Lazada is the leading eCommerce platform in South East Asia and the gateway to the world’s fastest-growing eCommerce markets.
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 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.
Free Webinar: How to Sell Online To China & Southeast Asia
- Selling on Tmall & Lazada
- Logistics & fulfillment options
- Payment gateways
- Incorporation & trademarks
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 in 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.
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% to 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.
For cross-border sales, Lazada tries to encourage as many sellers as possible to using their own shipping service called Lazada Global Shipping (LGS). The service is easy to use and I personally recommend it if you plan to sell cross-border on Lazada.
c. Shipping labels
Upon receiving an order, you can print the shipping label directly from your Lazada account. This shipping label should be attached prior to handing over the package to Lazada.
For more information, I recommend you to check Lazada University where they have guides explaining how to manage shipping labels. You can also contact their support and account managers directly.
d. Returns
Customers on Lazada have the right to return a product they don’t like. Luckily, Lazada takes care of the cross-border returns 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.
Are any products prohibited from 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.
What is a Lazada Agent?
Lazada agents are similar to Tmall Partners in China and help foreign companies with product launches and continuous management of the online-stores.
While it can cost tens of thousands of US dollars to hire a Tmall Partner and get established on a Chinese eCommerce marketplace, the fees to hire a Lazada agent are almost negligible.
They can help you with translations, photo-shootings of your products, marketing, customer support, for a few hundreds of dollars.
For more information regarding how you can get in touch with Lazada agents, feel free to contact us.
What is LazMall?
LazMall was launched as a spin-off of Tmall and with international brands and 100% genuine products.
The same as it goes with Taobao, Lazada has suffered from sales of counterfeit and low-cost products, something that it’s now trying to change.
Large brands including P&G, Loreal, Puma, Dyson, Unilever, and more can be found on the website and it’s getting increasingly popular among local buyers.
The three core principals states by LazMall include:
- Fast and on-time delivery for LazMall customers
- 100% authenticity for LazMall customers
- 15-day money-back for LazMall customers
FAQ
Below I have included some commonly asked questions and our replies.
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.
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.
Lazada and Boxme are ready also for frozen food?
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.
What kind of company needs to be registered in Singapore: sole proprietorship or limited liability?
So what kind of shipping solutions will be available to you if you don’t chose the FBL (Fulfillment By Lazada in Hong Kong) and Lazada LGS (Lazada Global Shipping solution) ? Do they have a warehouse in Singapore? and can you sell on Lazada if you don’t have a high volume of product?
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.
Thanks John! We will continue writing more articles about Lazada, so just hang in there. :)
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?
Hi Paul,
I suggest you to ask this question to Lazada directly.
Hello i have question , please help me , i want to start online business in lazada , what i need to do first ? And i want my items from china , and i can get item from china deliver to Philiphines please can someone tell me what documents i need to do
Hi! Just wanna ask, im in Canada? Can i used Lazada as well?
Hi Lea,
Yes you can use Lazada if you are based in Canada.
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?
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.
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?
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
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?
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
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?
Hi Cii,
No, for FBL and cross-border sales you need to ship to their sorting center in Hong Kong.
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.
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.
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. 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!
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?
Do you mean selling cross-border? We’ve tried to confirm this recently and it’s not manageable according to our Lazada Partner.
Can I sell from New Zealand and ship direct from New Zealand to the purchaser?
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.
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?
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.
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!
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.
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?
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.
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
Send us an email then I will let our Lazada partner help you.
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?
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.
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?
Hi Jun, both options bring benefits and disadvantages, of course. If you send us an email we can review this in detail.
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)
Unfortunately I don’t know this. Perhaps another reader can help, Alternatively, if you ask Lazada directly.
Do you have any contact of Lazada in Thailand or Malaysia?
I would like to contact to their account manager to ask for business chance.
Thank you in advance.
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?
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*. “
The information in the article is for cross-border sales, which is for Lazada Global.
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?
I suggest you to contact your Lazada account manager as they can help with these kinds of questions/requests.
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
Hi!
I come from Vietnam. I want to sell on Lazada in other countries besides Vietnam. So what do I have to do to be able to sell on Lazada in other countries besides Vietnam?
If you choose to ship products to SEAsia, but self-fulfill the products from China, instead of using their HK warehouse, how is COD handled? Is it simply disallowed as an option when the buyer tries to checkout? I mean obviously the local last-mile delivery service could offer COD, but in the event of rejects (not paid at the door) they wouldn’t be able to get the package back to my China warehouse…
Who will handle import duties, if applicable, if I order the products and redirect to Lazada Fulfillment Center? Who decide which Lazada Fulfillment Center to send to if I intend to sell the products primarily in Malaysia and Sinagpore?
Can I sell on Lazada from Africa?
Hi David, yes, you can sell on Lazada being based in Africa. But each case has to be discussed individually with Lazada.
Hi,
I am from Dubai, UAE and we would like to sell our products in Lazada. How can we register with them as a international seller as at the time of registering only country available is singapore.
Hi Abdul, please send us an email with more details about the case then we can review further.
Hi, is it possible to register to global seller center in Singapore, while i’m here in the Philippines? My company is here in the Philippines but i also want to sell in Singapore. I tried to register a while ago but Singapore is not included in the list. Can you please teach me how do i register? Thanks.
Can I sell to Lazada from Bangladesh?
Hi Adnan, yes you can.
Can I send 500 pcs to Lazada’s HK warehouse for selling? Because I don’t have any warehouse facility in Hong Kong.
At the moment, sellers need to use 3rd party companies for storage as Lazada only have the capability to ship out products. But it’s just temporary.
Hi, Am based in Singapore & wish to sell our products to APAC countries. Do I just need to register 1 account in Singapore and then I can sell across to other countries? Thanks
Hi Sherri, to become a cross-border seller, you have to set up a cross-border account and sell on LazGlobal.
Hi Marcus, I just opened a cross border account in Lazada with my US Business, I don’t understand what is the benefits to open a Hong Kong company for this operation. Do you have any info about this inbound limitation? I want to send my goods in bulk from US to FBL in Hong Kong but now I need a 3pl for this.
What I heard from them, Lazada has capacity issues and temporarily only ships out products on behalf of sellers (not managing inbound, storage, and pick and pack). Therefore, you have to work with separate 3pl to manage that.
Our company has franchisees in certain countries that have ecommerce exclusivity. Can I set up a wholesale relationship with Lazada and negotiate to block certain countries based on the shipping address?
[…] Lazada is the biggest eCommerce website in Southeast Asia and is owned by Alibaba Group. The website was launched in 2012 and available in multiple countries, including: […]
Thanks for sharing this information it’s very helpful to me.
Hi,
I’m living in Denmark, can I sign-up for Lazada in Hong Kong, and then sell to Malaysia and Indonesia?
From what I can read you suggest that a serious business sign-up for a Business entity in Hong Kong. What are the specific advantages of getting an online business entity in Hong Kong (e.g. if you don’t – you don’t get access to the sorting center, you can’t sell cross-border..?