Determining Lazada seller fees in Singapore helps you assess how much money or profit you make at the end of each payment cycle. Learning the process also enlightens you about whether or not your marketing and sales strategy is as outperforming as you initially thought it would be. If you intend to know how Lazada seller fees work in Singapore, this article concisely discusses all you need to know!
Why Use Lazada, Though?
Lazada operates in a total of 6 countries and remains among the top e-marketplaces in Singapore as well as in Southeast countries in Asia like Thailand, the Philippines, and Vietnam. Lazada jubilates itself in having 41+ million monthly visits, and 300+ million SKUs are available on this contemporary eCommerce platform.
The platform has a broad array of traffic & outreach and flaunts an intuitive mobile application that’s easy to use and master. This makes things more convenient for users to set up their products and lure customers in for growing and multiplying sales.
There’s no need for any upfront investment if you have your sights set on becoming a seller on Lazada. There won’t be any monthly or other regular fees. However, there are certain fees, and we’ll talk about them later in this article.
What Are the Types of Lazada Sellers?
The three types of Lazada sellers include Local sellers, LazMall sellers, and LazGlobal sellers.
We will address them all one by one.
- You must be based locally.
- You get access to a broad selection of seller tools.
- You operate with 0% commission. Yes, there’s no commission to lose your hair over!
If you’re functioning as a LazMall seller on Lazada, you’re essentially operating in a contemporary marketplace that prides itself in its vast range of products from international & local sellers and authorized distributors, all selling competitive, branded products.
- All your products parade a LazMall badge throughout the entire customer journey.
- You’re included in the brand-dedicated channel.
- You get greater visibility and higher search rankings which means more traffic to your page.
- Access to ‘Golden Slot,’ specialized LazMall campaigns, and Mega Campaign barter programs.
- You unlock Marketing Solutions and get to manage all returns through Lazada’s warehouses.
- You get returns to procure goods for all LazMall customers in Metro Areas.
- A devoted and enthusiastic customer service team for LazMall customers.
- You must be based in China, Korea, or Japan.
- Your business/company must be registered.
- You get full access to Lazada’s overseas sorting centers.
- You get access to a wide array of seller tools.
- You pay commissions for selling products. These costs are only charged once you’ve MADE the sale.
Requirements to Start Selling on Lazada
If you’re blueprinting the things you need to do if you want to become a Lazada seller, this part of the article is definitely for you! Before becoming a seller on Lazada, you need to take care of several documents. The documents differ if you’re an individual seller or a business/corporate seller,
If you’re registering for a business account, you’ll need a Business Registration Certificate (SSM), List of Directions (SSM), Business Owner Identification (NRIC), Bank Statements, Active Business License, and an SST Letter for businesses.
On the other hand, if you’re registering yourself as an individual seller with an individual account, you will need to be above 18 years of age, possess a Business Owner Identification (NRIC), Business Registration Certificate (SSM), List of Directors (SSM), Bank Statements, and an SST Letter (if applicable) for an individual seller.
Once you’re done with all that, here’s what you need to do:
- Visit Lazada’s website and complete the registration form.
- Once you’ve filled out the registration form, it’s directed to Lazada for approval. Once all of your data is verified, you’ll see a confirmation email in your inbox.
- After that, you only need to visit the link in the email to activate your account.
Next comes the part where you list your products. Listing products may require a lot of determination on your part since a lot of effort goes into the process. Lazada offers three options to get your products listed – one-by-one, upload in bulk, and use a multichannel platform.
We’d suggest you go manually adding your products one-by-one if your business doesn’t have too many products that need to be listed.
While listing your products on Lazada, you need to:
- Make sure you add a proper product description aiming to showcase your product while giving a thorough overview of the product.
- Add relevant photos and make sure they are clear and not deceiving in any way.
- In the product details, add the weight, specifications, dimensions, and other details pertinent to the product.
