• How to Sell on Lazada: A Complete Guide

    Posted on 44 Comments

    Lazada seller

    Get help selling online in China & Southeast Asia here

    Lazada is the leading eCommerce platform in South East Asia and the gateway to the world’s fastest growing eCommerce market. It’s also an open platform, that enables sellers from Hong Kong, Europe, Mainland China, and the United States to tap into a large and growing market in Vietnam, Thailand, Singapore, and Malaysia with very low upfront costs.

    In this article, I explain why and how you can start selling products on Lazada, via their Hong Kong logistics center or from within South East Asia.

    This is covered

    • In which countries is Lazada available?
    • Why should I sell products on Lazada?
    • Why overseas Lazada sellers should register a company in Hong Kong or Singapore
    • Lazada seller fees
    • Order fulfillment options
    • Cash on delivery (COD) and other payment options

    In which countries is Lazada available?

    Lazada operates in all major ASEAN countries, including:

    • Vietnam (Lazada.vn)
    • Singapore (Lazada.sg)
    • Malaysia (Lazada.com.my)
    • Thailand (Lazada.co.th)
    • Philippines (Lazada.com.ph)
    • Indonesia (Lazada.co.id)

    Note that Lazada is not only open to sellers based in South East Asia but open to sellers worldwide, including Hong Kong, Mainland China, Europe, and the US.

    Further, you only need one account to start selling across all Lazada platforms. Think of it as the Amazon or Taobao of South East Asia.

    Why should I sell products on Lazada?

    South East Asia is currently the fastest growing eCommerce market in the world. Yes, it’s actually growing faster than Mainland China. Thanks to Lazada, companies worldwide can start selling products all across the ASEAN nations, from one platform.

    Companies selling on Amazon, or even on Tmall, may take that for granted. But, we shall not forget that ASEAN consists of several, very different, countries. Nor is it a single market comparable to the European Union.

    The fact that Lazada sellers can offer cash on delivery as a payment option when selling cross-border into Vietnam, Malaysia, or other ASEAN nations, is amazing.

    I even dare to say that Lazada is the first true cross-border eCommerce platform.

    It’s also a market with plenty of room for new sellers. Compare that to China, where it’s expensive to break into the eCommerce market today. In addition, Lazada as a platform is far more open than, for example, Tmall Global or JD Worldwide.

    If you’re looking to Asia and want to break in, Lazada is the place to be in 2019 and beyond.

    Yet, Lazada is still barely on the radar for many eCommerce companies in the US, Europe and elsewhere.

    Company Registration

    Lazada is, as mentioned, open to sellers worldwide. Lazada serves cross-border sellers (which is any company based outside ASEAN) from their Hong Kong logistics hub, which I will cover in greater detail.

    Note that you don’t necessarily need to set up a company in Hong Kong to use the Lazada fulfillment hub in the city – but it can make sense to set up a company to import and store bulk shipments into Hong Kong.

    Another option is to register a subsidiary in Singapore, where Lazada itself is headquartered. Lazada has, in the past, temporarily suspended new cross-border seller registration. In case this would occur in the future, setting up a company entity in Singapore is a good alternative to a Hong Kong limited company.

    In the end, both Hong Kong and Singapore are among the best and easiest places in the world to incorporate a limited company.

    HK fulfillment

    Seller Fees Overview

    Believe it or not, but Lazada sellers don’t need to pay any fixed or monthly charges to create an account and start listings products on their platform. Instead, Lazada is only charging a 2% payment fee and a 1 – 4% cross-border order value commission*.

    • No setup fees
    • No monthly charges
    • Low sales commission (2%)
    • Low cross-border order value commission (1 – 4%)

    By comparison, Tmall Global is charging well over US$10,000 for new sellers, upfront. Amazon.com, which has a different model, is charging professional sellers US$40 per month, and per-item selling fees.

    Keep in mind that Lazada will likely charge sellers more in the future, as they grow their userbase. But for now, the upfront fees are very low.

