Marketing World
Posted on 12:11 PM, July 23, 2015
By Nickky Faustine P. de Guzman
Filipinos still prefer spot payment over credit card transactions: Lazada CEO
A MASSIVE ONLINE shopping sale of up to 80% off means two things: a booming e-commerce Web site and an opportunity for first time e-shoppers to test the waters of buying online.
“Trust is still an issue. We want them to try online shopping, and we are taking the steps toward highlighting its benefits,” Lazada Philippines CEO Inanc Balci said of the company’s blowout sale opportunities on July 21-26.
Lazada sells electronic gadgets, fashion and beauty items, home appliances, toys, and travel tools, among others.
Online sales are one way to persuade customers to try the convenience of online shopping, as a hefty percentage of Filipino buyers still prefer traditional shopping.
A Google Shopper Study in June 2014 said that security and product quality are the top two barriers to online shopping in the Philippines. The study showed 45% of traditional shoppers or non-online buyers are worried over the security of their financial details and transactions while 36% are unsure of the warranty of their online purchases.
“There is a clear disconnect between the perceptions of non-online shoppers and our customer experience, highlighting the need to gain their trust to dispel the barriers to online shopping,” said Mr. Balci.
He added that 75% of Lazada shoppers still opt for cash-on-delivery transactions over credit card payments, “again, because of trust issues.” Also, he said the Philippines has a small number of credit card holders, who are also mostly concentrated in Metro Manila.
According to Mr. Balci, Lazada has a buyer protection program, which guarantees that products are genuine, new, and not defective.
In line with its “effortless shopping campaign,” Lazada invited members of the media to visit its warehouse in Muntinlupa and see how every item is signed, sealed, and delivered. The warehouse works 24/7, and on average, it gets 20,000 online purchases every day -- which usually double in sale seasons.
Opened in 2012, Lazada is the Philippines’ top online shopping site according toSimilarweb.com, an analytics Web site. The same site ranks Lazada 16th among online shopping sites across the world. Amazon has the top spot.
According to Mr. Balci, Lazada gets 3-5 million views per day. The peak season usually starts during the -ber months.
“Page views are usually higher on weekends. On weekdays, shoppers usually check the site during office hours,” he also said, smiling.
Lazada has a presence in Thailand, Singapore, Hong Kong, Indonesia, and Malaysia, but the Philippines has the most operations, with 1,350 all over the country.
Mr. Balci said Filipino online shoppers are mostly women, unlike in other Asian branches, where men dominate online shopping.
Lifestyle products like toys, home appliances, and everyday needs like diapers, are the most purchased items in the Philippines.
ONLINE SHOPPING TIPSWhen asked on the downside of online shopping, Mr. Balci said there was none, save for the waiting; a product usually comes at least three days after purchase.
For first-time online shoppers, Lazada had eight tips:
1. Check news articles about a shopping Web site to ensure it’s not a temporary online shop that will disappear after getting your money.
2. Check if a Web site has a buyer protection policy.
3. Only use your credit or debit card on sites with a padlock icon in the URL bar, which means the site uses secure communications to prevent third-party eavesdroppers.
4. If you don’t receive an acknowledgement e-mail or text from an online shop after a purchase, call the shop for verification.
5. Choose a reputable and secure payment method.
6. Research, compare, and even ask friends’ opinions before buying an item. Make sure the site has a return policy.
7. For fashion purchases, pick the right size by using the size chart features. Take your measurements and check for international size conversions (UK, US, EU, and Japan).
8. Always read the product details before buying.
Lazada sells electronic gadgets, fashion and beauty items, home appliances, toys, and travel tools, among others.
Online sales are one way to persuade customers to try the convenience of online shopping, as a hefty percentage of Filipino buyers still prefer traditional shopping.
A Google Shopper Study in June 2014 said that security and product quality are the top two barriers to online shopping in the Philippines. The study showed 45% of traditional shoppers or non-online buyers are worried over the security of their financial details and transactions while 36% are unsure of the warranty of their online purchases.
“There is a clear disconnect between the perceptions of non-online shoppers and our customer experience, highlighting the need to gain their trust to dispel the barriers to online shopping,” said Mr. Balci.
He added that 75% of Lazada shoppers still opt for cash-on-delivery transactions over credit card payments, “again, because of trust issues.” Also, he said the Philippines has a small number of credit card holders, who are also mostly concentrated in Metro Manila.
According to Mr. Balci, Lazada has a buyer protection program, which guarantees that products are genuine, new, and not defective.
In line with its “effortless shopping campaign,” Lazada invited members of the media to visit its warehouse in Muntinlupa and see how every item is signed, sealed, and delivered. The warehouse works 24/7, and on average, it gets 20,000 online purchases every day -- which usually double in sale seasons.
Opened in 2012, Lazada is the Philippines’ top online shopping site according toSimilarweb.com, an analytics Web site. The same site ranks Lazada 16th among online shopping sites across the world. Amazon has the top spot.
According to Mr. Balci, Lazada gets 3-5 million views per day. The peak season usually starts during the -ber months.
“Page views are usually higher on weekends. On weekdays, shoppers usually check the site during office hours,” he also said, smiling.
Lazada has a presence in Thailand, Singapore, Hong Kong, Indonesia, and Malaysia, but the Philippines has the most operations, with 1,350 all over the country.
Mr. Balci said Filipino online shoppers are mostly women, unlike in other Asian branches, where men dominate online shopping.
Lifestyle products like toys, home appliances, and everyday needs like diapers, are the most purchased items in the Philippines.
ONLINE SHOPPING TIPSWhen asked on the downside of online shopping, Mr. Balci said there was none, save for the waiting; a product usually comes at least three days after purchase.
For first-time online shoppers, Lazada had eight tips:
1. Check news articles about a shopping Web site to ensure it’s not a temporary online shop that will disappear after getting your money.
2. Check if a Web site has a buyer protection policy.
3. Only use your credit or debit card on sites with a padlock icon in the URL bar, which means the site uses secure communications to prevent third-party eavesdroppers.
4. If you don’t receive an acknowledgement e-mail or text from an online shop after a purchase, call the shop for verification.
5. Choose a reputable and secure payment method.
6. Research, compare, and even ask friends’ opinions before buying an item. Make sure the site has a return policy.
7. For fashion purchases, pick the right size by using the size chart features. Take your measurements and check for international size conversions (UK, US, EU, and Japan).
8. Always read the product details before buying.
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