Solutions to enhance customer trust towards online shopping at Lazada Vietnam

5!1.2 PROBLEM SITUATION ANALYSIS 1.2.1 Justification of problem existence To understand how internal department acknowledge about the problem of organization, author started to intervi

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-

Dang Hue Phuong

SOLUTIONS TO ENHANCE CUSTOMER TRUST TOWARDS

ONLINE SHOPPING

AT LAZADA VIETNAM

MASTER OF BUSINESS ADMINISTRATION

Ho Chi Minh City – Year 2015

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-

Dang Hue Phuong

SOLUTIONS TO ENHANCE CUSTOMER TRUST TOWARDS

TABLE OF CONTENTS

CHAPTER 1 PROBLEM IDENTIFICATION 01

1.1 Overview of The Company 01

1.2 Problem Situation Analysis 05

1.2.1 Justification of problem existence 05

1.2.2 Justification of problem importance 08

CHAPTER 2 ALTERNATIVE SOLUTIONS 10

2.1 Exploration of potential causes 10

2.2 Cause and effect map of low customer trust 12

2.3 Alternative solutions 17

CHAPTER 3 SELECTED SOLUTIONS AND CHANGE PLAN 24

3.1 Justification of The Best Solution 24

3.2 Change Plan 26

CHAPTER 4 SUPPORTING INFORMATION 31

4.1 Interview Transcripts and Explanation in detail 31

4.2 Customer Trust and WebQual Questionnaire 46

4.3 Grouping Result of Customer Trust and WebQual Questionnaire 59

4.4 Other information 61

REFERENCES 66

LIST OF MAIN FIGURES

Figure 1.3: Initial cause and effect map 06

Figure 1.4: Effects and Consequences of Low Customer Trust 09

Figure 2.1: Causes of Low Customer Trust 14

Figure 2.2: The cause-and-effect map of Low Customer Trust 15

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CHAPTER 1 PROBLEM IDENTIFICATION 1.1 Overview of The Company

Nowadays shopping online become a modern trend in the world because its convenience and fast Therefore, it has been growing rapidly not only in developed countries but also in developing countries According to VECITA – Vietnam E-commerce and Information

Technology Agency, Vietnam has 90.73 million people and 58% in that go online to purchase

in 2014 It is a significant number to show that Vietnam is also start up to grown in e-commerce now

RECESS LIMITED COMPANY (“Lazada”) Main address : Floor 15th, Empress Tower, 138-142 Hai Ba Trung, Dakao ward, District

1, Ho Chi Minh City Phone number : (08) 3942 1188 Fax: (08) 38 3941 4223

Lazada has possessed 26% of market share and keep the first position in Vietnamese

e-commerce market (Table 1.1)

Figure 1.1 – The growth of traffic and revenue in Lazada Vietnam YOY in 2014

Source: Lazada Marketing Regional analysis

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However, with the data as Table 1.2 below from March 2015 to October 2015, the traffic

of Lazada drop down significantly from 49.9% to 33% from July to August in total

E-commerce’s market share (Figure 1.2) Specifically, average traffic people came to Lazada website daily was about 500,000 But recently, it was about 300,000 to 350,000 sessions per day Additionally, the quantity of orders on Lazada decreased also In July, total number orders

of Lazada was 1.5 millions with the basket size about fifty dollars per order, drop down 1.2 millions in August with the basket size just only about thirty five to forty dollars per order

Table 1.2 – Market share of Lazada from March to August 2015

Source: Lazada Marketing Regional analysis

Figure 1.2 – Market share of Vietnam e-commerce in July and August 2015

Source: Lazada Marketing Regional analysis

In additionally, customers’ complains about quality of products also increased and many articles, which affect badly to reputation of Lazada appeared With this situation, Lazada kept spending the Marketing expense rate consistantly or even higher from 100% to 121% (Table 1.3) to calm down social media and push the traffic, orders and net merchandise value (NMV) increase as before

