According to an official statement by the company, the number of third-party sellers has increased dramatically from 478 in November 2013 to close to 8,000 in November 2014. Lazada attributed the growth to a rising interest in e-commerce with SMEs, distributors and brands tapping on existing online shops to access an established customer base and infrastructure.
Maximilian Bittner, CEO, Lazada Group said, “Lazada Marketplace is currently the fastest growing part of our business and now accounts for more than 60 per cent of our sales. We are seeing overwhelming demand for this service, driven by the fact that we can fulfil all customer service needs on behalf of our partners.”
Mobile traffic has also contributed to Lazada Marketplace’s success, as more than 50 per cent of its traffic stems from mobile platforms such as the apps available on Android, iOS, as well as the mobile site. The company claims that the mobile app sees about 300,000 downloads a month.
Lazada Marketplace merchants sell products across 13 categories including health and beauty, home and living, fashion, mobiles and tablets, consumer electronics, home appliances and sports and outdoors, among others. Fashion and health and beauty are the fastest growing categories on the platform.
Xiaomi, Bose, Philips Lighting and Kenwood Delonghi are some of the key brands that sell their products via Lazada Marketplace. It also attracts a number of smaller, upcoming brands in the region wishing to utilise the platform to help them scale.
According to merchant retailer MC2, the Singaporean electronics company has increased its revenue by S$25,000 (about US$20,000) in the past quarter alone selling its laptops on Lazada Marketplace. Tupper Cabinet, a Malaysia-based company which sells DIY cabinets, has also reported a 30 per cent increase in sales since joining the platform, shared an official statement.
“Despite e-commerce being young, the customer expectations of their shopping experience are high regardless of which country they are from. The main challenge we face on a daily basis to keep the customers happy and to personalise what we are offering as much as possible,” commented Bittner in conversation with e27. To make it happen, Lazada has its delivery fleet to reach inaccessible and rural areas such as the remote islands of Indonesia and the Philippines.
The company has raised more than US$430 million in financing rounds to fuel its growth in Southeast Asia, investing in supply chain, logistics, warehousing, mobile commerce, regional network of e-commerce services, localisation, hiring as well as marketing.
“As you can see from how e-commerce in China’s market increased from one per cent to 7.9 per cent of total consumption, there is no reason why it should not be faster in Southeast Asia, which is why we want to be there and be a part of it,” he added.
Currently, Lazada’s headquarters is in Singapore, with its technical hub in Vietnam.