Is Lazada's average order value high? How does it make money?

I believe that all of you who run online stores should know the average order value. For example, on the Pinduoduo platform, the average order value of most products is very low. The average order value still has a certain impact on the store. So, is Lazada's average order value high?

1. Is Lazada’s average order value high?

The average customer order is not high!

2. How to make money?

1. Domestic sellers use Lazada's LGS logistics, which is both an advantage and a disadvantage. In terms of logistics costs, the price is higher, one or two dollars higher than ordinary mail. The advantage is that it is more efficient and can easily solve the cumbersome import customs clearance and tax issues, which is very necessary in Southeast Asia. Unlike sellers in the European and American markets, they can accept not receiving the goods for one or two months and wait patiently. Consumers in Southeast Asia are currently in the mentality of trying online shopping, so they have higher requirements for logistics.

2. It is very necessary to let them enhance their trust, so faster logistics is also accelerating the cultivation of this market, satisfying the shopping experience of sellers, and cultivating shopping habits. Once the volume is large, the logistics cost will naturally decrease gradually. As we all know, the optimization of the market and the platform takes time, and any e-commerce platform has come this way slowly.

3. In addition, from another perspective, the cost will naturally be higher if better suppliers are used. Blindly pursuing low prices is not the best strategy. Of course, sellers should also try to provide low prices within a reasonable profit range. After all, the advantages of online shopping are low prices and convenience. The development of e-commerce platforms can be said to be exactly the same. In the early stage, it is necessary to cultivate the number of users, and low prices are the best approach. After development, either better platforms occupy the high ground, such as Taobao and Tmall; or the platform itself transforms, just like the current reform of AliExpress.

4. The market can be divided into mature and growing types. The growing Lazada has a brighter future. The platform is currently growing at a significant rate and is in a rapid growth stage. Although the number of orders is much lower than that of mature e-commerce platforms, from another perspective, Lazada's output ratio is very ideal, and only a few people are needed to complete the operation of thousands of orders. Other large platforms in Southeast Asia are far less excellent than Lazada. Although Lazada cannot reach a large scale at present, it is the most influential leading company in Southeast Asia after all. After large sellers come to the platform, there will be no gap in the number of orders.

5. Due to language barriers, after-sales service is currently handled by the platform, so sellers are relieved in this regard. The customer service that sellers need only needs to communicate with the platform's customer service. Less manpower investment is one of the reasons why the platform has a higher output ratio.

6. Moreover, the platform now advocates the branding route. Online shopping in Southeast Asia is now younger, and the volume is growing by 200% every year. Therefore, sellers should not miss this wave of market opportunities. After all, there are not many opportunities in just a few decades. Come on, merchants. Let's go together in the future.

Lazada is a cross-border e-commerce company. It is one of the largest online shopping websites in Southeast Asia. Therefore, the products in it are not only of various types, but also of different prices. However, the average order value of most products is still relatively high!

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