% MKT expenses % NMV

Table 1.3– Marketing expense and NMV rate of Lazada Vietnam from Jun and August 2015

Source: Lazada Marketing Regional analysis

From that, we could see there is a existent problem in Lazada Vietnam organization which leads to symptoms of decreasing traffic, order and NMV strangely, also many complains and negative articles The crisis mission now is to find out the real problem that existed in the organization to pull back customers to purchase on Lazada website That is the only way to help increase NMV of company to remain its first rank in the e-commerce market

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1.2 PROBLEM SITUATION ANALYSIS

1.2.1 Justification of problem existence

To understand how internal department acknowledge about the problem of organization, author started to interview nine employees in Lazada, included, one in team Sale, one in team Operation, one in team LEX, one in team Commercial, and two in team Customer Service, one

in team Finance Accounting and finally two in team Marketing Moreover, with three more managers, Head of Marketing, Head of Campaign and Head of Partnership in Lazada to find out how the level C group and consolidate the problem of company (refer to session 4.1-Interview Transcripts in chapter 4) The result came to Figure 1.3 – Initial cause and effect map as below

In three main factors such as more competitors, investing Marketing expenses

ineffectively and decreasing purchase intentions from interview internally, author continuously choose the main factor to discover the real problem of the company, which is the most

important and possible to solve at Lazada now Firstly, to more competitors’ factor, this

problem is external problem with certainty of nature in the marketplace While there is existent need in society, it will appear suppliers and competitors, too It could not be exceptional with the rapid speed development of Vietnam e-commerce nowadays It is also external problem of all organizations, not only Lazada To solve problem in organization, it could not be designed in this short-term research It needs to collect data for general e-commerce situation to decide Secondly, to investing marketing expense ineffectively, author could not decide exactly at her position Partnership Manager in Marketing This is a overall structure topic, which involved not only level C of company but also International Group – Rocket Internet of Lazada’ strategy Likewise, about Marketing expenses, it will be necessary to a detailed plan with more analysis

and diagnosis And certainly, it will mostly depend on the fact of investment situation for

Lazada Therefore, the author finally and carefully decided to select Decreasing purchase

intentions/ behaviors factor group to do the research In this group, Low Customer Trust is the

central problem, which many Lazada customers pay more attention to solve in this research

Figure 1.3– Initial cause-and-effect map

(Detail of Figure 1.3 are explained in chapter 4)

Drop down traffic and NMV

Investing MKT expenses ineffectively

More competitors in

VN e-commerce recently

Decreasing purchase intentions / behaviors

Low customer trust

Long-time delivery

Long-time refund order

Discount price still expensive

Unrealistic images

of products

Multi Organizational policies

-Orders were canceled because of resellers and out

of stock Fake products

Buying

Assurance

Return

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Customer Trust is firm belief or confidence in the honesty, integrity, reliability,

confident expectation, hope in future and justice of customers who purchase products or service

of an organization (John Todor, 2006) Therefore, Customer Trust is emphasized as a main factor determines customer loyalty (D’Ambra and Xiao, 2010) According to Trust Barometer

of Edelman in 2005,80% of people stop buying products or services from companies when their trustworthiness comes into question Otherwise, Strader and Ramaswami (2002)

discovered that customers could pay more about 7% to 10% for sellers who they trusted

Customer Trust online is defined by the security of the website (Schneiderman, 2000) and the intention of decision purchasing (McKnight et al., 2002) There are three causes affect to

Customer Trust on e-commerce such as company reputation, service quality and website quality (Kim and Tadisina, 2007)

Refer to the questionnaire and results of questionnaires in chapter 4, with ninety two survey questionnaires of customers, sixty four customers used to buy online, and twenty nine persons used to buy on Lazada website, surprisingly fourteen of them agreed or completed agreed (that means 48,28%) that they don’t trust to buy on Lazada by unrealistic images of product, ten others are neutral (that means 34,48%) and five lefts are disagreed (that means 17,24%) It means almost half of 48% interviewees who used to buy on Lazada website confirm that they don’t trust to buy products on Lazada website Thus, this result number shows that Low Customer Trust is existent and worth to solve in Lazada now

