Lazada vs Shopee : Which One is Better in The Philippines?

The shopee vs lazada philippines. Where do you usually shop online? Chances are, Lazada and Shopee are among your go-to sites for buying products on the internet.

Which is better, Shopee or Lazada? Indeed, these two e-commerce lazada vs shopee philippines platforms dominate as online shopping destinations in the Philippines. 84% of Filipinos would rather buy from established e-commerce companies despite having many more alternatives in the market.

The convenience and significance of online shopping were further highlighted last year when the pandemic started. Due to lockdowns implemented left and right, people were left with no alternative but to source their needs online.

It seems nothing will change over the next few years. Online shopping is here to stay, but you have to pick the platform that will give you wider options, more reliable service, and of course, value for money.

Business Models of Lazada vs Shopee

The Lazada online shopping has a combination of retail and marketplace models. It started and continues to use a retail model in which it manages and sells inventory from its own warehouses. 

The Shopee online shopping 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.

Shopee and lazada marketing 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.

See also: Marketplaces in the Philippines

Popularity 

The Lazada is among the pioneers that made online shopping big in the Philippines. Thanks to its wide assortment of products at cheap prices, many Filipinos find the platform a great place to find what they need and want.

Shopee, on the other hand, came to the Philippines in 2015. And while it was relatively new, it slowly took market share from Lazada. As of the first quarter of 2021, Shopee has more than 54,600,000 monthly web visits, making it the most visited e-commerce shop in the country. Lazada comes second with monthly visits of 38,286,700. There is a difference of 16,313,300, which is undeniably a significant figure.

Lazada’s rank on the App Store is #2, while it’s #1 on the Google Play Store. Meanwhile, Shopee ranks #1 on the App Store and #2 on the Google Play Store.

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?

The shopee and lazada similarities e-commerce sites have a Help Center section (in question-and-answer format) that lets people easily find 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.

The Lazada takes it a step further with its “Questions About this Product” 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.

The 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.

Which Provides Better Mobile Experience : Lazada App or Shopee App?

The Lazada app is easier to navigate. When you open a product page, you can quickly go to sections like Ratings 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.

On the other hand, the Shopee app is quite cluttered. Its overall color, which is orange, makes the interface look packed and messy. Meanwhile, Lazada’s overall colorful scheme, which is white, is easy on the eyes. The color allows the user to easily read the text and ultimately find what they are looking for.

The Shopee app may be easy to browse, but it still needs improvement on its speed as its Home screen, search results, and images in product pages take quite a while to load.

Product Range

The two e-commerce sites 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 loads from Lazada or Shopee.

Lazada has probably the widest range of products across different categories. As of this writing, the online shop claims that it has 300 million stock-keeping units (SKUs) available. Shopee obviously has millions of products, but there’s no specific number available. Looking at this comparison, it’s likely that you’ll find most of your preferred items on Lazada vs Shopee.

Both Lazada and Shopee market share offer a money-back guarantee if the customer receives a non-authentic product from their mall. But Lazada has an edge over Shopee in this area as it promises to give its customers five times their money back.

Prices 

Although both online shopping sites provide great deals, Shopee generally offers lower prices than its competitors. Shopee sellers are able to reduce their prices since they only have a small commission fee.

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.

Shopee also has a Lowest Price Guaranteed (LPG) feature. This gives shoppers 1.2x the value of the price difference via Shopee coins if they find the same product at a lower price from Shopee’s list of approved competitors, which includes Lazada and Zalora.

Sales and Promos

Both lazada vs shopee tend to go all out when it comes to hosting big sales and promotions. Both companies already hosted successful online sales earlier every year with another big promotion every year.. Let’s take a look at what will happen during the sales every year.

Lazada Local Sale

The Lazada and the Department of Trade and Industry (DTI) will highlight the best of the local shopping scene by featuring Filipino sellers and brands. Customers will also be able to score up to 88% discounts off items from fashion, electronics, and general merchandise that are proudly Pinoy. The sale also comes with free nationwide shipping with PHP 0 minimum spend.

Shopee Flash Sale

The Shopee’s sale follows a different format. As the promo’s banner name suggests, there will be surprise sales, such as PHP 8 flash deals and midnight flash deals. The sale also comes with free shipping capped at up to PHP 55 with PHP 0 minimum spend.

Payment Options

Lazada and Shopee offer a variety of payment options for customers. Both websites accept cash on delivery (COD), as well as credit cards, debit cards, 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 payment options have more methods than Lazada, though. Shopee customers can pay for their online purchases through online banking, over-the-counter bank deposits, Coins.ph, remittance centers, and payment centers.

