Experience in Lazada Selling

How do Lazada sellers get away with jacking up the price of an item just
so they can put up a 9001% discount and sell it for its SRP?
Its their thing, really. Even the account managers that handle us say that we jack up the original price,
so that it will appear that we offer huge discounts in our sale price. The most important part in pricing
your items in Lazada is the initial part, because that's where they will be basing future prices of your
item. If your item price exceeds 8x more than your old price, they flag your item for moderation.

Magkano ang % ng lazada sa mga benta? Pag may sale ba kayo ng bababa
ng price or sila?
If there's a sale or promotion, like Lazada Anniversary Sale, they inform us if we want to join, and if we
do, there's a minimum of 5% discount that will be applied on our items, shoulder namin yun. For
Lazada's commission, iba-iba eh, depende sa category ng item. minimum is 2% maximum is 10% ata.

Do you use an accounting software?

Lazada has their own excel file that we can download anytime from what they call as "Seller Center". Its
a complete breakdown of all the charges and stuff. We just compare it if its accurate with our records.

How come your discounted items are just and still the same with the SRP
in the market?
Because we shoulder shipping and Lazada gets commissions from our sales. Besides that, we pack your
items with tender loving care (TLC). Also, don't you enjoy the bubble wraps that comes with it?

I ordered a water dispenser a week ago, and I was charge 200 pesos for
the delivery. Does Lazada pass the delivery to the user if its big items
like TVs and kitchen appliance?
If the total price of your item is below 1,000, you'll be charged for the delivery. But they offer free
delivery already if you meet the required amount, which is 1,000 in Metro Manila. Yes, they do pass the
shipping charges to you if you fail to meet the required amount for the free shipping unfortunately, but
that amount gets credited to the sellers/merchants like us.
I would just like to ask about the payment methods you offer. Are they
personally your preference or does Lazada have a set of payment
options we can use as well (like hellopay, paypal, etc.). And by the way,
do you get to choose if you offer COD or it's Lazada's requirements?
Lazada is the one who gets all these payment methods, if you are purchasing in Lazada, you are paying
Lazada directly, not us. What Lazada does is that they provide us payments 2 weeks approx after you
receive and pay the items. You might ask on how you will receive your payment, if you're in Metro
Manila, you will collect a cheque from them every Friday in their office or in Citibank Makati. If you're in
the province, I believe they will deposit it to your bank account, but with an additional 1 week delay I
believe.

Is it also possible to handle the shipping of the items I am going to sell? I

am planning to be a reseller, and I am concerned with the shipping time
cause It takes around 3-5 days for my supplier to ship the items plus
Lazada's shipment. It might take a long time.
Nope, Lazada handles the shipping of the item. They actually pick up items fast. If you fail to have the
item tagged as "Ready to Ship" within 48hours (excluding days that aren't your work days), you will be
fined for it and the order is cancelled. I believe they have 7-14 days to deliver the items within Luzon and
2-3 weeks in provincial areas.

Tanong ko lang if may inventory requirement ba sila? And also,

kailangan din ba marami kang different products? Right now kasi, I only
have one type (pero in different varieties naman)
Inventory: You are required to list a certain number of items that you want to sell on their website. So,
for example, you have 100pcs SD Cards in your store, how many can you allocate to Lazada? Let's say
30pcs, forget that you already have those 30pcs, purely reserve that for Lazada, so sa store mo, 70pcs
lang ibenta mo. Though, you can change your stock allocation naman, pero it doesn't update in real time
sometimes, baka may pumasok na order sa'yo, and mawalan ka ng stock, masakit pa naman yung
penalty nun.
Product requirement: 5 SKUs before going live

Do sellers really decide on the price of the item? Without Lazada

checking them if they are legit market prices?
Yes, its the seller's call. However, if you have initially posted the item as, lets say 100.00, and you
increased the price to 1,000.00 (which is 10x more than the old price), they will investigate it if its a
legitimate price or not. In short, if your new price exceeds 8x the price of your old price, it will be
regulated.
Nobody would really buy an item which is 10x more than the average price, actually, right now, I have an
item that is just same with the mall price, and its not even selling for the past 5 months at least. So, for
me, its not worth it overpricing your item, you won't get any movement.

What makes you better than your competitors

There's tons of competitors in my market in Lazada. What makes us better is our quality, if there's a
defective item that you reported to us, you'll get the replacement right away, or if you need repair, we
can take care of it within 24hours. We also have some items that are priced lower than the market price
in our product listings, so, I think that's good enough =)

What's the average percentage of margin you get by selling in Lazada?

This actually varies per item. I could say that its around 75% of the item price in Lazada is what we get
after cost, commissions and charges.

Would you be able to shed any light on how Lazada subsidizes prices?
I think you're looking at how much Lazada takes on a certain product, so lemme give you a sample.

Item A cost is 500.00 and has a Lazada Commission of 2% (And lets assume its a small item)
Lazada comm = 2% = 10.00
Shipping Insurance (Fulfillment cost) = 1.7% = 8.50
Shipping Fee = 75.00
Shipping Fee VAT = 12% of Shipping Fee = 9.00
Total deduction = 102.50

The prices posted on Lazada - are they the merchant's price or does
Lazada influence them? So for instance I have seen a watch that was
originally posted for Pesos 10,000, but that price has been lowered to
P6,000. Is the difference between the two prices a subsidy coming from
Lazada?
The price listed in Lazada is the price the merchant's put in it. We do have 2 pricing field on our end, the
unit's SRP price and the Sale/Selling Price, in your case, the 10,000 is the SRP and the 6,000 is the
sale/selling price
How frequently does Lazada suggest to you as a merchant that you
participate in a promotion? I think you mentioned earlier on the thread
that the minimum price reduction is 5%; what would you say the typical
price reduction is and can you confirm that Lazada funds the difference
between the original price and the discounted price?
Sale usually occurs at least once a month. If there's an ongoing promotion, we (sellers) shoulder the
discount that we will input on the promotion. So, that 5% is deducted on our end, but good part is, they
advertised your product for free as well!

