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How to Find a Manufacturer or Supplier for Your Product Idea

Finding a manufacturer or supplier.

– 15 minute read –

If you’ve been thinking about starting a business, you may have brainstormed some ideas of your own, like capitalizing on one of the many in-demand products already on the market.

However, many entrepreneurs find themselves hitting a brick wall when it comes time to actually source products. Whether you plan on manufacturing something of your own or finding suppliers to purchase from wholesale, good products aren’t always easy to find.

In this post, we’ll look at the basics of sourcing a supplier for your next project. We’ll give you ideas for some places to search, and examine how you should approach suppliers and what to ask them when developing a product for your ecommerce business.

Find the best manufacturer for your products 🚀

  • What is a manufacturer?
  • Domestic vs. overseas suppliers
  • How to manufacture a product
  • Finding your supply partners

What is a manufacturer?

A manufacturer is any business that produces finished goods from raw materials. They sell these goods to consumers, wholesalers, distributors, retailers, and other manufacturers wanting to create more complex items.

Manufacturers typically stick to one type of product. For example, you could work with a glassware manufacturer who creates glass bottles and jars. You could work with one manufacturer for boxes and another for plastic or natural products.

Retailers often work with multiple manufacturers at once to create an inventory for their store.

Is a manufacturer a supplier?

Suppliers and manufacturers are pretty much synonyms. For the purpose of this post, when we refer to suppliers, we’re referring to anyone who has the capability to provide you with products and inventory. This encompasses manufacturers, wholesalers, and distributors.

There are a ton of helpful resources online that you can find through Google. But before you begin, there are a few things you need to know and decide.

First, you should figure out what type of supplier you’re looking for. This will help determine the terminology you need to use in your research. Check out our post on ecommerce business models to help you get started. There are several supplier options, the most common being:

  • A manufacturer who produces your own product idea
  • A supplier (who may also be a manufacturer), wholesaler, or distributor who purchases already-existing brands and products
  • A dropshipping company that supplies products and fulfills orders of already-existing brands and products

Domestic vs. overseas suppliers

If you plan to manufacture or wholesale, when looking for suppliers you’ll need to decide whether you want to source domestically or from overseas. Overseas can refer to any location abroad.

It’s a good idea to secure two manufacturers: one domestic and one overseas. Your local manufacturer can be used as a backup. So, if orders from overseas are late or incorrect, you can fall back on your local supplier. They are often more expensive, but it’s better to keep products stocked and customers happy than having them wait for overseas shipments.

It’s often cheaper to source your products overseas, especially in Asian countries, like China, India, and Taiwan because of lower labor costs. But there’s a lot more to the decision than just the upfront investment and cost per unit.

Both domestic and overseas sourcing have their advantages and disadvantages:

Domestic sourcing

Advantages

  • Higher manufacturing quality and labor standards
  • Easier communication with no language barrier
  • Marketing appeal of being made in North America
  • Easier to verify reputable manufacturers
  • Faster shipping time
  • High intellectual property right protection
  • Greater payment security and recourse

Disadvantages

  • Higher manufacturing costs
  • Less product choice (there are many items that just aren’t made in North America anymore)

Overseas sourcing

Advantages

  • Lower manufacturing costs
  • High number of manufacturers to choose from
  • One-stop services like Alibaba have made it easy to navigate suppliers

Disadvantages

  • Lower perceived quality from customers
  • (Usually) lower manufacturing and labor standards
  • Little intellectual property protection
  • Language, communication, and time-zone barriers can be difficult to navigate
  • Difficult/costly to verify manufacturer and visit on-site
  • Longer shipping time
  • Cultural differences in business practices
  • Product importation and customs clearance
  • Less payment security and recourse

When working with overseas manufacturers and suppliers, it’s a good idea to hire a manufacturing manager. These contractors are locals who live near your manufacturers and handle negotiations, orders, and managing your partners. They can also be the in between for your business and freight companies. Think of them as the central hub for your overseas supply chain.

If there’s an issue, the manager will work directly with the manufacturer to solve it. Managers also speak the local language, which helps improve communication and make production smooth for your business.

How to manufacture a product

Finding a manufacturer for your product can be tricky but it’s necessary to bring your products to life. Follow these six steps to find the best manufacturers and suppliers for your business.

  1. Research
  2. Outreach and collect information
  3. Communicate your designs
  4. Order samples
  5. Negotiate
  6. Place your order

Research

Finding the right manufacturer for your product is crucial to your success. Manufacturers control your product’s cost, quality, and packaging and shipping. Here’s how you can find the perfect ones.

Alibaba

Alibaba connects you with manufacturers from China. It’s a common marketplace to find existing products, but you can also use Alibaba to connect with manufacturers to create custom products. Simply search for the products you’re looking for and browse through the various suppliers and manufacturers.

Looking for manufacturers on Alibaba

It’s easy to safely buy from Alibaba. The marketplace lets you vet manufacturers upfront to get the best products at a fair price. When researching manufacturers on Alibaba, make sure they have the following qualifications:

  • Gold supplier, which means they pay for their Alibaba membership.
  • Verified, which means a third-party company or Alibaba has visited their factory.
  • Trade assurance, a free service that protects your orders from payment to delivery.

You can continue to search by applying filters. You can sort by certifications (such as SA8000, which ensures humane working conditions) to find a manufacturer that aligns with your business values.

Another thing to consider when sourcing from Alibaba: make sure your manufacturer is not a trading company. A trading company is a middleman and won’t be able to produce your products.

Directories

Another place to research manufacturers is free online supplier directories. These directories contain profiles for hundreds or thousands of manufacturers, wholesalers, and suppliers. Below, we’ve listed a few of the most popular ones for both domestic and overseas suppliers:

Online domestic directories

Online overseas directories

Google

In recent years, we’ve become accustomed to being able to easily search Google and find what we’re looking for in the first few search results. However, many suppliers haven’t kept pace with the internet or Google’s algorithm changes. Their websites are usually old, sparse on information, and not search-engine optimized.

