Monthly sales of $100,000, breaking into the top 3 of the platform category! Sellers rely on this type of product to break through

Since 2021, more and more sellers who mainly deal in large-ticket items have targeted the Southeast Asian market and expanded to Southeast Asia through the Lazada platform. Among them, some sellers achieved monthly sales of over 100,000 US dollars in a short period of time, ranking in the top 3 of the home furnishing category on the platform . With the improvement of the logistics system, the logistics pain points of large-ticket items can also be well solved. Large-ticket items are undoubtedly a category that deserves attention and investment in the Southeast Asian market.

With monthly sales of $100,000 per site , large furniture sellers are dominating the Southeast Asian market

Due to the impact of the epidemic, the income of most European and American consumers has been unstable in the past two years. Coupled with inflation, consumer demand has been downgraded, and cross-border sellers' sales and orders have declined significantly. As the battle for traffic escalates, cross-border sellers are fighting fiercely in the red ocean market in Europe and the United States. In contrast, the Southeast Asian market, which is the fastest growing e-commerce market in the world, is obviously a hot commodity.

According to the Southeast Asia Digital Economy Report 2021 jointly released by Google, Temasek and Bain & Company , the number of Internet users in Southeast Asia surged by 40 million in 2021, exceeding 440 million in total. At the same time, the total scale of e-commerce in Southeast Asia reached US$120 billion in 2021, and is expected to reach US$234 billion by 2025.

The penetration rate of e-commerce in Southeast Asia is getting higher and higher, and the shopping frequency of local consumers has increased accordingly, and the shopping categories have become more extensive. According to the market report issued by Statista in 2021, in addition to popular categories such as 3C clothing, they have more demand for large furniture, home appliances and other products. Among them, the online purchase demand for furniture has grown rapidly, accounting for 18% of the online purchase category.

Cross-border seller TD mainly sells outdoor furniture products . Seeing the potential of large furniture in the Southeast Asian market, it entered Lazada to expand into Southeast Asia at the end of 2019. TD used to mainly operate domestic e-commerce channels . In TD's view, the Southeast Asian market has a huge consumer population, and the penetration rate of e-commerce is gradually increasing. During the epidemic, everyone is more pursuing outdoor life, so the demand for outdoor furniture in Southeast Asia is also increasing at any time.

As expected, TD 's main product, outdoor furniture, achieved good sales results in Southeast Asia in just 6 months . After in-depth understanding, it was learned that TD sellers 100% stocked in Lazada's overseas warehouses in Malaysia, the Philippines, and Thailand, and simultaneously upgraded to LazMall merchants (brand merchants). With this double blessing, TD's sales exploded.

Previously, TD Malaysia's sales averaged 30,000 USD per month, contributing 60% of the company's sales . Currently, it has been surpassed by the Philippines and Thailand sites, with the Philippines site achieving a completion rate of over 300% in Lazada's ongoing Focus Seller growth program. In the past June, the total sales of the Thailand site reached 100,000 USD, accounting for 40% of the company's sales .

Like TD , another major furniture seller has also reaped the benefits of Southeast Asian e-commerce .

Seller Han mainly deals in living room furniture, bedroom furniture, and kitchen and bathroom furniture . With the support of the furniture industry, he used to operate furniture categories on mainstream cross-border e-commerce platforms and domestic Taobao, with annual sales exceeding 100 million yuan. Through market trend research, based on the large population base in Southeast Asia and the obvious improvement in consumption levels, furniture must have great potential in the local area. Based on the optimism about this market, seller Han, who has rich product supply chain advantages, entered the Southeast Asian market.

Since Lazada and Taobao belong to the Alibaba Group , it is easy to get started quickly. Seller Han focused on the Southeast Asian e-commerce market through the Lazada platform . After one year of operation , relying on the model of pure direct shipping + pre-sale, its average monthly GMV in Malaysia and Singapore exceeded 200,000 US dollars, ranking TOP3 in the furniture category in the two countries .

Many large household products are hot sellers in Southeast Asian e-commerce market

According to TD , Southeast Asia has strong sunshine and is a tropical region. It also has a developed tourism industry and a strong demand for sunshades. Products such as awnings and parasols are selling well throughout Southeast Asia, and products such as outdoor tables and chairs that appeared at the same time as parasols are also selling well.

