Rocket Internet founded Lazada with the intention of establishing the Amazon.com business model in Southeast Asia to take advantage of the nascent online consumer market and Amazon's weak presence there. Rocket Internet is a German incubator that builds companies that copy the business models of successful US tech companies in emerging markets.
Initially, Lazada's e-commerce website was launched in March 2012, with a business model of selling inventory to customers from its own warehouses. In 2013, it added a marketplace model that allowed third-party retailers to sell their products through its website.
1. Register for a Lazada Online Seller Account
Once you have the required documents for seller registration, you can already create an account at Lazada Seller Center.
First, you’ll have to fill out a Lazada online seller registration form on the Seller Center website or mobile app.
There are different forms for different types of online sellers: LazMall Seller registration form, Local Seller registration form and LazGlobal Seller registration form.
Submission of Certificate of Incorporation of Company (corporate seller) and your ID are required by Lazada. Also, prepare your bank account information, as you’ll receive payments bi-weekly from Lazada via bank transfer.
After submitting your registration form, wait for a couple of days for Lazada to review your application. If your account is verified, you'll get an email from Lazada with instructions on how to proceed.
Unlike Shopee which allows you to have one account to serve as both seller and buyer, Lazada requires two separate accounts for this purpose. If you already have a Lazada shopping (buyer) account, you still need to head over to Lazada Seller Center to sign up for the seller account.
2. Add Your Products
Lazada requires new online sellers to have three products or more available to be sold. There are also restricted items that you can’t sell such as weapons, gambling products, tobacco, alcohol, hazardous chemicals, medical drugs and illegal services.
Read more: Lazada's Prohibited and Controlled Products List
If your products are available and you’re ready to sell them, you can start uploading them online via Lazada mobile app or Lazada website.
Visit Lazada Seller Center and log into your account. Then tap “Add Products” and enter the product name, category, and description. You can upload products individually or as one batch.
Fill up all the information required and submit your product for approval. It will usually take between a few minutes to a day to get a product approved.
Lazada allows its sellers to manage their virtual store on Seller Center. You can view how your online store performs and make necessary adjustments through the seller tools. Just tap Business Advisor to access the dashboard for managing your Lazada online shop.
4. Ship Products
When you receive an order, it’s time to have it delivered to your customer. Pack the item and drop off at the nearby drop point or wait for courier partner to pick it up and deliver to the customer.
There are three ways you can fulfil your orders:
a. Using Lazada assigned Logistics like LEX, Skynet and Poslaju
b. Seller own fleet
c. Fulfilment by Lazada (FBL)
Option A is the default option. You just have to print out the consignment notes for your order and drop them off at Lazada assigned drop off point. You won't be charged for shipping fees right away, but will be later.
Option B is something you can go for if you prefer not to use Lazada assigned logistics and would rather arrange your own. If you are drop shipping, you might want to go for this option.
If you prefer a hands off approach to order fulfilment, you can go for option C where Lazada will store your stocks, and pack and ship them to your customers on your behalf. Sellers are only charged on the basis of numbers of orders shipped.
Remark: For shipping fee, seller have to pay RM 5 for the first KG meanwhile the buyer pays the rest of the weight.
5. Receive Payments
Once the orders are shipped to the customers, Lazada will deduct their fees and deposit payments into your bank account every 14 days. You can check your account statement on the Seller Center website or app.
Before you start selling on Lazada, it’s important to know the different types of online sellers you may apply for. Choose a Lazada online seller type that fits you best.
1. Local Seller
Local sellers are individual or corporate online sellers who are based in the Malaysia. They also have access to online seller tools. Lazada doesn’t charge commissions on its local sellers. However, Lazada do charge a payment gateway fee of 2% for each successful sale made on the platform.
First-time entrepreneurs who want to make money online most likely to start as local sellers on Lazada.
Although Lazada have websites in other Southeast Asian nations outside Malaysia, unfortunately the sellers of Lazada Malaysia are unable to sell cross border. Instead, if you want to sell on Lazada Singapore, you'll need to incorporate a Singapore company with ACRA.
LazMall sellers are authorized distributors or brand owners. LazMall is the premium type of online seller account, as it offers exclusive access to LazMall campaigns and additional seller tools. LazMall sellers also enjoy higher overall search ranking, which means they are among the brands that shoppers see first when they search for a product on Lazada.
Another advantage of being a LazMall seller is that customers tend to trust and buy products with the LazMall logo. It’s because LazMall offers superior shopping experience by guarantee 100% authentic products, 15-day hassle-free return policy, and next-day delivery for shoppers.
However, Lazada charges LazMall sellers commission fees and 2% payment gateway fee when their products are sold.
3. LazGlobal Seller
Lazada also accepts online sellers with a registered business who are based in Hong Kong, Macau, China, Taiwan, South Korea, or Japan. Like other Lazada online seller types, overseas sellers can access the e-commerce platform’s seller tools. LazGlobal sellers ship their products to Lazada’s overseas sort center.
LazGlobal sellers have to pay a commission fee and 2% payment gateway fee to Lazada when they make a sale.
Lazada Online Seller Requirements
For LazMall sellers and corporate local sellers, Lazada requires them to submit the following documents to prove they’re registered with the Suruhanjaya Syarikat Malaysia (SSM).
Meanwhile, individual local sellers must be at least 18 years old and present a valid ID in order to start selling on Lazada.
Establishment of LazStar Academy in collaboration with Alibaba Business School and Taobao University, which will build a network of certified expert trainers among Lazada sellers in Southeast Asia to advance the eCommerce knowledge and develop professional skills of Lazada sellers.