Moreover, author continuously interviewed five different online shoppers to convince about why author chose Customer Trust as the main central problem of Lazada (refer to Table 4.7 in chapter 4) All of them were asked about their customer trust to three famous e-commerce site in Vietnam now To Lazada, there are four on five interviewees feel that they don’t believe

or afraid of service delivery To Adayroi, there are three of five interviewees, who doubt

because it is still young To Tiki, there are also three of five interviewees, who don’t know what

to buy on site However, Adayroi has just opened but they knew how to use Marketing tool to attract customer trust as they promise to deliver products only during 6 hours And they are still successful until now Because Tiki has focused on book category so that they are quite

successful to get their segmentation customer trust From these proofs, author concluded that Lazada should to improve their customer trust while it is not only their problems but other competitors are doing better to improve this factor

1.2.2 Justification of problem importance

Literature review outlined that in e-commerce, trust has been essential affected to

customers’ purchasing intention/ behaviors (Meng-Hsiang Hsu et al., 2013) According to Reichheld and Schefter (2000) if a company could retain a customer for 5%, they will increase profit for 25-95% Thus, it is very important to solve the problem customer trust in Lazada case

to avoid losing profit and NMV of the company

Another consequence of customer trust performance is Word Of Mouth (WOM)

intention Customer trust directly influences word of mouth intention (Achmad Nizar Hidayanto

et al., 2014) Customers who buy online are internet users so that they interact actively each other on the internet Many customers usually share their opinions and experiences of a product

or service which they have just bought on internet Hence, if they are good products or service,

it will keep reputation for the company If not, it will affect to company not only lose that customer but also new many other customers by bad purchasing experiences which were shared too much and too fast on the internet Finally, if Lazada don’t realize as soon as possible to

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solve out the problem, they will lose customers, lose traffic, lose NMV, lose profit and even their reputation (Figure 1.4)

Figure 1.4 - Effects and Consequences of Low Customer Trust

Drop down traffic and NMV

Lowpurchasing behaviors, attitude and intention (Meng-Hsiang Hsu et al., 2013), (Mohammad Al-Nasser et al., 2014)

CHAPTER 2

ALTERNATIVE SOLUTIONS

2.1 Exploration of potential causes

There are many causes influence to Customer Trust in Literature review However,

summarily, author categorized these causes into three main groups – Organization Influence,

Website quality, Knowledge and Experiences (Figure 2.1)

Organization influence included four factors such as Product choices, Vendor

reputation, Company scale and Institutional influences (such as assurance, return or purchase policy) (Achmad Nizar Hidayanto et al., 2014) To Product choices, if product quality is too bad with many fake SKUs, the consequence of Lazada will be influenced and lead to Lower

Customer Trust then Otherwise, for Vendor reputation, if merchant who sell product on flat form have bad reputation, certainly Customer Trust could not higher on Lazada website It is same with Company scale and Institutional influences such as assurances, purchase and return policies are too difficult to understand on the website, customers will not be encouraged to buy All of causes could lead to the problem Low Customer Trust and lead to many consequences after that

Website quality, plays an important role to attract, raise and keep customers on the

website for long-time There are many scale to measure a website quality such as E-SERQUAL (Zeithaml et al., 2002, and Parasuraman et al., 2005), WEBQUAL (Loiacono, Watson, and Goodhue; 2002), SITEQUAL (Yoo and Donthu, 2001), eTailQ (Wolfinbarger and Gilly, 2003)

A good quality website will decide customers’ purchase intention on that website whether they

