• Lazada Order Fulfillment: How it Works

    Posted on 14 Comments

    lazada-fulfillment

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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.

    For example, it’s (statistically) proven that FBL increases sales, reduces shipping lead times, and increases customer satisfaction.

    Practically speaking, you only need to focus on adding products to your store and manage prices while Lazada:

    Just a notice before we continue: sellers in Korea should not use the sortation center in Hong Kong, but a locally designated company called Rincos. Mainland sellers, on the other hand, use sortation centers in Shenzhen and Yiwu.

    In this article, I focus on Lazada’s sortation process and product fulfillment in Hong Kong.

    Process when using FBL from Hong Kong

    When you receive an order, you simply go to your Seller Center in the Lazada platform and choose “Ready to Ship” (RTS).

    Keep in mind that the status shall be changed to “Ready to Ship” within 2 business days and delivered to the sortation center within 7 calendar days, otherwise the order will be cancelled.

    The following steps are involved when you receive an order:

    • Print purchase order (invoice)
    • Prepare packaging according to Lazada’s guidelines
    • Put purchase order inside the package
    • Print delivery note (shipping label) and put outside of the parcel
    • Order to arrive in HK sortation center within 5 calendar days
    Information in purchase order (invoice)

    The purchase order can be created in Lazada’s seller center and should include the following:

    • PO number
    • SKU code (max 90 in one PO)
    • Brand name
    • Product size
    • Colour
    • Quantity
    • Total cost excluding VAT
    • Unit cost
    • Addressee (name, address, etc.)
    Information on the shipping label (delivery note)
    • Tracking number
    • Customer name & country
    • Seller info
    • Product info
    • Sortation center address
    • Sort code (LZD + Country Code, e.g. LZDMY)
    • Package number

    The label should preferably be 10cm x 15cm.

    Additional information like the below should also be put inside the package, if existing:

    • Additional labels
    • Warranty cards
    • Stamps
    Packaging

    The packaging should be robust and have no visible damages such as dents when arriving at the sortation center. Using styrofoam or plastic bubble wrap is a good choice to assure that your packages will be accepted.

    Avoid boxes that are soft or made of plastic and don’t use polystyrene beads as Lazada might reject your products in that case. There should be no scannable bar codes except for the one with the product code.

    Not to forget, products shall be bundled in advance, if needed, before arriving at the fulfillment center.

    How to register for FBL

    Simply contact Lazada’s seller support, they will make sure whether your contract covers FBL services. If not, an addendum will be added.

    Normally, you’re requested to do a trial shipment where you confirm an order from the fulfillment center in your Seller Center.

    Lazada Global Shipping (LGS)

    If you use FBL, you can take advantage of Lazada’s streamlined shipping service, LGS (Lazada Global Shipping) solution.

    By offering its own express shipping service (LEX) and collaborating with dozens of 3PL companies all over ASEAN, you can enjoy benefits like:

    • Reduced delivery lead times
    • Reduced cancellation rates
    • Increased sales
    • Participation in promotions
    • Possibility for buyers to use filter for “delivery lead time” which improves your ranking

    Times Logistics Ltd is an outsourced partner and manages the sortation in Hong Kong. Thus, you need to learn Times’ OMS system, to track orders and manage deliveries.

    All returns should be handled via Times’ OMS system as well (more about that below).

    2. Delivery from Lazada to the end customer

    lazada-customer-delivery

    After your products have passed Lazada’s internal quality control, they take care of the repacking and labelling before ship out.

    The quality control doesn’t include product testing, but rather a check of the measurements, labels, and packaging.

    You can simply check the status of your parcel in Lazada’s Seller Center online. When the package is ready to be shipped the status will from “ready to ship” to “shipped”.

    Once the client has received the products the status automatically changes to “delivered”.

    Limitations to packaging and shipments

    Even if the delivery requirements are very similar between countries in ASEAN, there are some details that set them apart.

    Today, we have a look at the following countries:

    • Singapore
    • Thailand
    • Indonesia
    • Malaysia
    • Philippines
    Singapore
    • Shipping lead time: 6-7 days
    • Value limitation: None
    • Weight limitation: <= 20 kg
    • Dimensions < 1 kg: 240 mm x 162 mm x 240 mm
    • Dimensions > 1 kg: Max. length 1.5 m; W+L+H < 3 m
    Indonesia
    • Shipping lead time, major cities: 6-7 days
    • Value limitation: None
    • Weight limitation: <= 20 kg
    • Dimensions: 900 mm x 900 mm x 900 mm
    Philippines
    • Shipping lead time, major cities: 7-8 days
    • Value limitation: None
    • Weight limitation: <= 20 kg
    • Dimensions: 900 mm x 900 mm x 900 mm
    Malaysia
    • Shipping lead time, major cities: 6-7 days
    • Value limitation: None
    • Weight limitation: <= 20 kg
    • Dimensions: 900 mm x 900 mm x 900 mm
    Thailand
    • Shipping lead time, major cities: 7-8 days
    • Value limitation: None
    • Weight limitation: <= 20 kg
    • Dimensions: L+W+H <= 1200 mm

    Products like alcohol, weapons, stand-alone batteries, power banks, pharmaceutical products and tobacco are prohibited in all countries. For Indonesia, mobiles are prohibited as well.

