Lazada E-commerce

What is Lazada? 

Lazada Group, or Lazada is an international e-commerce company. It helps engage and brand  new boundaries of retail which are therefore customized by the market’s needs. It Singapore-based e-commerce platform is now the largest e-commerce operator in South East Asia and Asia Pacific Regions. 

Lazada’s online shopping platform works with the motto of ‘setting the pace for a retail revolution’. They have gained immense prevalence in countries like- Malaysia, Indonesia, Philippines, Thailand, Vietnam, and of course, Singapore. Their main objective is to connect to diverse regions through their technological advancesde logistics and payment capabilities. 

Let’s read about the working ethics and operation basis of Lazada Shopping and Lazada E-commerce and how it has flourished throughout its business. 

How Lazada Works and Operates

Lazada E-commerce is known extensively for its unique business ideas, technology, payment capabilities and logistics. In 2016, Lazada became the regional flagship under the Alibaba Group and is now Alibaba’s best technology infrastructure. 

It operates in six Asia Pacific-based countries namely Singapore, Indonesia, Philippines, Thailand, Malaysia, and Vietnam. The primary purpose of Lazada Shopping online is to access the internet and create a personal connection with the customers in a much more personalized approach. This, in turn, will help them to retain its position in the market as a leading brand of logistics and e-commerce. They provide seamless and secure transactions ensuring the best technology is provided to it. They aim to redefine the concept of retail experience.

In addition, Lazada provides end-to-end logistics capabilities that will help them to have a firm grip on their supply chains. This makes Lazada Shopping online feasible and loved by Southeast Asian countries. They have been expanding rapidly, significantly impacting the global market. 

How Lazada Started: a Short History 

Lazada Group started in the year 2012. Maxmillian Bittner founded it via the backing of Rocket Internet. Their goal was to establish an E-commerce platform resembling Amazon’s business model in Southeast Asia. It is a Singapore based company that  wanted to take the primal advantages of making a nascent online consumer market where customers can continue to have seamless transactions and quality delivery services. 

The online shopping Lazada was launched in March 2012 with a business model to sell the customers their inventory from their warehouses. By 2013, the Lazada marketplace model allowed third-party retailers to sell their products via Lazada’s site, which increased their sales pitch. Later, in 2016, Alibaba Group bought Lazada, adding to Alibaba’s international expansion of e-commerce ever since. 

Gradually, other shopping sites of Lazada were born, like LazMall in 2018 which promoted authentic brands as a retail platform. This created a significant retail revolution in the e-commerce and supply chain industries. Lazada is now one of the top competitors of Amazon in the Asia-Pacific region and has been rising prominently. 

Lazada’s Base of Operations 

The main objective for the creation of Lazada was to establish strong competition against Amazon in Southeast Asia-based regions. Initially, the company’s operations started from Singapore. However, the operating base is now available in six countries as follows: 

• Vietnam 
• Thailand
• The Philippines 
• Singapore 
• Malaysia 
• Indonesia 

Now, it has  warehouses all over these countries, and distributes among 17 cities. With the help of the emergence of concrete digital technology, Lazada is connected to every base of operations present there. 

What Can You Do in Lazada? 

Lazada is enriched in multiple ways paving the way for the retail revolution. Let’s read about how the Lazada store is different  from other online retailers. 

Online transactions (for both selling and buying)

Online transactions are one of the biggest pillars of an e-commerce platform. Lazada is no less than this. They work to establish a seamless online transaction system for sellers and buyers. They have initiated secure digital payments through methods of intuitive solutions that can be trusted feasibly. This has made them the most secure payments and financial services infrastructure. 

Multiple payment options 

Lazada  was one of the first the only e-commerce retail platforms to provide multiple payment options for the customers’ feasibility. With the help of multiple payment methods,  for using the preferred payment method for their ease. 

