Fees & Commissions when Selling on Lazada: The Definitive Guide

Posted on 25 Comments


Opening a store on Lazada can be a great choice for companies that look to expand into Asian markets. China has become competitive over the years and it’s far more expensive to start selling there.

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 come with it.

Selling on Lazada is perfect if you just want to try-out the Southeast Asian market as the setup and running fees are low. That’s not the case for China.

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

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

At the end of the article, you can also find a useful FAQ with commonly asked questions and our replies.

1. Upfront Fees and Initial Deposits

Lazada doesn’t charge sellers any major upfront fees or deposits for that matter. You can simply register an account, list your products, and get started.

This is not the case if you plan to sell on websites like Kaola, Tmall Global, or JD Worldwide in China, where deposits stretch between USD 10,000 – 25,000.

A yearly service fee of USD 1,000 – 5,000 applies when selling on these Chinese websites as well.

As mentioned, while Lazada gives you the opportunity to test the Asian markets, the major Chinese websites rarely don’t.

(USA & EU)

Free Webinar: How to Sell Online To China & Southeast Asia

  • Selling on Tmall & Lazada
  • Logistics & fulfillment options
  • Payment gateways
  • Incorporation & trademarks


2. Lazada Commissions

The same as it goes with various E-Commerce platforms in China, Lazada charges a commission on each sale you make. The commission is only deducted when an order has been delivered and the client has paid.

Below I’ve made a *chart showing the different commission rates that apply for products sold in Thailand, Indonesia, Malaysia, Singapore, and the Philippines.

Keep in mind that the rates are valid for cross-border sellers, which means that you sell from a country outside of ASEAN and use Lazada’s LGS shipping service from Hong Kong.

Local sellers in Malaysia, except for Official Stores, Certified Stores, and Brands, have been exempted from paying commissions since 2018.

Possibly, this is a measure to compete with Shopee, one of Lazada’s biggest competitors, that doesn’t charge any commissions at all.

*Commission rates in Vietnam are not included below and can reach up to 8%.

CategorySub categoryCommission
CamerasDrones, DSLR, Instant Cameras, Point & Shoot, Video & Action Camcorder, Gadgets & Other Cameras, Camera Accessories, Lenses, Optics1-4%
Computers & LaptopsLaptops, Printers & Accessories, Scanners, Desktop Computer, Computer Accessories, Computer Components, Network Components, PC Gaming, Software, Storage1-4%
Mobiles & TabletsMobile, Tablets, Landline Phones, Accessories1-4%
TV, Audio & Video, Gaming & WearablesAudio, Gadgets, Televisions, Video, Wearable Technology, Gaming, TV Accessories, App-enabled accessories1-4%
Home AppliancesCooling & Heating, Garment Care, Home Appliances Accessories, Housekeeping, Small Kitchen Appliances, Large Appliances4%
Health & BeautyAll Products4%
Digital GoodsAll Products4%
Bedding & BathAll Products4%
GroceriesAll Products4%
Home & LivingAll Products4%
Baby & ToddlerAll Products4%
Media, Music & BooksAll Products4%
MotorsAll Products4%
Pet SuppliesAll Products4%
Sports & OutdoorsAll Products4%
Toys & GamesAll Products4%
Travel & LuggageAll Products4%
Watches, Jewelry, SunglassesAll Products4%
FashionAll Products4%

How to Calculate the Commissions

Some countries charge a GST/VAT on the commissions made, thus, you need to include these when calculating the total commission fees.

Currently, deliveries to Singapore and the Philippines are exempt from VAT and GST, these only apply for deliveries to Thailand, Malaysia, and Indonesia.

So, let’s say that you sell pet supplies with the price of “100”, without using any currency, just to give you an example.

In Malaysia, a GST of 6% will be added which results in a total commission of 4 + (6% x 4) = 4.24.

In Thailand, a VAT of 7% is added, resulting in a total commission of 4 +(7% x 4) = 4.28.

