TOPIC: LAZADA E-COMMERCE LOGISTICS

(FOCUS ON WAREHOUSE, TRANSPORTATION, SUPPLY –

CHAIN)

I. BACKGROUND
Lazada Group was founded in 2012 by Rocket Internet to bring a high quality online
shopping experience to Southeast Asia. Lazada's e-commerce websites originally
launched in 2012 in five Asean countries, including Thailand. By 2016, Lazada had
recorded an annualized total of US$1.3 billion in Gross Merchandise Value across
its markets in Southeast Asia. In early 2016, the Chinese company Alibaba took a
51% controlling stake in Lazada with a US$1 billion investment, and more recently
increased their holdings by a further US$1 billion giving them an 83% stake in the
company. As of August 2018, Lazada is the largest e-commerce operator in
Malaysia, Vietnam, Thailand and the Philippines, based on average monthly web
visits.
Pioneering eCommerce in the region, Lazada provides customers with an effortless
shopping experience and retailers with simple and direct access to the largest
customer base in Southeast Asia.
With 300 million SKUs available, Lazada offers the widest range of products in
categories from beauty, fashion and consumer electronics to household goods, toys,
sports equipment and groceries.
Focused on delivering an excellent customer experience, it offers comprehensive
customer care and hassle-free returns through its own first and last mile delivery

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arm supported by approximately 100 logistics partners. Lazada Group is majority
owned by Alibaba Group Holding Limited (NYSE: BABA).

1. FULFILLMENT & SUPPLY CHAIN

 In-Store Fulfillment
In May 2013, introduced Lazada Express to supplement third-party logistics
partners in providing last-mile delivery service, expanding Lazada’s geographical
reach and further improve customer experience. This help to track your company’s
inventory and manage SKUs directly using data from your brand’s physical store.
Maximize the reach of your stock, save on shipping costs, and your retail
associates’ time by implementing a Commerce in-store fulfillment capabilities.

 In-House Fulfillment
Is your B2B business looking to adopt a B2C strategy? Through aCommerce in-
house fulfillment services, it brings specialized technology to equip your facilities
with cutting edge Warehouse Management System and our Transport
Management System, Smartship™, to optimize your processes without disrupting
current operations.

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 Fulfillment Centers
 Outsourced Fulfillment Center
aCommerce fulfillment centers use connected IT to systemize and automate
processes for full warehouse management capabilities. Cut your business costs
by outsourcing fulfillment to a specialist.
The fully equipped fulfillment centers can easily accommodate spikes in your
company’s order volume especially during holiday season or special campaigns.
aCommerce team of operations veterans will execute quality control and ensure
products are delivered safely to your end customer.

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  Custom-Built Fulfillment Center
Brands that want to accommodate bigger order volumes can build their own
fulfillment center through aCommerce. The team will design and customize a
warehouse based on your specific business needs. From supplier management
and process flow, the center handles the end to end process of building your
supply chain.

 Ecommerce Supply Chain Strategy

The supply chain professionals are here to help. Receive complete consultation
plans devised specifically to meet your business needs. Understanding the market
and having access to the latest warehouse software and research to optimize
operations processes, calculate gross projections, propose regional solutions and
make sure your growth is sustainable.
It provides country specific guidelines for regulation in order to help clients
localize. Whether you want to scale ecommerce operations or add B2B capabilities
to your warehouse, our strategies allow you to achieve your business goals.

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 Southeast Asia Market Entry Strategy
Most businesses are unsure if an online strategy is right for them. The team of
experienced ecommerce experts will help guide your Southeast Asia market entry
strategy and decide whether an ecommerce channel is the best place to sell your
products and reach a wider array of customers.
Many businesses hesitate to sell online due to limited internal expertise or
resources. We angle your business’s distinct advantage over competitors to make
informed business decisions and go-to market systems so you succeed online.
 International Cross Border Ecommerce
In January 2014, set up Crossborder operations in Hong Kong, offering
international sellers a one-stop retail gateway to reach the 550 million consumers
in Southeast Asia.
Introduces iOS mobile app, expanding Lazada’s market reach in mobile shopping.
The customs specialists will help your business – no matter the size – sell across
oceans by reducing problems associated with international payments, long
shipping times and language barriers. Become a dependable and reliable source so
your customers all around the world choose to shop from you first.

