Online marketplaces are significant these days for both buyers and sellers.
Lazada is Southeast Asia’s leading and most powerful eCommerce marketplace. It is an online store that assists sellers in gaining exposure for their products. These marketplaces benefit from an expanded variety of products without introducing any new inventory because these online stores act as a bridge between sellers and buyers.
Becoming a seller on Lazada is simple, and it takes less than 10 minutes to sign up, which is faster than grabbing lunch. Best of all, it’s free to sell on Lazada, you only pay a small commission when someone buys your products, so it’s a win-win situation.
Is Lazada A Good Platform For Dropshippers?
Lazada is the largest eCommerce website, has over 27,000 registered sellers. If you are in South East Asia and want to showcase and sell your products online, Lazada could be a good option. Lazada receives over 16.08 million visitors per month, a large audience to market any product, and earns the trust of both buyers and sellers.
It also teaches sellers how to set up their shops and increase their sales with the help of Lazada University. One of the most significant advantages of selling products on Lazada is that you do not have to pay for leads or advertising upfront.
Yes, selling on Lazada is free. You only pay when you begin selling an item, and that is it; there is no other cost. There are no fixed fees, listing fees, or additional hidden charges on Lazada.
We can say that these online marketplaces have advantages and can help you grow your business as a seller. However, we must weigh both advantages and disadvantages of selling on Lazada.
Advantages Of Lazada For Dropshipping
1. Increase Sales From a High Traffic Channel
The scale of their online presence is the main advantage of selling on Lazada. As previously stated, only Lazada Malaysia attracts approximately 16 million visitors per month.
A massive online audience to market your products to. You will never be able to attract this many customers if you open your store. So, when you choose to sell on any of these marketplaces, you get a ready-made audience.
2. Acquire New Customers
Customers who visit Lazada for the first time are unlikely to search for your specific store. However, they may be looking for a product that you have listed in your store. Once you’ve gained a customer through these massive online retailers, you can turn that customer into a buyer by providing excellent service and fulfillment.
3. Shipping and Logistics
Lazada has a robust online presence as one of the top eCommerce stores. They have strong and powerful Logistics and shipping terms, so you get the benefit of Fast and reliable shipping with the help of this marketplace.
4. One-Click Product Upload
With the Bulk product uploading feature on Lazada, you can upload products quickly and easily. Simply select all of the products and upload them all at once.
5. Effortless Inventory Management
Get rid of the need to update your inventory now and then constantly. You can set up easy synchronization between your online store and list with Lazada integration.
Disadvantages Of Lazada For Dropshipping
1. Marketplace Fee
Setting up a shop on Lazada has the potential to increase and supercharge your online sales, but it does come with some limitations in the form of a Marketplace commission fee. You must be well-versed and have a good understanding of your profit margin limits as well as any fees you may be paying for these marketplaces provide in selling your products.
2. Limited Control
Marketplaces exist not only to help your business but also to grow your business. As a result, they make sure their customers’ attention is focused on the products rather than the sellers.
This could be a game-changer for a lot of sellers. They restrict a lot of things to ensure there is no direct communication between the buyer and seller. Aside from that, you have little control over how your store appears on these marketplaces.
3. Heavy Competition And Prices Wars
According to a source, Lazada claims to have over 155,000 local and international sellers, as well as over 3,000 brands reaching out.
Say, for example, for the keyword “Gucci handbags,” you’ll notice that there are nearly 1836 items in Lazada that match that exact keyword.
Suppose that 10% of this number represents the number of stores selling “Gucci handbags,” you will be competing with approximately 183 other sellers. That’s a lot of competition for a small niche like “handbags.”
You can begin to consider the benefits and drawbacks of using a marketplace for your business; however, it is crucial to understand the marketplace that is best suited to your needs.
It would be enticing to “Join Immediately.” However, as previously stated, these marketplaces have their processes and limitations. So it’s up to you to decide whether or not you want to participate.
Anyways, keep in mind that simply selling on your eCommerce store does not preclude you from selling on any of these marketplaces. You can sell to benefit. The most important factor is customer trust. Simply make a wise decision and see how it goes.
Lazada is the most popular marketplace in Southeast Asian countries. The ability to sell across borders makes it very appealing to foreign sellers looking to establish a presence in new markets.
And if you’re someone who is looking to scale his business or boost its efficiency, this is the place to be. Check out this article on how to scale dropshipping.