Lazada is up to the ‘Challenge’: learning from their annual Lazada Seller Event
We were fortunate to join 100 sellers and other service providers last week to hear how Lazada plans to expand to become a truly global player and how it intends to
maintain competitive advantage as new threats including Amazon enter the market.
Key initiatives include:
As a global player, Lazada is striving to be a dominant player and a thought leader in the industry. They will be focusing on pushing their marketing effort to drive more visibility and increase market share by through more online and offline ads. They will also be working on more marketing tools and enticing more consumers to grab deals online and more importantly to educate public on benefits of online shopping.
2) Assortment challenge
There is a direct correlation between number of SKU’s offered by a seller and the number of sales they get. Lazada acknowledges that there is still a huge way to go to help sellers list all their products in online channels. Not every merchant has the technical capabilities and manpower to work on this and ends up listing only their top selling products. Product Data Management Platforms like CrescoData or Lazada Content Creation Services can help automate product uploads and solve this issue.
3) Price competitiveness
The second challenge that Lazada highlighted is the price competitiveness. With the spread of the internet, pricing is very much open and readily accessible by the consumer to compare. Lazada has launched ‘Lazada Price Challenge Tool’ that will equip all of their sellers to bid their lowest price in comparison to Lazada competitors. It Is a tool designed to feature certain SKU’s offered by the seller and it will appear on a separate price bidding website. All sellers can take a look at their price and competitor platform price offering. They will be subsidizing the difference between the lowest price offered by the seller and competitor elsewhere to ensure their price is always lower or comparable to other sites.
4) Order processing time
Finally once a consumer is is at point of purchase, order and delivery are the other challenges that sellers need to tackle to retain customer trust and satisfaction. All sellers need to be encouraged to process orders quickly. All orders should be confirmed and received it as soon as it is ordered. Sellers could consider synchronizing orders to their webstore, ERP system or their inventory management system to hasten this process. On top of that Lazada is adopting Alibaba’s statistic display of order processing time to ensure the customer can make their purchasing decision based on the seller processing time. They are also offering additional monetary rewards if sellers are able to achieve order processing within their stipulated time frame.
Lazada is ready for the battle, will their merchants get ready as well?