    Note: Different rates may apply depending on whether you are an overseas (non-ASEAN) seller or based in ASEAN.

    *Different rates (up to 8%) apply when selling cross-border to Vietnam.

    Order fulfillment

    Lazada offers two primary delivery options for Lazada sellers:

    • Option A: Lazada Global Shipping (LGS)
    • Option B: Self-managed delivery

    Option B is exactly what it sounds like. You manage the order fulfillment directly to customers, on your own, or via a 3PL partner.

    But, what you’ll probably find really interesting is Option A.

    a. Hong Kong Fulfilment

    Lazada operates cross-border warehouses in Hong Kong, Mainland China, and Korea. Rather than shipping directly to a customer in ASEAN, you send your products directly to Lazada’s sorting center in Hong Kong.

    From here, Lazada takes care of the rest, including returns.

    They do, as I mentioned, also have sorting centers in Mainland China and Korea, but these centers are only used for domestic sellers in these respective countries. Sellers in the United States, Europe or Australia are instructed to deliver products to Lazada’s center in Hong Kong.

    The best option for western sellers is to simply send bulk shipments (e.g. 500 pcs) to a warehouse in Hong Kong and arrange delivery to Lazada’s sorting center. If you don’t want to arrange the delivery yourself, Lazada can pick up the item from your partner warehouse instead.

    Further, you can also manage this operation by setting up a Hong Kong limited company and business bank account, which is made easy thanks to companies like Neat.hk.

    This makes perfect sense, as Hong Kong is a free port, meaning that you don’t need to pay import duties when the goods go into Hong Kong.

    b. ASEAN Fulfilment

    Another option is to import the products into an ASEAN country, such as Vietnam. Companies such as Boxme.asia can help foreign ecommerce companies import and store products in Vietnam, for ASEAN-wide delivery, without the need for sellers to register a local company.

    Once you receive an order, Boxme.asia can then arrange delivery to a domestic Lazada sorting center, for further delivery to the final customer.

    c. Shipping labels

    Upon receiving an order, you can print the shipping label directly from your Lazada account. This shipping label must be attached prior to handing over the package to Lazada.

    d. Returns

    Customers on Lazada have the right to return a product they don’t like. Luckily, Lazada takes care of cross-border return for you. Assuming you use the Lazada sorting center in Hong Kong, they’ll take it back to the origin sorting center.

    Payment options

    Lazada shoppers can select from the following payment options:

    • Credit Card
    • ATM Card
    • Cash on Delivery (COD)

    Cash on Delivery may seem outdated in many parts of the world, but it’s by far the most popular payment option in South East Asia.

    Lazada offers Cash on Delivery not only when buying from domestic sellers, but also when ordering from cross-border sellers in Hong Kong and other places outside of ASEAN.

    As far as I know, Lazada is the first platform offering cross-border cash on delivery payments. Without their infrastructure, it would essentially be impossible for cross-border sellers to break into the South East Asian eCommerce market.

    shipment label

    FAQ

    Can I sell on Lazada from outside ASEAN?

    Yes, you can sell products from anywhere. There is already a large number of sellers based in Mainland China and Hong Kong. Sellers in Europe, the US, and Australia can ship products directly to the Lazada hub in Hong Kong, from where they take care of delivery to end customers in Vietnam, Thailand, Singapore, Malaysia, and the Philippines.

    Do I need to register a company in an ASEAN country to sell on Lazada?

    No, you can set up a company in Hong Kong, or use your existing entity. If you are serious about selling on Lazada, it makes sense to set up a company in Hong Kong, which can be managed online. Once you’re set up in Hong Kong, you can use this entity to register an account on Lazada and pay for all local warehousing and logistics costs.

    Setting up a company in Hong Kong can be done in less than 2 weeks, and costs around US$1000. You don’t need to be a resident in Hong Kong or have any connection to the Chinese territory.

    Can individuals sell on Lazada?

    No, you need to have a registered company, and the documentation to prove that.

