Lazada is South East Asia’s top eCommerce platform and the entrance to the world’s fastest-growing eCommerce markets.
It’s also an open platform that allows merchants from Hong Kong, Europe, Mainland China, and the United States to enter a big and developing market in Vietnam, Thailand, Singapore, and Malaysia for little or no money up front.
In this essay, I will discuss why and how you may begin selling products on Lazada, whether through their Hong Kong logistics centre or from within South East Asia.
In which countries Lazada is available?
Lazada is present in all major ASEAN nations, including Vietnam (Lazada.vn), Singapore (Lazada.sg), Malaysia (Lazada.com.my), Thailand (Lazada.co.th), and the Philippines (Lazada.com.ph) (Lazada.co.id)
It should be noted that Lazada is open to vendors from all over the world, including Hong Kong, Mainland China, Europe, and the United States.
Furthermore, only one account is required to begin selling across all Lazada platforms. Consider it South East Asia’s Amazon or Taobao.
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Why should I sell my merchandise on Lazada?
South East Asia is currently the world’s fastest expanding eCommerce market. Yes, it is increasing faster than Mainland China. Companies from all around the world may now start selling products in ASEAN countries from a single platform, thanks to Lazada.
Companies that sell on Amazon or Tmall may take this for granted. But let us not forget that ASEAN is made up of several very distinct countries. It is also not a comparable single market to the European Union.
It’s incredible that Lazada merchants can accept cash on delivery as a payment method when selling cross-border into Vietnam, Malaysia, or other ASEAN countries.
I would even go so far as to argue that Lazada is the first truly cross-border eCommerce platform.
It’s also a place where new merchants can thrive. Compare that to China, where it is now difficult to enter the eCommerce sector. Furthermore, Lazada as a platform is significantly more open than, say, Tmall Global or JD Worldwide.
If you want to break into Asia, Lazada is the place to be in 2019 and beyond.
Nonetheless, Lazada is still mostly unknown to many eCommerce enterprises in the United States, Europe, and elsewhere.
As previously stated, Lazada is open to sellers from all around the world. Lazada services cross-border vendors (any company headquartered outside of ASEAN) through its Hong Kong logistics hub, which I shall discuss in more detail later.
It’s worth noting that you don’t have to set up a company in Hong Kong to use the Lazada fulfilment centre there – but it can make sense to set up a corporation to import and store massive shipments into the city.
Another option is to establish a subsidiary in Singapore, where Lazada is based. Lazada had previously suspended new cross-border vendor registration. In the event that this occurs in the future, establishing a corporate entity in Singapore is a good option to forming a Hong Kong limited company.
Finally, Hong Kong and Singapore are two of the greatest and easiest places in the world to form a limited corporation.
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Overview of Seller Fees
Believe it or not, there are no fixed or monthly fees for Lazada vendors to open an account and begin listing products on their marketplace. Lazada, on the other hand, only charges a 2% payment fee and a 1% to 4% cross-border order value commission*.
• There are no startup costs or monthly expenses.
• Low (2%) sales commission
• Low commission on cross-border orders (1-4%).
In instance, Tmall Global charges new merchants an upfront fee of considerably over US$10,000. Amazon.com, which operates on a different paradigm, charges professional sellers US$40 per month in addition to per-item selling costs.
Keep in mind that Lazada will most likely charge vendors more in the future as their customer base grows. However, for the time being, the initial costs are quite cheap.
Please keep in mind that different prices may apply depending on whether you are an overseas (non-ASEAN) seller or an ASEAN seller.
*Different rates (up to 8%) apply when selling to Vietnam over the border.
For Lazada vendors, there are two basic delivery options:
• Alternative A: Lazada Global Shipping (LGS) Alternative B: Self-managed delivery
Option B is precisely what it says. You handle order fulfilment directly to clients, either on your own or through a 3PL partner.
On the other hand, is likely to pique your curiosity.
a. Fulfillment in Hong Kong
Lazada has international warehouses in Hong Kong, Mainland China, and Korea. Instead of delivering straight to an ASEAN customer, you send your products via Lazada’s sorting centre in Hong Kong.
Lazada handles the rest, including returns, from here.
They do, as previously said, have sorting centres in Mainland China and Korea, but these facilities are only used by domestic vendors in these countries. Sellers in the United States, Europe, and Australia are instructed to ship their wares to Lazada’s Hong Kong headquarters.
Western vendors should simply send bulk shipments (e.g., 500 units) to a Hong Kong warehouse and arrange delivery to Lazada’s sorting centre. If you do not want to arrange delivery, Lazada can pick up the goods from your partner warehouse.
Furthermore, you can manage this process by establishing a Hong Kong limited company and a business bank account, which is made simple by firms such as Neat.hk.
