By Ramon King III, Managing Director - Lokal
Last updated July 20, 2024
With more than 50 million active buyers annually , and dominating markets in Malaysia, Singapore, Thailand, and the Philippines, breaking into the Southeast Asian market is best done with Lazada. Not to mention, Lazada is ranked as the fourth most downloaded shopping app in the world , racking up to 4 million downloads in March this year alone. In addition, Lazada’s market share in the
Philippines alone, soared up to 59 percent, with over 34 million visits in a month.
The fact that the e-commerce platform has made cross-border selling easy shouldn’t go unnoticed as well. Sellers from companies in China, Hong Kong, Europe, and the US can easily start selling in Asia given Lazada’s international fulfillment center located in Hong Kong. One needs to simply send over the products in a bulk shipment, and then everything from shipping, returns, and other logistics will be handled by Lazada. To make things even easier, you can manage multiple Lazada stores located in different countries from a single account from their online Seller Center.
What’s better is that signing up on Lazada is totally free! There are no setup or monthly fees involved. The only fees you need to pay for are the payment or transaction fees for Lazada, which is at 2%. Cross-border sales, on the other hand, get charged a Commission Fee between 1% and 4%, depending on where you’re selling from. Taxes (Government Service Tax or Value Added Tax) depend on your country, but in the Philippines this is at 10% of the overall purchase.
You can also sell a wide variety of items on the e-commerce platform, such as jewelry, clothes, and even some food items. The only thing you need to note are the prohibited items that you can’t sell on the platform, such as:
Overall, Lazada makes it easy for any business anywhere in the world to start selling to Southeast Asian markets with ease and efficiency.
Sellers are paid 5 business days after the last date in their account statement, which is given every week. For instance, if your latest account statement is from the 3rd of May to the 9th, you’ll get paid on the 11th of May.
Lazada has plenty of options when it comes to payments, namely: credit and debit cards, Lazada e-wallet, and the ever-popular Cash on Delivery (COD). There are also country-specific options:
Offering Cash on Delivery (COD) is vital as 55% of buyers in Southeast Asia use COD on Lazada, with stores who have this option seeing 1.5 to 3.5 times higher sales on average. Fortunately for those selling in the Philippines, Malaysia, Thailand, Indonesia, and Vietnam, COD options are automatically enabled. It’s still being discussed whether this will be automatically enabled for Singapore.
There are also no extra charges for COD options.
Easy! Just head on over to your Seller Profile from the Seller Center and click on Bank Account then fill out the necessary details.
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LOKAL provides boutique business solutions for small businesses in Australia and the Philippines. With decades of experience,
LOKAL
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