As an e-commerce seller, expanding your reach to international markets can significantly boost your sales and revenue. And with the booming e-commerce industry in the Philippines, Lazada has become the go-to platform for online shoppers in the country.
However, shipping to the Philippines can be complex and daunting for many Lazada sellers. With different customs regulations, shipping fees, and delivery options, it’s important to have a comprehensive understanding of the logistics involved to ensure smooth and successful transactions.
In this guide, we’ll provide you with all the information you need to know as a Lazada seller shipping to the Philippines. From understanding the shipping process and customs clearance to choosing the right delivery partner and managing your logistics, this guide will equip you with the necessary knowledge and tools to succeed in the Philippine market.
So, whether you’re a seasoned Lazada seller or a newcomer to the platform, read on to learn how to optimise your shipping strategy and maximize your sales in the Philippines.
Understanding Filipino Shoppers: Why choose Lazada when selling in the Philippines?
As consumers, Filipinos share several common traits with consumers in other countries in the region. Regarding heritage, they are like the Malaysians and Indonesians and, in terms of descent, the Chinese (especially regarding food). There is also a strong Muslim community in the country’s southern provinces. But Philippine consumers are modern and sophisticated, just like their former colonizers, the Americans and the Spanish.
The e-commerce market in the Philippines is one of the fastest-growing in Southeast Asia, driven by a young, tech-savvy population and rising disposable incomes. In 2021, the e-commerce market in the Philippines was valued at $12 billion, expected to reach $22 billion by 2025.
Post-pandemic, there has been a significant increase in people turning to online shopping as a safer and more convenient option. This trend is a behavioral change, making the e-commerce market in the Philippines an attractive opportunity for businesses looking to expand their reach.
As a groundbreaker in the region’s ecosystem, Lazada has gathered over 155,000 online sellers offering products from over 3,000 brands. It serves over 560 million consumers across Indonesia, Singapore, Malaysia, Vietnam, Thailand, and the Philippines.
Lazada has become a marketplace backed by a broad array of tailored marketing, service, and data solutions. It now has about 300 million stock-keeping units (SKUs), offering a great range of products in various categories, from household items to consumer electronics, fashion items, sports equipment, and even groceries.
When it comes to selling in the Philippines, Lazada is the clear market leader. It now has about 300 million stock-keeping units (SKUs), offering a great range of products in various categories, from household items to consumer electronics, fashion items, sports equipment, and even groceries.
Lazada accounts for over 30% of all online transactions in the country. With over 43.6 million monthly visitors and a growing customer base, Lazada has established itself as the go-to platform for online shopping in the Philippines.
- Wide customer base: With over 43 million monthly visitors, Lazada provides a large and growing customer base for businesses to tap into. This allows businesses to reach a wider audience and increase their sales and revenue.
- Extensive product range: Lazada offers various products across various categories, from electronics and fashion to groceries and household essentials. This allows businesses to showcase their products on a platform with a diverse customer base.
- Trusted brand reputation: Lazada has established itself as a reliable and trustworthy platform for online shopping in the Philippines, with a strong brand reputation. This makes it easier for businesses to gain customer trust and establish their brand presence in the market.
- Multiple payment options: Lazada offers a variety of payment options, including cash on delivery, credit card, and e-wallets, making it accessible to a wider range of customers. This can help businesses increase their customer base and sales.
- Access to Extensive Customer Data and Analytics: Lazada provides businesses with extensive customer data and analytics, which can be used to gain insights into customer behavior and preferences. This data can be used to optimize marketing strategies, improve product offerings, and enhance the overall customer experience. With Lazada’s analytics tools, businesses can track sales performance, monitor customer feedback, and identify trends and patterns in customer behavior, all of which can be used to inform business decisions and improve the bottom line.
- Efficient delivery network: Lazada has a reliable and efficient delivery network that can reach even the most remote areas in the Philippines. This ensures that businesses can deliver their products to customers across the country.
