Lazada vs Shopee: Which Is Better for Your Online Business

Krittitee Tongdang
February 9, 2024
In Thailand’s world of online shopping, two names stand out as the leading e-commerce platforms: Lazada and Shopee. These giants dominate the Southeast Asian market, providing opportunities for anyone to open their own online store. Both offer a wide range of products, competitive pricing, and convenient shopping experiences, making them the go-to choices for businesses seeking new sales channels to expand product distribution. For entrepreneurs looking to sell their products, many wonder whether Shopee is better than Lazada. In this article, we will compare these two platforms across key factors to help you decide which is better suited for your business, or whether you should operate on both platforms simultaneously.
Starting Your Online Business on Lazada or Shopee: Which Is Better?

An Overview of Shopee and Lazada

Some Thai consumers may have discovered Shopee before Lazada, while others became familiar with Lazada first. In fact, Lazada was a pioneer in Southeast Asia’s e-commerce market, launching three years before Shopee. Today, both Shopee and Lazada stand as the two largest e-commerce platforms in the region, operating under a B2B2C model that blends business-to-consumer and business-to-business elements. Both platforms allow businesses of all sizes, from local entrepreneurs to global brands, to easily sell their products. They offer extensive product categories ranging from electronics to fashion. Additionally, both have expanded operations across Southeast Asia and other regions, enabling consumers in Thailand to conveniently order from abroad with reduced shipping costs.

Lazada vs Shopee: Which Platform Is More Popular?

Consumer preferences vary, but usage statistics clearly show the trends. Lazada pioneered online shopping in Thailand, transforming how people shop by offering extensive product choices and home delivery. However, Shopee has emerged as a formidable competitor, significantly surpassing Lazada in recent years. Data shows Shopee receiving over 59 million website visits per month, while Lazada garners over 37 million. Shopee also holds the top spot on both the App Store and Google Play Store, with Lazada consistently ranking second in app downloads.
While it’s difficult to determine which platform achieves higher sales, traffic statistics alone provide strong insights for consideration.
Starting Your Online Business on Lazada or Shopee: Which Is Better?

Lazada vs Shopee: Desktop and Mobile User Experience

One of the most crucial aspects of an e-commerce platform’s success is delivering a seamless user experience—from navigation to payment processes, including order tracking, cancellations, and refunds. These factors greatly influence user preference and, ultimately, sellers’ decisions on where to list their products. Comparing Lazada and Shopee, both offer intuitive websites and mobile apps. Their systems function similarly, with only minor differences in design. Both platforms provide user-friendly category filters and search options to help consumers easily find products. Furthermore, the transaction process—from browsing to purchasing and payment—is smooth on both Lazada and Shopee. Multiple payment options are available, including buy-now-pay-later features with no interest if paid within the billing cycle. Shopee calls this service LazPayLater.

Buyer and Seller Protections on Lazada vs Shopee

Protection for both buyers and sellers is critical on these platforms. Shopee offers a distinct advantage through its Buyer Protection policy, providing customers with peace of mind and safeguarding against fraudulent sellers and defective products. This policy is a key reason why Shopee has gained greater popularity. Shopee’s protection works by holding payment until the buyer confirms receipt of the order in good condition. Lazada has since updated its system to match Shopee’s approach. However, consumer trust in Shopee remains slightly higher, despite both platforms now offering similar security measures.
Starting Your Online Business on Lazada or Shopee: Which Is Better?

Should You Choose Lazada or Shopee for Your Business?

For those deciding between Lazada and Shopee, we recommend starting with Shopee due to its more accessible backend system. Unlike Lazada, Shopee does not require separate applications for seller management. Lazada’s onboarding involves more steps, including verification through the Lazada Seller Center, which can be time-consuming. However, there’s no rule against using both platforms simultaneously. Selling on both expands your reach across different audiences and increases opportunities for your target customers to find your products, regardless of their preferred shopping platform.

Conclusion

Both Lazada and Shopee are highly popular online sales channels, often offering greater profitability than physical retail outlets. Both platforms provide C2C accounts, local seller accounts, brand accounts, and global seller options. Whether you’re a small business or an individual looking to start selling online, Shopee and Lazada are excellent starting points. If you’re running a serious business and want to professionally establish yourself on Lazada or Shopee but aren’t sure where to start, Asia Search Solution offers Shopee store management services and Lazada store management services available 24/7 to help you succeed.

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