In the Philippines, online shopping is slowly becoming the norm. Before pandemic, people preferred visiting physical malls, outlets and shops. However, with the emergence of online shopping, people discovered a better way to purchase products. Several reasons is that it saves time, energy, and money.
Online shopping has flourished over the years and Lazada, Shopee, and Zalora played a significant role in shifting this consumer behavior.
Enhanced Traffic on Online Shopping
Lazada, Shopee, and Zalora are the most visited online platform in the Philippines. Due to Covid, many people have shifted focus from physical to online shopping. Companies modified their sales dynamics and focused on having an online stores. This has made online shopping easier for people.
Online data shows that Lazada is visited by 34 million people every month. Similarly, more than 19 million people visits Shopee and above 2 million on Zalora. These three unicorns are dominating the e-commerce industry occupying the most part of the market share.
Increased Spending on eCommerce
Since the emergence of the e-commerce industry, Lazada, Shopee, and Zalora encourages people to spend more by initiating endless promos and discounts. With every double number in the calendar becomes a Black Friday sale (11.11, 10.10), consumers got more inclined to purchase items in these platforms.
Philippines is now hailed as one of the rising stars in the eCommerce industry with a dramatic increase in consumer goods revenue with an estimated total of $4Billion in the year 2020 that is projected to rise to $15Billion in the year 2025.
Cash On Delivery (COD)
Before Lazada, Shopee, and Zalora emerged as online shopping titans, most platforms did not provide ‘Cash On Delivery Mode’ and just accepted card payment. Due to this feature, many people were reluctant to buy products online.
The convenience they brought to the shoppers enabled the company to gain much traction. This facilitated a boosted trend in online shopping behavior.
Made Selling and Buying Easy in the Philippines
Lazada, Shopee, and Zalora revolutionized online shopping in the Philippines. Before, it was pretty difficult for brands to find online selling platforms that people visited the most. Today, these brands found the perfect place to sell their products. These platforms also offer masterclasses for first-time merchants to encourage more people to create an online business. Moreover, at the dawn of the pandemic, there’s a dramatic increase in online selling since some filipinos lost their day jobs.
Convenience became one of the top priorities for online shoppers as they could find different brands and wide selection of products to purchase delivered at their doorstep.
Personalization played a major key role in customer engagement. These sites use A.I. to determine browsing patterns and purchase history. Instead of driving conversion alone, these platforms prioritized an experiential approach which resulted to a distinct level of engagement to its users.
The streamlined process of selling, purchasing and logistics is the formula that made these platforms dominate the eCommerce industry.
Marketing
Customer experience is the core strategy of these platforms. You can see their ads everyday in multiple channels. They use international superstars and local celebrities to acquire a larger customer base.
Another distinct approach that these platforms are doing is the intelligent use of Google ad words through flexibility bid. This method enables organizations to automate their expense per-click which results into reaching ROI augmentation, cost per procurement, permeability and change amplification.