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buy online or not (Liao et al., 2006) According to Achmad Nizar Hidayanto (2014), Customer trust will be affected by website quality Therefore, it has to be focus on quality of Lazada website There are four main factors of Website quality are ease of use, aesthetic design,

processing speed and Security/ Privacy

- According to Davis (1989), perceived ease of use refers to the “degree for a person believes that using a particular system would be free of effort” Refer to Table 4.5 in chapter 4, the ease

of use also included the ease of understanding and intuitive operation of the website (Eleanor T.Loiacono et al., 2002) Therefore, the content website need to be easy to read and understand for customers Moreover, it should be easy to operate and navigate, too The easier the Web site makes it to accomplish a customer’s task, the more users likely accept it (Eleanor Terese

Loiacono, 2000)

- Aesthetic design has seen in many literature reviews that separated into different groups of causes But in this research, author put in a separate group, which she collected from interview also The aesthetic of a Website is in Visual Entertainment (Eleanor T.Loiacono et al., 2002) and refer to Figure 4.1 – WebQual Primary Constructs in chapter 4 It is also in Usability of the Website with the attractive appearance to customers (refer to Table 4.4 - WebQual 4.0

Instrument in chapter 4) Before that in 1999, Shand believed that aesthetic design included design, interaction, response time and technology

- Processing speed was simply understood in Usefulness concept (refer to Table 4.5 – Initial WebQual dimensions in chapter 4) It is about timing to process after interaction with the site Therefore, if the speed is fast, customers will be more satisfied with the WebQual

- Security / Privacy of the WebQual makes customers feel safe to complete transactions and secures their personal information on the Website (refer to Table 4.4 - WebQual 4.0 Instrument

in chapter 4) According to Eleanor T.Loiacono (2002) (Refer to Table 4.5 in chapter 4), we could see that author used the word “Trust” replace for “Security/ Privacy”

Finally, it is Knowledge and experiences group In this group, we could see the main

factor is Price and Information of e-commerce Customers may have knowledge or experiences

of purchasing on Lazada Therefore they know clearly about the price of products and service that they used to or usually buy on Lazada website If Lazada advertises exaggeratedly about a promotion, customers will figure out and feel that Lazada is cheating them It will influence to customer trust (Eugenia huang et al., 2004)

2.2 Cause and Effect Map of Low Customer Trust

Refer to the questionnaire and result of questionnaire in chapter 4, from the final result

of one hundred survey questionnaires that author used to collect, it has fourteen over nine customers of Lazada said that they don’t trust on buying Lazada e-commerce (that means 48,28%) In additionally, we also find out the Table 2.1 as below to show us how author

twenty-conclude to choose WebQual as the main group factor for this research In these three groups of potential causes of Customer Trust, there is only WebQual group, which have all four

dimensions in the group received over 50% agree and completed agree from survey results of questionnaire, while others still have dimension under 50% agreement

Moreover, author continuously interviewed four different Lazada shoppers to clarify convincingly about why she choose Security/Privacy dimension in WebQual factor group is the real problem of Lazada (refer to Table 4.3 in chapter 4) All of interviewees were asked about

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group causes and dimensions in each group to understand how they feel The results showed that four of them all feel satisfied about Organization Influence of Lazada, two of them have negative Knowledge and Experience of purchasing on Lazada, but four of them all feel

uncertainly about WebQual of Lazada, especially Security / Privacy dimension Therefore, author chose the most feasible central problem of Lazada is Low Customer Trust, especially Security/ Privacy in the group WebQual

After list out consequences of Lazada if customer trust decrease and list out many causes could affect to customer trust, we have a completing causes and effects map as below (Figure 2.2)

Figure 2.1 - Causes of Low Customer Trust

Low Customer Trust Institutional influence

Organizational influence (Achmad Nizar Hidayanto et al., 2014)

Product choices

Vendor reputation

Company scale

Webqual (Achmad Nizar Hidayanto et al., 2014)

Knowledge and

experiences

(Eugenia Huang et al., 2004), (Achmad Nizar Hidayanto et al., 2014)

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Figure 2.2 - The cause-and-effect map of Low Customer Trust

Low Customer Trust

Organizational influence (Achmad Nizar Hidayanto et al., 2014)

WebQual (Achmad Nizar Hidayanto

et al., 2014)