If a customer uses coupons/vouchers to purchase your product, how

does Lazada compensate you as the merchant?
If a customer uses a voucher/coupon, we still receive the selling price amount, its never deducted on
our end. That's the part where Lazada subsidize.

I'm just wondering how vendors deal with the combination of high fixed
shipping fees and low average ticket size?
The only way they can subsidize the shipping is if the customer pays the shipping fee, where they, for
example, buy an item less than 1,000 or 2,000 (depending on area) in your store and nothing else.
There, the customer will pay a shipping fee, that shipping fee will then be paid or credited to your
account.
If the merchant sells something on Lazada for P500, hes charged with total fees of P102.50, which
includes a shipping fee. But since that order is less than the minimum shipping threshold, the customer
will pay a shipping fee. So, if your customer, the one buying from you, pays the Shipping fee (55.00),
you will be able to collect that amount, so instead of the 102.50 deduction, you less 55.00, the only
deduction you will get by the end of the day is 47.50.

Does Lazada force you to do the discounts as part of an event or is this

more of an arbitrary thing that you do whenever you feel like it?
They don't force us, but they inform us if there's any events upcoming in the next 2months. Its up to
you if you want to join the promotion or not, minimum discount you need to have on your items is 5%
on top of your sale price. If you offer more discounts, you get more exposure in the event.

Worth it ba mag-sell sa Lazada?

Worth it naman, as it gives you exposure. Si Lazada kasi parang sales agent mo lang siya, komisyon lang
siya, pag wala siyang benta, wala siyang kita. Walang harm na mangyayare kung hindi siya maka-benta,
unlike other selling platforms na may monthly payment ka tapos madaming fees.
So what do you feel about or want to say to the people at Lazada?
I praise some of their departments but I hate their claims department. Their finance is doing good in
terms of cheque releasing and stuffs. Their IT's are good, as I never encountered any bug or problems
with their system. Their claims department sucks as they keep delaying our claims which is way way
more than the threshold already from their promised turn-around-time. Nevertheless, Good experience
overcomes the bad ones. So, still, good job to them!

Do you have an account manager in Lazada?

Yep, we have. Though, there were already 3 account manager changes since I joined them. They tend to
your emails, but they will just forward it to a different department, more of like an operator than an
account manager.

How does bundling work for Lazada?

Bundling is really up to you! For example, on our end, we bundled items to make it worth 500, as with it,
we can already cover the charges for Lazada and in the same way, we still make income. So, if you have
an item that's worth 10.00 and you want to sell it at Lazada, post it as:

1 pack of cute hair clips (50pcs) - P 500.00

1 box of ballpen (50pcs) - P 500.00

Your account manager should be able to help you manage your items.

FBL vs Drop shipping

We use dropshipping as the average sales on our store is only around 10-20 items per day, and still
manageable by our team. FBL is indeed applicable to big companies that can't accommodate the
dropshipping format, as you will forward all your items for sale to Lazada and just let them do the pick-
pack-ship of it.

Who shoulders the vouchers when a buyers include it?

Lazada shoulders it. Though it might appear on the invoice being sent to the customer that it was
deducted on the seller's side, but its not.
We want to improve our findability and the ranking of our products. Of
course, everybody wants their item at the top of the bottom. Is there any
information out there?
I'm not really sure what algorithms they use on their search function. But for me, when I'm shopping at
Lazada, and if there's an item that I'm going to buy with multiple sellers, I'm choosing the one that is
cheaper and with higher reviews.

If a customer ordered a product worth 100 pesos from your store, and
another item from another merchant, so it means the shipping for him is
free (for example he/she ordered more than 3k total) As a merchant 100
pesos worth of product, will Lazada charge you shipping 50+ pesos? So it
means nothing you will earn?
Yes, they charge you for shipping fees everytime. That's why its hard to find an item less than 100 pesos
in Lazada coz the shipping would be at least 70 pesos.
Lazada sellers get charged with delivery fee every time, no matter what the amount is. It's already fixed
(Ex. small pouch item, less than 3kg, 70php shipping fee to Metro Manila, 100 to provinces)
If customer bought an item for 400.00 from Seller A and 400.00 from seller B and checks-out, then the
customer will pay 100.00 shipping, Seller A and Seller B will then get a credit of 50.00 each as if the
customer paid it directly to them as well.

As a seller, do you have the ability to not post the reviews that was done
by your customers?
We don't have options to change/modify/accept reviews on our end. Maybe what the seller did was,
they reported it to Merchant Service and said something like, the report is erroneous or something
similar.

What are the biggest problems that you encountered with your business:
shipping, supplier, Lazada?
The biggest hurdle that I've encountered was way back 2015, there was this certain item, that gets lost
out of nowhere. On our end, it shows that it was delivered and was not returned to us, but on Lazada's
end, they don't have a record and they made recent changes to their shipping provider, which adds to
the problem. Although the investigation took long, (almost 1 year!), they were able to pay us in full for
those.
As a merchant, what are the cons and the areas which Lazada need to
improve?
They need to improve on their disputes and claims department. It really takes a long time for something
to be resolved as there's a lot of department that handles only 1 concern.

What affects search listings, like for e.g. the SD cards you sell, how do you
make it appear on the first page, or first listing when customers search
for SD cards?

They have the drop-down sorting field where customers can sort it by:
Price
Relevance (depends on the way you tag your products, usually shown in the product name)
Rating
Discount
Delivery time