Lazada Fees for Sellers – All You Need to Know
When you want to sell on Lazada, you don’t have to worry about fixed fees, listing fees, or any hidden costs. The only things you may get charged for when selling on Lazada are the commission and payment fee(s) per order. The charges are specifically based on the unit price of your product, while the shipping charge is based on Lazada’s published rate card.
Lazada Singapore activates its commission fee on your account once the items being sold have reached your customers. The system automatically calculates according to your set unit price, and the commission percentage will be based on the category of your product. Normally, all sellers are paid every week since the statement cycle occurs from Monday to Sunday. Payments will be processed within three working days after the end of the statement cycle.
You don’t need an upfront and hefty investment amount if you want to get registered yourself as a Lazada Seller. There are no monthly or regular fees to fret over. Nevertheless, there ARE some fees that you definitely might want to know about before starting your promising journey on Lazada.
- There’s an order commission ranges between 1% and 4% based on the product you’re selling and the category it’s in.
- Then there’s GST or value-added tax. The figures pertaining to GST are highly dependent on the rates prevailing in your functioning country. The GST applicable to Lazada SG is 7% of the product’s price.
- After that comes the account processing fee, which is only 2% of the total sales price.
- There’s also a shipping fee which is reliant on the type of product you’re shipping and the country or location of delivery.
Over here, it’s imperative to mention that there ARE some Lazada seller fees. Moving on, we highly suggest that you ingeniously incorporate these Lazada seller fees into your product’s pricing to avoid being the ultimate bearer of these costs.
Here’s how you can calculate the commission fee all by yourself:
Commission Fee = (commission percentage applicable to the product) x (your quoted price less promotional charge vouchers) + 6% service tax charges on commission.
The above commission fee is only deducted as Lazada seller fees from your account once your order has been fully delivered and the customer has made the payment.
How Can Lazada Sellers Prevent Getting Charged for Shipping?
If you’re planning on becoming a high-yielding Lazada seller, you need to gear yourself up with some stellar profit management skills. Lazada seller fees apply to each and every seller selling their goods through Lazada SG; however, there is a certain Lazada shipping fee that you can gracefully evade if you’re a seller – fee overcharge and being charged even for shipping. It doesn’t make sense, and Lazada SG knows that!
It’s All a Calculation Gone Wrong!
Lazada seller fees for sellers apply to every seller with no exceptions. Nevertheless, if you’re a seller and are being charged for the Lazada seller shipping fee as well, there’s been a miscalculation. This usually happens when a calculation pertaining to the volumetric weight of the product being shipped goes wrong.
The most common reasons include:
- Inaccurate product measurements.
- Product measurements lacking space allowance.
- The full payment from the customer isn’t credited to the seller’s account yet.
If this happens to you and if you’re a Singapore-based seller, you can always resort to Lazada Seller Center Singapore to sort things out for you. When prompted and alerted of the incorrect calculation, the courier team rectifies the measurements at the sorting center.
How to avoid the excess Lazada seller shipping fee?
If you have a measurement device on your hands, you’re lucky, as this is what it takes to mitigate any overcharged Lazada seller fees in Singapore (shipping fees). What you need to do is measure the volumetric weight of your products and make room or allowance according to the exact weight of the good you’re shipping.
Let us give you an example to make it more coherent to you – Suppose you’re shipping a product weighing 1 kg. In this case, you might want to record your product at 1.2 kg in the product listing measurement entry. The reason for this is the extra weight added by the packaging. Give the right measurements with room for space and packaging allowance, and you’re all good!
It is important to know how Lazada’s payment processes work before setting up an account or listing your product on site. Depending on the marketing strategy used, you can determine whether or not your tactics are effective. The platform offers a high-quality marketplace for sellers like yourself to get your products popularized via its extensive traffic and accessibility (Download Atome app). Want a gaming PC installment plan in Singapore? Lazada will satisfy your personal needs.
Anyone can sell with Lazada by selecting a suitable type of Lazada seller account. Lazada seller fees in Singapore include General services that range between 1% to 13% depending on your item’s category and Payment services (2%) for order coordination. Other fees may be included, such as optional shipping, as the Merchant will not be charged if such an extra service isn’t selected.