So how do you find suppliers on Google? For possibly the first time ever, you’ll need to explore page two of Google search results and beyond. You’ll also want to use a variety of search terms. For example, words like “wholesale,” “wholesaler,” and “distributor” may be used interchangeably, so you should search for all of them.

It may help to make yourself familiar with Google’s search shortcuts to improve the quality of your searches and, thus, your results.

Find Jade roller on Google

Referrals

Some of the best leads can come from referrals. Don’t be afraid to ask connections in your professional networks if they have any recommendations or if they know someone who might. Look for individuals who’ve found success in an area you’d like to pursue and see if they’re willing to share their contacts.

Social networks have made it much easier to get the word out, so make sure to use these channels. Join Facebook groups and other online communities of ecommerce business owners and see if anyone there has a glowing review.

As you do start to uncover suppliers, even if they aren’t the right fit for you, be sure to ask them if they can point you in the right direction. Being in the industry means they’ll likely have great contacts and would be happy to refer you to an option that might be a better fit.

NAICS codes

Another possible way to look for product suppliers is by searching for your products by their NAICS code.

NAICS is the North American Industry Classification System, and pretty much every single industry and product you can think of is attached to a NAICS code. Sometimes manufacturers and suppliers list products by their NAICS code, which can make manufacturers and suppliers easier to find, especially if you’re using professional directories.

The NAICS directory can be found at your local library or online.

You’ll also want to make sure you properly vet your potential manufacturer. Once you’ve narrowed it down to a few possibilities, dig deeper in your research to make sure they’re credible.

Check the Better Business Bureau (BBB) to see if there have been any complaints filed, browse the manufacturer’s Facebook page reviews, and use those Google search tricks to query the company name + reviews to see if any red flags come up.

Outreach and collection information

Once you’ve got a few manufacturers on your radar, you’ll want to get quotes. Aim to get a minimum of three quotes to compare options.

Now, the biggest question you’ll likely have for a supplier is “How much will this cost?” But before you hastily send quote requests, you’ll want answers to the following questions:

  1. Can they accommodate custom orders? Assess if the supplier or manufacturer can create the product you want. Do they have the skills? The resources?
  2. What are their leads times? How long will it take to produce and ship items? You don’t want to work with manufacturers who take three months to deliver your products. If a product goes out of stock, you don’t want to leave customers waiting months to receive their orders.
  3. What are shipping costs? Shipping makes up a massive portion of your business expenses. Learn a manufacturer’s shipping costs to determine how it’ll affect your bottom line.
  4. What are their minimum order quantities (MOQs)? Don’t lead with this question. It’ll make you look like a beginner and deter manufacturers from working with you. However, you’ll want to know the minimum amount of items you have to order before they start producing your product. This is highly negotiable.
  5. What is the cost per unit? While you’re negotiating MOQs, you’ll also want to negotiate cost per unit. The larger the order, the lower your cost per unit can be.
  6. Can they grant you exclusivity? If there’s tooling involved (i.e., you buying a tool for them to manufacture your product), make sure they aren’t allowing others to use it. You can also ask for territorial, market, or total exclusivity.
  7. Are there setup fees involved? Sometimes manufacturers will charge a fee to get equipment ready to produce your goods.
  8. What’s their defect policy? Find out who eats the cost for incorrect or defective items. Who pays for the shipping and duties?
  9. Is the manufacturer sustainable and ethical? Find out about the factory conditions, and see how they impact the environment and the workers.

Negotiating minimum order quantities

If you’re looking for a supplier for the first time, you’re going to quickly learn about minimum order quantities (MOQs). It’s not uncommon for a manufacturer to require a commitment to purchase hundreds or even thousands of units for your first order, depending on the product and manufacturer.

MOQs make it difficult when you have limited funds or want to start small and test the market before making larger purchases. The good thing is that MOQs are almost always negotiable.

Before you negotiate, understand why the supplier has imposed a minimum. Is it because there’s a lot of work upfront? Or maybe it’s because they prefer to work with larger buyers. Understanding the reasons behind the minimum will help you better understand their position and allow you to negotiate and propose the best counter offer.

Discussing payment terms

Many suppliers will require new businesses to pay for the full order upfront. This is important to know, since inventory is a major cost for ecommerce businesses. You may want to also ask if they provide payment terms on future orders.

Suppliers get bombarded with email quote requests all the time from flaky buyers who are just “kicking the tires,” so it’s not unusual for many suppliers not to reply to every request. A lack of supplier responsiveness is a common complaint from new ecommerce entrepreneurs.

So how do you ensure you don’t get ignored? There are a few things you should avoid when you reach out to suppliers for the first time:

  • Long emails: Your first email to a manufacturer should be clear and concise. Avoid telling too much about your story and background. The first email should purely assess potential fit at a high level. Focus on what suppliers care about the most, like the details of what you’re trying to source.
  • Asking for too much: Requests aren’t always easy for the supplier to produce. It’s important to ask about pricing for multiple quantities, but avoid asking for too much or too many quotes. Stick to what you absolutely need to know to assess fit between you and the supplier.
  • Asking for too little: If you ask for a quote well below the supplier’s minimum order you risk being met with silence. If you’re unsure whether your request is too small, consider giving them a quick call or send a one-question email prior to ask what their minimum order is.

A good manufacturing supplier will be open to negotiating payment terms. They won’t ask for 100% upfront before shipping (and if they do, that’s a huge red flag). You can work out a deal with them. Ask for 50% upfront, 50% after shipment is received. This holds both parties responsible for the order and doesn’t leave too much risk on either side.

Communicating with manufacturers and suppliers

Chances are you won’t use a manufacturing manager when starting your online business. You’ll have to communicate with suppliers on your own. There are three main ways to do this:

  • Skype calls
  • Email
  • WeChat

Look for companies that are responsive and eager to work together. If someone is slow out the gate with your emails and samples, do you want to trust them with your business? Probably not.

Communicate your designs

Once you talk with a potential manufacturer, ask if they can create your design. Some manufacturers have a product development process with prototyping and 3D modeling—but it can get expensive quickly.

