Lazada is one of the largest e-commerce platforms in Southeast Asia, providing online shoppers with a wide range of products from various categories. As a Lazada seller, understanding the shipping charges and fees can be crucial to optimise your e-commerce fulfillment and avoid overcharges.
In this article, we will discuss the factors affecting Lazada shipping charges, how to avoid wrong shipping fee charges, and ways to optimise your e-commerce fulfillment to provide a seamless shopping experience for your customers.
Whether new to selling on Lazada or looking to improve your e-commerce fulfillment strategy, this article will provide valuable insights and tips to succeed in the Lazada marketplace.
Lazada Shipping Charges
When it comes to shipping on Lazada, it’s important to ensure that the package weight is accurate to help customers make informed decisions about the shipping options available.
Lazada offers several shipment methods that sellers can choose from depending on their preferences and the nature of their products. Below is a list of the shipping methods available:
- 3PL (3rd-Party Logistics) – Available to all sellers
- FBL (Fulfilled by Lazada) – Currently through platform invitation only
- Instant (Fulfilled by Grab) – Currently through platform invitation only
- Seller-Own-Fleet, also known as Delivery by Seller
- Postal Mail Tracked
- Scheduled Delivery – Only for Grocery Sellers (non-RedMart)
To view the shipping fee rates for each shipping method, check out this Lazada article and select your preferred shipping method. It’s important to note that the accurate weight of the package is necessary to ensure that the shipping fee is calculated correctly.
So how is the seller shipping fee charged on Lazada? The seller shipping fee is charged based on the greater actual or volumetric weight at the parcel level. The greater weight of the two is used to calculate the shipping fee rate.
For instance, if the actual weight of a package is 3kg, and the volumetric weight is calculated to be 1.8kg, then the seller shipping fee will be calculated based on the actual weight since it is greater. If the exact weight is 3kg and the volumetric weight is 6.4kg, then the seller shipping fee will be calculated based on the volumetric weight since it is greater.
Source: Lazada Seller Center
To ensure that you are charged the correct shipping fee, providing accurate package weight information is important when shipping your orders.
By providing accurate package weight information, you can ensure that your customers are charged the correct shipping fees, increasing customer satisfaction and loyalty.
What is a shipping overcharge and how is it incurred?
A shipping fee overcharge is incurred from committing errors when computing the volumetric weight of your products or shipments in Lazada. It usually occurs when the logistics provider or courier finds the need to correct shipment measurement during the sorting process. More often, such mistakes involve having an actual bigger volumetric weight figure than what was stated by the Lazada seller.
When such discrepancies happen, there is no way to correct the error but to put a shipping fee overcharge to the Lazada seller’s statement of account. The logistics or courier team usually proceeds to ship parcels to meet customers’ delivery expectations, even if there is an error in the shipping fees collected from the seller. Thus, the incurred amount will eventually be deducted from the active seller’s Lazada statement of account.
Most Lazada sellers know that this happens. They understand that the discrepancy in volumetric weight records usually is not committed by the Lazada team. It is also not to be blamed on the logistics partners. Lazada sellers must be open-minded to acknowledge and accept that such errors often arise from their end. Thus, avoiding shipping overcharges is within their control.
A newbie Lazada seller could easily commit the error by entering inaccurate product measurements when creating product listing records and/or filling out forms when sending the products through the logistics services providers. Investing in the right tools to make the product or shipment measurements is important.
Shipping fee overcharge is often incurred by numerous Lazada sellers, especially those who are new to using the e-commerce platform. Unfortunately, in many cases, shipping fee overcharges accumulate and become significant to impact profit margins as stated in the accounts records. So why not just avoid it?
Common causes of Lazada shipping overcharges
Shipping fees are one of the biggest concerns for any Lazada seller. While shipping charges are calculated based on the volumetric weight, origin, and destination, overcharges still occur. These overcharges can significantly impact profit margins and can easily be avoided by taking the necessary precautions.
There are three common causes of Lazada shipping overcharges.
- Inaccurate product measurements: This is the most common cause of shipping fee overcharges. If the volumetric weight or sizes of the seller’s product are inaccurate, it can lead to a possible adjustment in shipping fees, which could result in overcharges. Lazada sellers should ensure to input accurate product measurements in listings to avoid shipping fee overcharges.
- Not including shipment packaging: Many sellers do not have the shipment packaging in the product dimensions and weight figures provided to Lazada and the logistics provider. This can result in inaccurate measurements and lead to overcharges. Including the bag, pouch, bubble wrap, or Lazada bag in the measurements provided before shipping is advisable to ensure the measurement is accurate and in line with the actual shipping fee.
