to success.
Lazada is a subsidiary of the world's most triumphant eCommerce company named Alibaba. That being said, it's only natural that Lazada is well-equipped in terms of providing an option-rich, most convenient, and easiest shopping experience in the region.
Check out a couple of drawbacks and benefits that you'll most likely encounter when starting a business in Lazada:
Pros
1. Huge user base- This shouldn't be a surprise that it provides an extensive range of possible prospects for rising in sales and establishing brand awareness. Incorporated with an innovative strategy, reaping its benefits in a fairly short period of time is not nonviable.
2. Seller tools and resources- One thing that Lazada does is continuous crafting of new effective tools on the market. For example, Lazada Academy offers training and lessons on paid advertising and effective selling. You'll find this platform's support helpful as a first-time or seasoned seller.
3. Inventory assistance and shipping- They eradicate the hassle of going through the shipping process since the platform takes care of that for your business. Plus, they have a storage facility that stocks your inventory at a cheaper price.
Cons
Aside from the advantages mentioned above, be wary of these challenges that you might stumble upon:
1. Commissions and fees- For many years, their commission structure has been perceived as a source of struggle as it depletes a big chunk of a store's profit income.
2. Customer support- There's no live customer support for sellers and whenever their assistance is needed, the seller has to email them for two or more business days for a response.
Photo from the wires
Shopee
With a smart and solid marketing campaign, Lazada's biggest competitor— Shopee, become a popular household name in a short period. No wonder this platform is renowned in Southeast Asia, specifically in the Philippines. Try browsing more to online bookstores in the Philippines to know more about this niche.
Pros
Cons
- Scam listings- Due to its success and popularity, it's inevitable that aspiring sellers want to utilize their platform- which includes scammers. Although it indirectly affects a seller, new customers become wary and skeptical of trusting Shopee sellers.
- Payout processing- While Shopee has a secure payment scheme for customers, it doesn't work the same for the sellers, especially for the canceled deliveries. It becomes troublesome for sellers to have their profit since it will only be credited to them once the customer confirms they have received the item.
Final Verdict
The more seller-friendly platform between Lazada versus Shopee boils down to the fact that Shopee wins the race; despite the beneficial perks of both Shopee and Lazada. On the other hand, if your goal is to have a great user experience as a seller, Shopee provides more security and quick response to seller inquiries.
Don't hesitate to explore more business books in one of your favorite online bookstores in the Philippines. Try maximizing your resources and look for helpful guides that will help you start a successful business.