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“Module 5: Individual Assignment – Comparison Analysis”

Submitted to:
Dr. Jesus “Jess” Panlilio

Submitted by:

Mitra, Maria Sarah Luciae U.


1. Describe how online purchasing has changed the business-to-business marketing process
and discuss the advantages and disadvantages of online purchasing.

Online purchasing is something that has greatly evolved from something that was merely
a last resort to something that has become a global trend. This type of purchase allows the
integration of globalization into something as simple as something we like to do. Consumer
behavior styles have changed dramatically since the outbreak of the pandemic. People now
may feel uncomfortable and feel that they are wasting their time going to crowded markets
(Gnanadhas and Sunitha, 2014).

According to Ara (2017), marketing strategies were more widely used prior to this
digitalization, such as purchasing advertisements to be distributed to the public in the hopes
that they would draw in businesses and organizations. These days, everything is more
accessible. Online reviews, recommendations, and the like provide businesses with extra
information that they may use to make informed decisions. Because of the fast information
that becomes available to them, businesses frequently switch between specific brand
websites and other items. Possibly declining along with this online shopping is "in-person"
marketing. Technology can be utilized to lessen human labor and errors that can result in
businesses having quicker and simpler access to the goods or raw materials rather than
having to promote a product manually (Big Commerce, 2022). Additionally, commercial
transactions and marketing procedures are now carried out within the many internet zones
as a result of online shopping (Atkinson, 2022). For instance, by interacting and having a flow
of communication via the corporate website, firms can better understand the purchasing
patterns of other enterprises (2010).

Online purchases offers both many benefits and drawbacks, to put it simply. One of these
would be the capacity to have located a desired good and buy it without leaving the comfort
of one's home. According to Osman et al. (2010), as many products are advertised and shown
online, online purchasing can encourage broader options. Furthermore, cost savings would
be an additional benefit. Costs like transportation or gas may be eliminated since one is only
staying at home. Last but not least, companies can conduct productive business with their
clients even if they don't have a physical storefront. Businesses may only use their websites
as their primary means of product marketing and sales.

In contrast, the most frequent complaint from customers is that the things they order
don't match the quality they saw online, resulting in a lack of customer value for consumers.
Additionally, customers must therefore wait longer for their things to arrive. It would initially
be delivered since they are placing an internet order. Businesses are also frequently put in a
precarious situation when it comes to payment because it's possible to trick them into
thinking the consumer has already paid. Many hackers take pleasure in breaking into
payment systems, making it simple for them to dupe the company. As stated by HRCCU,
(2021) a lengthy drawback is having to pay restocking fees or additional shipping costs to
return an item to the seller.

2. Compare Lazada vs. Shopee: Which delivers better? Shopee or Lazada? Which is more successful
Lazada or Shopee? Discuss why.

Lazada and Shopee are two of the most popular platforms in the Philippines for
making online purchases of goods. If a person wishes to save more on their purchases, such
as the delivery fee, they should choose Shopee. But they should choose Lazada if they want
the products they ordered delivered as fast as possible. Lazada excels at expedited shipping,
with turnaround times that occasionally go below 24 hours. With this, the consumers of
Shopee dislike having to wait 7 to 15 days for their orders to arrive. The long delay issue is
caused by Shopee's specific logistics providers (Ahmed, 2022). Quick shipment from Lazada
comes at a very high freight cost (up to 4X more than Shopee for the same product).
However, if customers can receive their order in as little as one day, they won't regret
spending more money (Ahmed, 2022).

Singapore serves as the location of both businesses' principal offices. Considering that
Southeast Asia is where they primarily operate. Unexpectedly, Lazada's user activity is higher
in the Philippines. However, Shopee receives over 73 million visitors to its website each year,
almost twice as many as Lazada. Lazada's shift from Rocket Internet to Alibaba has left them
somewhat short in terms of operations. Lazada neglected the uneven and inconsistent
product supply in Southeast Asia, which led to protracted and frequent delivery delays.
Additionally, because Shopee focuses on working with local wholesalers, particularly those
in the Chinese business community, Lazada's European executives wish to avoid this move.
Shopee also made significant investments to increase traffic and sales, which in turn
accelerated the rise of local delivery services. With global connections, Shopee collaborated
with local celebrities and used well-known endorsers in each specific location. Their biggest
collaboration with BlackPink enabled them to reach the mobile-first Generation Z and
Millennial demographic (Grace, 2021).

These businesses have been hit by the pandemic, just like the rest of us. They have,
however, taken a number of important steps to support their vendors and merchants
throughout this pandemic. For instance, as part of its Bounce Back Together campaign,
Lazada in the Philippines gave incentives worth P100 million to SME companies, particularly
those who offer high-demand products like food and medical supplies. Shopee also offered
a Seller Support Package through online seminars and webinars to help companies digitize
and begin their online operations. They also planned the 9.9 Super Shopping Day, where
sellers and brands benefited from increased traffic and visibility because of unique
engagement technologies like Shopee Live and Shopee Feed (Grace 2021).

In terms of the customer experience, both businesses offer customer care and direct
messaging services that let customers get in touch with vendors. This encourages sellers to
be more receptive and improves the website experience for all visitors. To sum up and put
up a debate on who is more successful. Shopee isn't far behind Lazada in terms of overall
performance, yet Lazada still leads. Shopee needs to focus on studying their sellers in order
to develop credibility and gain the trust of their customers, even as they double down on
growth, engagement, trendsetting, and inclusivity. But there's no doubt that Shopee might
emerge as Southeast Asia's next significant e-commerce platform as long as it keeps
providing specialized marketing strategies and remains consistent in their product selection
and accessibility.
Gnanadhas, E., & Sunitha, C. K. (2014). Online Shopping - An Overview. Research Gate.

https://www.researchgate.net/publication/264556861_Online_Shopping_-_An_Overview

Ara, M. (2017, February 8). How Digital Has Changed the B2B Buyer’s Journey. Total Product

Marketing. https://totalproductmarketing.com/digital-changed-b2b-buyers-journey/

Big Commerce. (2022, July 21). B2B Ecommerce Category. B2B Ecommerce.

https://www.bigcommerce.com/articles/b2b-ecommerce/#b2b-ecommerce-marketing-101

Atkinson, E. (2022, March 3). How Online Purchasing Has Changed The Business Marketing

Process? Bost Innovation. https://bostinnovation.com/how-online-purchasing-has-

changed-the-business-marketing-process/

Osman, S., Yin-Fah, B. C., & Choo, B. H. (2010). Undergraduates and Online Purchasing

Behavior. Asian Social Science, 6(10). https://doi.org/10.5539/ASS.V6N10P133

HRCCU. (2021, December 15). Pros & Cons of Online Shopping. Hudson River Community

Credit Union. https://www.hrccu.org/blog/benefits-online-shopping/

Ahmed, A. (2022, March 29). Shopee vs Lazada: Who is Winning Ecommerce Battle in

Southeast Asia? Ced Commerce. https://cedcommerce.com/blog/shopee-vs-lazada-who-

is-winning-ecommerce-battle-in-southeast-asia/

Grace, S. (2021, July 12). Lazada vs. Shopee Performance: Who’s winning in Asia? Split

Dragon. https://blog.splitdragon.com/lazada-vs-shopee-performance-whos-winning-in-

asia/#Lazada_vs_Shopee_so_whos_the_winner

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