Knowledge and

experiences (Eugenia Huang et al., 2004), (Achmad Nizar Hidayanto et al., 2014)

Low purchasing behaviors, attitude and intention (Meng- Hsiang Hsu

et al., 2013), (Mohammad Al-Nasser et al., 2014)

Decreasing profit (Reichheld and Schefter , 2010)

Word of Mouth will affect to the reputation of website (Achmad Nizar Hidayanto et al., 2014)

Drop down traffic and NMV

Table 2.1 – The result of each cause group of Customer Trust

Source: Customer Trust survey questionnaires

No Group of

Customer

Trust

Dimension of each Group

Refer to

Question (of

Customer Trust Questionnaire in chapter 4)

Results

1 Organization

Influence

Company scale Q21, Q22, Q26 About 40% agree and

completed agree Institutional influences Q17, Q20, Q25,

Q26

About 50% average, agree and completed agree

Processing speed Q15, Q16, Q25,

Q28

Over 50% agree and completed agree

Figure 2.3 – The alternative solutions of Low WebQual – Low Security / Privacy

2000)

Improve information quality (2) (Eleanor.T.Loiacono,

2000)

Improve security system

(1) (Eleanor.T.Loiacono,

2000)

Improve

WebQual

Improve Security / Privacy

According to Eleanor.T Loiacono (2000), data were collected from 510 undergraduate students

at a large southeastern university Subjects were currently Web users who were on average twenty years of age Exactly half of the sample was female These subjects such as ages and genders were matched with customers target of Lazada — eighteen to twenty nine years old, 43% females & 57% males (as target customer showed in Table 4.1 and 4.2) of session 4.4 in chapter 4 These Cronbach alphas of variables as the Table 2.2 below were supported author to improve her solutions

Table 2.2– The summary results of variables influenced to WebQual

Source: A Website Quality Instrument research

increase their trust It is also the solution that international Visa payment organization implied

to increase their quality of system presently

Personal information data of Lazada is the most interesting sources for other companies, marketing, banks or telecom organizations Thus, other companies are ready to hunt by

exchange or even money to buy Hence, to improve the Low WebQual, Lazada have to improve their quality in securing their customers personal information Or even they have to inform customers why and how they used customer information before they do It will limit customer

to feel uncomfortable when Lazada spamming to their information later, but Lazada should consider carefully before they use their customer data It definitely must use data in business purpose And they could also use coding system to their database to protect customer private information like data table below

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(2) Information quality

According to Wang and Strong (1996) and Strong (1997), information quality suggests four dimensions below

- Intrinsic information quality refers to the accuracy of the information, including

content and the navigation of system and hyperlinks

- Contextual information quality depends on the amount of author information provided which is adequate, updated, appropriate, and including contact information

- Representational information quality includes if the information is interpretable, easy

to understand, concise, and consistently represented

- Accessibility information quality is determined by the navigation of system and

traversing through the site (Huang Lee, 1999)

Therefore, with everyday deals on Lazada or any content that customers will read, Lazada have to guarantee about the quality of information However, for marketing tools, some banners have to make to attract customers Designing team of Lazada decide to exaggerated by some photos, pictures and words which didn’t have in the Campaign While customers saw and

felt that quality of information on the website is not really right, they will disappointed about the WebQual of Lazada and won’t trust to buy on Website anymore Thus, Lazada should to improve information quality to solve the problem of company

(3) Interactivity

Interactivity is any facility between individual and companies communication directly without any distance or time (Blattberg and Deighton, 1991) “Interaction changes the nature of advertising from persuasion to relationship” (Philport, 1997) The function incorporating allows customers to communicate with fellow stakeholders within a site fosters and may result in

return visits (Hoffman and Novak, 1995) Therefore, WebQual want to improve, it have to

improve customers interactivity with the flat form and company In currently, there are various interactivity tools, such as email feedback, questionnaires, user groups, software downloads, and online order forms according to Emerick (1995) and Marrelli (1996), are currently in use in Lazada If customers could communicate to the website easily to share their opinions, they could give their ideas, what they want and what they don’t so that Lazada get satisfaction after