The VAT in Indonesia is 10%, which would result in a total commission of 4 + (10% x 4) = 4.40. However, the VAT is already included so you only need to pay a total commission of 4, the same as in Singapore and the Philippines.

3. Payment Service Fees

You have two payment providers to choose among if you sell on Lazada: Payoneer and World First. After you register an account, you need to sign up and integrate your store with any of these companies.

The equivalents in China are Tenpay for JD Worldwide and WeChat, and Alipay for Tmall Global.

By using Lazada’s platform you need to pay a payment service fee of 1-2%. At the moment, the fee is 2% of deliveries to Singapore, Thailand, Malaysia, Indonesia, and the Philippines.

I highly recommend you to contact Payoneer and World First to get up-to-date information as the service fees can change.

Calculating Payment Service Fees on Lazada

The same as it goes with commissions, you need to add a GST or VAT when selling to Thailand and Malaysia (the VAT is included in the price for sales to Indonesia).

Let’s use the same example as we did when calculating the commissions.

If you sell a product that costs MYR 100 to Malaysia, a GST of 6% is added to the payment service fee of 2%.

Hence, the total payment service fee is: MYR 2 + (MYR 2 x 6%) = 2.12.

The payment service fee in Thailand, on the other hand, will be as follows with a VAT of 7%:

THB 2 + (THB 2 x 7%) = THB 2.14.

Don’t forget to include the commissions and payment service fees when calculating the final prices, before listing your products on Lazada.

When is the payment service fee charged?

The payment service fee is charged for delivered products, failed deliveries, customer returns, and canceled orders.

Can I see the calculations in the seller center on Lazada?

Yes, you can see the calculations in the seller center which is helpful. If you have any questions regarding the calculations, you can also contact Lazada directly.

4. Shipping Fees


Shipping fees always make up a big part of the final price used to customers.

Selling through a bonded warehouse in China to Chinese customers, for example, can save you much money compared to using a fulfillment center in Hong Kong.

Still, there are benefits of using Hong Kong as a hub. Cross-border sellers always need to weigh the benefits and make decisions, and where shipping rates play a big role.

When it comes to cross-border sales through Lazada’s fulfillment center in Hong Kong, rates are higher compared to local ASEAN sellers, of course.

There’s always a minimum fee, ranging from around HKD 12 – 37 (weight > 10g), depending on which country you ship to. Worth mentioning is that the Philippines tend to have significantly higher rates compared to other countries.

The rates then increase on on a per-gram level. Below I’ve included an overview for each country of how the *rates differ when shipping 100g to 1 kg, 1.5kg, 2kg, 5kg, 10kg, and 20kg.

*The rates below are just for reference. Shipping rates change frequently and you should request an up-to-date list from Lazada before you start selling.

Singapore shipping fees (in SGD)

The prices below are shown in Singapore Dollar (SGD) where: 1 SGD = 5.91 HKD = USD 0.75 (rounded figures).

100 g = 3.22
200 g = 4.48
300 g = 5.25
400 g = 6.96
500 g = 7.72
600 g = 8.33
700 g = 9.10
800 g = 10.33
900 g = 11.10
1 kg = 11.81
1.5 kg = 19.36
2 kg = 22.10
5 kg = 43.99
10 kg = 79.56

Thailand Shipping Fees (in THB)

The prices below are shown in Thai Baht (THB) where: 1 THB = 0.25 HKD = USD 0.03 (rounded figures).

100 g = 121.89
200 g = 142.18
300 g = 162.46
400 g = 192.62
500 g = 212.94
600 g = 230.79
700 g = 251.07
800 g = 280.79
900 g = 301.07
1 kg = 321.35
1.5 kg = 426.08
2 kg = 538.38
5 kg = 1,264.68
10 kg = 2,389.98

Indonesia Shipping Fees (in IDR)

The prices below are shown in Indonesian Rupiah (IDR) where: USD 0.13 = 1 HKD = 1728 IDR (rounded figures).