Return program 

Lazada is known to be one of the biggest logistics companies all over Southeast Asia. It has been expanding its horizons and establishing warehouses to secure its base of operations. They have warehouses all over the six countries and have set up their bases in 17 cities in those countries. Thus, they provide returns within a day and a half or even faster, making them a feasible competitor to Amazon in Southeast Asia. 

Nationwide shipping 

Lazada E-commerce shares a shipping radius in Southeast Asian countries. They ship throughout these countries with warehouses established in the respective countries. Due to this available feasibility, Lazada online shop is appreciated by all. 

Why Should I Sell Products on Lazada?

1. Simple company registration 

Becoming a seller on Lazada is simple and requires some quick steps. When a company registers as a buyer or a seller, it requires a company registration which helps them verify the said company’s legalitya seller or buyer at the Lazada store, one must register through the Lazada Malaysian centre and provide location , product and other basic company details. The sellers and buyers then have to validate their details to be a part of the LazadaGlobal family. 

2. Seller fees overview 

The biggest benefit of Lazada is there are no hidden costs or listing fees that this organization requires. Lazada e-commerce thrives on working according to the commission and the payment fee per order, based on the product’s product’s unit price. LazMall sellers charge only 2-5% of the commission, depending on the product category. 

3. Order fulfillment 

Lazada Shopping has an online platform where sellers can express their grievances regarding any issues with order fulfillment. Lazada Shopping seller center is set up primarily for order fulfillment and return management facilities. They have a strict order fulfillment policy which says that cancellations will only occur if: 

• The orders have not been packed and RTS by 3 working days by 6 PM. The cancellation will thereby take place on the fourth working day. 
• After RTS, if the orders are not handed over to the shipping provider within 6 PM of 2 working days, the cancellation will take place on the third working day. 

4. Payment options

Lazada provides a plethora of options for payment methods. This has made them one of the best logistics companies in Southeast Asian countries. It offers multiple payment methods. They are: 

• Cash on Delivery 
• Lazada wallet (where you can add money from your bank accounts) 
• Gcash 
• Credit/Debit Card 
• Installments (both non Credit card holder and Credit card holder installment plans. 

Lazada provides its customers with the best shopping experience and a swathe of opportunities for both buyers and sellers to make hassle-free payments. 

Are Any Products Prohibited From Selling on Lazada?

Lazada has a comprehensive list of products that are prohibited from being sold on their websites. Let’s read the characteristics that abide by the list of prohibited selling on Lazada. 

1. Obscenity 

If any product promotes obscenity, the seller identified to sell this product will be issued up to 2 points per product and the product will be locked from the website. If any obscene images of genitalia or sexual intercourse are found on the website, then they takes serious action to take that product down and warn the seller. 

2. Adult materials 

Any obscene product is prohibited from being sold on the Lazada website. However, there are certain guidelines that the sellers have to abide by to sell adult materials on the website. They are: 

• No visible display of realistic private parts of the person or the material. 
• Private parts will be covered fully with stickers. 
• Dolls that resemble real babies. 
• Products that promote pain or humiliation or pornographic content. 
• Used private products. 
• Adult video games 
• Adult services. 

3. Weapons 

Weapons are strictly prohibited from being sold on Lazada E-commerce websites. Sellers are strictly prohibited from selling weapons and can thus lose 6 points per product, thus removing itt from the website. The sellers must follow strict guidelines to sell kitchen knives and other weapon-like objects. The products which are prohibited on the sites are: 

• Daggers
• Axes
• Swords 
• Concealed knives and weapons 
• Automatic Knives
• Lock Knives and Hunting Knives
• Machete
• Kukri
• Bayonets 
• Toy or Cosplay knives 
• Sickles
• Rope whips
• Tasers
• Blowpipes
• Flares
• Pepper Sprays
• Batons
• Knuckle Dusters
• Slingshots
• Crossbows
• Truncheons
• Firearms and Ammunitions
• Replica or artillery bombs
• Flammable and other explosive chemicals

