May I Know Where actually do you usually go shop online ?
Shoppee are among your go-to sites for buying stuff on the internet.
Indeed, these two e-commerce platforms dominate as online shopping destinations in the Philippines. Based on a Kantar Worldpanel survey, about 84 % of Filipinos would rather buy from established e-commerce companies despite having many more alternatives in the market.
Lazada in Philippines wins the popularity game, with twice as many monthly web visits (32 million versus 16 million, according to the latest iPrice report) as its competitor. But Shopee Philippines is quickly catching up with its catchy ads and attractive pricing. With the e-commerce competition in the country getting more intense, the two companies come up with their own ways to win more customers.
Which between Lazada VS Shopee is the better e-commerce platform in the Philippines for example? This comparison review should give us a glimpse on how each company fares in different aspects of e-commerce and customer service, so we can make an informed decision on where to shop online.
What Business Models of Shopee VS Lazada ?
Before we begin comparing Lazada and Shopee, it's important to understand first their respective business model, which affects their pricing, user experience, delivery speed, and other e-commerce features.
The two leading online shopping sites use different business models.
Lazada has a combination of retail and marketplace models. It started and continues to use a retail model in which it managers and sells inventory from its own warehouses.
Eventually, it added a marketplace model, opening its doors to third-party merchants who sell their products using the e-commerce platform.
Shopee works a bit differently, adopting a purely marketplace model. This means all products sold on the site come from third-party retailers. Because it doesn't have its own inventory or warehousing, it uses third-party logistics companies for product deliveries.
Lazada and Shopee also differ in terms of generating revenues. In addition to the sales from its retail business, Lazada charges third-party sellers a commission fee for every item sold through the site. On the other hand, Shopee doesn't charge commissions. There's no official information online on how exactly Shopee earns from its business.
Desktop and Mobile User Experience
User experience in e-commerce refers to how easy it is to navigate a website and perform transactions such as order placement, tracking, cancellation, and refund.
Which Website Is Easier To Use On Desktop ?
Lazada and Shopee websites are user-friendly, complete with easy-to-search and varied shopping categories and filters (based on price range, brand, color, rating and so on) that help visitors find the exact product they need.
Both of these e-commerce sites have a Help Center section (in question-an-answer format) that let people find easily the information they need about transacting with the site. They also have their own built-in chat service that allows people to directly message sellers for inquiries. Lazada takes it a step further with its " Questions about this products" feature where prospective buyers can post questions about the product and get responses from the seller. Others can read the questions and answers on the product page, which help them make an informed buying decision.
Also, the whole transaction process - from browsing products and placing an order to paying for the purchase - is smooth on Lazada and Shopee.
Lazada needs to improve on the accuracy of its product search results, though. If you sort the items from the lowest to the highest prices, for instance, the first page shows some items that are not exactly on the search term.
Take this search for "air fryers" as an example. The cheapest items shown on the first page are not actual air fryers. Either they're different items (e.g., BBQ fryers, air filters, etc) or add-on items for air fryers.
Back to Lazada and Shopee, one handy feature that Lazada has (and Shopee lacks) is the Wish List section that lets users bookmark items they consider buying later. When you add a product to your Wish List, you an come back to it later when you're ready to order it - no need to spend time browsing for the particular product again.
Which Provies Better Mobile Experience : Lazada App or Shopee App ?
The Lazada App load faster and has a neater, more organized design than the Shopee app. Lazada's products pages have more detailed and easy-to-read product descriptions with more images that its competitor.
The Lazada app is easier to navigate, too. When you open a product page, you can quickly go to sections like Rating and Recommendations without scrolling down the page, as the links can be tapped on the top of the screen. This makes it easy for mobile users to find great deals on the product they'll buy.
The Shopee app is easy to browse as well. But it needs to improve on its speed, as its Home Screen, search results, and images in product pages take quite a while to load.
The two e-commerce site have the same range of products: men's and women's clothing, groceries, electronics, personal care, appliances, and more. Customers may even buy prepaid cellphone load from Lazada or Shopee.
However, Lazada has a wider product selection than Shopee, with over 10 million products versus the latter's three million active listings. This means you're more likely to find most of your preferred items on Lazada vs Shopee.
Although both online shopping sites provide great deals, Shopee generally offers lower prices than its competitor, particularly on gadgets, clothes, toys, and bags. Selling cheaper items has earned Shopee the monicker "online Divisoria" among Pinoy online shopping enthusiasts. Shopee sellers are able to reduce their prices since they don't pay commission fees.
For example, an IPhone X (64GB) currently costs PHP 58,989 at Lazada.
But an IPhone X with the same specs costs PHP 49,500 at Shopee. The price difference is substantial at PHP 9,489.
There are other reasons why Shopee is a more cost-saving option for online shoppers. For example, some of its sellers offer discounts to customers who buy in bulk. Customers can even haggle cheaper prices with sellers through chat.
Some merchant on Shopee sell second-hand or pre-loved items, providing more affordable options for shoppers on a tight budget.
Shopee also has a Lowest Price Guarantee feature that allows customers to claim 120% of the price difference (in Shopee Coins, which can be used to get discounts on next orders) if they find the same product with a lower price from its main competitors, Lazada and Zalora.
Lazada and Shopee offer a variety of payment options for customers. Both websites accept cash on delivery (COD), credit card, debit card, and GCash payments. They also have their own in-store digital wallet for purchase transactions and receiving and storing refunds.
Which Company Offers More Payment Options ?
Shopee has more payment methods compared to Lazada, though. Shopee customers can pay for their online purchases through online banking, over-the-counter bank deposit, Coins.ph, remittance centers, and payment centers.
Lazada currently doesn't have those payment options for customers. The e-commerce company used to accept payment through PayPal, but it has discontinued this out over three to 36 months.
However, Lazada offers a flexible payment method that Shopee doesn't: Installment payment plans that can be used with or without a credit card. For a minimum purchase of PHP 3,000 at Lazada, you can have your payments spread out over three to 36 months.
Do you prefer the security you can get from using COD to pay for your online purchases ? Manage your expectation: COD isn't available for all items, sellers, and location in the Philippines. This goes for both Lazada and Shopee.
Sellers on both platforms may choose to enable or disable the COD option for customers for all or some of their products. Also, COD may not be offered in your shipping address.
COD is further restricted for certain customers of Shopee. Failure to receive your Lazada orders twice or more will get you into its COD blacklist, which means you can't use COD as a payment option for 90 days.
In terms of promised delivery time, the two e-commerce sites don't differ much, except for Shopee's longer overseas delivery time and Lazada's longer delivery time for shipments to Mindanao via sea for example.
Return and Refund
Based on feedback posted by customers online, it's easier to return an item to Lazada vs Shopee. With Lazada, customers dissatisfied with their order can fill out a return request form online, drop off the item at the courier, pay for the delivery fee, and wait for the replacement or refund.
Returning items is more frustrating and inconvenient for Shopee customers, as they request it directly from sellers, some of whom may be difficult to deal with and may not grant a refund. However, Shopee may intervene between the two parties to resolve the issue.
Lazada Compared Shopee : Final Thoughts
So, which between the two leading online shopping sites in the Philippines is better : Lazada or Shopee?
It depends on your priorities as a shopper. If you want to save more on your purchases (including shipping costs), Shopee is the better place to shop. If you prefer to have items delivered fast, then go with Lazada.
Both e-commerce companies have their pros and also cons, so it's best that you compare their prices, products, services, etc. when you do your shopping online.
@ Jackie San