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Pricing Products on Lazada: A Guide for Cross Border Sellers

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Setting prices for online products can sound easier than it is. I know it from personal experiences when working with clients.

In case you sell cross-border on Lazada, you not only deal with six different markets, there are also a number of important sales events in each country.

Not only do you need to work around different currencies, but also get the discount levels right.

In this article, I won’t go into detail regarding how much you should discount your products. But, you’ll learn many other important things that can increase sales and reduce the risks of getting products delisted.

The components that build up your total product price

First of all, let’s have a look at the different parts that make up your total product price. As shown by Lazada:

Product cost + Commission + Payment service fees + Shipping + Tax/Duty + Other fees + Profit = Final Price

And a short explanation about each:

Product cost

The costs you need to pay when you produce or procure a product.

Commission

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Product Restrictions when Selling Cross Border on Lazada

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Selling cross-border on Lazada gives you access to six, or at least five, rapidly growing nations in ASEAN (sure, we can exclude Singapore when using that term).

Yet, before becoming excited and going into detailed planning, it’s important that you assure whether your products can even be sold on Lazada.

Not only does Lazada have requirements due to internal policies. As a matter of fact, ASEAN countries are not equally developed, have different customs processes, import regulations, religions, and cultures.

In this article, I explain about product restrictions when selling cross-border on on Lazada.

Just a comment before we start: Keep in mind that regulations change frequently and you should contact Lazada, or sign up to become a seller, for up-to-date information.

What products are not allowed to be sold on Lazada?

I’ve divided the sections into general prohibited items by country, country specific prohibited items, counterfeit/replica goods, and second hand goods.

This is for us to have a better overview and the same structure Lazada uses when presenting their requirements. Let’s have a look.

1. General prohibited items in all ventures (not exhaustive)

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Fees & Commissions when Selling on Lazada: The Definitive Guide

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Opening a store on Lazada can be a great choice for companies that look to expand to Asian markets. China is not your only choice.

One of the benefits of selling cross-border on Lazada is that you instantly reach six countries in ASEAN, with a total population in the hundreds of millions. The second benefit is the low upfront and running costs that comes with it.

In this article, you’ll learn about the following when selling cross-border on Lazada:

  • Upfront fees
  • Payment service fees
  • Commissions
  • Shipping fees

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Top Selling Products on Lazada: The Ultimate Guide

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Lazada offers millions of products to sellers all over ASEAN. Once you go to the websites, you’re blasted with promotions and flash sales opportunities.

I know, they want you to get into that shopping mode we’ve all experienced in big malls, for example.

Selling on Lazada can be lucrative if you sell the right products, offer good quality, and deliver on time.

Thus, many people wonder what the most popular products are on Lazada and how the trend will look like in the coming years.

In this article, I explain which products that are top sellers on Lazada in Malaysia, Philippines, Thailand, Vietnam, Singapore, and Indonesia.

1. Best selling products on Lazada Malaysia

Malaysia has really embraced E-Commerce and where Lazada is the most popular marketplace at the moment. The trend is similar as in China where mum & baby products, electronics, clothes & accessories, and groceries are in high demand.

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Lazada vs Tmall Global: A Complete Guide for Cross Border Sellers

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E-Commerce will grow by far the most in Asia in the coming decade where China will lead the way, backed by ASEAN. Numerous foreign companies are aware of this and want a piece of these lucrative markets.

Yet, before you go into detailed planning, it’s important that you understand the requirements, costs, and opportunities for each country or region.

Today, you’ll learn about the differences between the biggest E-Commerce website in ASEAN, Lazada, and one of the biggest cross border websites in China, Tmall Global.

First, let me give you a brief explanation about the websites before we get started.

What is Lazada?

Rocket Internet, a German incubator, founded Lazada in Singapore in 2012 and it has grown fast since.

Back then, Southeast Asia lacked online marketplaces like Amazon and Tmall that can be found in China and in the West. Thus, Rocket Internet saw a great opportunity.

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Lazada Payment Methods: What Sellers Must Know

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Lazada has managed to penetrate Southeast Asia’s promising E-Commerce market, and it wouldn’t be that easy without the payment solutions offered.

Buyers have a number of payment options when purchasing products on Lazada and it’s important that you understand how each method work in detail.