As an alternative, communicate your ideas with them through:

  1. Sketches
  2. Instructions
  3. Reference photos

If they don’t do design, you can use Fiverr or Upwork to find freelancers to create drawings for you. Look to hire:

  • Indstrustial designers
  • Product designers
  • CAD experts

Another option is finding a local designer. You can work with them to develop prototypes and custom molds. It’s more affordable than going through a manufacturer.

Order samples

Before placing a full order, get samples to test before going into productions. Once the sample is right, date and sign the sample. Save one or two for yourself. These are called your control samples and are any type of forensic sample used to assure quality and get consistent products.

Designing a product for our studio is so much more than just coming up with the idea. It is designing and testing the hardware. It is creating prototypes and testing all of the various elements that make the fixtures come together.

For example, say a manufacturer sends you an order. You open the package and find the colors are completely wrong. You’ll likely chat with your manufacturing partner to fix the mistake. If they have any doubts about the order, you can reference the control sample. This shows that the products you received are not what was previously agreed upon.

Negotiate

Between the time you get a sample and when you place your order, it’s still possible to negotiate terms such as payment or MOQ. When negotiating, put yourself in the manufacturer’s shoes. The goal isn’t to exploit your manufacturing partner to get the best price. It’s to work together so both parties profit and are happy. It’s the only way to build a long-term, healthy relationship.

Place your order

Last up, place your order. Do a 100% quality control check first. Check every product they’ve sent you to make sure it meets your standards. And if you’re happy with everything, send your order and get the production process started!

Finding your supply partners

Sourcing suppliers and manufacturers is a unique process but it’s one of the costs of starting a business. Trying to locate suppliers that are a good fit is a critical decision for your new business, and they aren’t always easy to find.

It’s easy to get frustrated when you hit dead ends or brick walls, but in most cases, it just requires a little more patience and perseverance to find the perfect partner for your new venture.

by Corey Ferreir

Illustration by Pete Ryan

Best Cash On Delivery Shopping sites in Philippines

Best Cash On Delivery Shopping sites in Philippines. People Prefer Cash on Delivery / COD over online payments. There are many Online shopping sites in Philippines, but the major tendency of Filipinos people is to buy on COD, we feel safe on this. When we do shopping on some new site, we look for cod to be safe side. So here I have the list of Best Cash On Delivery shopping sites in Philippines with maximum Online Popularity.

If you want to buy online books, clothes, shoes or other daily life use accessories and gifts for delivering to friends on any special occasion. It will be better for you to find out best online shopping sites with COD (Cash on Delivery) option. The main reason why people don’t prefer the Online payment in Philippines is because many people don’t know how to pay online using their card. The other major reason is online fraud cases. Shopping sites save their card and bank detail. So finally they looking for best and suitable option for cash on delivery shopping sites.

Best Cash On Delivery Shopping sites in Philippines

What is Cash On Delivery (COD)

Cash On Delivery is a facility that lets you pay for the shopping when you receive the product. This method is highly popular in case when the customer does not visit the store in reality and use a way of distance purchase like Online Website or a Telephone for placing an Order.

List Of Best Cash On Delivery Shopping sites in Philippines

·         Lazada Philippines

Lazada is the best online site in Philippines with Cash on Delivery. It is a multi category site, you can buy anything from here. They have almost everything, books, clothes, electronics, etc. You can buy things from Philippine Peso 1 to 1  lakh or more on COD. When you order something on Lazada, it will ask you to enter your pin code then it will show you in right side of the product that whether COD is available on your location or not. And they don’t charge extra money for Cash On Delivery

·         Shopee Philippines

Launched in 2015, it is a platform tailored for the region, providing customers with an easy, secure and fast online shopping experience through strong payment and fulfillment support. We believe online shopping should be accessible, easy and enjoyable. This is the vision Shopee aspires to deliver on the platform, every single day. Shopee values our clients and strives to provide the best for them. We also provide a vibrant working environment to promote a fun and collaborative work culture in Shopee!

·         Amazon.Com

Amazon is a Popular site with all category products and payment via cash on delivery. They have the large inventory of products, and recently they have rated as most hit or visited shopping site. Similarly like Lazada, you need to enter your pin code, and they will tell you whether cash on delivery is available on your location or not. There is no extra charge for cod.

·         Zalora Philippines

It is another site with cash on delivery and all category products. You will find everything in one store. You can order anything like Laptop, fridge, AC, Mobile, sports item, fashion accessories, etc. Just enter your pin code on the product page to check COD availability at your location. There is no extra charge for cash on delivery on Zalora.

·         Ebay

eBay Inc. is an American multinational corporation and e-commerce company that providing consumer to consumer & business to consumer sales services via The Internet. This is another online multipurpose company that deliver their product on Cash on delivery in Philippines. Here you can buy a product like as other shopping sites

·         Alibaba

Alibaba isn’t officially operating here in the Philippines. But, do you know where most online sellers get their products? That’s China and Alibaba is now the biggest online shopping website in that country.

Most products that Filipinos buy on Alibaba are accessories, gadgets, toys and clothes. These are mostly bought wholesale then sold here in the country in their physical stores and online shops.

Best Cash on Delivery Shopping Sites in Philippines for Books

If you want to buy books online, then there are many sites from which you can buy the book online on cash on delivery. Like Flipkart, Amazon, Snapdeal, Shopclues, eBay and lot of other. You can shop book from these sites and can also get the good discount on books.

·         Takatack

This is not just a E commerce site. It has almost all the product available with it. The Best thing is you can find all the books on Takatack.com. They offer several payment options including cash on delivery and free delivery for orders above ₱2,000.00.

·         Avalon

It is another popular online book store in Philippines. A place where you can be a buyer, seller and book reviewer, altogether. They offer a wide range of new and second-hand books. Avalon provides you with a platform wherein you can post your advertisement for selling books and be contacted by a potential buyer.

Best Cash On Delivery shopping sites in Philippines for Clothes

·         Goods.Ph

It is another Fashion and Cloth eCommerce site with cash on delivery. They have good quality products for all Men’s Women and Kids. Just enter your pin code on the right side of the product, and they will tell you cod availability at your location.