2. ECOMMERCE TRAINING
 In March 2018, Lazada signed the first-of-its-kind partnership with institutes of

higher learning and training experts in Singapore  to co-develop advanced modules
in eCommerce for entrepreneurs and SMEs in Singapore. Lazada introduces
programmes from higher education & training experts to deepen knowledge and
skills in the rapidly growing sector. Lazada formalised the partnership with
Nanyang Polytechnic’s Singapore Institute of Retail Studies (SIRS), Singapore
National Employers Federation (SNEF), Singapore-based data analytics firm
Sparkline, and Singapore University of Social Sciences (SUSS), through a
Memorandum of Understanding (MOU). This is part of Lazada’s commitment to
empower sellers with the right tools and build an ecosystem within which they can

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 grow. Here in Singapore, the company is taking this one step further as it sees
synergies with the government’s go-digital push and the growth of eCommerce in
Singapore and Southeast Asia. It hopes to work with partners to bring these
programmes to the rest of its markets.

(From L to R): Mr Alexis Lanternier, Chief Executive Officer of Lazada Singapore, Mr

Edward Ho, Deputy Principal of Nanyang Polytechnic, Mr Stephen Yee, Assistant
Executive Director of Singapore National Employers Federation, Ms Aleetza Senn, Co-
founder and Managing Partner of Sparkline and Professor Cheong Hee Kiat, President
of Singapore University of Social Sciences formalised the partnership after signing the
Memorandum of Understanding (MOU).

 In August 2018, created LazStar Academy, in collaboration with Alibaba Business

School and Taobao University, which will build a network of certified expert
trainers among Lazada sellers, to train and develop the skills of other sellers.

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3. OTHER INFORMATIONS
 Consumers
Lazada provides with limitless shopping experiences through their website. It also
allows third party online retailers a simple and direct access to their large customer
base. The customer service hotline is usually open on a regular basis during the
business hours from Monday to Friday. The customer service is in-house and
works directly for the company to provide high levels of service.
 Investors
Lazada has various investors including Rocket Internet, Summit Partners,
Temasek Holdings, Tengelmann Ventures, Alibaba, Access Industries, HV
Holtzbrinck Ventures, Investment AB Kinnevik, Tesco, and Verlinvest. 
 Products
Lazada offers a wide array of products such as clothing, gadgets, jewelry,
furniture, toys, media and books, luggage and accessories. Its online shop is
equipped with some of the world’s biggest name brands including ASUS, Apple,
Casio, Ray Ban, Olay, Cherry Mobile, Calvin Klein, Lenovo, Armani Exchange
and Zara. Its products and services include Fashion, Health & Beauty, Mobiles &
Tablets, Watches / Jewelry, Computers & Laptop, Home & Living, Home
Appliances and Consumer Electronics. 
 Shipping/ Delivery Options
Lazada uses LBC and 2Go (PH) to deliver orders to customers. LBC is an
established company in local and international courier service provision and easily
delivers orders on time as desired by the customers and as required by company.
Customers can easily track their orders online or communicate to Lazada through
automated text and email updates which the company usually provides. They can
also call the company from Monday to Friday between 8am and 9pm. 
 Return Options

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 Lazada customers who opt for reimbursement or refund for purchased products are
permitted to return the products provided their conditions are in line with the
company’s policies which are clearly communicated on its website. It also offers a
100% unique buyer protection program in which customers can return the
products between 7 to 14 days after delivery. This is effective within 24 hours
after the delivery has been done. 
 Payment Options
Lazada’s payment options currently include cash on delivery, credit card, debit
card, PayPal, Bank Transfer, LBC Outlets, 7/11 Convenient Stores and helloPay.
 Countries of Operations
Lazada operates in Indonesia, Malaysia, the Philippines, Singapore, Thailand and
Vietnam, and has a team in Hong Kong that handles cross-border marketing
activities. The company also operates technology hubs located in Ho Chi Minh
City and Moscow. 
 Features
Lazada specializes in internet, retail, ecommerce, warehousing & distribution,
online payments, fashion, consumer electronics, mCommerce, and online retail. It
belongs to the internet industry which is a privately held type. The company has
5001-10,000 employees. They have both web version and mobile version of their
site which makes it easy for their customers to access the services from anywhere. 

REFERENCES:
https://www.lazada.com/media/pressreleases

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https://www.acommerce.asia/technology-platforms/#channel-squid
https://www.businesstimes.com.sg/companies-markets/lazada-partners-launch-in-depth-
e-commerce-learning-courses
https://www.ecinsider.my/2014/01/ecommerce-infographic-malaysia-understanding-
online-shoppers.html
http://www.tapchigiaothong.vn/phat-trien-ha-tang-giao-thong-nham-nang-cao-hieu-qua-
logistics-tai-viet-nam-d19417.html
http://vlr.vn/logistics/news-3178.vlr
https://techinsight.com.vn/cac-cong-nghe-va-xu-huong-logistics-4-0-nao-se-dua-doanh-
nghiep-cat-canh-trong-nam-2018/