Have you experienced getting a negative balance on your Lazada statement of account as a seller? You may have incurred high or above-expectation shipping fees. This is why Lazada sellers are advised to avoid incurring shipping fee overcharges as much as possible.
Any Lazada seller who knows how to properly manage profit margins understands why avoiding shipping overcharges is a necessary skill. First, it is unnecessary. Second, it could be easily prevented. This is a complete guide on how you can avoid shipping overcharges and the disadvantages those fees bring about.
What is shipping overcharge and how is it incurred?
A shipping fee overcharge is incurred from committing errors when computing for 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 other way to correct the error than to put a shipping fee overcharge to the Lazada seller’s statement of account. The logistics or courier team usually proceeds to shipping 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 be eventually deducted from the active seller’s Lazada statement of account.
Most Lazada sellers know that this actually 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 to the logistics partners. Lazada sellers must have an open mind 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. It is important to invest in the right tools to make the product or shipment measurements.
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 really significant to impact profit margins as stated in the accounts records. So why not just avoid it?
Common causes of Lazada shipping overcharges
Lazada states in its shipping policy that fees could change in accordance with the product’s volumetric weight and/or origin and destination of the shipment. This is why it is very important to input accurate product measurements in listings. Doing so could correctly determine the actual shipping fees and avoid possible shipping fee overcharges.
As mentioned, the most common cause of a Lazada shipping fee overcharge is the inaccurate volumetric weight or measurements of the seller’s product. This coincides with the update on the Lazada shipping policy regarding the possible adjustment in shipping fee if there is any inaccuracy on the product’s volumetric weight. If you or you know of other Lazada sellers who are not fully aware about this policy provision, it would be best to spread the word to fellow Lazada sellers now.
The second common cause of the error is the practice of not including the shipment packaging to the product dimensions and weight figures, which are provided to Lazada and to the logistics provider. It is now more advisable to include the bag, pouch, bubble wrap, or Lazada bag to the measurements provided prior to shipping. Doing so would result to bigger or heavier shipment, but at least the measurement would be more accurate and in line with the actual shipping fee.
How to measure your product prior to 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 as well as 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 when it comes to 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 centimeters or meters) will not be a problem as long as you could 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 on 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 sample volumetric weight of the product.
Lazada and its partner logistics firm could automatically and instantly assign a fee to you upon the determination of 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.
How Lazada or the logistics provider measures your parcel
Aside from your own measurements and computations, Lazada automatically measures the parcel once it arrives at the e-commerce firm’s Sortation Center. Both Lazada and its logistics partner use high-precision scanning and weighing machine to accurately and immediately generate the measurements.
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 correctness or accuracy in measurements.
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 would 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 make sure 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 could help do 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, it is also advisable to provide an allowance to the dimension or weight measurements of each of your items. For example, if your parcel weighs 5 pounds, it would be ideal to put 8 pounds on your product’s listing measurement entry. 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 to 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 error was committed by the seller.
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, you could check how your sales per order went through within a specified period. The statement of account also indicated the shipping fee/s imposed to you as a Lazada seller.
Entrust your parcels to third-party logistics services providers
There is another effective way to avoid any shipping overcharge by Lazada and that is by opting to have your parcels shipped via a third-party logistics provider like LOCAD. This will be a wise choice especially if you are sending products to customers within the country or within the region.
Locad observes accuracy in all measurements and weights all the time, making sure 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 upon 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 could 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. To avoid incurring such fees, remember to always be updated and aware of any change in Lazada’s shipping fee policies. 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.