- Lazada Global Shipping: One of the biggest advantages of selling on Lazada in the Philippines is their Global Shipping service. This allows businesses to sell to customers outside the Philippines, opening up new revenue streams and expanding their reach beyond the domestic market. It’s a great way for businesses to tap into new markets and grow.
- End-to-End Fulfillment: Another great feature that Lazada offers is its end-to-end fulfillment service. This means businesses can store their products in Lazada’s warehouses, and the platform will take care of everything else, from order processing to delivery to returns management. This takes the burden of logistics and fulfillment off the business, freeing up time and resources to focus on its core operations.
These features make Lazada an attractive platform for e-commerce businesses looking to sell in the Philippines. By leveraging Lazada’s strong brand reputation, reliable delivery network, and comprehensive suite of services, businesses can establish a strong presence in the country’s thriving e-commerce market and drive long-term growth and success.
How to sell on Lazada in the Philippines?
Once you understand why Lazada is a great platform for e-commerce businesses and have decided to sell on the platform, the next step is setting up your seller account and posting and promoting your products.
This section will take you through the requirements for selling on Lazada, how to sign up as a seller, and how to post and promote goods on Lazada. Let’s get started!
Requirements for Selling on Lazada
Before you can start selling on Lazada, you need to meet a few of Lazada’s seller requirements:
- Your business must be registered in the Philippines.
- You must have a valid Tax Identification Number (TIN) and a business permit.
- Your products must be brand new and genuine.
- You must have a valid bank account to receive payments.
Once you’ve met these requirements, you can sign up as a seller on Lazada.
How to Sign Up as a Seller on Lazada?
To sign up as a seller on Lazada, follow these steps:
- Go to the Lazada Seller Center website and click the “Register” button.
- Fill out the registration form with your business and contact information.
- Upload the required documents, including your TIN, business permit, and bank account details.
- Wait for Lazada to verify your account. This usually takes around 1-2 business days.
- Once your account is verified, you can post and promote your products on Lazada.
How to Post and Promote Goods on Lazada?
To post and promote your goods on Lazada, follow these steps:
Create and Sign Up Lazada Account
To start selling on Lazada, you must create an account and register as a seller. You can do this by visiting Lazada’s website and clicking the “Sell on Lazada” button. Follow the instructions to provide your personal and business information, and wait for your account to be approved.
Click Upload Products
Once your account has been approved, log in to your Lazada Seller Center account and click on the “Products” tab in the menu bar. Then, click the “Upload Products” button to add your products.
Choose the Option to Add Product Images
When adding your products, you must upload high-quality images showcasing your product’s features and details. You can choose to upload the images individually or in bulk. Lazada recommends using images with a resolution of at least 800 x 800 pixels.
Fill in the Product Details
After uploading your images, you must fill in the product details, including the product name, description, price, and SKU (Stock Keeping Unit). You also need to specify the product category and subcategory to help customers find your products more easily. Ensure to provide accurate and detailed information to avoid confusion or misunderstandings.
By Using Singular Upload
If you prefer to use a singular upload method, follow these steps:
- Click on “Products” in the Seller Center menu
- Click on “Add Products”
- Upload your product pictures and name, and select the right categories for your product.
- Fill in all mandatory fields, including product details, price, and shipping information.
By following these steps, you can successfully post and promote your products on Lazada, reaching millions of potential customers in the Philippines and beyond. Optimise your listings with high-quality images, accurate product information, and competitive pricing to stand out and drive sales.
How to Ship your products to the Philippines via Lazada?
Any licensed business can sell products to the Philippines through Lazada’s online marketplace (this also applies to other countries in the region where it operates). A rising number of online sellers transact with Filipino online customers from different countries of origin—like mainland China, Hong Kong, Australia, the United States, and even some European countries.