4. Human parts and protected flora and fauna

Lazada Shopping has strong prohibitions against selling protected flora, fauna and human parts. There are certain guidelines to be followed for selling on this website. They are: 

• The company permits items made of human hair, such as for commercial usage. 
• Prohibitions are made to listing or selling any kind of species, including animal parts, pelts, skins, teeth shells etc. The International Trade protects these rights in Endangered Species of Wild Fauna and Flora. 
• Live animals for pets, livestock or marine mammals are prohibited from being sold on the website. However, small fishes like guppy, snails and aqua shrimps, if they do not fall under the category of endangered species, can be sold by the seller using their fleet. 
• Electrofishing equipment is strictly prohibited. 

5. Artifacts and precious metals 

Lazada doesn’t encourage selling precious materials like gold, silver, platinum or any other conflict minerals (minerals found in different conflict zones of Congo, Angola, Central African Republic, Sultan, Tanzania, Rwanda etc.). Virtual or cryptocurrency selling is also not allowed to be sold on the website. Nationally protected artifacts of cultural relics, historical grave markers, etc, are also not to be sold through the Lazada website. 

6. Tobacco and alcohol 

Lazada’s website strictly prohibits the selling of tobacco and alcohol. They can issue up to 6 points per product, and the violated product will either be locked or removed from the website. Sellers can only sell cigarette tools or cider or beer containing below 5% alcohol content only if they have licenses and permits. These permits are subject  to the Excise Act of 1976, Customs Act of 1967, Food Act of 1983, and other relatable laws. 

7. Circumvention devices and other types of equipment used for illicit purposes

Lazada E-commerce website strictly prohibits selling circumvention devices such as IP boxes, Modchip, mobile boosters, signal jammers, hacking devices, streaming media boxes and other circumvention devices. If a seller is found selling these materials, Lazada will impose up to 6 points per product and violate the product from the website. 

8. Gambling 

Lazada prohibits any gambling practices taking place on the website. If any gambling machines or equipment such as slot machines, scratch cards, and lottery are found on the website, Lazada will impose 6 points per product. Thereafter, the product is locked from the website. However, products like dice and playing cards are permitted to be sold on the website. Roulette wheels, loaded dice, marked cards, and other apparatuses that promote gambling are strictly prohibited. 

9. Illegal services 

Sellers to be identified as rendering illegal services on the website will be penalized with 48 points per product. It is followed by the immediate deactivation of the store on the website. By illicit services, it renders the following aspects. They are: 

• Official identification documents: Any provisional document that the government has issued. Any identification document produced by the seller without the government’s government’s prior consent
• Legal documents: Lazada strictly prohibits the selling of tax, stamp duty, business licenses, and entrance cards for military bases over the website. 
• Personal information: Selling or providing any services to personal data is prohibited on the website. 
• Financial sServices: Provisions of financial services like money transfer, issuing bank guarantees, and fundraising is not allowed on Lazada E-commerce. 
• Pyramid schemes: Pyramid schemes are also prohibited. These are an unsustainable business model where a few top-level members recruit new members, thus creating an upfront cost chain. 
• Medical services: Services such as providing surrogacy services, children adoption, etc., and medical advice online is strictly prohibited on the website. 
• Agent Services: Provision of agent services like transactions of SNS accounts and scalped tickets of any social events are strictly prohibited on the website. 

10.  Offensive material and information causing a national security breach 

Any product that can be subjected to terrorist organizations, extremist organizations or idealising any terrorist figure is strictly prohibited. Other materials which promote communist propaganda, like a hammer and sickle symbols are also not allowed to be sold on the Lazada E-commerce website. Any political ideology and promotion of it are strictly prohibited, specifically content that has anti-China separatist persons eg., Dalai Lama. 

Lazada is cautious about the policies regarding which products are prohibited from being sold on their websites. To know more about their clauses of understanding which should not sell products, click here. 