Best Deal Coupon Site in Philippines

·         MetroDeal

MetroDeal heavily focuses on deals and discounts. They have restaurant buffet vouchers, travel vouchers, gym membership vouchers, beauty enhancement vouchers, vouchers for shows, and more.

Not only vouchers, MetroDeal also sell products such as gadgets, bags, home, accessories and toys. They also offer the Cash On Delivery feature.

Cash on Delivery Shopping Sites in Philippines for mobile Phones

The list of online websites in Philippines that offer Cash On Delivery to Buy Mobiles are

  • Alibaba
  • Lazada
  • Amazon

If you are looking to buy mobiles online on cash on delivery, then you have lots of option. There are many sites which give mobile phones on cash on delivery. But, You can trust these sites, and they only deliver genuine products. So don’t worry buy you mobile phone online and save more. These sites give the great offer on mobile phone shopping; you will not get this price in the market.

Source: Blog Cheater / Create to Earn

SHOPEE: How to Pay CASH ON DELIVERY (COD)

mutual

Online shopping is getting more and more convenient. There’s no need to go out of the house, no need to walk around for a long time trying to find what you’re looking for, and no need to carry all the items you bought because it will be delivered straight to your doorstep.

But despite the convenience, there are also some things we worry about. The biggest of them is probably not receiving the item that you already pre-paid for. This is why the cash-on-delivery (COD) payment method became a popular option for a lot of online shoppers. I know a lot of friends who have credit cards and virtual wallet accounts but still choose COD whenever possible!

In this post, we’ll show you how you can pay cash on delivery on Shopee, one of the most popular online shopping apps in the Philippines. This applies for both the mobile app and for desktop.

When is Cash-on-Delivery Available?

First things first, the COD option ISN’T always available for all sellers or customers. Whether or not the COD option will appear depends on a lot of factors. It is usually available unless:

  • The seller did not choose a courier that allows COD. This is the most likely reason. As you might have already noticed, Shopee has several partner couriers that you may choose when checking out. But not all of them accept COD. For example, J&T does take COD orders. If the seller did not activate any of the couriers allowing COD, then it will not be available for their buyers.
  • The seller did not enable the COD option. Not all sellers accept COD, usually because they’re located outside the covered area of the courier. You may ask the seller to enable their COD option.
  • The product you want to buy isn’t available for COD. Sometimes, it’s the specific item. It’s possible that COD does not apply to the product you want to buy. Or if you’re trying to purchase multiple items, one of them may not be allowed for COD. For the COD option to be available for multiple orders in one check-out, all items must be OK for COD.
  • Your location is non-serviceable. Some areas are not part of the courier’s delivery coverage. In this case, you should get an error saying “Unsupported Address.”
  • You have a bad record. Sometimes, it’s not the seller, the product or the courier. Sometimes, it’s YOU, the buyer. When the buyer has two or more failed COD transactions, the COD option will be removed and will be unavailable for 90 days. Failed transactions include refusal to accept the product or failure to receive the product after two attempts by the courier.

How to Select Cash-on-Delivery?

Assuming that your transaction record is clear and your address is within the serviceable area, here’s how to choose COD.

1. On the checkout page, tap on SHIPPING OPTION.

After choosing your products, it’s time to check out. On the checkout page, you will see all the details of your purchase in one page. Towards the bottom is a section labeled Shipping Option. Tap or click on that.

2. Choose a delivery option.

You will be presented with a list of delivery options along with corresponding price and COD availability. Some shops have more than one shipping options available like the standard delivery, J&T, and Ninjavan.

Often, one of more options accept COD. Sometimes, none at all. It’s easy to see which options allow it because there is a note that reads “COD is supported“.

If you want to pay cash on delivery, make sure to choose the shipping option that allows this payment method. You can also choose your preferred delivery time on this screen. Once everything is in order, click Confirm. This will take you back to the screen with your purchase details.

3. Choose a payment method.

Click the payment option. You will be taken to a screen with a list of all the payment methods. Choose Cash on Delivery and click Confirm.

 

If the Cash on Delivery option appears dim, shadowy or unclickable, this means that the seller or courier doesn’t allow COD for this product.

4. Click PLACE ORDER.

Once all the details of your purchase is in place, tap Place Order.

That’s it! Now, it’s out of your hands. Your COD request will be up for review. If your COD request is approved, the seller and courier will carry on and process your order.

Now you just have to wait for your delivery and make sure to ready your cash.

SOURCE: Mariah Cruz / Contributor at The Poor Traveler / Mariah is a regular contributor to The Poor Traveler

How to Sell And Dropship Products In Shopee? 5 Things You Must Know

How to Sell And Dropship Products In Shopee? 5 Things You Must Know

How To Dropship and Sell In Shopee | Dropshipmme .

Shopee is an e-commerce platform that was first launched in Singapore in the year 2015. Over the years, it has grown and expanded to Thailand, Malaysia, the Philippines, Singapore, Vietnam, Indonesia, and Taiwan. It has gained its reputation by being the leading e-commerce platform in Taiwan and Southeast Asia.

Shopee now has moved into both a C2C and Business-to-consumer (B2C) hybrid model. The platform’s goal is to provide its customers with a secure, fast and easy online shopping experience through secure payment method and logistics support.

Shopee, differentiates itself with other fast-growing and well-established e-commerce websites such as Lazada and AliExpress, through its own escrow service. The escrow service is famously known as “Shopee Guarantee”, withholds sellers’ payment until the buyers have received their products.

Many small business consider dropshipping in Shopee. Does it feasible and profitable? Let’s tap into this guide.

Does Shopee Platform Support Dropshipping?

Shopee allows a seller to promote their products through their platform.  It doesn’t support dropshipping.  But, Shopee dropship can be achieved through a dropshipping method or system.