    3. Managing returns

    For rejected parcels, Lazada has introduced a new system referred to as “re-routing”. In short words, in case a parcel is declined by end customer it will be kept in a local cross-border venture for up to 4 weeks.

    If a parcel cannot be resold within 4 weeks, it will be sent back to the sortation center it originally came from.

    Just keep in mind that the re-routing process is used in all ASEAN countries except for Singapore. The re-routing process is available in Vietnam, yet, sellers cannot retrieve returned products from Vietnam at all.

    Customers have full rights to return items within 7 calendar days (14 calendar days in Singapore) with the following reasons:

    • Wrong item
    • Missing item
    • Counterfeit
    • Damage
    • Defective

    “Change of mind” is only applicable for Thailand which simply means that a customer can return a product if he or she regrets the purchase.

    Process when receiving returned parcels

    • Register TIMES Logistics Return System by logging in with your Seller ID
    • Click on the link received by email and visit the page to create an account
    • When items reach Hong Kong, you receive email from [email protected]
    • You can see returned orders from Times reverse logistics OMS

    You’ll be able to see items that have been returned and kept stock in Lazada’s HK warehouse with the following codes are shown:

    CR = Customer return
    FD = Failed delivery

    A notice should be sent to Lazada 24 hours in advance before pick up and the returned parcel shall be picked up 15 working days after inbound.

    Failed deliveries

    At some points, shipments simply fail due to various reasons. Some of the most common are:

    • Consignee is not at home
    • It’s impossible to reach the consignee
    • Wrong consignee information

    Luckily, Lazada makes two additional attempts before the parcel is sent back.

    The parcels can be picked up in the same way as returned products.

    Location for pick-up of returned items

    Unit B, 6/F, Roxy Industrial Centre, 58-66 Tai Lin Pai Road, Kwai Chung, Hong Kong

    Contact information prior to collection

    [email protected]
    [email protected]

    Opening hours

    14:30 to 17:00 Mon-Sat

    Lazada University training

    Keep in mind that you should complete the training offered at the Lazada University.

    It’s straightforward and easy to learn. Not following the instructions for packaging, labelling and delivery of products can result in penalizations by Lazada and customer dissatisfaction.

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  • 14 Responses to “Lazada Order Fulfillment: How it Works

    1. mugen at 2:43 am

      How to cross border from Malaysia to Singapore ? How do I need to register Lazada SG account from Malaysia because it asking Singapore number to sign up.

      1. mugen at 2:44 am

        If there is any online form please do attach or email it to me.

        1. Marcus Sohlberg at 10:43 am

          Please send us an email and then we will review this further.

    2. martin Lee at 8:01 am

      Hi there,

      Any idea if Lazada can fulfill orders from my shopify site?

      1. Marcus Sohlberg at 10:45 am

        I don’t think that’s possible. I recommend you to contact Shopify to clarify this further as it’s difficult to get support from Lazada, unless you’re an existing seller.

    3. John at 11:08 pm

      Hi I am based in Australia. I googled for days to sign up Lazada to sell my products.

      However, there is not much information about it.

      Is it possible to set up seller account in Lazada with my current Australian business certificate?

      Looking forward to hearing from you.

      Regards

      John

      1. Marcus Sohlberg at 1:19 pm

        This works for local eCommerce, but not cross-border.

    4. Francois Duchesne at 12:32 pm

      Hello Marcus,
      Thanks for this useful info. I have a HK company, and a brand with inventories in China, and not familiar at all with Lazada and am confused. In case we use FBL HK:

      Wwhen you mention seller has to prepare the “order”, do you mean the bulk order (example: 2 cartons with 50 unsold units each) that FBL HK would label and send to each final consignee when they receive ASEAN consignees orders case by case – as AMZ FBA does -?

      Or does the seller has to prepare labels and invoices individually at online order confirmation, prior to sending any goods to FBL HK, that would resend to final consignee? Which would be a lot of extra work.

      Thanks for your help!
      Francois

    5. Suwanna at 5:05 am

      Hello Marcus.
      Thank you for a wonderful article. I am wondering if you have info related to Lazada’s sortation center in Korea, Rincos.

      Thank you

      1. Marcus Sohlberg at 6:55 am

        Hi Suwanna, it depends on what information you’re looking for.

    6. Nam Doy at 4:39 pm

      As far as I know Lazada has no FBL service in Hong Kong, the fbl service is only for local sellers. In Hong Kong, they only have goods sorting center, which is responsible for delivering goods to customers. We need a third party fulfillment service. Am I right?

      1. Marcus Sohlberg at 10:26 am

        As for the time being, I heard that Timeslogistics cannot accept any new sellers due to limited capacity. That means, they only ship the products on behalf of sellers but cannot store and manage pick and packing. This is just temporary though.

    7. Gauthier T at 2:27 am

      Thank you Marcus for this great article. Do you know any company that can act as a 3PL for Lazada orders. I mean a company who will store the goods, prepare the Lazada parcels, and send them to the Lazada sorting facility whenever there is an order (in HK or Shenzhen/Yiwu) ? Thanks a lot

      1. Marcus Sohlberg at 10:27 am

        Hi Gauthier, please send us an email and then we will help.

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