(Photo from TD )

Seller Han 's large TV cabinets, storage cabinets, sofas, makeup mirrors, table and chair sets are also hot-selling products in the Southeast Asian market. He said that TV cabinets and storage cabinets are the best-selling products. Because the products are of high quality, they target different customer groups.

Consumers in Southeast Asia focus on quality, especially when choosing large cabinets, lockers, etc. As for outdoor furniture, since the weather in Southeast Asia is generally hot, most consumers will choose materials that are sun-resistant.

TD parasols and outdoor tables and chairs have high requirements for moisture resistance and corrosion resistance. Since many consumers are shop owners, they will open shops near the sea. When choosing products, consumers care more about cost performance and durability.

Overall, whether it is outdoor furniture, sunshade products, or indoor furniture, Southeast Asian consumers have a great demand for these products, and many large products are selling well in the region.

When talking about the advantages of large products compared to small products, both sellers believe that there is a lot of room for large products to go overseas . Although this category has certain barriers to entry, there is less competition on e-commerce platforms . If there are sellers with strong supply chain resources, they can start planning as soon as possible .

However, sellers also need to consider other factors when entering the market. Due to the large size and weight of large products, shipping to Southeast Asia also faces logistics pain points.

Solving the logistics pain points, the turnover of large furniture increased by nearly 60%

The most fatal problem for sellers of large products going overseas is logistics. When they first entered the Southeast Asian market , there was no sea transportation, the logistics costs of goods were expensive, and it was difficult to place orders , said TD.

Seller Han 's situation is similar. He said frankly that the shipping cost of large products is very high, especially for some heavy products. The logistics cost is very high . For us, the logistics restrictions are relatively large. Sometimes customers are in a hurry to receive the goods, and domestic direct delivery also encounters the situation that the goods cannot be received in time , so the store indicators have always been low.

Faced with logistics difficulties, TD communicated with Lazada's storekeeper and gradually opened up shipping channels to Singapore, Malaysia and Thailand. Later , with the help of the storekeeper, it settled in overseas warehouses in three locations in Malaysia , Thailand and the Philippines , which greatly reduced logistics costs and improved logistics efficiency .

Currently, TD 's large products all use the warehouse and distribution services provided by the platform . The seller believes that the freight is reasonable and the delivery time can be guaranteed. Originally, it took about 18-25 days to deliver large items by sea transportation , but the platform's overseas warehouse can guarantee delivery within 1-7 days , greatly improving the logistics timeliness.

For consumers, while they care about product quality and cost-effectiveness, logistics timeliness is also another important factor to consider when placing an order. After entering the overseas warehouse, TD 's Philippine and Thai sites have exploded with huge potential, especially the overall sales of the Thai site quickly reached 100,000 US dollars.

"Lazada's overseas warehouses have helped us save a lot of logistics costs. After using overseas warehouses, the conversion rate of goods has been greatly improved, and the company's turnover has also increased by nearly 60%." TD said.

( Lazada overseas warehouse )

There are more than one sellers of large household items who are troubled by logistics and warehousing. Seller Han has been using the direct mail model through sea transportation and has now encountered a sales bottleneck. After communicating and getting suggestions from Lazada’s store manager, he is also considering stocking up at Lazada’s overseas warehouse so that consumers can receive the goods within 1-3 days when they place an order.

"Due to logistics timeliness, our store indicators have not been very high, which has also had a great impact on store conversion, resulting in a high cancellation rate. Warehousing will help us in terms of logistics timeliness and logistics costs. In particular, a large overseas warehouse was opened in the Philippines in July. Products that could not be warehoused in the past due to size restrictions can now be warehoused. The platform has also provided support policies for large products to enter overseas warehouses, which is very good news for large products. " said the seller Han .

It is reported that large items are exempt from storage fees within 60 days of entering Lazada's overseas warehouses . In the Philippines, Malaysia, Thailand and Indonesia , inventory storage fees for more than 60 days have been significantly reduced, with an average reduction of more than 50%. The Philippines overseas warehouse has even reduced fees by more than 65%.

Overseas warehouses also directly boost sales. For example, large items are regularly given exclusive flash sales slots ; overseas warehouse product search recommendations are weighted, and the front-end displays the local shipping location and estimated delivery time , effectively increasing the transaction rate.

Large products have great potential in the Southeast Asian market, and many categories are hot-selling. Cross-border sellers can seize the opportunity to deploy blue ocean categories in the blue ocean market, expand their business with the help of Lazada's overseas warehouses, and achieve further sales growth.

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