In order to dropship to Shopee there are things you need to know:

  1. You need to have a Shopee account and be registered as a Shopee user.
  • There is no need for company registration. Anyone can sell at Shopee.
  • Sign Up as a Shopee seller for free
  • The best thing with Shopee is they have no sales commission. Hence, you get to make more profit.
  • Dropship on Shopee for free.
  • With the easy one-click-integration and start select, you can sync products to your Shopee store instantly.
  • You don’t need to copy and paste customer order details and manual place order.  Because order from Shopee system will automatically proceed the order.
  1. You can also integrate your Mutual and Shopee account.  You can send invitation dropshippingerp@gmail.com
  2. Synchronize product to your Shopee.
  3. The last step is to Fulfill the order and Update trackng Number

What Are The Best Places To Start Dropshipping With Shopee?

shopee Dropshipping in Malaysia

The e-commerce usage rate in Malaysia is very high. 15.3 million people in Malaysia will choose to shop online (50% of the total population). According to Map of E-commerce, Lazada, Shopee and 11Street became the top 3 websites in Malaysia.

It is possible to dropship with Shopee in Malaysia.  Shopee guarantees lower prices and offers free shipping for the first 5kg in West Malaysia and 1kg in East Malaysia.

In Malaysia, Shopee is becoming the most popular mobile app where people can buy and sell from. Unlike Lazada, selling on Shopee is commission free, hence it’s favorable for dropship sellers.

In the Southeast Asia region, mobiles are quite significant because consumers are more likely to use mobile devices for product search and comparison. Shopee allows its consumers to choose a variety of payment methods such as online banking, ATM/bank transfer, and debit/credit cards.

Although caution should always be taken, because Shopee does not check its sellers. The customer should be more careful when choosing sellers on Shopee.

Shopee dropshipping in  Singapore

Singapore’s population reached 5.83 million, and the number of mobile users reached 83,700, which is 144% of the total population. Internet users reached 4.92 million, accounting for 84% of the total population. Shopee in  Singapore has increase by 135% last year.

One of the factors that growing in the market is that more and more Singaporeans will choose to shop online on mobile devices. 95% of Singaporeans hold mobile phones

According to the website analysis company SimilarWeb, Qoo10 received the highest average traffic, followed by is Lazada, shopee. Amongst these, Shopee has the largest increase. This may be because Shopee launched the China Marketplace portal in March 2018, enabling Singaporean consumers to buy directly from Chinese sellers without paying any shipping and agency fees.

Dropship in Shopee Singapore is a lucrative business but it is also affected or faced with some drawbacks.

Shopee Dropshipping in Philippines

Lazada、Shopee、Zalora and eBay are the main 4 ecommerce marketplace in Philippines. Lazada occupies 68% of the Philippine e-commerce market. Specifically, Lazada’s traffic lead in the Philippines is at least three times that of Shopee. In terms of traffic, Dropship with Shopee in the Philippines has not been so fruitful.

This is because of factors such as long delivery time. But this may not be an issue if your customers have a comprehensive understanding of delivery time and they know how to track their orders.

Shopee have optimized their system to provide updated tracking numbers to buyers, this way they can always track their product as it is beings shipped.

Since 2017, Shopee Indonesia and Philippines sites have raised SLS shipping prices up! So, if you are sourcing products overseas and resell in Shopee Philippines, it wouldn’t be much more costeffective.

Shopee dropship Indonesia

Indonesia, with a population of 260 million, is the most popular e-commerce market in Southeast Asia. However, about 90% of the country’s population is Muslim, and language and cultural differences raise the threshold for sellers to enter the market.

In Indonesia, Shopee is classified as the new online platform in the marketplace and it ranks first in mobile shopping apps.

Although, it is still young compared to the existing Indonesian e-commerce marketplace such as the likes of Bakalapak and Tokepedia. Shopee offers attractive promos to the consumer, making it a feasible place to earn profits.

It has great potential to grow but it’s not easy in Indonesia due to the internet popularity, people’s culture, and more.

In fact, each market is fair for retailers. You need to consider which is more suitable for your business according to your niche, your destination, and more. it’s better to know more on how to boost sales in shopee.

How To Become a Shopee Dropship Seller?

If you want to know how to sell in Shopee and dropship, then you are in the right place.

If you are a medium-sized or startup seller then you will have to wait for up to five weeks until your Shopee online store is successfully opened, and also to get the necessary operational guidance by Shopee. Shopee workers communicate with new sellers and help them choose suitable markets. Apart from that, they help in setting up logistics and payment methods.

Once you download the Shopee app, you get to participate in the seller center training, to get selection advice and basic tips on how to modify your shop. Additionally, you are trained in shop operations; to learn the techniques used to increase exposure and attracting new customers.

Steps to becoming a Shopee dropship seller.

  1. Download the Shopee app from google play store.
  2. Registration – Open the Shopee app and click the “sign up” to register an account. Choose your logging options it can be Facebook or Email. If you decide to use your number, then enter the number and set a password.
  3. Create a seller account

After creating a Shopee account, you need to create a seller account.  By clicking the “Selling” tab you will be directed to account settings, where you will find the following details,

  • User name
  • Gender
  • Birthday
  • Email
  • Social Media Accounts
  • Bank Account
  1. Upload Products

Products always play a key role in the world of e-commerce. Find some of the high quality items from your gallery or you can use the app’s internal camera. The photos should be clear enough. You can enhance the quality of photos by using photo editing tools to make the pictures more appealing.

  1. Filling the products details.

The products Detail will include:

  • Category
  • Shipping fee
  • Price
  • Stock
  • Variation
  • Weight
  • Days to ship

Conduct Competition Research

When dropshipping with Shopee always remember you will be competing with other drop shipping giants such as Lazada and even Amazon.  Many of potential drop shippers make the mistakes of looking for those products that have little to no competition. That’s a sign that the demand for that particular product is low.

A product might not have a lot of competitions due to many reasons such as high shipping costs, poor profits margins or supplier and manufacturing issues. Search for those products that have high competition as this is a sign that they are in demand and have a more stable business model.

There you have it: How to sell and dropship in Shopee. Next is to create Shopee store, and find a Shopee approved dropshipper to add items in your store.