Lazada payment options currently don’t have those methods for customers. The e-commerce company used to accept payments through PayPal, but it has discontinued this payment option.

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.

Lazada vs Shopee : COD Restrictions

The lazada vs shopee philippines 2021. Do you prefer the security you get from using COD to pay for your online purchases? COD isn’t available for all items, sellers, and locations in the Philippines. This goes for both Lazada and Shopee.

COD on Lazada follows some specific rules. For instance, this mode of payment is only available for orders below PHP 25,000. COD will also be removed as a payment method when buyers refuse to accept COD parcels or there are repeated incidents of failing to receive the package after the second delivery attempt.

Shopee has a similar rule. Buyers who have two or more failed COD orders will not be able to use the COD function. The said payment option will be suspended for 90 days.

Delivery 

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.

Which Delivers Faster?

But when it comes to actual deliveries, this is where Lazada beats its main competitor. Orders usually arrive within the given delivery time frame or even earlier than expected. Some customers even receive their orders within 24 hours.

Shipping is a hit or miss at Shopee, depending on the logistics provider used for delivery. Deliveries via Grab Express and Ninja Van are fast, according to feedback from Shopee customers posted online.

Which Provides Same-Day Delivery?

Shopee vs lazada reddit sites offer express delivery options to customers who need their orders ASAP.

Lazada can deliver on the same day an order is placed before 1 p.m. This service is available in select areas of Greater Metro Manila, Laguna, Cavite, Cebu, and Davao. Delivery fees start at PHP 96 and may vary based on the item’s weight and size.

Shopee offers express delivery through its logistics partner Shopee Xpress, which delivers within one to three business days. Shipping fees may vary based on the size of the item being delivered.

Which Has Cheaper Shipping Fees?

If there’s a huge letdown for Lazada customers, it’s the site’s expensive shipping fees. This may be the trade-off for its fast delivery time. Strangely, shipping fees for some items are higher than the product price.

Lazada launched new shipping rates effective March 2021. Rates have become cheaper, starting at PHP 41.50 (previously at PHP 45). You can check the new rate card here. Keep in mind, though, that this rate is only applicable to products with lower weight bands.

Shopee, on the other hand, gives sellers the liberty to set shipping fees. This means that shipping could be free, or there could be discounts for a minimum order if the seller is generous and considerate enough.

Buyer’s Protection

A noteworthy feature that gives Shopee an edge over Lazada is its Shopee Guarantee. It gives customers a sense of security over their purchases, protecting them against fraudulent sellers and fake or defective items.

The Shopee Guarantee works by holding the payment to a seller and releasing it only when the buyer confirms receiving the order in good condition. If the item turns out to be unacceptable, the buyer can request for return via the Shopee app. Shopee also gives buyers a one-time, three-day extension of the Shopee Guarantee period if they have yet to receive their orders.

Lazada doesn’t have such a feature. Instead, it has the Lazada Payment Protection that protects and covers you from unauthorized transactions made using your Lazada Wallet, saved credit/debit cards, and/or saved bank account.

Order Tracking

Both Lazada and Shopee enable customers to track their orders online.

However, checking an order’s status is easier with Lazada. Its on-site order tracking tool provides quick, real-time, and detailed status from its own delivery service and logistics partners without having to go to the third-party provider’s website (though there’s also an option to use the third-party courier’s website to track an order status).

When you shop with Shopee, you’ll have to check the website of the third-party courier for your order status. This can be quite a hassle if you have multiple orders to be delivered by different logistics providers.

Customer support

Customers can chat with CLEO, Lazada’s 24/7 virtual customer care officer. But if there’s a Customer Care Specialist available, you can get in touch with them 24/7 (except for holidays). 

You can also call Lazada from 8 a.m. to 8 p.m. (except for holidays). Lazada has also created a Facebook page called Lazada Peers PH where shoppers can get advice from their fellow customers. It’s basically a support community.

On the other hand, Shopee can be reached through phone (weekdays, from 7 a.m. to 7 p.m. and weekends, from 9 a.m. to 6 p.m. only) and chat (available 24/7 in-app only). It’s also quick to respond to messages sent via Facebook Messenger.

Return and Refund

It’s easier to return an item to Lazada than 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 to Shopee can be a little complicated and even frustrating. Once the issue is raised, a Shopee agent will be automatically assigned to review the case. Some cases may even require “evidence” to complete the return or refund request.

Conclusion 

So, which is more popular 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 cons, so it’s best that you compare their prices, products, and services. when you do your shopping online.

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