100 g = 34,035
200 g = 48,927
300 g = 63,837
400 g = 78,730
500 g = 93,640
600 g = 107,495
700 g = 122,405
800 g = 137,298
900 g = 152,208
1 kg = 167,100
1.5 kg = 323,265
2 kg = 433,767
5 kg = 1,100,253
10 kg = 2,174,711

Philippines Shipping Fees (in PHP)

The prices below are shown in Philippine Pesos (PHP) where: PHP 1 = HKD 0.15 = USD 0.019 (rounded figures).

100 g = 250.40
200 g = 349.84
300 g = 449.28
400 g = 548.72
500 g = 648.17
600 g = 731.68
700 g = 831.40
800 g = 930.84
900 g = 1,030.29
1 kg = 1,129.73
1.5 kg = 1,606.32
2 kg = 2,103.53
5 kg = 5,066.42
10 kg = 10,053.42

Malaysia Shipping Fees (in RM)

The prices below are shown in Malaysia Ringgit (RM) where: RM 1 = HKD 1.98 = USD 0.25 (rounded figures).

100 g = 9.01
200 g = 10.29
300 g = 11.58
400 g = 12.86
500 g = 14.14
600 g = 16.55
700 g = 17.67
800 g =18.69
900 g = 19.80
1 kg = 23.79
1.5 kg = 29.17
2 kg = 37.42
5 kg = 78.31
10 kg = 146.46


Below you can find commonly asked questions and our replies. If there’s anything else you wonder about or if you have interesting information to share, feel free to write a comment below.

Do I need to add a GST/VAT to my shipping fees?

Malaysia, Thailand, and Indonesia are the only countries that charge a GST or VAT to commissions and payment service fees. Malaysia has removed GST from shipping fees as of June 1st, 2018, hence no GST is added.

In the case of Indonesia, I didn’t manage to find any information but assume that VAT is included. Still, you should confirm this with Lazada, before you start selling your products.

For deliveries to Thailand, you need to add a VAT of 7% to the shipping costs.

Does Lazada have commissions?

Yes, Lazada does add commissions that generally range from 4% to 8%. With that said, the rate is typically 4%.

Most of the other eCommerce marketplaces, including Shopee, have started to charge commissions as competition is high and profit margins slim.

Is selling on Lazada free?

No, there is a small setup fee and Lazada will also pocket a commission on the sales you make.

Besides, keep in mind that a VAT/GST is added in countries like Malaysia and Thailand. Sellers sometimes also pay for advertising to stay competitive.

A bit of general advice is to work with a Lazada Agency, which in turn adds a bit to the total costs. With that said, it’s significantly cheaper to hire a Lazada Agency to Tmall Partners in China.

Be prepared to pay a few hundred US dollars instead of thousands of dollars.

How does Lazada earn profits?

Lazada earns profits through several means. First of all, they collect sales commissions for each sale made by a seller. The rate stretches from 4% to 8%.

Besides, they charge a small fee for new account setups. Be prepared to pay for additional advertising as well when needed.

Which is better, Lazada or Shopee?

Both websites have benefits and disadvantages and customers all have individual preferences.

With that said, Lazada has a slightly larger product assortment and more fulfillment and shipping capabilities for cross-border sellers.

Some benefits of buying and selling on Shopee, on the other hand, is that there are no shipping fees. Besides, Shopee is suitable for C2C sellers while Lazada requires that you have a company.

Does lazada charge for delivery?

Yes, as shown, Lazada does charge for deliveries. The rates differ and are charged in the local currency for cross-border sellers.

The rates for deliveries from Hong Kong to the specific local markets can be found in Lazada’s so-called Rate Cards.

How do I withdraw money from as a Lazada seller?

The process is simple. Sellers get paid via bank transfers to the bank details kept in Seller Center. It’s important that the Business Information and the required documents are uploaded to the site.

You also have to upload and maintain your Bank Account details, for verification. Lazada will not be able to manage any transfers if there are discrepancies or faulty information.

Can I pay using a credit card on Lazada?