Free Guide to Dropship on Lazada Platform for Beginners

Free Guide to Dropship on Lazada Platform for Beginners

dropship lazada.jpg

Table of Contents

  • 1 An Overview of Lazada Marketplace
  • 2 Is it possible to start a dropshipping business on Lazada?
  • 3 Huge inventory at wholesale price
  • 4 How to Start Dropshipping from MutualDropshipping to Lazada
  • 5 Start to Dropship on Lazada
  • 6 How to Offer Products on Lazada Marketplace?
  • 7 How to end up being a Lazada Seller?
  • 8 The 4 Action Lazada Selling Process
  • 9 Conclusion:

Reading Time: 8 minutes

The Lazada ecommerce platform was founded in 2012 to cater to the online shopping needs of both buyers and sellers. However, it has been discovered that the majority of people are baffled as to how it operates. Due to a lack of knowledge, you may end up dropshipping products that will never sell.

Today, you’ll learn how to make the most of Lazada for your dropshipping business. It’s a comprehensive step-by-step guide to dropshipping on Lazada that you can use to get your business off the ground.

An Overview of Lazada Marketplace

Lazada is Southeast Asia’s most popular ecommerce platform. The six Southeast Asian countries of Malaysia, Indonesia, Singapore, Thailand, Vietnam, and the Philippines are the primary target markets. It is a multi-award-winning website with 52 million monthly visitors.

  • Overall, it is a safe and secure marketplace for all customers. Lazada’s other features include:
  • Lazada has 300 million SKUs, focusing on 3C products, home, toys, fashion apparel, sports equipment, and other items.
  • The Philippines’ top four most popular shopping sites are Lazada, Shopee, Zalora, and eBay.
  • Every week, Lazada will send you a sales report that you can use to boost your sales.
  • If your rating is above average, Lazada will guide traffic to your website store.
  • The seller’s requirements on Lazada are extremely low. It is simple to open a shop.
  • Ali Group re-invested $2 billion in Lazada in March 2018.

Is it possible to start a dropshipping business on Lazada?

Yes, without a doubt. Dropshipping is possible on Lazada. Dropshipping is simply a method of completing orders. You’ll need to find dropshipping-friendly suppliers for your products. The following are some of the advantages of dropshipping:

  • There’s no need to keep track of inventory.
  • Low initial start-up costs

Get in touch with our team and ask them to list your products in your Lazada store.

The supplier will assist you in packing and delivering orders to your customers when you receive them in your store. But first, do some research into what you want to sell on Lazada.

Dropship from a Quality Supplier to Lazada

Then, you must find a supplier and add their products to your Lazada store to make money. So, where do you go to find the best deals? Many people can consider Alibaba for wholesale China goods. It is the largest B2B platform where you can find many products at wholesale prices. Alibaba, on the other hand, is merely a platform that connects suppliers and buyers. Here, I believe you can use API suppliers to add products and manage orders more efficiently.

How to start dropshipping from MutualDropshipping to Lazada

Dropshipping from Mutual a Lazada is easy once you know what you are doing. The following is a step-by-step guide to Lazada Mutual Drop Shipping.

Step 1: Register in Lazada Direct shipping in Lazada involves approximately four stages. They are as follows:

  • Completion of a job questionnaire. You will also need to upload copies of signed electronic contracts and business licenses.
  • The Seller Center has been activated. You will receive an email with instructions on how to access your account.
  • Select a secure payment method. This move requires you to choose between World First and Payoneer. Your account will be reviewed in 5-7 business days after that. After that, you will receive an email asking you to upload your first SKUs.

This is another evaluation process that will take about three days to complete. Finally, you have started the process of setting up your Lazada store.

Step 2: Allow MutualDropshipping to authorize your store. We use our ERP to synchronize your store. We only need to send an invitation to dropshippingerp@gmail.com to manage your products.

It’s time to start making money from your Lazada listings now that you’ve created them.

Start to Dropship on Lazada

After you’ve successfully added your product, you can start making money by dropshipping to customers. Since you’ll be using ERP (Mutual Dropshipping) to integrate data, it’ll be a fully automated method.

The only thing you’ll have to do is advertise your store as much as possible outside of Lazada to boost sales of such items. Your conversion rate will increase if you can effectively promote your Lazada store (products).

How to Offer Products on Lazada Marketplace?

Lazada Market has actually broadened like a massive of Southeast Asian nations. It is likewise amongst the leading 3 shopping websites in the area. If you want to make a lot, understand how to sell on Lazada and sign up to Lazada seller center in simply a couple of clicks.

Lazada Group is among the very best online offering locations in the Philippines and the rest of South-east Asia. It was introduced in 2012. As the explorer of e-commerce with outstanding client service, Lazada has more than 1,45,000 regional and global sellers.

It likewise serves 3000 brand names and 560 million customers, are linked through this market. Lazada has actually been establishing much more after the launch of the Lazada Seller app.

Ending up being a seller on Lazada is rather simple, and it’s not as made complex as one can think about. It takes a couple of minutes to sign up, and the very best thing is that it’s FREE to sell on Lazada. You just need to pay a SMALL commission when somebody purchases your items.

Lazada just charges you when your piggy bank gets the cent. The commission of Lazada might differ according to the circumstance.

How to end up being a Lazada Seller?

To end up being a main Lazada merchant, the requirements are listed below:

  • Register on the Lazada market site.
  • Send the needed files– Organization registration and savings account information.
  • Read and Accept the Seller Contract thoroughly.
  • Total the training session attended to brand-new sellers on Lazada
  • Trigger your Lazada seller center and check out more.
  • Upload a minimum of 5 items to begin offering.

The 4 Action Lazada Selling Process

LAZADA lets you offer in simply a couple of clicks. You can aboard to Lazada seller center and list your items totally free.

The Lazada selling procedure is classified into 4 basic actions: List, Offer, Ship, and gather Pay.

The very first 3 of these actions break down into sub-steps like filling your item’s information, offering it to clients, and offering protected and prompt deliveries to end clients.

