Since its launching in 2012, Lazada revolutionized the way people shop, and has always been the leader in innovation that make online shopping more convenient, secure and fun.
It has also transformed the retail and logistics landscape, allowing brands, B2C sellers, thriving entrepreneurs and third-party logistics to become more open to untapped opportunities.
We have transformed from being just a marketplace to providing efficient logistics services to our sellers and customers
When Lazada first started operations in the Philippines, it understood that a great majority of consumers were still unbanked or apprehensive when using credit cards for online purchases.
What seemed a major problem has turned into an opportunity for the company to pioneer in the industry. Lazada introduced the concept of cash on delivery or CoD and enabled those without cards to shop. Eventually, e-wallets and use of deposit accounts where introduced’ allowing more options to shop online.
As industry leader, Lazada firmed up its logistics and operations ecosystem that further enhanced and improved seller and customer experience. Lazada made sure the entire parcel journey, from pickup, packing and delivery to the customer was safe, secure and fast.
The company continued to improve its operations model to boost efficiency, part of which entailed investing to do more in-house activities.
“We have transformed from being just a marketplace to providing efficient logistics services to our sellers and customers. We have moved to a situation where Lazada is handling and managing the majority of our pickups for marketplace and fulfilling last-mile delivery,” says Pavez.
By building a robust operations model and logistics ecosystem, Lazada has been able to introduce new services such as “Premium Service” delivery where shoppers in select locations are given the option to be able to receive their parcels the same day or the following day.
When Alibaba began investing in Lazada, this allowed the company to further scale its logistics, most notably through the expansion of its warehouse and storage hubs.
In 2018, Lazada started the operations of a warehouse in Davao, allowing the company to reach more consumers efficiently, while providing a gateway for sellers from Mindanao to offer their products to a wider market.
As the market is projected to constantly grow, Lazada is geared to lead the industry as it will continue to grow its capacity and capabilities and seek solutions to deliver customer satisfaction.
“If there’s anything that rising businesses may learn from our seven-year old story, it’s honestly basic — always have a customer-centric mindset. What will set you apart is going above and beyond as you do exactly that,” Pavez concludes.