Yes, Lazada accepts credit cards which are commonly used among buyers. In addition to credit cards, buyers have plenty of other payment options like Cash-on-Delivery, Lazada Wallet, GCash, and more.

  • (USA & EU)

    Free Webinar: How to Sell Online To China & Southeast Asia

    • Selling on Tmall & Lazada
    • Logistics & fulfillment options
    • Payment gateways
    • Incorporation & trademarks


    Disclaimer: The content on this website is provided for general information about exporting products to Asia, e-commerce platforms, logistics, regulations, taxes, and other related topics. However, we don't guarantee that we keep the content up to date or that it's free from error. We do make mistakes from time to time. We never provide legal advice of any sort.
  • 25 Responses to “Fees & Commissions when Selling on Lazada: The Definitive Guide

    1. john at 6:59 pm

      Dear Marcus,
      I have two questions for you:
      1. For cross-border sellers with a company in Hong Kong, which option is better when receiving payments from Lazada? Payoneer or company bank account in Hong Kong?
      2. As far as I know, Hong Kong’s laws will exempt income from outside Hong Kong territory (in this case, Southeast Asia), you think that in the long term, you should use your account company to receive payment ?

      1. Marcus Sohlberg at 3:44 am

        Hi John,

        1. If you use Lazada’s cross-border solution, you need to choose Payoneer or World First as your payment processors as they’re integrated with Lazada’s platform and seller center.

        2. You can’t pay 0% income tax (if this is what you refer to?) and should pay income tax in your country of residence. Not in Hong Kong, unless you live there. This is related to CFC regulations.

        1. Shawn at 5:34 am

          Hi morcus i want to buy whole container of lazada can you please give directly contact so i can buy whole packages

        2. Shawn at 5:35 am

          Hi morcus i want to buy whole container of lazada can you please give directly contact so i can buy whole packages

    2. Thomas Price at 9:34 am

      Hi Marcus,

      This has been really handy, thank you!
      I was on Lazada’s Vietnamese site this morning however, and lots of large banner ads and the like said that Lazada VN doesn’t charge any commission fees at all. Is this a recent development since you mentioned fees that could go up to 8% for Vietnam?

      1. Marcus at 6:42 am

        Hi Thomas,

        Yeah, I’ve seen it but as far as I know it’s only for local sellers.

    3. Rachel Lim at 9:45 am

      Hi Marcus,

      Thanks for the handy info. I have three questions:

      1) Besides the fee structure above, does Lazada charge any warehouse fee?
      2) How long will Lazada hold the stock for the seller in their warehouse?
      3) May I know where can I get the latest shipping rates. I am not a seller yet. I wish to explore a little more before committing to become one. I saw a revised shipping rates (Feb 2019) within Malaysia.
      4) I am based in Singapore and my products are from Malaysia. My customers are in South East Asia. Should I register as a seller in Singapore or would it make sense to register as a seller in the Malaysia platform?

      1. Marcus Sohlberg at 3:47 am

        Hi Rachel,

        1) Yes, they do. In Lazada’s centralized warehouse in Hong Kong, it’s around 9 HKD per square meter and day. But you better contact Lazada directly for a personal quote.

        2) Honestly, I’m not sure about the exact time. But a storage fee will apply.

        3) You can only get the latest shipping rates from the Seller Center (i.e. becoming a seller first). I know, it’s a bit annoying that you need to become a seller, before you even know if you want to become a seller! You can find some of the old rates in this guide, the rates should be fairly similar:


        Keep in mind that the rates are for international cross-border sellers who ship from Hong Kong into SEA.

        4) If you want to register in the Singapore platform, you need to have a Singaporean company. As such, you better become a local cross-border seller in the Malaysian platform.

    4. Rachel Lim at 7:56 am

      Hi Marcus,

      Thanks so much for your reply.

    5. David at 11:49 am

      Hi Marcus,

      I am a ecommerce seller based in Mumbai,India. How can i sell on lazada/redmart?

      1. Marcus Sohlberg at 8:28 am

        Hi David,

        You can become a cross-border seller by signing up on Lazada.