In this article, I explain the payment methods that are used in all ASEAN countries, what benefits these have, how you can connect with Lazada’s payment providers, and more.

Option A: Cash On Delivery (COD)

The option for buyers to use cash on delivery has opened up the Southeast Asian E-Commerce completely. Now, you have access to millions of new buyers that wouldn’t otherwise be able to take advantage of Lazada’s services.

Why? Because countries like Indonesia and Philippines often lack local banking infrastructure and many people don’t even have bank accounts.

Personally, I often use COD here in Vietnam as it feels more secure to pay for a package when I’m able holding it in my hands.

Here are two reasons that will convince you to offer COD:

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Lazada Order Fulfillment: How it Works

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We’ve already covered how you can start selling cross border on Lazada in Southeast Asia, an E-Commerce market that will grow massively in the coming years.

Today, I’ll deep dive more into how it works when using Lazada’s highly successful fulfillment services for cross border sellers.

By letting Lazada managing the complete logistics cycle from pick-up at your warehouse to end delivery you can increase sales, customer ratings, and focus on other important things, like marketing.

In this article, I explain the whole process from the time you ship your products to Lazada to managing returned products.

1. Ship your products to a Lazada fulfillment center

Cross border sellers are requested to use Lazada’s own fulfillment service FBL (Fulfillment by Lazada), sending products to their centralized sortation center in Hong Kong.

From here, Lazada takes care of, storage, pick & pack, cross border deliveries, and last mile deliveries, with competitive costs.

And it comes with many benefits.

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Import Taxes & VAT in China: A Guide for Cross Border E-Commerce

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The Chinese government has finally confirmed what we’ve long waited for: there won’t be an introduction of the so called positive lists. Or any other constraints to cross border E-Commerce for that matter.

Instead, China will continue to favor the cross border sales model by reducing taxes, streamline clearance procedures, and expand cross border operations to a number of other Chinese cities.

Along with this, we’ve also seen a reduction in import taxes, which should be of interest of course.

In this article, I explain how China’s new tax policies affect cross border sellers and how much you can expect to pay if falling into this category.

Definition of cross border E-Commerce

First, let’s have a look at what cross border E-Commerce means practically and in terms of shipping. It’s important for you to understand this before we dig into numbers.

In short words, you list your products on an E-Commerce platform, like Tmall Global or JD Worldwide, or a standalone website. Chinese consumers order products in small volumes, often one by one.

The products are either shipped from overseas or stored in a bonded warehouse in China.

Simple as that.

Yet, a core part of the cross border model is that the platforms are connected with the Chinese customs. This is needed for orders to be registered and tracked digitally.

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Selling on Xiaohongshu (Little Red Book) in China: The Ultimate Guide

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China’s E-Commerce market is exploding and will lead the way for Asia Pacific to become the biggest until 2025.

We see a fierce competition between Tmall and JD, at the same time as smaller websites capture more ground, thanks to other lucrative sales models.

One of the hottest websites is Xiaohongshu, which can be directly translated to “Little Red Book” in English. A number of large companies have invested millions of dollars in the website and it will be interesting to see how it performs in the coming years.

Still, there’s little information out there that explains how it works when selling on Xiaohongshu. In this article, I explain what Xiaohongshu is, how you can start selling there, how much it costs, and much more.

What is Xiaohongshu?

Xiaohongshu (小红书) started out in 2013 and is one of the fastest growing E-commerce websites in China, currently having around 100 million users.

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Selling on Yangmatou (YMatou) in China: The Definitive Guide

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China’s E-commerce market has become highly competitive as companies like Alibaba, NetEase, and Tencent, try to grasp as many market shares as possible.

Still, you have a number of smaller Chinese websites that primarily focus on cross border E-Commerce and see great success in pre-purchasing products directly from overseas. Two of these companies are Yangmatou and Vipshop.

Yangmatou is similar to Vipshop as it primarily focuses on a handful of product types, catering a small customer segment. Selling on these kind of websites can be lucrative as setup fees and running costs are generally lower compared to other platforms.

In this article, I explain about what Yangmatou is, what kind of products they sell, how you can become a merchant, and more.

What is Yangmatou?

Yangmatou (洋码头) started out in 2009 and is a comparably small cross border E-Commerce website. It’s not strange, as you’ll find a limited amount of product types listed.

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