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improving step by step It won’t lead the service or company to crisis to make customers

disappointed In additionally, customers will be more trust on Lazada while they see all of their desire could be afforded and wonderings could be answered

CHAPTER 3

SELECTED SOLUTIONS AND CHANGE PLAN

3.1 Justification of The Best Solution

For these three alternative solutions as above in Chapter 2, author chose the solution (1)

as the best solution for Lazada in the next quarter 4 of year 2015 For making decision, author interview two managers who involved to these projects in Lazada These are Head of Product and Local Development Manager Both of them are leading the WebQual and the strategy of Lazada so that they will know which solution is the best solution for Lazada in the near future

- For matching with strategy in near future

Lazada Vietnam has task to develop 10% orders paid by cards payment to 20% orders in the next year It will help Lazada to control and decrease the risk of receiving cash on delivery and complexity of collecting money after selling It will cut company cost effectively and also increase Customer Trust to use cards payment on website But if Lazada want to encourage customers to pay by cards, it will need to prove that their system is safe for customer payment information Therefore, the coding system program is very important It will be priority in strategy has to finish by the end of this year

For solution (2) and (3), it was understood that Lazada could not implement for the strategy developing in market Because of marketing purpose to increase sale, Lazada still use some tips in advertisement and control the disadvantage of interactivities between customers and Lazada If Lazada implies these solutions, it will decrease their NMV right after And they

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Summarily, author chose solution (1) as the most effective solution to solve Lazada problem recently – Low Security/ Privacy in WebQual and Low Customer Trust

- For timing and budget of solutions

With solution (1), Lazada has already started by October in 2015, it will not take too much time to plan and start it now And it also has support among other cooperative

organizations such as Visa and banks so that it won’t take too much time to execute it by alone Lazada has their own product team and regional tech-hub to support, they don’t need to out-source resource to do it It will be better for them to plan and cut timing cost to control

If Lazada implement solution (2) and (3), they have to take more time to plan

Moreover, they have to been through many steps to get approval and implement later It is not sure that managers will approve these solutions to apply in fact of Lazada situation As manager angle of views, they could think these solutions affect sale of Lazada and the benefit is too long

to see in Lazada rush situation Therefore, they are not persuaded to apply, especially the cost Lazada has to bear here is not only human resource payment to execute but also cost of losing sale

- For limitation of solutions

For solution (2) and (3), they have limits to apply by cost, time, budget, strategy so that

it could not apply immediately and effectively as solution (1) Therefore, solution (1) is the most suitable solution for Lazada problem in currently

3.2 Change Plan

To implement the solution (1) - Improve security, we need to set plan for five steps such

as (Van Aken, J., Berends, H., and Van der Bij, H., 2012)

- Objectives

- Actions are activities to conduct planned changes and timing

- People is who execute and who get involved in the change process

- Change organization in temporary structure

- Communication plan to inform to relevant party

Objectives

The coding information system will secure customer private information Therefore, it will help to improve Lazada Security/ Privacy in WebQual and also Lazada Customer Trust

Actions are activities to conduct planned changes and timing

The coding information system is a system to code all customer private information on website Lazada will be covered by number or dark spot But, while customers input information won’t appear obviously, so that if customers would like to check right or wrong, they could not ability to do Thus, it should have choice button for customers to make information appear when customers want to check Finally, all information will be coding also in the internal or third party to keep safe for customers There are some key persons who take in charge of database customers could see the raw information only

This plan will take two weeks for the processing and planning of this solution Then, it

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need more four weeks to adjust and fix or comment any obstacles In February next year, we

could confirm continuously run this solution in long-time later or not

People is who execute and who get involved in the change process

It also required Lazada to clear process and responsibility for each department who have

authority to see the real information and execute coding information system before applying the

coding information system in real

Process order Main task P.I.C (People in contact)

1 Plan in detail for executing new system Local Development team

2 Write the coding information system Product team

Regional Tech-hub (support)

3 Test the pivot

Local Development

Team raise this

solution with detail

Process and Plan in 2

weeks

Product team design system in

6 weeks

Run pivot system and CS team to listen response from customers to adjust system later in 4 weeks

Customers buy -! Website run new system ! Customer private information coding -!