An international business must be a Lazada International Seller to sell to the Philippines, Singapore, Vietnam, Malaysia, Thailand, and Indonesia. Being a Lazada International Seller should never be confused with being a mere Lazada seller because the latter could only sell in its own country.
There are requirements and prerequisites an international business must meet before being approved as a cross-border or Lazada International Seller. Aside from having a duly updated business license, the business must have an email and telephone number in any of Lazada’s core markets—in mainland China, Hong Kong, Macau, Japan, South Korea, Taiwan, Canada, Switzerland, Germany, Spain, India, Spain, Italy, Sweden, New Zealand, Turkey, France, Austria, Brazil, Belgium, the United States, or the United Kingdom.
The international seller must set up a Lazada International Seller account. This one could be used to sell in the Philippines and to various Lazada platforms in Southeast Asia. In some cases, especially for international sellers in Asia, it would be advisable to set up a presence or company based in Hong Kong, which can be managed remotely/online and done in just two weeks for at least US$1,000. There is no need to be a resident or to physically show up in Hong Kong to keep that presence.
This advice is based on the fact that Lazada operates a cross-border warehouse in Hong Kong. Western sellers could send bulk shipments to Lazada’s Hong Kong warehouse and then deliver them to the Lazada sorting centre.
Take note that as a free port, the city does not require import duties for goods coming into Hong Kong.
Benefits of Lazada Global Shipping (LGS) for Online Sellers
Lazada Global Shipping (LGS) is a service offered by Lazada that makes cross-border selling easy for online sellers in the Philippines and all Southeast Asian countries. LGS handles the entire shipping process, from picking up the product from the seller’s warehouse to delivering it to the customer’s doorstep in other countries. Here are some of the benefits of using LGS for cross-border selling:
Access to a Wider Customer Base
By using LGS, online sellers can reach customers outside their home country, including those in Southeast Asia, Australia, and the Middle East. This allows sellers to tap into a wider customer base and increase their sales potential.
LGS offers competitive shipping rates, which can help online sellers save money on shipping costs. This is especially beneficial for small businesses and startups that are just starting and may not have a large budget for shipping.
Simplified Shipping Process
LGS handles the entire shipping process, including packing, labelling, and customs clearance. This simplifies the shipping process for online sellers and saves them time and effort.
Faster Delivery Times
LGS offers faster delivery times than traditional shipping methods, which can help online sellers provide a better shopping experience for their customers. This is particularly important for cross-border sales, where customers may be more impatient to receive their orders.
Tracking and Insurance
LGS provides tracking and insurance for all shipments, giving online sellers peace of mind knowing that their products are protected and can be easily tracked throughout the shipping process.
Overall, Lazada Global Shipping is a convenient and cost-effective shipping solution for online sellers who want to expand their customer base beyond their home country and streamline their shipping process. Using LGS, online sellers can focus on growing their business and providing a better shopping experience for their customers in other countries.
Lazada Global Shipping (LGS): Which countries are eligible?
Lazada Global Shipping (LGS) is a cross-border fulfillment solution that allows Lazada sellers to reach customers in other countries easily. LGS is available to eligible countries across Southeast Asia, including the Philippines, Indonesia, Malaysia, Singapore, Thailand, and Vietnam.
How to ship goods via Lazada Global Shipping (LGS) to the Philippines?
To ship goods via Lazada Global Shipping (LGS) to the Philippines, you need to follow these steps:
- Set up your LGS account: You must register for an LGS account and activate it on your Lazada Seller Center account. This will give you access to LGS shipping rates and services.
- Package your goods: You must package them securely to ensure they arrive in good condition. Label them properly with the buyer’s address and the necessary shipping labels.
- Send your goods to the LGS warehouse: Once they are packaged, you can send them to the LGS warehouse in the country you are shipping from. Lazada will provide you with the address and details of the warehouse.
- LGS will handle the rest: After your goods arrive at the LGS warehouse, LGS will handle the shipping process, including customs clearance, international shipping, and delivery to the buyer’s address in the Philippines.