    Do I need to set up one account for each country?

    No, you can start selling on all Lazada platforms from one account.

    How do I manage cross-border returns?

    Lazada takes care of that for you. Assuming you intend to ship your products via the sorting center in Hong Kong, all returns will go back there. As mentioned, you don’t need to pay import duties in Hong Kong, making it an ideal corporate and logistics hub for all cross-border sellers.

    Are any products prohibited for selling on Lazada?

    Yes, there are several restricted items:

    • Fake products
    • Second-hand products
    • Certain types of religious or political items
    • Liquid items over 20 cl
    • Items larger than 300 cm (L + W + H)

    In short, Lazada wants you to sell brand new products, that fit inside a parcel. It’s not the right marketplace for vintage dresses or bedroom furniture.

    Further, notice that products sold on Lazada are subject to laws concerning product safety and labeling in the target markets. Product compliance in Singapore is, for example, very different compared to Thailand or Vietnam.

    Who owns Lazada?

    Founded in 2012 by Rocket Internet in Singapore, Lazada is currently owned by Alibaba Group, based in Hangzhou, China. Alibaba Group also owns and operates China’s largest eCommerce platforms, including Taobao.com and Tmall.com.

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  • 44 Responses to “How to Sell on Lazada: A Complete Guide

    1. giovanni pierobon at 3:27 pm

      Lazada and Boxme are ready also for frozen food?

      1. Marcus Sohlberg at 4:14 am

        Hi Giovanni,

        Unfortunately, Boxme Vietnam and Lazada’s fulfillment center in Hong Kong (Timeslogistics) don’t handle frozen products.

        Keep in mind that if you open a company in Singapore (which is fairly easy) you’re free to use other fulfillment centers than FBL (Fulfillment By Lazada in Hong Kong) and other shipping providers than Lazada LGS (Lazada Global Shipping solution), which is the shipping solution used for cross-border sellers.

        By registering a company in Singapore, you’re inside ASEAN and not treated as a cross-border seller.

    2. john at 6:38 pm

      The article is comprehensive and complete, it gives me more knowledge about the program (Lazada Global Shipping solution), I hope you have more new articles.

      1. Marcus Sohlberg at 10:22 am

        Thanks John! We will continue writing more articles about Lazada, so just hang in there. :)

    3. Paul at 5:22 pm

      If someone orders an item, what is the SLA for the seller to ship it to the sorting center in HK or China if you know?

      1. Marcus Sohlberg at 6:05 am

        Hi Paul,

        I suggest you to ask this question to Lazada directly.

    4. Lea at 9:46 pm

      Hi! Just wanna ask, im in Canada? Can i used Lazada as well?

      1. Marcus Sohlberg at 6:04 am

        Hi Lea,

        Yes you can use Lazada if you are based in Canada.

    5. thanh long nguyen at 6:22 pm

      Why do we need HK company warehouse? Do you mean by “sorting centre” that it doesn’t have warehouse facility? CAn we just send them 500 pcs of items to sell?

      1. Marcus Sohlberg at 6:08 am

        Hi Thanh,

        It is not necessary to have a company/warehouse in Hong Kong, but it can be useful if you sell in large volumes. Then you can keep stock in that warehouse and move goods more quickly to Lazada’s sortation center/warehouse (Times Logistics). Keep in mind that Lazada will send back returned goods, for example.

    6. Steve at 3:27 pm

      In order to price your items for sale if you use the hub in Hong Kong:
      How do you know their shipping costs to send your items to the various countries?
      How much do they charge to deal with returns?

      1. Marcus Sohlberg at 8:29 am

        Hi Steve,

        You can get the latest rate cards as soon as you become a cross-border seller on Lazada. You can find examples of old rate cards in the following article:

        https://www.export2asia.com/blog/lazada-sellers-fees-commissions/#comment-32951

    7. Luiz at 4:15 am

      Good night!

      I have a company in the United States, can I register it and send my products directly to Lazada?

      Or do I have to register another company?

