Advertisement

COVID-19 and online shopping: How two Lazada sellers prepare measures to weather this pandemic

SME Businessman looking at cell phone and work on laptop with parcel on table
(PHOTO: Getty Images)

SINGAPORE – With governments enforcing quarantine and self-isolation measures around the world, the Singapore government has also heightened safe-distancing measures to pre-empt escalating infections of COVID-19. By significantly reducing movements and interactions in public and private places, the ‘Circuit Breaker’ will help to bring the number of cases down.

As most of us stay-at-home to binge-watch Tiger King and Terrace House, place Hangout calls with friends and family members, declutter the house - we find ourselves with extra time to spare than you’re used to. We find ourselves looking for necessities to buy online, especially from household appliances to storage boxes and food wraps, to organise our home and meet the demands of our daily life.

E-commerce stores now replace in-store purchasing as consumers remain at home because of the coronavirus pandemic. As people adjust to their new stay-home directives, their buying needs also change. According to market research company Nielsen, one of the key consumer behaviours tied to the pandemic is ‘reactive health’ management, where consumers want to stay clean and healthy. They buy protective gears such as gloves, masks and household cleaning products.

Godwin Goh, who runs his third-generation family business, Goh Sin Huat, a brick-and-mortar home appliances company, shares with Yahoo Lifestyle SEA, that he’s seen purchases for cleaning appliances like Midea and Toshiba washing machines doubling since the ‘Circuit Breaker’ measure was implemented.

Facing challenges

Goh, who leads the company’s e-commerce efforts on Lazada Singapore said while purchases have doubled, he is cautious to keep his customers informed on Lazada’s chat app about the delay in delivery: “Due to the COVID-19 pandemic, we are experiencing a high volume of orders but there is a delay in the delivery period. Usually, it takes us between three to nine business days, so we make sure we inform our customers and our customers understand this predicament.”

As more consumers set up more comfortable settings at home, their needs have also substantially increased for household items. According to a survey conducted by Digital Commerce 360 with Bizarre Insights, 24% of online shoppers revealed they have purchased more home goods or appliances.

Michelle Lee, owner of Trippy Traveler on Lazada Singapore. (PHOTO: Michelle Lee)
Michelle Lee, owner of Trippy Traveler on Lazada Singapore. (PHOTO: Michelle Lee)

Michelle Lee, 27, who started the company Trippy Travelers on Lazada Singapore with her then boyfriend, now husband, selling an assortment of travel accessories, pivoted to new product categories amid this trying times. “Besides selling travel essentials, we have widened our product range to include home and living products. The range includes eco-friendly items like reusable coffee cups, food storage bags and food wraps, which are great for travel but at the same time, useful in your kitchen,” Lee shares.

Like Goh, Lee finds the challenges of selling online during these trying times are delivery delays and the procurement process. “As air freight has been affected and many countries facing lockdowns, the shipment of our goods were delayed. However, we consistently source new products and introduce new brands to our store which helps to increase our sales during this period. All of our products are sourced from all around the globe, like USA, Australia, UK, and many more which helps in our procurement of goods if one of the countries is unable to send the items,” Lee adds.

Looking beyond

As more retailers and sellers wade through this pandemic and make adjustments to their strategy to recession-proof their business, they soon may be able to sow their success for growth in expansion to come.

Goh, who digitised his family business in 2016 by listing the company’s products on Lazada’s eStore, uses a different strategy from his brick-and-mortar store. He shares that he lists twice or more items on the digital store now when he noticed an opportunity to scale online, and his efforts have paid off - currently, more than 70% of the company’s online sales come from Lazada. Goh’s digital strategy now complements its B2B business as he’s able to reach out to a mass consumer audience.

Lee, who started Trippy Travelers with her own savings of S$500 and then using her revenue to expand the business with the help of the marketing tools available on Lazada, finds the process helpful with scaling up revenue: “Interested buyers can easily click on the product they see on social media and it will lead them to our store, which is convenient and low cost. We also list our items on our eStore on Lazada which helps to increase our sales and create alternative sources of income for our business,” the budding entrepreneur adds.

Lazada Singapore is partnering with Enterprise Singapore to assist retailers to extend their domestic reach and help kick-start their entrepreneur journey. Sellers will receive a one-time 90% support on qualifying costs for the fees charged, capped at S$9,000. For more information, visit this website.

This content was produced in partnership with Lazada Singapore.