- Track your shipment: You can track your shipment through your LGS account and the Lazada Seller Center. This will help you keep the buyer informed about their delivery status.
Using Lazada Global Shipping, you can use a reliable and efficient shipping solution that makes it easy to sell your products to customers in the Philippines and other Southeast Asian countries.
How to join Lazada Global Shipping (LGS) to ship products to the Philippines?
To join Lazada Global Shipping (LGS) and start shipping your products to the Philippines, you need to follow these steps:
- Check if your country is eligible: Lazada Global Shipping is available in select countries, so you must check if your country is eligible for this service. You can do this by logging in to your Lazada Seller Center account and checking the LGS eligibility criteria.
- Apply for LGS: Once you have confirmed your country’s eligibility, you need to apply for LGS through your Lazada Seller Center account. Go to the LGS section of your account and follow the instructions to apply.
- Wait for approval: After applying for LGS, you must wait for approval from Lazada. This may take a few days, so be patient.
- Activate your LGS account: Once approved for LGS, you need to activate your account. Go to the LGS section of your Lazada Seller Center account and follow the instructions to activate your account.
- Set up your shipping preferences: After activating your LGS account, you need to set up your shipping preferences, including your shipping rates and delivery times. You can also use LGS for all your shipping needs or only for specific products.
- Start shipping: Once you have set up your LGS account, you can start shipping your products to the Philippines and other Southeast Asian countries. Just package your goods, send them to the LGS warehouse in your country, and let LGS handle the rest.
By joining Lazada Global Shipping, you can use a reliable and efficient shipping solution that makes it easy to sell your products to customers in the Philippines and other Southeast Asian countries.
Managing delivery time and returned products via LGS
One of the outstanding features of LGS is the effective management of returned goods. Lazada, through LGS, takes care of all returned items from the Philippines and other countries in the region. Those are sorted back to the Hong Kong fulfillment centre.
Through a re-routing system, the parcel would be kept in a local cross-border scheme for four weeks. After this period, when the product is not resold to another customer, it will be returned to the address of the international seller. Such statuses are regularly updated in the Lazada Seller Center.
As previously mentioned, Lazada online shoppers in the Philippines and the region are very conscious and particular about the delivery lead time for their orders, even those coming from abroad. This is why LGS has set a lead timetable and limitations for international deliveries in the Philippines.
From the Lazada fulfillment centre in Hong Kong, LGS sets a shipping lead time of 7 to 8 days for the orders to be delivered in Metro Manila and other major cities in the Philippines. It has set a weight limit per parcel of up to 20 kilograms and dimensions not exceeding 900 mm. However, there is no limitation to the value of the shipped items.
It is also the responsibility of the Lazada International Sellers to abide by the basic custom requirements in the Philippines. In general, these items are not allowed to be sold internationally via Lazada: weapons, alcohol, batteries, pharmaceutical products, tobacco, fake goods, religious or political items, and power banks. It is also not advisable to sell food (especially those that are fresh harvests and can spoil) and nutritional supplements.
Other Shipping Options for International Sellers
International Lazada sellers who could not opt for the fulfillment services offered by Lazada via the Lazada Global Shipping (LGS) program can consider managing their fulfillment through third-party logistics providers such as Locad, which offers logistics solutions to businesses sending parcels to the Philippines.
Locad facilitates a different process than the in-house Lazada Global Shipping service. However, many offshore sellers still choose Locad’s service to save on costs and to obtain more control over the delivery transaction. Here is how Locad will help you:
Finding a shipping partner for PH
For cross-border shipping, be prepared to undergo several quick processes. First, there will be first-mile delivery that facilitates shipping of the parcel to a logistics warehouse and from there to the port (sea) or airport (air). Second, the parcel will undergo customs clearance in the seller’s origin country. Third, the shipment is transported by sea (which takes longer) or air (faster but more costly) to the Philippines.