      1. Marcus Sohlberg at 10:58 am

        Hi Luiz,

        According to Lazada’s latest information, you need to have a company registered in any of the following countries to sell cross-border on Lazada:

        – Mainland China
        – Hong Kong
        – Macau
        – Taiwan ROC
        – Korea
        – Japan

    8. Cii at 3:43 pm

      Hi, I wanted to ask. Is there a sorting center in Singapore to opt for the Lazada fulfillment? That means having my products shipped from Mainland China to Singapore, then from there Lazada can fulfill orders?

      1. Marcus Sohlberg at 10:59 am

        Hi Cii,

        No, for FBL and cross-border sales you need to ship to their sorting center in Hong Kong.

    9. Thomas at 3:03 am

      Hi, a useful article!

      Have requirements changed, or are cross-border signups currently frozen? When I try to “Become a Seller” by clicking the link on their signup page ( https://sellercenter.lazada.com.ph/seller/register/registration_landing?spm=a2o7j.10547908.old-navigation.3.6f341e135onOOh ) for the Philippines, LazMall requires me to be based in the Philippines and LazGlobal requires me to be based in Japan, South Korea, or greater China. I can’t seem to find an option for signing up as a cross-border seller based in Europe or the Americas.

      1. Marcus Sohlberg at 12:34 pm

        Hi Thomas,

        According to Lazada’s latest info, if you’re to become a cross-border seller you need to have a company registered in Mainland China, Hong Kong, Macau, Taiwan, Japan or Korea.

    10. Jean at 1:19 pm

      I would open a company in Hong Kong but start selling only in Thailand. I have 2 questions
      1. Does Lazada have a fulfilment center in Thailand where we can send the goods directly from our factory in China?
      2. We would sell under a new brandname, what is the best way to register a brandname in different ASEAN countries? Can it be done by a Hong Kong company?

      1. Marcus Sohlberg at 1:23 pm

        1. if you become a cross-border seller, you won’t use a fulfillment center in Thailand, but in Hong Kong. Keep in mind that there are product restriction for cross-border sellers. If you sell food or supplements, for example, it’s better to open a local Thai company and import the products to there first, selling on local Lazada (if you only plan to sell in Thailand, that is).

        2. I can unfortunately not answer this question, but recommend you to contact a marketing firm that can help you!

    11. Yvonne at 4:02 pm

      If I am based in malaysia but want to sell to indonesia and vietnam, which seller account I should sign up? Lazmall seller or local seller or lazglobal seller?

      1. Marcus Sohlberg at 1:25 pm

        Do you mean selling cross-border? We’ve tried to confirm this recently and it’s not manageable according to our Lazada Partner.

    12. Campbell Naish at 1:37 am

      Can I sell from New Zealand and ship direct from New Zealand to the purchaser?

      1. Marcus Sohlberg at 5:24 am

        You can manage shipping on your own. But it’s nothing I recommend as Lazada generally request cross-border sellers to use FBL and LGS.

    13. Joanna at 7:06 am

      Hello, my company is in NL, produce baby milk powder with cow and goat . Can we sell baby IF products via lazada CBEC business? or for baby IF products can’t sell via Lazada at this moment?
      How about other baby food products? e.g. pap, puff , smoothie for baby?

      1. Marcus Sohlberg at 6:20 am

        Hi Joanna, food/supplements is hard and generally not accepted for cross-border sales. With that said, I recommend you to contact Lazada for an official reply.

    14. Eric at 3:48 am

      Hi,
      I have been selling on Amazon usa for 4 years. One product. Amazon takes between 20-45% depending on transactions, and if there is a product return. But their commission and packing fees alone are about 30%. How does that compare with Lazada?
      Also, what is the tax situation for selling on Lazada?
      I am US citizen but live in Thailand. With amazon, I report all income to my LLC in Hong Kong, and any profit is not taxed in HK or Thailand but in the US…..

      Is it the same with Lazada? Thanks!

