Explanation on How Much Percent Lazada Charge Seller

Have you ever thought about how much Lazada charges sellers? If you do, then we will explain it in this article. But before that, we must know what Lazada is. If you thought Lazada was created by a local group of online entrepreneurs who just happen to have a knack for good branding, you’re wrong.

Lazada was founded in 2012 by German internet investment and venture building company Rocket Internet. Rocket is most notably known for its copycat business model. It thereby replicates (mostly US based) companies and starts similar firms in parts of the world where that very same business model does not exist yet.

Its operating model is characterized by picking high performers and arming them with capital and expertise. One of their most famous investments is European e-commerce giant Zalando, a direct replica of US based Zappos.

The Lazada website launched in March of 2012. Its initial business model was to sell consumer goods such as clothing or electronics directly to potential customers. The company initially launched in Indonesia, Malaysia, The Philippines, Thailand and Vietnam.

What is Lazada?

Lazada is a leading eCommerce platform in Southeast Asia, basically the Amazon of South East Asia. This platform is open to international sellers who want to tap into the markets of Indonesia, Singapore, Vietnam, Philippines, Thailand and Vietnam.

For Lazada seller, you can set up a Lazada shop for each site, and customize your product, product descriptions, shipping times, and prices for customers in each country.

You can start with selling on Lazada in the Philippines or Singapore, for example, before you gain more experience and move on to open a Lazada store in Thailand or Vietnam.

Pros and Cons of Selling on Lazada

One cannot deny how vital online marketplaces are in today’s society. Among the top eCommerce marketplaces in Southeast Asia are Lazada. These can help budding sellers gain exposure for their products. In return, the wide array of available products allow these marketplaces to flourish. 

Here are some of the pros of selling on Lazada: 

High Traffic Channels

It comes as no surprise that one the most popular marketplaces have ever growing scales of online presence. Lazada has created images that people trust. The million of audience they have collated help your online business to get noticed. You can never really get so much attention when you are starting out by yourself. So, it is good to have a little push

Surplus of New Consumers

With marketing strategies such as birthday discounts and holiday promos, Lazada has a growing number of new customers each year. These new customers may not be searching for your store specifically. However, they may search for a product that you have listed before. Once you get noticed, you can transform the customer into a loyal buyer by providing excellent service and product satisfaction.

Good Shipping Terms

The Lazada shipping fee Malaysia of these top marketplaces are backed by powerful logistics. These websites have reliable shipping terms, which include the return policy. The former’s return process is simply fast and will return to the Lazada drop off point, while the latter’s return process is more complicated.

Flexibility of Account Creation

If you want to sell on Lazada, a seller has an opportunity to decide whether he or she wants to open a single account or several staff accounts on Lazada. You may do both too. In contrast, Lazada allows you to build staff accounts. You can give each of your team members a specific account needed for each role.

Here are some cons that you should consider:

Payment Fee of 1%

It is free to create a seller account on Lazada as there are no registration or annual fees. You can start selling right away! Isn’t that convenient? Freely boosting your online business does not entail that these marketplaces will not get their cuts. Other than an approximate 1% Lazada seller fees, you get to keep the rest of your profits.

Focusing on Customers

Whether you like it or not, these marketplaces are customer focused and not seller focused. They improve the quality of experience of the customers to help your business grow and their website as well. While they improve the customer satisfaction, they may restrict a lot of things on your end.

No Outside the Border Transactions

Lazada has international websites. However, you may not be able to sell your brand outside. If you want to sell on Lazada outside your country, you will need to incorporate your country business. That is the limitation.

Various Technical Bounds

Taking advantage of the prevalent mobile use and consumer behavior in your country, Lazada is yet to perfect its seller app. It remains buggy and customers still prefer shopping on its desktop version. So, Lazada is desktop first.

How Many Percent Does Lazada Take From Sellers?

Many people ask how much Lazada charge seller? The same as it goes with various eCommerce platforms in China, Lazada charges a commission on each sale you make. The commission is only deducted when an order has been delivered and the client has paid.

Keep in mind that the rates are valid for cross border sellers, which means that you sell from a country outside of ASEAN and use Lazada’s LGS shipping service from Hong Kong.

Here are some categories and the commissions that Lazada charges. 

• Cameras, Computer & Laptop, Mobile & Tablets, TV & Video Gaming,  Lazada takes 1-4%.
• Home Appliances, Health & Beauty, Digital Goods, Bedding & Bath, Groceries, Toys & Games, Fashion, Lazada takes 4%.

How is Lazada Fee Calculated?

On Lazada, there are no fixed fees, no listing fees, and no hidden cost. We only charge Lazada commission and payment fee per order, based on the unit price of your product. Shipping fee will be based on the rate cared as published by Lazada seller centre.

Commission Fee

Lazada commission rate is only charged when an item has been delivered to the customers. When it is updated in our system, it is automatically calculated from the unit price you have set. At the same time the commission % will be based on the category of the item.

Payment Cycle

All sellers will be paid on a weekly basis. The statement cycle day is from Monday to sunday. Payments are processed within 3 business days, after the end of the statement cycle.

Here is an example of the Lazada sell fees that will be deducted from the unit price :

Unit price = RM 100

Commission Fee for Computer Accessories category = 2% + 6%(SST) = RM 2 + RM 0.12 = RM 2.12

Payment Fee = RM 5

In total, the amount that you will be receiving would be RM 90.76

Total fees charged (included of tax) are RM 9.24

The payment fee will be paid to the payment service provider and the shipping fee will be paid to the shipping provider.

Conclusion

Lazada is the top marketplace in the countries of Southeast Asia. The option for cross-border selling makes it very attractive for foreign sellers who want to establish their presence in new markets. If you have a question about Lazada, you can go to the Lazada help center. Follow the provided steps and you will become a Lazada seller in no time.

One Lazada, One Ginee, One Website

Are you still new in business online and still struggling to market your business? Worry less, learn more with Ginee Malaysia on how to manage your Lazada business account. Register for free to be part of Ginee-us to enjoy more benefits!