The parcel is subjected to customs clearance upon reaching the Philippine port or airport. After passing through clearance, the shipment is delivered to the provider’s domestic distribution centre or warehouse. It will be sorted to be assigned to trucks, vans, or other transport forms for last-mile delivery. The parcel is moved from the distribution centre to the Lazada customer’s Philippine address.
Note that last-mile delivery might take another day or two if the customer’s address is outside Metro Manila, the country’s capital. The local logistics provider will again have to ship the parcel via air if it is bound to far-flung provinces (the Philippines is an archipelago, and most islands require air or sea shipping).
Locad’s end-to-end solution will take care of the entire process from the moment the parcel is received from the sender. This is why it is among the most trusted providers by various international sellers and brands that ship orders to Philippine customers.
Packaging the parcel
It is a standard practice to package the item using the right packing materials, especially as it will undergo cross-border shipping. Logically, your shipment will be subject to harsh handling during its journey to the Philippines.
It is advisable to use extra packing materials like packing peanuts or bubble wrap to provide additional protection inside the box. Doing so will prevent the breakage of the item, no matter how rough handling could be during the long shipment process.
Choosing the right service level
When choosing a logistics partner, you should also consider the right level of service for your shipment to the Philippines. In this stage, an international online seller should look at the different tiers of shipping services offered. Take note that the more service features a shipping partner offers, the costlier the shipping fee gets.
An online seller could opt to choose features that are applicable and that suit the budget and logistics needs. Among the most important considerations are the delivery time, the parcel weight, real-time tracking of the shipment, packaging service (optional), and on-call customer service. It will also help if a feature compensates for the shipment loss but could add up to the overall shipping costs.
Providing accurate shipping details
It is important to provide the right shipping details, and necessary documents as these are required to pass the Philippine customs. Make sure to include the following information: the online seller’s (sender’s) name and address, the Philippine recipient’s complete name and address, the product’s manufacturing origin, the declared value of the item (in US dollars as well as the seller’s and recipient’s respective currencies), system code, description of the item, the quantity of the item, and weight/dimensions.
The shipping services provider could fill out the customs declaration form (or the seller could do it) and perform labelling. It is important for the seller to always check for the completeness and accuracy of the details provided. Incomplete or inaccurate documentation may cause issues in customs or incur extra shipping charges. Fines could be incurred for the under-declared item valuation on the commercial invoice.
Other than the shipping costs to the Philippines, a parcel may incur additional charges for duties and taxes in the Philippine customs if the item value exceeds US$200. The tax cost could equal 32% of the shipment’s valuation.
Passing the parcel to the shipping carrier
When the parcel is ready, the seller hands it to the chosen shipping carrier (Locad), noting the selected service level. The online seller could opt to have the package picked up from his or her address or delivered to the logistics provider’s address. If the track and trace feature is selected, the seller can monitor the shipment’s journey to the Philippines when the Locad receives the parcel.
The process of selling and shipping to Lazada customers in the Philippines is simplified and made faster and safer. Online sellers could enjoy the great potential this discerning market is offering. Filipino customers could be loyal patrons if they get satisfactory products and experience a smooth delivery process.
In conclusion, selling on Lazada in the Philippines can be a lucrative opportunity for e-commerce businesses, especially with the help of Lazada Global Shipping (LGS) for cross-border selling. By meeting the requirements, signing up as a seller, and utilising Lazada’s tools for posting and promoting goods, businesses can tap into the vast market of Filipino online shoppers. With the added convenience of LGS, shipping and fulfilling orders can be made easier and more efficient.
As a logistics engine for e-commerce, Locad can further assist businesses in streamlining their operations and achieving optimal efficiency. Locad can provide end-to-end fulfillment services for businesses selling on Lazada in the Philippines and beyond, from warehousing to delivery. With a dedicated team of experts and the latest technology, Locad can help D2C businesses meet the demands of their customers and stay ahead in the competitive e-commerce industry.