This makes perfect sense because Hong Kong is a free port, which means you don’t have to pay import charges when the products arrive.
b. ASEAN Satisfaction
Another possibility is to import the goods into an ASEAN country, such as Vietnam. Companies like Boxme.asia can assist overseas eCommerce companies in importing and storing products in Vietnam for ASEAN-wide delivery without the sellers having to form a local company.
Boxme.asia can then organise delivery to a domestic Lazada sorting facility for further distribution to the end consumer once an order is received.
Lazada strives to encourage as many sellers as possible to use their own shipping service, Lazada Global Shipping, for cross-border sales (LGS). The service is simple to use, and I recommend it if you intend to sell cross-border on Lazada.
c. Labels for shipping
When you get an order, you can print the shipping label from your Lazada account. This shipping label must be applied before delivering the package to Lazada.
For additional details, I recommend visiting Lazada University, which has guidelines on how to manage shipping labels. You can also reach out to their customer service and account managers directly.
d. Returns Customers on Lazada have the option to return an item if they do not like it. Fortunately, Lazada handles cross-border returns for you. If you utilise the Lazada sorting centre in Hong Kong, they will return it to the original sorting centre.
Options for Payment
Lazada customers have the following payment options:
• a credit card • an ATM card • cash on delivery (COD)
Cash on Delivery may appear to be out of date in many areas of the world, yet it is by far the most prevalent payment method in South East Asia.
Lazada accepts Cash on Delivery not only from domestic vendors, but also from cross-border sellers in Hong Kong and other locations outside of ASEAN.
According to my knowledge, Lazada is the first platform to accept cross-border cash on delivery payments. Without their infrastructure, cross-border sellers would be unable to enter the South East Asian eCommerce market.
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Is it illegal to offer certain things on Lazada?
Yes, there are several goods that are prohibited:
• Fake products • Second-hand products • Certain religious or political objects • Liquids greater than 20 cl • Items more than 300 cm (L + W + H)
In summary, Lazada wants you to offer brand new things that are small enough to fit inside a parcel. It’s hardly the place to look for vintage clothing or bedroom furnishings.
Furthermore, products sold on Lazada are subject to product safety and labelling requirements in the target markets. Product compliance in Singapore, for example, differs greatly from those in Thailand or Vietnam.
What exactly is a Lazada Agent?
Lazada agents, like Tmall Partners in China, assist foreign enterprises with product launches and ongoing administration of online stores.
While hiring a Tmall Partner and getting established on a Chinese eCommerce marketplace might cost tens of thousands of dollars, the expenses for hiring a Lazada agent are essentially non-existent.
For a few hundred bucks, they may assist you with translations, product photography, marketing, and customer service.
Please contact us if you would like further information on how to contact Lazada agents.
What exactly is LazMall?
LazMall, a spin-off of Tmall, was founded with international names and 100% authentic merchandise.
Lazada, like Taobao, has suffered from sales of counterfeit and low-cost products, which it is now attempting to remedy.
Large brands like as P&G, Loreal, Puma, Dyson, Unilever, and others are available on the website, which is becoming increasingly popular with local buyers.
LazMall’s three basic principles are as follows: • Fast and on-time delivery for LazMall consumers • 100% authenticity for LazMall customers
• LazMall buyers get a 15-day money-back guarantee.
I’ve included some frequently asked questions and our responses below.
Can I sell on Lazada if I live outside of ASEAN?
Yes, you can sell your stuff from any location. There are already a lot of sellers from Mainland China and Hong Kong. Sellers in Europe, the United States, and Australia can send their products directly to the Lazada hub in Hong Kong, where they will be delivered to end buyers in Vietnam, Thailand, Singapore, Malaysia, and the Philippines.
Is it necessary to register a company in an ASEAN country in order to sell on Lazada?
No, you can either establish a corporation in Hong Kong or use an existing entity. If you are serious about selling on Lazada, you should establish a corporation in Hong Kong that can be controlled online. Once in Hong Kong, you can utilise this organisation to open a Lazada account and pay for all local warehousing and logistics fees. In Hong Kong, forming a business takes less than two weeks and costs roughly $1,000. You do not need to be a Hong Kong resident or have any ties to the Chinese territory.
Individuals can sell on Lazada.
No, you must have a registered firm and the necessary papers.
Do I need to create a separate account for each country?
No, you may begin selling on all Lazada platforms with a single account.
How do I handle international returns?
Lazada handles that for you. Assuming you want to ship your products through the Hong Kong sorting centre, all returns will be directed there. As previously stated, no import duties are required in Hong Kong, making it a perfect corporate and logistics hub for all cross-border sellers.
Who controls Lazada?
Lazada was founded in 2012 by Rocket Internet in Singapore and is now owned by Alibaba Group, which is headquartered in Hangzhou, China. Taobao.com and Tmall.com, two of China’s major eCommerce sites, are also owned and operated by Alibaba Group.