A lot of people think that online shopping is complicated because of the notion that it requires a complicated means of making payment. That is most of the people’s reaction when they first hear about online shopping. That may be true given that there a lot of online shopping websites out there. There are exceptions to that stereotype however and that exception is Lazada Philippines well simply because this is not the average online shopping company where the only available payment method is through credit cards. This company in their quest to capture all of the market segments and establish online shopping as a shopping activity that could be in parallel with the traditional way of shopping, decided to offer two very convenient ways of making payments and that is through credit cards and the cash on delivery payment method.
The subject of online payment might be something of a very minutiae topic and may sound less important but it is actually one of the most important things because that is the lifeblood of the industry. Without payments then companies will not thrive, businesses will shut down and economies will crumble. There is not simply going to be any commerce if there are no payment systems by which customers can make their payments. In terms of online shopping, the most offered payment method is the credit card payment system. This payment system is the most preferred way for online shopping companies because it does not entail any physical user interaction, all the online shopper has to do is put in his or her credit card information and voila, check out can instantly happen and the item is going to be delivered to the customer’s doorstep. It definitely makes a lot of sense in this electronic economy. It is fantastic if you are going to think about it that economies flourish because simply because there is an effective means of taking payments from customers electronically.
The only limitation that it imposes is that it does not allow the merchant or the company to capture as much market share as they want. Obviously, if a company is only dealing with credit card payments, they only limit their market to those people or consumers who own credit cards and naturally takes out those who are none-credit card holders which is particularly true in an emerging economy like the Philippines where most consumer are non-credit card holders and still prefer the old fashioned way of making payments. That is why, Lazada made a really huge buzz and hype in the local online shopping industry when they announced that they are offering an alternative payment method called cash on delivery payment system. This payment method provided ease of transaction and payment for consumers who do not own credit cards. It effectively promoted online shopping to the general population and encouraged them to shop more online. Lazada was able to get a huge piece of the market by simply accepting cash on delivery payments that along with the great products and great customer that the company offers makes Lazada a real game changer in the industry.