Why Do People Choose Lazada Over Other E-commerce Platforms?

E-commerce has been flourishing every day with the advent of COVID-19. People are much more comfortable shopping online rather than going out, thereby reducing the risk of deadly virus’s transmission. With the lockdown situations in Southeast Asian countries, the Philippines grew into a massive industry growth within its coming years. 

Lazada has made a significant mark in the e-commerce platforms. It has made a ton of people switch over to them more than other leading websites. It now has a global rank of 7,341 according to the statistics in Similarweb, which has been significantly improving in the Philippines and other places like Singapore and Malaysia.  

Here are some reasons why people choose Lazada over other e-commerce platforms. 

Lazada university

Lazada University is the exclusive educational program created by Lazada. It  helps the sellers to excel in their quality from selling over this platform. This assists them in marketing and training e-commerce, helping the overall sector of e-commerce to flourish profoundly. They are known to provide expert strategies and help the sellers to grow methodologically to launch their campaigns. 

The sellers can go through a three-step program to become full-fledged experienced e-commerce businesses to excel in their respective fields.

Lazada University also helps the sellers know about the different policies of prohibition and bonus points incorporated in their company. This allows the learners to have a feasible understanding of e-commerce and creates an easier path to grow with the help of the Lazada store. 

Fulfilled by Lazada

Fulfillment by Lazada (FBL) is a consignment model service. It rendered where  sellers’ products are stored, packed and finally shipped directly from the Lazada warehouses so that the customers can enjoy the fastest and most convenient forms of delivery. The below image will give you a keen insight into what fulfilment is. 

Source

One of the biggest advantages of using Fulfillment services is the dynamic capability for major e-commerce concerns. It ensures faster delivery without any harm coming to the product. Lazada has more than 40 hubs across the country, making them so famous in Southeast Asia. Seller rates have been profusely affecting the overall inventory management by ensuring faster delivery.  

Due to this advantage, the website visits to the Lazada store have also increased. Statista has shown that in the third quarter of 2021 Lazada’s website reached around 39.43 million. 

The above schemes have also ensured that Lazada has been increasing its profit margin immensely, making them one of a kind. Even though FBL is a consignment model, it has been profiting in customer and seller retention immensely. 

Separate mobile applications for buyers and sellers 

Lazada has separate mobile applications for both buyers and sellers. It ensures a specialized treatment for both  to commit to their working capability and help acquire a larger customer base. This will generate higher revenue not only on the seller center app but also on  appethe buyers use. Lazada E-commerce has been taken as an example by many organizations to offer a distinct start-up technique in the retail revolution. Sellers can communicate with the buyers in chat and earn up to their expectations. 

What’s the Downside of Selling on Lazada? 

Lazada is one of the best e-commerce companies in Southeast Asia.  It has been known to provide high-traffic channels with good shipping terms.. However, there are certain downsides to Lazada, making it not very approachable to the people. 

Let’s read about the downsides of selling on Lazada and how you can make an informed decision to sell your products over here by knowing all its plus and minus points. 

Payment fees 

Lazada is known to charge payment fees of 1% to the sellers. However, they do not take these payment fees as an annual fee to sign up. They take it up as a commission. The commission is a minimum of 1% to 5% depending upon the product. Other than this, Lazada permits the sellers to behold the rest of their profits. 

Focused mainly on customer benefits 

One of the biggest cons of any e-commerce website is to focus on customer needs only. They try to improve the quality of experience for the customers immensely without considering the sellers’ needs. To improve customer satisfaction, sometimes they restrict the sellers’ benefits. For example, suppose a customer deems it necessary that the product sold by the particular seller is not up to the mark or is offensive. In that case, Lazada looks into the matter and violates the product to be sold from the website. They can also charge a penalty on the seller based on the graveness of the wrongdoing. 

No transactions to be made outside the border 

Lazada Shopping has strong policies of not making any transactions outside the border of the countries they are prevalent in. As mentioned earlier, Lazada is prominent in the Philippines, Malaysia, Singapore, Taiwan, Vietnam, and other Southeast Asian countries. The selling is only bound to only these 6 countries. If a seller wants to sell something on the Lazada Malaysia website, then the seller has to be incorporated into a Malaysian business. 

How to Start Selling on Lazada? 

Lazada E-commerce provides many opportunities for sellers to join their website and be a part of their retail revolution. They are: 

LazMall seller 

LazMall is one of the certified stores belonging to Lazada. It only consists of high-quality brand owners or any authorized distributor. If you want to be a part of the LazMall seller, there are certain criteria one has to follow: 

• Having a minimum of 30 orders each month. 
• Being a member of Lazada seller center for more than six months. 
• Should have a seller rating of more than 70%. 
• Cancellation rates should be below 2% 
• Shipping timings should be accurate 80% of the time. 
• Chat response should be quick and rate more than 85% 
• Return rates should be high and not more than 1%. 

You can also benefit from a higher product search ranking if you meet the above criteria.  

Local seller on Lazada 

Lazada  favors local sellers to a great extent as well. For that, the seller has to sign up on the Lazada seller center website and incorporate themselves as an eminent seller. The account creation process is easy and takes less than five minutes. The picture below will help you to gain keen insight into how to be a seller on Lazada. 

Source

You can customise and set up your account at Lazada as a normal local seller and give your retail a feasible way to grow. 

LazGlobal seller 

Lazada is known to have prevalence in Southeast Asian countries. LazMall and Lazada local sellers concentrate on providing products to the six countries with their main inventories and warehouses. LazGlobal, however, is the brand created by Lazada which is known to operate outside of these six countries in Southeast Asia. They mainly concentrate their sales in Korea, China and Japan. To become a LazGlobal seller, you need to have a registered business from outside the periphery of the six countries that have hubs of Lazada. 

Lazada has several programs for sellers on the global market. It has a technologically advanced website that helps sellers sell their products easily. Click here to learn more about how to sell your products on Lazada. 

How to Become a Seller on Lazada’s Mobile Application? 

Lazada has created tons of opportunities for people to revolutionize the concept of retail. Hence, they have created two different platforms for buyers and sellers. Furthermore, they provide many opportunities to work without hassle for buyers and sellers and have an optimal retail experience. 

To become a seller on Lazada E-commerce mobile application, one should download the Lazada Seller Centre mobile application and register as a seller. Necessary documentation is required to become a seller on Lazada. They also have to mention their registered business and the country they focus on. If they are outside the periphery of the six countries Lazada has hubs in, then they would be termed as a part of the LazGlobal seller. 

How to Become a Seller on Lazada’s website? 

Lazada Seller Centre is both available on mobile and the web. To become a seller on the Lazada website, here a a few simple steps you need to follow. 

Step 1: 

• Go to the Lazada website. 
• Click the ‘Sell on Lazada’ and ‘Sign up Now’ button. 

Step 2: 

• Choose the option of whether you are a corporate or an individual seller. 
• Provide your mobile number, which will lead to further verification. 

Step 3: 

• Fill in the account information. Click on Sign Up. 
• Once you finish your sign-up, you will be redirected to the Lazada Seller Centre and you can customize your online shop on Lazada. You have to finish your to-do list and then you can start selling on Lazada.

Tips for Selling on Lazada 

Lazada provides lucrative offers for buyers and sellers. However, there are certain tips and tricks to be abided by to sell your products safely on Lazada. These can further help sellers access the early programs or campaigns of Lazada. 

Let’s read and know about the tips to become a better seller on Lazada. 

1. Provide free shipping to entice buyers even more 

Lazada has always been inclined towards providing ultimate customer retention and satisfaction. Hence, to become one of the top sellers of Lazada, one should provide free shipping facilities to the buyers. They can impose this facility when the customers are ordering in bulk. A tad bit of rebate on the products can enhance your customer experience. This will also help you to get access to the premium programs and campaigns provided by Lazada. 

2. Create bundle deals for your product 

Creating bundle deals for the product is one of the greatest opportunities to be the bestsellers on Lazada. If you can cut out a profitable deal that is beneficial for the customer and you, then it will bring profit and recognition from the customers. This will help you generate more commission, making you a premium member of LazMall. With proper discounts and deals, the business will therefore flourish profoundly. 

3. Getting KKM approval for health and beauty products 

If you are selling pharmaceutical products on Lazada which adhere to health, wellness, and beauty, then you need to follow certain norms and regulations to sell them. You need to abide by the Consolidated Product Listing Policy by Lazada, which provides an overview of the pharmaceutical products sold to abide by the listing and selling requirements. Furthermore, they have to get KKM approval for these products to gain proper control to sell these products online. 

The Consolidated Product Listing Policy is categorized under three subheadings. 

• Pharmaceutical products: They have to abide by the policies provided in the Control of Drugs and Cosmetic Regulations, 1984. They must also be registered under the National Pharmaceutical Regulatory Agency (NPRA). 
• Cosmetic products: They are regulated mainly in Malaysia. When you list your products on the Lazada platform, you must have it notified to the Director of Pharmaceutical Services before listing the product. 
• Medical devices: The products must be registered under the Medical Device Authority (MDA). 

These approvals should ensure your position as a better seller on Lazada altogether. This will help you to majorly amplify your position as a seller in Lazada. To know more about the product listings and regulations in these sections, click here. 

4. Making sure that the product information is always accurate 

Buyers focus on the product information solely before even thinking about purchasing the product. The product information helps the buyer provide keen insight into what they require to buy and whether it matches their criteria. If the product information is not listed properly on the website, the buyers would be misguided, thus leading to a downfall in sales. It is urged to the sellers that the product information should be accurate so that no customers are misguided to the product and to the overall website. 

5. Ride along Lazada’s frequent promotions 

To become one of the top sellers of Lazada, the sellers must follow the same stepping stones of promotion given by the organization. Suppose you abide by the above points and have a good customer rating. In that case, Lazada will offer you to promote your brand better on their websites and help you to emerge victorious in the newest retail revolution. If you abide by Lazada’s frequent promotion, you can become part of the bigger campaign and be on the highest rung of high-quality sellers. 

Is Lazada Legit and Safe? 

Lazada is one of the largest e-commerce websites in Southeast Asia. It has been gradually expanding and reaching its full potential with its seamless transactions and unparalleled technology. Lazada  is a safe shopping site where you can get things you want. Lazada has often said that the security of both buyers and sellers is optimal, and they should be kept under check by following the security reminders and advisories followed by them. This would ensure a safe retail experience for both buyers and sellers. 

Can Lazada Ship Internationally? 

Lazada is one of the top e-commerce platforms and has been expanding ever since.. It has been known to have reached the six countries of Thailand, Taiwan, Vietnam, the Philippines, Malaysia, Indonesia, and Singapore and has more than 40 hubs. . However, as Lazada has been expanding, they are trying to incorporate more unique shipping methods with an end-to-end (E2E) solution for shipping called Lazada Global Shipping (LGS). If the seller is eligible for selling articles globally, then they are eligible to avail millions of buyers across multiple nations. 

LGS offers a swathe of benefits that can ensure a secure Cross Border Seller. 

• Competitive international rate cards abide by the consolidation of local fulfillment volumes. 
• Improved control in managing handover as well as volume allocation through different methods of in-house management and sorting facilities. 
• A modular approach enables a scalable and flexible management style that will help to handle peaks and valleys. 

Lazada Global Shipping has been offering many opportunities to spread internationally and satisfy its customers to their core. If you are an eminent international seller, click here to join the Lazada Global Shipping family. 

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