Start Selling In Lazada With These Simple Steps
The internet is not just a treasure trove of information, but it’s also now a marketplace filled with opportunities, a money-making one at that!
It’s no wonder why online shopping is relentlessly on the rise in the Philippines as more Filipinos start to appreciate the convenience and choices that online shopping has brought to the table.
As more people hop on the online shopping bandwagon, it also opens a world of business opportunities for entrepreneurs and anyone looking to earn some cash. According to Statista, there are 30.3 million online shoppers in 2016 and it continues to grow year-over-year, with 33.8 million in 2017, 37.7 in 2018, and 41.9 million in 2019 (and that doesn’t account for the rest of this year!).
With mobile phones evolving into mini-computers, online shopping has become even more accessible to Filipinos. According to the State of eCommerce in Southeast Asia 2017 by iPrice Group, there is a steady increase of traffic in online shopping sites from mobile phone users, with at least 19% growth every quarter from the 3rd quarter of 2016 to the 2nd quarter of 2017. This is a clear indication that eCommerce is where the business growth will be going forward.
With platforms like Lazada making online businesses more accessible to the right customers, there isn’t really any reason not to consider joining their platform for aspiring online business entrepreneurs or those who just want to scale their existing businesses.
Before you dive straight into online selling, get to know the requirements you must meet and conditions you must agree upon which we have listed in easy helpful steps below.
How to become a seller in Lazada Philippines?
The e-commerce site that needs no introduction. Lazada is the leading online shopping platform in the Philippines and third in Southeast Asia. They have over 300 million Stock Keep Units (SKU) across all shopping categories, making this platform a one-stop for most online shoppers’ needs. According to an aggregate site, iPrice.ph, Lazada gets 25.6 million visitors a month on the average.
What makes Lazada extremely appealing to Filipinos is that most stores in the platform have Cash on Delivery (CoD) for their mode of payment. With a low bank penetration rate in the Philippines, it isn’t a surprise why the market prefers this mode of payment over the others. Also, the fact that Filipinos are still getting acquainted with online shopping, CoD is indeed the best way to build their trust in this system.
Monthly traffic – 25.6 million a month
What can you sell?
There’s practically almost everything in Lazada, from clothing and fashion items to the most bizarre items you can think of. The question rather is what can you not sell in Lazada? We can basically count them unlike the list of what you can sell on their platform.
According to Lazada’s policy, here are the things that you are not to sell in their platform:
- Food items which do not comply with the requirements of Food Regulations。
- Pirated or harmful software.
- Weapons of any sort.
- Obscene images
- Anything that portrays vulgarity.
- Telecommunication equipment
- Prohibited gaming and gambling products
- Chemicals/Toxics/Acid
How much is the seller fee in Lazada?
Of course, selling in Lazada’s platform will come with some sort of fee to keep your store on their listing page. Aside from that, there will be country-specific taxes that sellers must accept in order to operate and distribute their products legally. Fortunately, Lazada isn’t one that will charge you per month like some subscription services, and in their new seller fees, it’s gotten more reasonable and attractive to all sellers.
Commission fees
Regular Lazada Marketplace sellers will no longer need to pay commissions to Lazada. The only fee they’ll pay is the payment fee. The fees are as follows:
| Commercial Grade | Category Level 2 | Category Level 3 | Marketplace commission | Payment fee |
| All | All | All | 0% | 2.4% |
|
LazMall |
||||
| Commercial Grade | Category level 2 | Category level 3 | LazMall Commission | Payment Fee |
| Electronics | Mobile | 3% | 2.4% | |
| Television | 3% | |||
| Home Appliances | Large Appliances | 3% | ||
| Small Appliances | 5% | |||
| Laptop & Deskop | 3% | |||
| Accessories | Computer | 5% | ||
| Mobile | 5% | |||
| Audio | 5% | |||
| Others | 5% | |||
| FMCG | Baby | Diapers | 3% | |
| Milk Powders | 3% | |||
| Others | 5% | |||
| Beauty | Mass | 5% | ||
| Luxury | 5% | |||
| Others | 5% | |||
| Others | 5% | |||
| Fashion | 5% | |||
| General Merchandise | 5% | |||
Value Added Tax (VAT)
This section is called the Government Service Tax (GST) for other countries. It’s Philippine counterpart is the Value Added Tax (VAT). Its current rate is 10% of the overall purchase.
Shipping and packaging cost
Other than the actual shipping cost, sellers will have to follow a certain protocol in packaging their products before shipping them to their customers. The good news is, sellers, don’t have to drop off their package to Lazada’s courier office. With Lazada’s global distribution solution, the seller will just wait for the courier to pick up their package from their warehouse. So, make sure your warehouse address is correctly indicated upon registration.
General requirement
- A Business License in the Philippines
- A Payoneer card which is registered as an enterprise.
- An email and phone number that you will register with your account.
- Sellers must have certain e-commerce sales experience, such as Amazon, AliExpress, Wish, eBay, etc.
Steps on how to be a Lazada merchant
- Log on towww.lazada.com.ph
- Click the “Sell On Lazada” option on the upper-middle part of their website.
- You will then be taken to another page where you are presented with the option to “become a seller now” together with the perks of doing so in their platform. Click that and move on to the next page.
- Choose how you want to sell in the platform. Generally, if you just want to sell locally with your own little stores, click “Local Seller.”
For your information
Lazmall seller accounts are for licensed manufacturers, suppliers, or distributors of a certain product line.
LazGlobal Sellers are stores who sell across Lazada’s platform across the territories reached by their platform. - The new page will then require you to verify your country and phone number. Slide the verification slider to unlock the next steps.
- The complete form will be unlocked and it will unveil the application form where you can fill in your business information, billing address, and etc. After the filling in the information for the said page, hit submit and be taken to the next step. But first, tick the terms and conditions box and enter the verification code sent to your mobile number before you click the “Sign Up” button again.
- Download the contract, sign it, then upload it again together with the required documents listed on the page.
- Check your email to verify your seller’s account and change your password.
- You will receive a series of emails for training and registration of your Payoneer card.
- You’re now set to start your business in Lazada. Follow their training guides sent to your email to learn the best practices and to troubleshoot issues you might face in their platform as a seller.
Online selling has never been this procurable for anyone who wants to start a business. If you’re looking for an opportunity to earn some money through online selling, becoming a seller in Lazada is the first but biggest step to take. Couple it with good quality inventory and customer satisfaction is driven attitude, becoming a seller in Lazada can prove to be a good source of income.
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