        1. IMAD ALHASAN at 11:46 am

          Hi Marcus,

          I tried to become a cross-border seller but I failed since LAZADA asking for register company (SSM) in Malaysia and Bank Account under a company name … so how come to overcome this problem? … thanks for your advance support

          1. Marcus Sohlberg at 11:35 am

            Strange. Are you based in Malaysia and entered http://www.lazada.com.my? Or http://www.lazada.com? Did you contact Lazada support and ask for clarification?

    6. Di Wang at 9:18 am

      we want to sell a thermostat from China to Singapore.Despite the commision and service payment fee, what else do we need to pay? what is tax we need to pay to Singapore custom?

      1. Marcus Sohlberg at 6:49 am

        Hi Di,

        Generally there are no import duties in Singapore, but you better check for your specific product. The GST is around 7%, but you should double check that too.

    7. Craig at 2:33 am

      Hi, this is incredibly helpful. Thank you.

      I have a Singapore-registered company for my own branded range of products, which are made in Malaysia and exported to distributors in the US and Japan.

      I want to experiment with B2C in Malaysia. Do I need to set up a lazada store in Malaysia or can I market to Malaysia from a platform in Singapore? Setting up a business in Malaysia for this seems like a lot of work.

      Thank you!

      1. Marcus Sohlberg at 3:11 pm

        Hi Craig,

        You don’t need to set up your own business but can get help from a Lazada Agency. You can send us an email for more information. :)

    8. Jimmy Wu at 10:20 am


      I have a question regarding LazGlobal cross-border model.
      We have a company in the Mainland China. We sell food products: snacks, popcorn, oats. Most of our products are produced in Russia.

      So my question is: do we need to ship to the Hong-Kong Lazada fullfulment center from our Shanghai warehouse or we can ship it directly from factory in Vladivostok, Russia, avoiding Shanghai altogether?

      Having products designated for South-East Asia make a stop in Shanghai makes little sense? so I would like to ask you if it possible to ship to HK directly from the origin factory?

      1. Marcus Sohlberg at 3:12 pm

        It’s difficult to sell food products cross-border on Lazada, at least at the moment. I’d recommend you to sell on the local platforms instead. In that case, you can ship directly from the country of production to your target market.

    9. Huong Nguyen at 9:08 am

      Hi Marcus,
      Could you pls share contact number and email of Kobron Hongkong?

      1. Alfred Varachaud at 2:20 pm

        Hi Marcus,

        Very helpful article, thank you. Few questions I have. We are a global brand that made our products in China and have online domestic stores in mainland and warehouse in Shanghai. We would like to expand to Lazada.

        1) Is there a logistics reason which makes Hong Kong better than China for the warehouse?
        Does having a warehouse in Hong Kong will avoid some chinese taxes?

        2) If we export ecommerce parcels from China to export, are these exempt from China VAT? Is there any special admin process required to prove exports to get the VAT exemption? Does LGS help us in that process?

        Thank you,


        1. Marcus Sohlberg at 9:50 am

          Hi Alfred, send us an email and then we can continue discussing.

    10. Chris at 5:58 am

      Hi! Thank you for this very informative article. I would just like to ask, are there import duties that need to be paid from the Hong Kong sort center to the Philippines? Also, how will it be paid to Lazada? Thanks!

    11. Meghna Mehta at 10:58 am

      Hi Marcus,

      Thank you for a detailed guide on the fees that we should be expecting as a seller on Lazada. I am based in Singapore and my factory is located in India, I am looking at developing a market for home products (linens) from India to ASEAN. How will the shipping work for such a model? Is there a fulfillment center in Singapore? Also does Lazada also help in shipping products from India? or this part has to be taken care by us?

    12. Nadia Jiang at 5:29 am


      Im interested to be a cross border seller in lazada . My company is based in Australia and im planning to sell heath and beauty items
      Is there a way that my items sent to the buyer from Australia? If so how to do it.


    Comments are closed.