Expanding Business with E-Commerce in Southeast Asia

Expanding Business with E-Commerce in Southeast Asia

June 18, 2024 0 By Rowena Cletus

In the post-pandemic world, e-commerce is a prime opportunity for business expansion. By 2025, Southeast Asia’s digital commerce user base is expected to exceed 400 million, according to a report by Lazada, Synagie, and GroupM.

Economic Challenges and Consumer Behavior

However, the rising cost of living is a significant concern for consumers. A 2023 Euromonitor report revealed that 74% of global consumers are worried about the increasing cost of everyday items, prompting 44% to prioritize saving money.

Meeting Consumer Needs: Value and Convenience

E-commerce sellers must offer value-hacking options to help shoppers stretch their budgets while providing personalized, convenient shopping experiences. Lazada offers various tools to help sellers boost their online sales and meet these consumer needs.

Lazada’s Tools for Sellers

Promotion Tools

Promotions are key to capturing buyers’ attention and helping them get the most for their money. Sellers can use Store Flash Sales and Seller Vouchers to offer attractive discounts, engage customers, boost sales, and build brand loyalty.

LazCoins Discount

LazCoins rewards frequent users with discounts and exclusive gifts, increasing product visibility and driving traffic to sellers’ stores. Lazada’s 2024 Birthday campaign saw a threefold increase in coins redeemed compared to the previous year, showing consumers’ growing savviness with promotions.

Free Shipping Program

Free-shipping vouchers can attract potential buyers, increase average spending, reduce cart abandonment rates, and foster customer loyalty. Lazada’s report highlights free shipping as one of the top four factors driving buyers to complete their purchases. The survey showed that 46% of shoppers clicked the free-shipping option while browsing.

Sponsored Solutions

Lazada’s suite of Sponsored Solutions helps increase brand visibility, optimize campaign results, and provide valuable support for navigating the eCommerce landscape. As of 2024, over 600K sellers across the region have used these solutions, enjoying up to 10x ROI. Key solutions include:

  • Sponsored Discovery: Enhances store visibility in Lazada’s search and recommendation placements. With 94% of shoppers purchasing from ‘Search’ results and 71% from ‘Recommendation’ results, this tool is powerful for reaching the right audiences.
  • Sponsored Affiliates: Leverages Lazada’s network of affiliate media and KOL partners, ensuring access to a wide pool of potential buyers off-platform.

Campaign Participation

Participating in Lazada’s campaigns, like the 12.12 All Out Year-End Sale, offers immense visibility. In December 2023, local sellers across Southeast Asia experienced a five-fold increase in sales within the first 12 hours, with electronics sellers seeing a nine-fold increase compared to regular days.

Continuous Learning and Resources

Lazada provides free resources for sellers, including Lazada University, a hub of online courses designed to enhance skills and knowledge in the fast-paced eCommerce market.

By leveraging these tools and resources, e-commerce sellers can effectively expand their businesses and meet the evolving needs of consumers in Southeast Asia.