- Not using the correct shipping mode or courier: Lazada offers different shipping modes and courier services with varying rates, and it is important for sellers to choose the most appropriate one for their products. Using the wrong shipping mode or courier can result in higher shipping fees and possible overcharges. It is recommended to check and compare the rates of different couriers and shipping modes before making a decision.
Steps to Avoid Wrong Shipping Fee Charges
If you’re an online seller, you know that shipping costs can significantly affect your profit margins. To avoid losing money on shipping, it’s essential to understand how shipping fees are calculated and take measures to ensure accurate weight and dimensions. Here are some steps you can take to avoid wrong shipping fee charges:
Step 1: Ensure Accurate Weight and Dimensions
The first step to avoiding wrong shipping fee charges is to ensure your packages’ accurate weight and dimensions. Here are some tips:
- Include exterior packaging: Ensure that your SKU dimensions and weight include your exterior and additional packaging used to protect your parcel from damage during transportation.
- Use appropriate packaging: Use suitable packing material to avoid damage during transportation, and choose the right-sized box and package to avoid unnecessary packaging volume or weight.
- Choose the right shipping method: Identify products that can be shipped via SingPost Postal Mails (Non-LTA Mail only) or Delivered by Seller (DBS) and update the package weight accordingly. Always ship your parcel via the prompted shipment method to avoid the package status being cancelled.
Step 2: Use Adequate Packaging for Your Items
The second step to avoid wrong shipping fees is to use adequate packaging for your items. Here are some tips:
- Avoid empty space: Empty space in your packages will be charged per the Dim Weight rule.
- Follow packaging guidelines: Use suitable packing material to avoid damage during transportation and choose the right-sized box and package to avoid unnecessary packaging volume or weight.
Step 3: Understand How Shipping Fees are Charged
The third step to avoid wrong shipping fee charges is understanding how shipping fees are calculated. Take into consideration the Dim Weight (dimensional weight). Here are some important points to keep in mind:
- What is Dim Weight? It is a pricing technique for transport that uses an estimated weight calculated from the package’s length, width, and height.
- Formula for Dim Weight: Length (cm) x Width (cm) x Height (cm) / 5000
- Why is Dim Weight Important? You will be charged on whatever is higher between Dim Weight vs Package Weight.
- Scenario Examples: We have provided four examples to help you understand how to calculate shipping fees based on package and dim weight.
How to measure your product before shipping?
The knowledge and skill in measuring, weighing, and computing accurate values are must-haves for every Lazada seller. If you hardly remember how it is done from your mathematics class back in your school days, here is a refresher on how you could do it on your own—so you could calculate your shipment’s possible costs before Lazada and the logistics provider give you the actual shipping fee amount.
Always remember that precision measurements and accurate volumetric weight computations are necessary and required when shipping products to Lazada customers. It is advisable to use square or rectangular boxes when shipping products to facilitate easier and more accurate measurements of the item dimensions.
Take note as well that the standard unit of measurement for shipping parcels is cubic feet (English system). Thus, when measuring dimensions, be sure to use inches and feet. Using units in the metric system (like centimetres or meters) will not be a problem as long as you can make instant and appropriate conversions of units between the English and metric systems. Otherwise, Google runs an instant conversion mechanism that can make the task easier and faster.
So how to correctly measure your shipment’s dimensions? Here’s a step-by-step guide to this simple procedure:
- Measure the packaged product’s length, width, and height. These three factors comprise the dimension. Use inches or feet when taking measurements. Be careful when taking note of those. Put additional inches to the measurements as allowance if the parcel to be shipped is not yet ultimately packaged.
- Calculate the cubic feet or cubic inches of the shipment. To do so, multiply the correct figures—length, width, and height. The simple initial formula is length X width X height. To illustrate, suppose your parcel has the following measurements—length is 50 inches, width is 50 inches, and height is 52 inches. These figures will yield a measurement of 130,000 cubic inches.
- Convert cubic inches into cubic feet (both in the English system of measurement). From our previous example, the shipment is 130,000 cubic inches. Divide that figure by the standard divisor, which is 1,728. Thus, the computation should run as 130,000 /1,728. That will result in a dimension figure of 75.23 cubic feet.
- Compute the density or volumetric weight of the parcel. To align with the English measurement system, use a weight figure of your parcel in pounds. For example, your parcel weighs 25 pounds. Divide the figure by the recent cubic feet measurement. For example, 12 pounds is divided by 75.23 cubic feet. The result is 0.16, which is the volumetric sample weight of the product.
Lazada and its partner logistics firm could automatically and instantly assign a fee to you upon determining an equivalent sample product. It is best if all three computations (yours, Lazada’s, and the logistics firm’s) match. This way, there would be no shipping fee overcharge that could be incurred.
To calculate Dim Weight, use the formula: Length (cm) x Width (cm) x Height (cm) / 5000.
