Disadvantages Of Zalora And Groupon

Using e-commerce in Zalora also has many limitations. There are the Zalora products were too expenses, less country to support own business and so on. The first disadvantages is many of Zalora’s customer comment the Zalora products were too expensive. Normally online shopping will cheaper than the physical business but the Zalora’s products were more expensive than the other online business or the price will equal to the physical business such as Taobao, Ebay, and others. This weakness will decrease the customer in Zalora.

The company must solve this problem such as company can try to reduce the cost with high quality products or also can provide free gift to customer like when the customers purchase the product amount more than the company set then the customers will get the free gift in Zalora website. Second, Less country to support Zalora online shopping. Just have 8 countries that are international support Zalora website. There are Singapore, Indonesia, Malaysia, Thailand, Vietnam, Hong Kong, Brunei and Philippines. Compare to Groupon online shopping, Zalora is less supporter than Groupon. Furthermore, Zalora must find other countries to support the own company.

Limitation of Groupon and improve it Groupon have many benefit and also have much limitations of Groupon. The limitation of Groupon website are deals may be not profitable, deals hurt the brand, and other limitations.

First, deals may be not profitable. Groupon keeps 50 percent of the revenue from each coupon deal. Actually need to gross margin well in excess of 50 percent for coupon to work for them this mean is if the customer just comes in and buys the deal, the owner will easily to lose money. Moreover, if offering huge discount and giving 50 percent to Groupon, they just want to earn enough to cover the cost of serving that customer. After that, company cannot provide many discount and coupon to customers. Company should offer an discount for each two months at 20 percent of it. Furthermore, end up losing customer. Experience of the company regular customer could suffer because customer will hear about the deals and wonder, when the customer is loyal and repeat customer, why customer wants to pay the full price.

And then, depending on the business and amount of traffic this generates, the experience for these loyal customers could suffer because of the influx of new customer and the company could end up losing customer in the process. This limitation also hurt the brand. The obsession with price doesn’t necessarily make for a lot of brand loyalty or even brand awareness. One of negative aspect of daily deal sites is that price promotions usually hurt the brand of the company because price promotion can make customers price sensitive. Therefore, company should less to provide price promotion but can provide promotion like buy 3 free 1. This ideal can attack new consumers to buy and try the product and also can hold the loyalty customers.