10 Common Questions About Selling on Lazada

By Nizaruddin Ahmad E-commerce, Lazada No Comments on 10 Common Questions About Selling on Lazada

You want to sell on Lazada, but you might be having a few questions that are stopping from doing so. Don’t worry about it, as a lot of people have asked many common questions about selling on Lazada, and more!

Let’s take a look at the questions below. We have put the questions into the following segments:

  • Questions on Applying To Lazada
  • Questions About Fees & Payments on Lazada
  • Questions About Products
  • What Features Are On Lazada

Questions On Applying To Lazada

1. How long does it take to approve my seller application?

Interested to be a seller on Lazada? Then you will need to submit your application before you start selling.

It will be reviewed within 48 hours from the time you sign up. You will also need to send in a completed set of business documents (see the following point) verification and upload a product.

Once finished, you will receive an SMS or email notification if your application has been accepted or rejected.

2. What documents do I need before I can start selling?

There are several documents you will need before you can start selling, but it also depends on whether you are a Business/Corporate Seller or an Individual Seller.

If You Register For A Business Account, You Will Need:

  • Business Registration Certificate (SSM)
  • List of Direction (SSM)
  • Business Owner Identification (NRIC)
  • Bank Statement
  • An Active Business License
  • SST letter Business seller example: PLAYBOY

If You Register For An Individual Account, You Will Need:

  • To Be Above the Age of 18
  • Business Owner Identification (NRIC)
  • Business Registration Certificate (SSM)
  • List of Directors (SSM)
  • Bank statements
  • SST Letter (if applicable) Individual seller example: BANFANG

3. What Types of Sellers Are on Lazada?

There are 3 types of Sellers on Lazada which you can choose as an option during the Seller Signup process.

  1. LazMall Seller
  2. Local Seller
  3. LazGlobal Seller

What Is A LazMall Seller

A LazMall Seller is a brand owner or an authorized distributor. LazMall Sellers gain the following:

  • Exclusive access to dedicated LazMall Campaigns
  • Overall higher search rankings in Lazada
  • Additional Seller Tools
  • Paying Commission Only After a Sale

What Is A Local Seller

A Local Seller is a local Malaysian seller on Lazada. Local Sellers gain the following:

  • Lazada Seller Tools
  • 0% Commission Rate

What Is A LazGlobal Seller

A LazGlobal Seller is a registered business on Lazada from China, Korea or Japan. LazGlobal Seller gain the following:

  • Access to our oversea sort centres
  • Lazada Seller Tools
  • Paying Commission Only After a Sale

Local Sellers and LazGlobal Seller are pretty clear. But let’s do into more detail about LazMall sellers.

4. What is the LazMall from Lazada?

The LazMall is a marketplace that offers products from international and local brand Sellers and authorized distributors for buyers who want to access a wide range of branded products.

As Lazada prefers LazMall sellers, there are actually a lot more benefits to becoming one.

Benefits of Becoming a LazMall Seller:

  1. LazMall badge on all your products throughout the customer journey
  2. Inclusion in the brand-dedicated channel
  3. Enjoy higher visibility on the homepage and higher search ranking on Lazada
  4. Exclusive access to dedicated Lazmall campaigns and Mega Campaign barter program
  5. Exclusive access to “Golden Slots”
  6. Exclusive access to Marketing Solutions
  7. Lazada offers returns to pick up for all LazMall customers in metro areas
  8. Lazada manages all returns via the Lazada warehouse
  9. Lazada has invested in a dedicated customer service team specifically for LazMall customers

Questions About Fees & Payments on Lazada

5. What Is The Cost Of Selling On Lazada’s Platform?

Registration is overall free, but you will need to keep in mind these 3 costs on Lazada that will affect your bottom line.

The 3 costs of selling on Lazada’s platform: Commission fee Payment fee Shipping fee

How Is The Commission Fee Calculated

Commission = (commission rate of product, i.e 5%) x (your listed price minus promotional charge vouchers) + 6% service tax on commission.

The commission is deducted when an order has been delivered and the client has paid.

An example would be:

Commission Fee = 5%(listed price: RM500 – promotional discount: RM20) + 6%(commission) = RM14 + RM0.84 = RM14.84

How is the Shipping Fee Calculated

Your customers will pay for the shipping fees.

This is based on the chargeable weight (taken from the weight and dimensions you entered in the seller center).

Please check, verify and if needed amend the parcel weight and dimensions. This ensures you and your customers are charged with the correct shipping fee.

The type of delivery method will also be factored in the cost of the shipping fee.

The 3 Types of Deliveries on Lazada:
  • Express Delivery
  • Standard Delivery
  • Economy Delivery
3 Types of Delivery on Lzada - 10 Common Questions About Selling on Lazada
Will SST be applied to the shipping fees?

Yes, 6% of SST will be included in the shipping fees.