Here are some examples of how Dim Weight can affect shipping fees:
- Seller A ships a 5.00 KG dumbbell in a strong carton box with dimensions 30cm x 20cm x 20cm. The total Package Weight is 5.50 KG, and Package Dim Weight is 2.4 KG. During checkout, the customer will be charged based on the Package Weight of 5.5 KG or $3.95 (Tier 2). Seller A will incur a flat shipping fee rate of $2.49.
- Seller B ships baby diapers in a cardboard box with dimensions 60x25x15cm. Total Package Weight is 2.0 KG, and Dim Weight is 4.5 KG. Customer B will be charged based on the Package Dim Weight of 4.5 KG or $1.49 (Tier 1) for standard door-to-door delivery.
- Seller C ships a broomstick in plastic wrap with dimensions 140x20x5cm. Package Weight is 1 KG, and Package Dim Weight is 2.8 KG. The customer will be charged based on the Package Dim Weight of 0.8 KG or $1.49 (Tier 1) for standard door-to-door delivery.
- Seller D ships a 750ml shampoo bottle in a carton box with dimensions 20x20x20cm. The total Package Weight is 0.8 KG, and Package Dim Weight is 1.6 KG. If Customer D opts for NinjaVan Collection Point, the customer does not need to pay the shipping fee, whereas Seller D will be charged a flat $2.49.
By following these steps, you can ensure that you are accurately charged for shipping and avoid any unexpected charges.
Note: This information can be found on Lazada’s Help Center, where you can also find articles on how to avoid wrong shipping fee charges.
How Lazada or the logistics provider measures your parcel
Aside from your measurements and computations, Lazada automatically measures the parcel once it arrives at the e-commerce firm’s Sortation Center. Lazada and its logistics partner use high-precision scanning and weighing machines to generate measurements accurately and immediately.
If your shipment is too bulky, that machine may not yield a reliable measurement due to its limitations. Thus, Lazada and logistics services providers would measure the item manually. There would then be a cross-checking of figures to ensure measurement correctness or accuracy.
You can find all the details about Lazada’s updated shipping fee charges using your Lazada seller account. To do so, proceed to the account’s Seller Center. Then click Finance and choose Shipping Fee. To check past charges imposed on your recent shipments, choose Statement of Account, and you will find the recent details.
How to avoid shipping overcharge?
Lazada sellers are advised to invest in a reliable and accurate measurement device. This is to ensure the volumetric weight obtained and disclosed per product will always be correct. Once this is ensured, incurring shipping fee overcharges could be avoided today and in the future. A good measuring tape or ruler does the trick. Also, have a correctly scaled weighing scale in handy.
Aside from generating accurate measurements and volumetric weights of your products sold in Lazada, providing an allowance for each item’s dimension or weight measurements is also advisable. For example, if your parcel weighs 5 pounds, putting 8 pounds on your product’s listing measurement entry would be ideal. This way, you can avoid incurring possible additional costs on shipping. Remember, the product could measure less and weigh lighter without its shipping package.
What to do if Lazada imposed a shipping fee overcharge on you?
While Lazada does not automatically rule out any complaint or question about the shipping fee overcharge it imposes on a seller, its charges are usually final and uncontested. You may have to double-check the frequency of the errors and overcharges to obtain a feasible and clear explanation for a possible negative balance on your updated statement of account. Lazada has to charge those measurement and weight discrepancies, especially if the seller committed the error.
How to check for possible shipping overcharges by Lazada on you? First, the surprising and unexpected drop in your statement balance (or if it has fallen to the negative side) could be a clear indication. The charges are reflected on your statement of account, though.
Second, check how your sales per order went through within a specified period. The statement of account also indicated the shipping fee/s imposed on you as a Lazada seller.
Entrust your parcels to third-party logistics services providers
Another effective way to avoid any shipping overcharge by Lazada is to have your parcels shipped via a third-party logistics provider like Locad. This will be a wise choice, especially if you send products to customers within the country or the region.
Locad observes accuracy in all measurements and weights, ensuring the charges imposed on logistics are correct. The company makes it a practice to set accurate shipment charges based on all the necessary factors and instantly communicate that with you upon service sign-up or receipt of your parcel.
You don’t have to deal with surprising and unexpected shipping overcharges anymore. Locad even offers add-on services to make the logistics experience much faster, more reasonable, and more reliable. The service provider makes it a commitment to help e-commerce sellers like you by taking care of the usually tedious task of shipment and fulfillment so you can use your time and attention to focus on other crucial and important aspects of your business.
Overall, shipping fee overcharges could disrupt how you generate and predict your sales or revenues as a Lazada seller. Always be updated and aware of any change in Lazada’s shipping fee policies to avoid such fees. Also, be more careful and precise when making your shipment measurements. Maintaining the accuracy of figures throughout your online business would be crucial to your success.