      1. Marcus Sohlberg at 7:39 am

        if you use Fulfillment By Lazada (FBL) and Lazada Global Shipping (LGS) the commissions+fulfillment+shipping would be in a similar range. But, of course it depends on the products. Regarding your tax situation, this is nothing I can consult about here to be honest.

    15. Thomas at 9:02 am

      Thanks for the detailed article!
      I was wondering about the interaction between LazGlobal and LazMall. Certain LazMall product pages show that these products come from abroad, and require a couple of weeks or so to arrive due to international shipping. But when signing up to LazMall, it only lets you sign up from the country whose store you’re on (Philippines for Lazada PH, etc), not as an international seller.
      Does this mean that LazMall sellers need to be domestic, even if they bring some products from overseas? Or does it mean that LazGlobal sellers can apply for LazMall status? How do the two interact and overlap, if at all?

      1. Marcus Sohlberg at 7:47 am

        Yes, LazMall is not available to cross-border sellers. If you have a company in the Philippines, for example, you can still sell products on LazMall that come from overseas.

    16. Clay at 3:21 pm

      How do you become a seller as a US resident with a HK incorporated company? I am going to this page but not seeing the correct registration options: https://sellercenter.lazada.co.th/seller/register/registration_landing?spm=a2o7g.10547919.old-navigation.3.49a21e13AO2BoJ

      1. Marcus Sohlberg at 7:13 am

        Send us an email then I will let our Lazada partner help you.

    17. Richard at 3:10 pm

      1. Do i really have to send bulk shipments to Fulfilment center. Can i not individually send products only when there are orders.

      2. Does Mainland China have Lazada Pickup Service that brings products from supplier to HK? or Do i have to manually send it to HK fulfilment center in Bulk?

    18. mugen at 2:57 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.

    19. Jun at 10:13 am

      Hi, I am based in Malaysia and my partner is based in China. We would like to import some China goods to be sold to SEA. WHat is your suggestion?

      Should we :
      1) Register a Singapore company, register Lazada Singapore, and import the items to Singapore from China ourselves?

      2) Or register a China company, selling via cross border Lazada?

      1. Marcus Sohlberg at 10:54 am

        Hi Jun, both options bring benefits and disadvantages, of course. If you send us an email we can review this in detail.

    20. Shivangi at 1:36 pm

      Hey i wanted to understand how lazada handles conflict of interest of sellers (for instance if 2 companies have similar kind of products how do they deal with it)

      1. Marcus Sohlberg at 7:03 am

        Unfortunately I don’t know this. Perhaps another reader can help, Alternatively, if you ask Lazada directly.

    21. Paul at 4:17 am

      Hi. We are existing seller based in Thailand and are currently only using the Thailand Lazada platform. Is it possible to sell via all Lazada platforms from here and with our existing Thailand account?

    22. SERGEI at 1:47 pm

      Hello! I have a question about seller fees overview. So, Lazada have three form regestration on the platform:
      1. Lazada Mall
      2. Lazada Local
      3. Lazada Globall
      What a platform are these payments fees and commission for?

      ” Seller Fees Overview
      Believe it or not, but Lazada sellers don’t need to pay any fixed or monthly charges to create an account and start listings products on their platform. Instead, Lazada is only charging a 2% payment fee and a 1 – 4% cross-border order value commission*. “

      1. Marcus Sohlberg at 3:05 pm

        The information in the article is for cross-border sales, which is for Lazada Global.

    23. bu at 7:43 am

      Hi, I already create a seller account for my product in Malaysia and I would like to sell my products at Singapore,Indonesia and also Philippines. How can i do that?

      1. Marcus Sohlberg at 8:54 am

        I suggest you to contact your Lazada account manager as they can help with these kinds of questions/requests.

    24. Francois Duchesne at 11:47 am

      Hello, does Lazada Global give any ranking priority on listings for branded products that have registered trademarks in ASEAN countries (as Amazon does with Brand Registry registered brands)?
      Thanks!
      Francois

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