How is the payment fee calculated?

Payment fee = 2% (item price – promotional charge value promotional charge bundle/flexi combo + shipping fee paid by customer) + [(6% service tax) * payment fee]

For demonstration purposes, here is an example:

2% [(Item Price: RM100) – (Promotional Charge: RM10) – (Bundle/Combo: RM2) + (Shipping Fee: RM4)] + 6% SST * Payment Fee

= 2%(RM92) + 6%*2%(RM92)

= RM1.84 + RM0.11

= RM1.95

When will Sellers Get Paid?

As of the year 2020, Lazada will payout it’s sellers every Monday.

To know the whole process, please see below for the exact quote from Lazada:

1. The statement cycle starts every Monday (00:00), closes on every Sunday (23:59). The length is 7 days. 2. It is an electronic statement. You can view it online and get it printed or downloaded 24/7. 3. Lazada pays sellers by the third business day. At the end of each statement. Business days exclude public holidays, a federal territory. 4. The payout sum is stated at the bottom of the Account Statement 5. Once paid, Lazada will mark the Account Statement as “Paid” on the top left corner 6. Lazada’s banker, Citibank Berhad will send the payment advice to the seller after remittance 7. Payment will be made for delivered orders, after deducting corresponding charges such as commission, payment, shipping fee, sponsored product, etc. Before arriving at the final payout sum, we will reverse the item price credit for returned orders, along with the reversal of Lazada’s charges imposed earlier. 8. This is the checklist for sellers to ensure a timely payout and make sure payment advice is delivered? Check your bank details to ensure you have provided the correct information – Please update the bank details timely – The email contact should be reachable and updated whenever there is a manpower turnover. Kindly get your – main box cleared if it is full.

Questions About Products

6. Why Is My Product Not Visible on Lazada After Approval?

It will take 24 to 48 hours for it to sync to the website once a product has been approved.

If you still can’t see your product after 48 hours, either:

  • Check the FAQ status in the Seller Center, or
  • Contact the Partner Support Center to get the issue resolved.

7. What Are Exclusive Products? Can They Be Sold on Lazada?

If you are a seller with the right licenses or exclusive partnerships, certain brands or product lines can be sold with Lazada with legal consent.

You are required to deactivate your product if you are unable to get the license nor agreement. You may also opt to communicate the issue with your local vendor management contact.

Example: products that include, mentions and use of the Ray Ban trademark are not allowed to be sold due to the exclusive distribution agreement of Lazada and its supplier(s).

8. Are There Any Restrictions on The Fresh Food Category?

If you’re a seller who wishes to list your products in the subcategories of ‘Fruits & Vegetables’ and/or ‘Fresh Meat & Seafood(Groceries), then you are required to follow the whitelisting process. This category restriction is imposed to not only uphold good customer experience but more importantly, ensure sellers can fulfill orders of fresh foods as they are highly perishable. If you would like to be whitelisted, you will have to fulfill the following criteria:

1) Be on seller own fleet (SOF)

Conventional third-party logistics (3PL) are do not support the logistics of highly perishable goods. So if you’re interested in selling Fresh Foods, you will be required to apply for a Seller Own Fleet.

Learn how to apply for a seller own fleet here.

2) Delivery within Klang Valley (or within certain area/state) only

It is required that orders come from, and are fulfilled within a specific region (like above), rather than the entire peninsular, or internationally. This is due to the high perishability of fresh foods.

By following this policy, you and Lazada will be able to guarantee your customers to receive unspoiled products after transport.

9. What Are The Best Practices For Product Content On Lazada?

To attract more potential customers and to pass Lazada’s quality check, follow the quick guideline below!

  1. For branded products, the brand name is Mandatory
  2. Use bullet points to highlight your product’s key features
  3. If a warranty is included, please let your customer know
  4. Use exact brand name(s), product name(s), friendly colors, and include a freebie. If you’re able to, then try to bundle as well.
  5. Include your product’s dimensions
  6. Do provide a 360-degree view of your product(s)
  7. Use clear images. A minimum of 3 and a maximum of 8.

What Features Are On Lazada

10. What Is Lazada Video Uploader?

To reduce hassle and make your day-to-day tasks easier, try out Lazada’s Video Uploader, which can be found in the Seller Centre.

The Lazada Video uploader enables you to upload your own videos directly to Lazada’s Media Centre.

Now you don’t have to upload your videos to other websites first, and link it from there!

Benefit of the Lazada Video Uploader - 10 Common Questions About Selling on Lazada

Conclusion

We have covered 10 common questions about selling on Lazada, which were divided into 4 different sections.

I hope you have found this article helpful.

Have a question that was not covered? Leave it in the comments and we’ll update the list accordingly!

Still unsure if you should try to sell on Lazada? Then contact us for a free consultation! We will help you determine if Lazada’s the right option for you, and help you set it up for success!

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