由 caicai8478 The Southeast Asian market has attracted a large number of cross-border sellers due to its large population base, rapidly growing e-commerce penetration rate and a high proportion of cash on delivery (COD) transaction models. However, many companies often underestimate the complexity of “localization” when entering the market, resulting in pitfalls in language, payment habits and after-sales service, which ultimately affects business growth. This article will explore the three major localization traps in the Southeast Asian COD market and provide coping strategies.
- Language localization: not just a translation problem
Many sellers believe that as long as they translate product descriptions and customer service conversations into local languages (such as Thai, Vietnamese, Indonesian, etc.), they can successfully enter the market. However, language localization is far more than that:
Dialects and word usage differences: There are regional differences in the languages of Southeast Asian countries. For example, although Indonesian and Malay are similar, some words have different meanings; there are also differences between the northern and southern dialects of Vietnam.
Cultural adaptation: literal translation may lead to ambiguity or offense. For example, some promotional copywriting is common in Chinese, but it may appear too strong in Southeast Asia, affecting the user experience.
Customer service response: Local consumers prefer to communicate in their native language. If customer service relies only on machine translation or non-native speakers, it is easy to reduce trust.
Countermeasures:
Hire local language experts to optimize copywriting to ensure that it conforms to local expression habits.
Establish a localized customer service team to improve response speed and communication quality.
When advertising, conduct A/B testing for different regions to optimize language expression.
- Payment habits: COD is not a “panacea”
Cash on delivery (COD) accounts for as much as 60%-80% in Southeast Asia, but over-reliance on COD may bring the following problems:
High rejection rate: Since there is no need for prepayment, consumers may refuse to accept due to a sudden change of mind, wrong address or simply “not wanting it”, resulting in a surge in logistics costs.
Cash flow pressure: Under the COD model, the capital recovery cycle is long, which poses a greater challenge to the capital chain of small and medium-sized sellers.
Diversity of payment methods: In some markets (such as Singapore and Malaysia), e-wallets (GrabPay, OVO, etc.) have a high penetration rate. Only supporting COD may miss potential customers.
Countermeasures:
Provide multiple payment options (e-wallets, bank transfers, etc.) to gradually cultivate users’ prepayment habits.
Optimize the logistics tracking system to reduce rejections due to delivery problems.
Analyze high rejection areas and adjust marketing strategies or suspend services.
- After-sales misunderstanding: Ignore the “no-reason return” culture
Southeast Asian consumers have high requirements for after-sales service, especially in markets such as Indonesia and the Philippines. Some buyers are used to “receiving the goods first and then deciding whether to keep them.” If the after-sales policy is not clear, it may lead to:
High return rate: Since COD transactions have no prepayment threshold, the return cost may be passed on to the seller.
Bad reviews and disputes: If the return and exchange process is complicated, it is easy to cause customer dissatisfaction and affect the store rating.
Local compliance issues: Some countries (such as Thailand) have clear regulations on e-commerce returns. If they do not comply, they may face legal risks.
Countermeasures:
Develop a clear return and exchange policy and clearly inform consumers before placing an order.
Cooperate with local logistics companies to provide convenient return channels.
Reduce the willingness to return and improve customer satisfaction through gifts, discounts, etc.
Conclusion
The Southeast Asian COD market has great potential, but the key to success lies in deep localization – not just language translation, but also a deep understanding of payment habits, consumer psychology and after-sales needs. Only by avoiding these “localization traps” can long-term and steady growth be achieved in this market.