At first, it might sound a lot, however as quickly as you onboard to Lazada seller center, all of it concerns your feet.

1) Noting your items

Noting your item on Lazada is extremely simple, all you require is the information of your items since that is what offers.

Throughout the very first time, you can begin your company with 10 to 20 items and grow on. To make your consumer adhere to your item instead of going to and fro to other sellers, you require to supply the in-depth and to the point item description that is apt and real.

2) Offering your items:

As quickly as your listings are published and have actually gone live on the LAZADA market, plunge into your Lazada Seller Center. Now here is your thing, you can do all sort of things you want to offer much better and reach to the best consumer. The Lazada seller center lets you handle all elements of how to sell on Lazada.

The adequate choices you can manage are varying from: Keeping an examine brand-new orders, upgrading your stock, monitoring your efficiency metrics, handling how to promote your store, and a lot more.

3) Shipping your items:

Well, simply offering more is not the only objective to end up being a Lazada Seller. As soon as you get an order from the client, you require to provide the item into their hands as quickly a possible.

To win consumer self-confidence, you require to be as particular for shipping as you were for offering it. LAZADA uses 2 choices for item deliveries:

  1. i) Fulfillment by LAZADA— In this case, items are saved in Lazada Storage facilities, and Lazada deals with product packaging and shipping items to clients.
  2. ii) Shipping by Seller— In this case, it is your duty to keep stock, product packaging, labeling, and ship items to those specific consumers.

4) Earning Money:
After you are made with the listing, selling, and delivery of the items, aren’t you require the return of efforts?

When the order gets finished, LAZADA will subtract its charges and deposit the last payments into your savings account every 2 week. The main charge and commission that Lazada charges are: Commission rate, VAT charges, and shipping charges (in case of LGS) that differs according to the item classification, weight, and place.

In the meantime, it ends up being so chaotic to handle all of it by yourself. To make it a lot easier, you can utilize a Lazada combination.

In the last couple of years, Lazada has actually shown itself that it is the future of e-commerce and online shopping, and the Regional buyers easily accept it, In South-east Asia, Lazada has actually affected the web company environment.

Lazada offers the most detailed variety and ranges of items such as style, home, toys, electronic devices, sports, and so on.

Conclusion:

Experiencing the success of Lazada Market throughout the joyful seasons like Songs day, Doubles day and others, it has actually ended up being the appealing market that draws in the majority of the consumers. Lazada represent 27,000 active sellers and more than 48 million websites check out in a month, and it is growing evenly.

Lazada being the popular shopping location opens the chance doors for online sellers in the SEA area. Now you understand how to sell on Lazada, so all you need to do is to make certain you follow the actions and get the gain access to of Lazada seller center.

 

[Battle of the Brands] Lazada vs Shopee: Which is the Better Online Shopping Site?

Lazada vs Shopee l Moneymax

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

Indeed, these two e-commerce platforms dominate as online shopping destinations in the Philippines. Based on a Kantar Worldpanel survey, 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.

Which between Lazada vs Shopee is the better e-commerce platform in the Philippines? This comparison review should give you a glimpse on how each company fares in different aspects of e-commerce and customer service, so you can make an informed decision on where to shop online.

Business Models of Lazada vs Shopee

Before we begin comparing Lazada vs Shopee, it’s important to first understand their business models, which affect their pricing, user experience, delivery speed, and other e-commerce features.

The two leading online shopping sites use different business models.

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. Eventually, it added a marketplace model, opening its doors to third-party merchants who sell their products using the e-commerce platform.

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.

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.

Read more: Make Money Online: How to Become a Shopee or Lazada Online Seller

Popularity

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.[1] 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.

Globally, it appears that Shopee is trying to gain market shares in the Western Hemisphere. In the first half of 2021, the online shopping brand launched in countries in the Americas, such as Brazil, Chile, Colombia, and Mexico.[2]  This means that Shopee has a chance to become more popular beyond Asia in the coming years. This is something that Lazada has yet to do.

Desktop and Mobile User Experience

Lazada vs Shopee - shopee desktop

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.

Let’s compare Lazada and Shopee in terms of user experience using desktop and mobile devices.

Which Website is Easier to Use on Desktop?

Lazada and Shopee online shopping websites are user-friendly, complete with easy-to-search and varied shopping categories and filters (based on price range, brand, color, rating, etc.) that help visitors find the exact product they need.

Both of these 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.

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.

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.

Lazada vs Shopee - lazada desktop

Take this search for “air fryers” as an example. The cheapest items shown on the first page are not all air fryers. The search shows a water purifier, which is something the customer isn’t looking for.

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

The Lazada app loads 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 than its competitor.

The Lazada app is easier to navigate, too. 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 load 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.

It’s also important to note that both brands have a mall; Lazada has LazMall while Shopee has Shopee Mall. Both malls are actually separate categories that only list products from authoritative, reputable, and high-quality partner brands. As such, customers will have all the assurance that what they’re buying is 100% authentic.

Both Lazada and Shopee 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.

When it comes to returns, it appears that Lazada has friendlier terms. Lazada allows 15-days return for all LazMall products (except for non-returnable items). So, if you buy from LazMall and you realize that you’re not happy with it or you find that there’s a defect, you’re given 15 days to return it.

Shopee, on the other hand, only gives an allowance of seven days for returns.

Prices

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 moniker “online Divisoria” among Pinoy online shopping enthusiasts. Shopee sellers are able to reduce their prices since they only have a small commission fee.

For example, you can find an iPhone 12 (128GB) on Shopee Mall that costs PHP 44,590. Meanwhile, the same iPhone on Lazada’s LazMall costs PHP 54,490. So, if you buy from Shopee, you get to save PHP 9,900, which is obviously a lot!

Lazada vs Shopee - iPhone 12 price in Shopee

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 merchants 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 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 and Shopee tend to go all out when it comes to hosting big sales and promotions. Both companies already hosted successful online sales earlier this year with another big promotion this year, the 8.8 sale. Let’s take a look at what will happen during this year’s 8.8 sales.