Third party + Customer Service (Payment gate) to finish -! Sale + Commercial + Marketing team to take necessary information -! Product team check and review

Product team Visa / Master / Smartlink, etc., Customer Service team

Sale team, Commercial team, Marketing team

4 Review and justice from each team report

(which team involve and have requirement to use new system)

Each person in each team

7 Justify if continuously execute or stop in

yearly

Local Development team

To apply this solution, all the budget cost is only payment salary for human resource of company If it is overload, human resource could recruit who was paid 250-350 dollar monthly for execution and support are called internship staff Therefore, the budget cost in this solution

is the least for company

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Change organization in temporary structure

This solution will not change too much in system process of Lazada It is a little bit change by the way customers input information to register accounts on Lazada and process payment to complete transactions Additionally, third party such as Visa / Master / Smartlink, etc need to support confirm for customer transactions or internal team like Customer Service team, Sale team, Commercial team, Marketing team need to clear their responsibility and how

to implement when they work in Lazada

Communication plan to inform to relevant party

It will need some meetings with third party such as all payment gateway organizations which cooperate and operate on Lazada website currently They could discuss how to cooperate

to implement this solution, or even deal to exchange Then, when it comes to pivot test, Lazada should announce internally by email to all staff and third party that involved to also Finally, if

Lazada is able to run the new system, Lazada will need an official announcement on public channels to convince and announce to customers It is one of methods to improve Customer Trust on Lazada

research It took two weeks to interview and collect all these transcripts after that

A employee in team Sale

It is not easy to find a seller which have good reputation and supply good quality products to sell on Lazada website Moreover, recently, while market have many more competitors such as Adayroi, Deca, Tiki, Vatgia, Nhom mua, Cung mua, Hotdeals, Zalora, etc., sellers signed exclusive contract with the best online website which offer them the best of fee for commission price (0% - less than 8%) Therefore, it is problem for Lazada now make traffic and NMV drop down

A employee in team Operation

While there are more than 1500 sellers on Lazada website and the high turn over rate of

employees, team Operation could not keep the same policy for purchasing, return or assurance from the sellers through Lazada website to customers Example, Dien may cho lon and FPT are two big sellers on Lazada They have volume more than 500,000 USD monthly But the

problem is that they have not accepted purchasing method credit or debit cards on Lazada,

which they could not take money directly while they deliver products Or other small sellers, which are in Hanoi or Ho Chi Minh City, have no nationwide agencies covered sixty-three provinces of Vietnam So that if customers would like to buy and have assurance for the

products after that, they need to make clear whether seller have assurance agencies before purchasing At that time, customers easily feel that they could not believe in buying and have good taking care after that For that they don’t want to purchase

A employee in team LEX

LEX – Lazada Express is an important team to execute the delivery process for whole Lazada website And the problem, which acknowledge, is long-time delivery To deliver one million orders per day is not easy to arrange and organize people to do that Moreover while they have

to deliver nationwide in Vietnam to customers, it likes impossible mission for them But

customers will be disappointed if Lazada could not deliver as fast as customers want Hence, that is also reason why customers consider buying on Lazada

A employee in team Commercial

Team commercial which we usually call KAM – Key account manager They take

responsibilities in caring merchants / sellers on Lazada to make sure that they could improve or even keep sale volume Thus, they will pay more for Lazada’s commission fee The problem here is so difficult for them to make sure the volume won’t be down or higher They need to deep dive about products and Marketing Nevertheless, Marketing is not involved to their team

so that they need to ask Marketing team for help, to push promotions and sale on their channels