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DingDian LED Doubled Sales Thanks to Overseas Fulfillment Centers

DingDian LED has been aggressively expanding in Southeast Asia after joining Lazada, with distinct operations for different countries.

DingDian LED is a lighting company that specializes in the development and selling of light-emitting diode strips. In 2019, it discovered that Southeast Asian consumers were switching from incandescent bulbs to LED lights, but that just a few LED lighting product categories were offered in the local market, presenting a tremendous commercial opportunity for Chinese merchants with diversified and creative items. How did it beat off local competition to become Southeast Asia’s leading light supplier?

Right around 2019, DingDian LED opened an online store on Lazada and officially entered the Southeast Asia business market. Cross-border brands like DingDian LED, overtook the local sellers to become the top light seller on LazMall for several consecutive months due to the short shipping time and low freight rates of the overseas fulfillment centers in Malaysia and the Philippines, as well as new product designs and a full product lineup. Lazada recognised the DingDian LED as the Rising Star of the Year!

DingDian LED has been aggressively expanding in Southeast Asia after joining Lazada, with distinct operations for different countries. DingDian LED quickly modified its operation strategy in reaction to the pandemic and developed several specialized goods like germicidal lamps. 

As a result, in May, when the situation began to improve, sales surpassed $100,000, and in July, they surpassed $200,000.

During the COVID-19 pandemic, the company’s order volume broke the trend and increased, reinforcing its confidence and ambition to expand its position in Southeast Asia. DingDian LED ran into a bottleneck due to local suppliers’ low prices and logistical advantages. To fight off its local competitors and achieve a breakthrough in the market again, it has to narrow the gap in shipping time and price between local competitors and itself. Being able to effectively shorten shipping time and reduce logistics costs, and thereby lowering product prices, Lazada’s overseas fulfillment centers have become the first choice for DingDian LED.

In 2020, Lazada opened an international fulfillment center in the Philippines, and DingDian LED jumped at the chance to be one of the center’s first users. After a period of adaptation and exploration, they discovered that employing overseas fulfillment centers allows them to bring their products closer to consumers and make it easier for them to reach thousands of families.

DingDian LED has shipped products in the top 30% of the store’s SKUs to fulfillment centers in other countries. DingDian LED has made a lot of accomplishments with the help of its offshore fulfillment centers in the Philippines.

Their LED’s items may be delivered to most regions of Southeast Asia in two to three days from Lazada’s fulfillment hubs, or even in as little as 24 hours if customers’ locations are close enough. The shipment time has been cut in half, considerably improving the buying experience for customers.

According to DingDian LED, the company’s monthly shipping costs have been reduced by 40 percent to 50 percent. DingDian LED increased its earnings and benefited consumers by selling at lower prices by lowering delivery costs. Lower shipping costs also allow DingDian LED to sell at more competitive pricing on Lazada, closing the gap in shipping time and price with local online businesses.

DingDian LED can participate in Lazada’s flash sales of products kept in Lazada’s overseas fulfilment centres after signing up for fulfilment services, in order to attract more customers to its store, increase sales, and raise brand awareness. To excite customers with the speed of delivery, DingDian LED adds “Ship From Local” to each main image of its fulfillment center items and “Delivery in 3 Days” to product titles.

“We hope that our store sales could quintuple compared with the daily sales numbers and that we can sell half of our inventories in the overseas fulfilment centres.”

DingDian LED

For Lazada merchants, the Bday, or Lazada’s annual birthday sale, is a much-anticipated selling occasion. “We expect our store sales to quintuple in comparison to everyday sales, and we intend to sell half of our goods in abroad fulfillment centers,” DingDian LED says of its 2021 Bday goal.

DingDian LED was foresighted enough to send three batches of items to foreign fulfillment centers before the Spring Festival vacation, despite the fact that its employees and suppliers may return to work later than expected following the Spring Festival break. DingDian LED stocked up on hot sellers early, based on sales data from past years’ Bday, Double 11 Shopping Festival, and 12.12 Shopping Festival. The company then selected goods that generated a large number of visitors but resulted in low conversions, sent them to fulfillment centers in other countries, and reduced prices and shortened shipping times to maximize conversions.

DingDian LED not only stocks up goods proactively, but also has its own way to attract traffic and promote its products. This strategy aims to help consumers with different purchasing power get what they want in the store quickly.

DingDian LED purchased marketing tools such as Sponsored Search, Sponsored Affiliate, and Sponsored Product, as well as one-week Facebook advertisements, in the run-up to its company anniversary in order to boost impressions of its competitive products. DingDian LED configures promotional banners on its store page in addition to platform activities. For example, in order to enhance sales, it promises to give extra gifts to the first purchasers. With the help of an overseas fulfillment center, DingDian LED has achieved localized operations in the Philippines, giving it a head start in big sales events!

How do you think these fulfillment centers helped companies like DingDian LED thrive in times like this? Let us know!

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