5 Reasons Why Lazada’s Marketing Strategy Works

Since September 2019, Lazada is top e-commerce platform in Southeast Asia with more than 50 million buyers annually. A creation of a store on Lazada ensures that your audience comes from 6 countries in one shot- Malaysia, Thailand, Singapore, Philippines, Indonesia and Vietnam, which a population of about hundreds of millions of people. Lazada is immensely popular, in-demand and successful today. What is the secret? Their marketing strategy. Here are 5 reasons why Lazada’s marketing strategy works.

Like most other e-commerce platforms (Amazon, Target, etc.), Lazada too has PPC marketing i.e., pay-per-click ads. What sets this apart from other PPC ads is that Lazada’s PPC ads are sponsored too. These sponsored tags go on both ads as well as products. The sponsored ads and sponsored products show up on the right side of the screen and they appear only on this part of the page.

The advantage of this unique feature is that they appear no matter what page the user is looking at, the only criteria being that the user has to be looking at products in a similar category. By showing up on a competitor’s page, these ads become a powerful tool to drive traffic to your products. Thus, by being one of the few brands to offer this feature, Lazada’s appeal increases.

Lazada, like Amazon, also offers vibrant, large-sized banner ads on their application. Recently they have also used a marketing procedure termed as ‘target outclassing share’ which functions in a way that gives Lazada the edge over their competitors. The way target outclassing share works is around the most important part of advertising- catchphrases.

These catchphrases are what users type in to search engines to find certain products, therefore through this marketing procedure, Lazada is able to outclass their rivals on important, essential catchphrases. Through this feature, Lazada’s products are more visible under searches and have higher promotions. It also allowed Lazada to find out the maximum expense per click that they were able to pay and also controlled the expenses they needed to cover to outclass their competitors’ arenas.

Another wise marketing strategy that Lazada extensively uses is free shipping. Shipping costs actually play an important role in determining whether a customer would actually go through with their orders and confirm them and make payments for them.

Thus, by offering free shipping on a wide range of products, wherein the seller absorbs the shipping costs themselves, buying from Lazada becomes appealing.

Lazada also offers various combinations of products that a user can opt to buy. Moreover, products are also advertised and promoted in deals rather than as singles, and price-saving combos are given higher priority in advertising, such as large colourful banner ads on their application instead of small scale PPC ads.

In fact, Lazada allows its sellers to choose what deal/combo would best suit their products, thus giving them the freedom of choice. These sellers create bundle deals that meet the expectations and demands of the customers.

Affiliate marketing is one of the most popular marketing tactics out there today, especially in e-commerce platforms with a large customer base. Lazada too have an affiliate program wherein the affiliate or the publisher works with Lazada to promote and conduct sales of their products in a pay-based-on-commission structure.

Lazada affiliates receive a unique link that lets them share it with their potential customers and send traffic to Lazada’s website and app. Any purchases made through these links earn the affiliate a commission.