LazStar Academy brings local know-how and insider advice from some of the most successful and experienced Lazada sellers so that business owners can sidestep pitfalls as they accelerate the growth of their online business.
Lazada also runs a series of programmes to engage sellers from across the nation to share knowledge and experiences as well as discuss challenges and business opportunities.
1. Zero Commission Fee on the Product Sales
If you are a Malaysian local seller, you can enjoy a 0% commission fee, regardless of what product category you are selling. With zero commission rate, you are able to adjust your sales margin at the same time offer competitive prices for your customers. Do take note that this exclusive offer is not applicable to official brands (LazMall sellers) and cross-border sellers from other countries (LazGlobal sellers).
2. Higher Trust and Confidence in Your Products
Lazada being the trusted online marketplace with listing, return and cancellation policies in place to protect the buyers' interest, the chances of customers doubting your credibility (especially if you are a smaller or even unknown brand) is smaller compared to placing their first order via your own online store.
There are many campaigns running on Lazada at any time to stimulate sales on the platform. The major campaigns like big festival seasons, 11.11, 12.12 and Lazada Birthday provide sellers with the opportunity to grow their sales.
4. Design and Customize Your Own Lazada Store
You are able to customize the presentation of your store via the Lazada Seller Center. You can either use the default look and feel, or create a new version based on your preference. On top of brand differentiation, best selling items can be placed at the top of the landing page to attract the customers and increase the click-through rate.
5. Create Unique Product Content With Lorikeet
Lorikeet is a product description decorator provided by Lazada allowing you to beautify the product content with ready templates or your own customization. You can enrich your product description in a more informative and attractive way to boost your conversion rate.
6. Store and Product Sales Performance Report
With Lazada Seller Center, you will have access to the reports like store traffic, top-selling products and so on. Data with actionable insights is important for any e-commerce business to improve and gain more sales in the future.
If Lazada sellers have any queries, they may check their questions and answers in Lazada Seller Help Center. Additionally, Lazada provides live chat tool namely Partner Support Chat for sellers to seek for support from Monday to Friday (9am - 6pm).
As a seller, you are responsible to check incoming orders from Lazada Seller Center every day to optimize order fulfillment so as to enhance customer's shopping experience.
Lazada has developed a shipping standard for all sellers that all orders must be processed and ready for shipment within 24 hours. Failing to do so might lead to order cancellation.
If you are a pick up seller, a representative from third party logistics will appear at your doorstep. By clicking Ready to Ship on Lazada Seller Center (Manage Orders) before 4pm, courier partner will pick up the items the following day. However, if you click Ready to Ship after 4pm, courier partner will pick up the items the day after tomorrow.
If you are a drop off seller, kindly drop off the package at your nearest drop off location. By clicking Ready to Ship on Lazada Seller Center (Manage Orders) before 4pm, sellers have to drop the items at drop off location the following day. However, if you click Ready to Ship after 4pm, Sellers have to drop the items at drop off location latest by the day after tomorrow.
There is keen rivalry among the Lazada sellers. The number of SKUs on Lazada is immense, it is very likely to encounter other sellers who are selling the exact same product you are offering. Furthermore, you are not only facing competition from the local sellers but also from cross-border sellers (LazGlobal) from countries like China, Korea, Japan etc. Hence, sellers need to adopt some selling strategies so as to stand out from the competition.
√ Price your products reasonably and competitively. Check your competitors’ pricing to have a benchmark of how your items should be priced.
√ Link your online seller account to your social networks. Doing so will enable you to share your product listings to an even wider audience.
√ Avoid making transactions outside the e-commerce platform to protect yourself against fake buyers and scammers.
√ Use the Lazada Store Builder to design your storefront the way you like it and feature products or deals you think your customers will love.
√ Create bundled deal by combining multiple products into bundle promotions with more value to the customers. It can be the same products (buy two at a cheaper price), or the bundled products are related to each other.
√ It is also advisable to create original content rather than replicate existing or generic copy. Reusing a manufacturer or competitor’s product content will hurt your brand’s rankings when it comes to search engine results.
√ Provide accurate and detailed product descriptions. This makes your brand and products look more legitimate in the eyes of online shoppers. Anticipate the possible questions that customers might ask and provide the answers in the description. As online shoppers do not have the luxury to touch and hold the products they buy, they are completely dependent upon the images and the written content.
√ Improving the product quality score. Lazada’s big data algorithm output that determines how high a product should rank on Lazada would drive almost an immediate 3% to 5% increase of the conversion rate. The components of product quality includes content (title quality & richness of content), reviews and performance (click through rate & browsing time).
√ Leveraging authentic user reviews to enhance shop reputation and credibility. Most online shoppers always read product reviews before making a purchase. Positive reviews and rankings can increase your shop’s product ranking, hereby increasing your influence in a marketplace. Reviewing your customer feedback consistently will ensure that your business will have a good standing. Consumer trust is most valuable for a shop.
√ When trying to persuade a browser (potential buyer) to purchase your product, it is advisable to lead with its benefits. A browser may be less inclined to purchase if all they read are technical specifications, colour options and so forth. A curious browser would want to know why they should buy this product, what will they get out of it? For example, if you’re selling a multi-device charger, build a picture of going somewhere with three devices and the added convenience of being able to charge them all at once. The main content body should be informative but kept short and concise.
Read More:
1. Online Pricing Strategies for eCommerce
2. Ultimate Guide to Malaysian Shopee Seller
Edited by: 浪子
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Lazada Sellers' Guides and Winning Strategies
Reviewed by 浪子
on
October 19, 2019
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Reviewed by 浪子
on
October 19, 2019
Rating:
