Lazada is one of Southeast Asia’s largest e-commerce platforms and an international e-commerce company. According to the second quarter of the 2022 estimate, Lazada is an online marketplace where approximately 36.55 million visitors visit monthly in Phithe’s Lippines. This platform is headquartered in Singapore. There are six major countries in which Lazada operates, including:
- Singapore
- Malaysia
- Philippines
- Thailand
- Vietnam
- Indonesia
Lazada-Business Business And Business to Customer e-Commerce Platform
Lazada is a popular B2B and B2C e-commerce platform which serves as a marketplace that connects a lot of buyers and sellers. It offers a vast range of products across various categories. In Southeast Asia, Lazada has become one of the most famous local marketplaces for many businesses to grow and gain popularity. As has already been discussed, it operates in six different countries but has become Malaysia’s most popular e-commerce marketplace.
How To Start Selling On Lazada?
It is a simple task if you want to start selling on the Lazada marketplace. This procedure is relatively easy because it only requires creating a seller account on Lazada. Once the registration is completed, you can quickly sell your products on the Lazada platform. Lazada allows its sellers to do cross-border selling. This international e-commerce platform will enable people worldwide to sell and buy without problems or hurdles. After that, you must start listing your products or items and update your shipping details. And lastly, you need to connect your account on Lazada to your bank account to receive payments for any sale on that platform.
5 Incredible Benefits Of Selling On Lazada
Following are the five incredible benefits of selling on the Lazada marketplace.
- Effortless Store Management
- Huge Market Size
- Supports Its Sellers
- Collaborative Membership
- Has Its Logistic Subsidiary
Effortless Store Management
Lazada is an online e-commerce platform designed for both sellers and buyers. Moreover, sellers manage their store on the backend with all the tools such as marketing, promotions, order management, stock management and finances.
Huge Market Size
With the help of Lazada- an online marketplace, it is easy to transform your brick-and-mortar shop into a complete digital store that serves millions of customers. It is essential to remember that Lazada is a Southeast Asian e-commerce marketplace continuously expanding its regional market reach.
Supports Its Sellers
Lazada cooperates and supports its sellers and millions of shoppers on this platform. Sellers have the dedicated channels for the platform. Moreover, shoppers can reach out for customer support.
Collaborative Membership
Lazada provides cooperative membership. Microsellers enjoy legitimate business operations by being members of a cooperative. The community arm of Lazada marketplace serves the market sellers transitioning to cooperate with other sellers.
Has Its Logistic Subsidiary
Lazada has its own LEX, which is indeed its logistic subsidiary. Moreover, third-party members serve to ship their parcels to different regions beyond their operations. There are two options for the sellers to handle the parcel: pick up and drop off.
Lazada Commission Fee: How Much To Pay?
Lazada charges a commission fee on every single sale that the seller makes. It deducts the commission fee on the sale of each item or product. When the product is delivered, and the customers pay, the lazada charges a commission fee. Lazada commission fee is the percentage of the item’s selling price and varies by the item’s category and region. Moreover, the commission rate varies across countries as Lazada operates in six other countries. Generally, the commission rate ranges from 1% to 4%, according to the item. Based on the product category, the commission rate can extend up to 8% on products in Vietnam.
Moreover, fewer countries like Thailand and Malaysia will have an additional commission fee for VAT/GST. Different e-commerce platforms in China charge a commission on every sale the seller makes; similarly, Lazada, an online e-commerce platform, charges a commission on selling each item or product. Following is a chart that shows the commission rate for different products in various countries, like
Singapore, Indonesia, Malaysia, Thailand and the Philippines.
However, when it comes to each product, the commission rate may vary in Lazada.
Commission Rate For Lazada Marketplace Sellers
Lazada marketplace sellers are charged approximately 1% to 5% commission on the sale of the products on the Lazada platform. This commission rate is generally calculated from the product’s price minus any promotional charges of the seller, like vouchers, coins, etc.
How To Calculate Lazada Commission Fee?
The Lazada Commission Fee is calculated from the price of the item minus any of the seller’s promotional charges, such as:
- Vouchers of Sellers
- Seller Free Shipping
- Flexi Combo
To calculate Lazada commission fee, We have given a simple formula for Lazada commission fee in our asianbusinessside.com blog.
Some countries also charge GST/VAT on the commissions, so there is a need to include these when calculating the commission fee. GST/VAT applies to deliveries to Thailand, Malaysia and Indonesia.