Lazada 8.8 Love Local Sale

From August 8 to August 12, 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 merch that are proudly Pinoy. The sale also comes with free nationwide shipping with PHP 0 minimum spend.

Nevertheless, here are the sale schedules to watch out for not just on August 8 but also for the whole month:

  • August 8-12 – Love Local Sale
  • August 11 – LazMall Super Brand Opening featuring La Mer
  • August 15-17 – Payday Sale
  • August 19 – LazMall Super Brand Day featuring Adidas

Here are the participating brands on Lazada’s series of sales:

  • Akari
  • Bench
  • Colgate
  • Palmolive
  • Del Monte
  • Sustagen
  • Enfagrow
  • L’Oreal
  • Garnier
  • Dyson
  • Globe
  • Huawei
  • Intel
  • Lenovo
  • Oppo
  • Joyce & Diana
  • Kleenfant
  • Lock & Lock
  • Tempur

Shopee 8.8 Mega Flash Sale

Shopee’s 8.8 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 8.8 sale also comes with free shipping capped at up to PHP 55 with PHP 0 minimum spend.

Here are the eight things to expect from  the upcoming Shopee 8.8 sale:

  • 8.8 vouchers up for grabs starting August 7 at 9:00 p.m
  • Hourly flash deals on August 9 across different product categories
  • Midnight  super deals starting at 12 midnight to one o’clock in the morning
  • Mega brands flash sales that will feature big brands from different categories
  • All-Day Deals including PHP 8 deals where select products are priced at PHP 8
  • Mega Flash Sale TV Special where over PHP 8,000,000 worth of prizes will be given away, plus a chance to win up to PHP1,000,000 cash prize
  • Play Shopee Candy and Shopee Bubble for a chance to win PHP 50,000 to PHP 100,000 worth of ShopeePay credits
  • Shopee Fam Flash Race where you may win up to PHP 100,000

Below are the participating brands at Shopee’s grand 8.8 sale

  • Pampers Diaper
  • Huggies
  • Enfagrow A+
  • Lactum
  • Argentina
  • Unilever
  • Nivea
  • Family Guard Disinfectant
  • Glucerna
  • Olay
  • Huawei
  • Vivo
  • Realme
  • Western Appliances
  • Klean Kanteen
  • Adidas

This is because Shopee’s 8.8 sales and promotions are diverse, and it give customers a chance to take home exciting prizes.

Payment Options

Lazada and Shopee offer a variety of payment options for customers. Both websites accept cash on delivery (COD), as well as 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 payment options have more methods than 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 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.

Payment Method Lazada Shopee
Cash on delivery Yes Yes
In-store e-wallet Yes (Lazada Wallet) Yes (ShopeePay)
GCash Yes Yes
Coins.ph No Yes
Credit/debit card Yes (Mastercard, Visa, JCB, American Express) Yes (Mastercard and Visa card for Preferred and Shopee Mall shops)
Online banking No Yes (via BPI Express Online or Mobile, UnionBank, Metrobank, RCBC, Landbank, PNB, Robinsons Bank, Chinabank, and UCPB)
Installment payment plans Yes (via Billease / Cashalo / InvesTed/ Juanhand / Paylater / TendPay / UnaPay for non-credit cardholders and BPI / Metrobank / Citibank for credit cardholders) No
Remittance/Payment centers No Yes (Bayad Center, SM Bills Payment, Robinsons Department Store, 7-Eleven CLiQQ, ECPay, M Lhuillier, Cebuana Lhuillier, LBC, Palawan Pawnshop, and RD Pawnshop )
Over-the-counter bank deposit No Yes (BPI, Metrobank, Chinabank, Eastwest Bank, UnionBank, RCBC, Security Bank, UCPB, Landbank, and Robinsons Bank)
Google Play No Yes

Lazada vs Shopee: COD Restrictions

Do you prefer the security you get from using COD to pay for your online purchases? Manage your expectation: COD isn’t available for all items, sellers, and locations 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 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.

Here’s Lazada’s and Shopee’s expected delivery time frame for standard deliveries in the Philippines:

Destination Lazada Shopee
Metro Manila
2 to 3 days 1 to 3 business days
Luzon 3 to 5 days 3 to 8 business days
Visayas 5 to 7 days 3 to 9 business days
Mindanao
  • 5 to 7 days (via air)
  • 14 to 15 days (via sea)
3 to 9 business days
Anywhere in the Philippines (international deliveries) 8 to 17 days 7 to 16 business days

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.

However, many customers complain about receiving their package in one to two weeks, especially those delivered via Shopee’s logistics partner Black Arrow.

Which Provides Same-Day Delivery?

Both e-commerce 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.

Lazada’s same-day delivery service is available only for products from Lazada’s own inventory and shipped by Lazada itself (tagged on the site as “Sold and Fulfilled by Lazada”). There are also package size and weight restrictions for this delivery option.

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

Note: The schedule of deliveries heavily depends on the prevailing conditions of the day of the delivery. There will obviously be a delay during inclement weather. Furthermore, the pandemic has affected the dynamics of the delivery industry, so you may experience  some changes in schedules without prior notice.

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.[3] 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. As such, customers tend to pay cheaper shipping fees on Shopee vs. Lazada.

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.

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.” Oddly though, Lazada doesn’t specify how this feature actually helps customers.

Order Tracking

Lazada vs Shopee - Lazada order tracking

Both Lazada vs Shopee enable customers to track their orders online. On their respective sites, it’s easy to view which orders are pending for payment, being processed, shipped/ready for shipping, and delivered.

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.

Lazada also has a system that consistently notifies customers through SMS and email when to expect their order and when the package is on its way. Sometimes, Lazada’s delivery personnel calls or texts to inform the customer that they’re about to deliver the goods.

Customer Support

A good e-commerce retailer provides multiple ways for customers to reach the company for questions, feedback, and complaints.

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

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 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. Check out Shopee’s procedures linked below this article.[4]

Lazada vs 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 cons, so it’s best that you compare their prices, products, services, etc. when you do your shopping online.

Posted by: Venus Zoleta | Personal Finance