EFFECTS OF E-MARKETPLACE ADVERTISING ON ONLINE SALES OF SMARTPHONE GADGETS ON SHOPEE, LAZADA, AND 11STREET APPLICATIONS

Abstract

The purposes of this study were to (1) identify the effects of E-Marketplace advertising on online sales of smartphone gadgets on Shopee, Lazada, and 11Street applications and (2) to explicate the effects of the advertising expenditures on the E-Marketplace on the number of visitors and the number of clicks on online sales of smartphone gadgets on those applications. Research procedures consisted of collecting empirical daily data such as advertising expenditures, the number of clicks, the number of visitors, and the sales amount of smartphone gadgets through Shopee, Lazada, and 11Street. Data were collected in the period of 153 days from those three E-Marketplace sites, and totally 1,377 data items were collected and organized as panel data. Panel Models and Structure Equation Models were employed to analyze the data. Results revealed that (1) the increase of advertising expenditures on the three E-Marketplace sites had significantly positive effects on the online sales of smartphone gadgets, sorted in descending order as follows: Shopee, Lazada, and 11Street; (2) the effects of the advertising expenditures on the three E-Marketplace sites were reported as follows: the advertising expenditures had significantly positive effects on the number of visitors and the number of clicks, the number of clicks was positively related to the online sales amount significantly, and the number of visitors had no effects on the sales amount. Research implications are that the increase of advertising expenditures may increase the number of clicks and the sales amount, so an appropriate selection of advertising channels should increase the sales amount.