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Lazada turns 13: Bigger deals, smarter shopping, and more sustainable growth

Since its launch in 2012, Lazada Philippines has become the country’s premier e-commerce platform, empowering new sellers, supporting local and international brands, and improving the experiences of their customers. This year, as it celebrates its 13th anniversary with its Birthday Blowout Sale from March 24-29, Lazada is once again set to deliver unbeatable deals while elevating the shopping experience.

“As with every campaign, we want to be able to offer the best deals to our customers during this [Birthday Blowout Sale]. Month after month, we look at what works, and what doesn’t work, and then we learn from that. So when it comes to offers and promotions, we are confident that we are responding better to the needs of our consumers,” Lazada Philippines Head of Seller Operations Alvin Ching said in an interview with BusinessWorld.

Lazada hopes to deliver products that are more relevant to each user and to provide a better experience on the platform through the use of its pioneering technology like AI Lazzie, the first AI-powered e-commerce chatbot of its kind in Southeast Asia. Mr. Ching explains that AI Lazzie’s ability to refine product suggestions and give smarter recommendations come from data operations that analyze user behavior in terms of what they search for, click on, and purchase.

“No two users will see the exact same recommendations because each experience is uniquely tailored to their shopping habits. This personalization, built over 13 years, is what makes Lazada’s shopping experience more intuitive and rewarding,” Mr. Ching added.

In addition to AI-powered tools, gamified experiences are designed to enhance engagement and retention among Lazada’s shoppers. Mr. Ching mentions that integrating interactive elements into the shopping journey allows Lazada to transform simple transactions into exciting experiences and habits, making the platform more than just a place to shop.

Lazada Philippines Head of Seller Operations Alvin Ching

“We don’t necessarily expect people to buy every single time they visit the platform; but if they play and collect coins daily, and purchase once, twice, or three times a month, then we’re driving meaningful customer engagement,” Mr. Ching explained.

The most anticipated part of the platform’s birthday sale is the massive discounts made available in the week. During the Birthday Blowout Sale, shoppers can score up to 90% off on branded finds, snag up to P2,000 off in campaign vouchers, and enjoy 100% free shipping with no minimum spend.

Brands and items that receive the most discounts are determined by a strategic investment approach, rewarding sellers who actively engage with Lazada’s programs and are committed to giving the best deals to their customers. “Our goal for [sellers] who invest in the platform is to enjoy ROI by growing their sales,” Mr. Ching said.

Additionally, partner brands can look forward to increased visibility, page traffic, and sales opportunities during Lazada’s Birthday Blowout Sale. Mr. Ching encourages sellers to join these as a way to boost their earnings not just during the sale but also during regular shopping days.

Mr. Ching said that by offering better prices, sellers can generate more sales, more clicks, and a higher chance of going up in terms of recommendations. This means that even after the sale ends, their products remain more visible to interested buyers.

To ensure a seamless shopping experience, Lazada has strengthened its technological infrastructure and logistics capacity to handle the expected surge in app traffic and orders.

Through data garnered over the years, Lazada has significantly improved its sales projections, allowing the e-commerce platform to better strategize pickups from their sellers and even what kind of vehicles they need to use.

After achieving its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)-positive milestone in July 2024, the focus for Lazada is now on staying sustainable, while continuing to deliver an exceptional online shopping experience for both buyers and sellers. That means constantly improving the platform, keeping up with what shoppers want, and making sure sellers continue to thrive.

“The question we’re trying to solve is ‘How can we stay ahead of evolving customer needs?’. And it’s trying to really understand how consumers behave,” he said. “That’s how we are going to spend the next 12 months. Deals and promos will be there, but there’s also a lot of work going on to ensure that you as a buyer will see products that are more relevant and interesting to you.”

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