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Handling orders timely on Lazada is crucial to avoid cancellations, reduce lead times, and improve customer satisfaction.
In fact, too high order cancellations can lead to a scenario where Lazada puts your store in “holiday mode”.
Thus, it’s important that you understand how to manage orders on Lazada, before you even get started selling products.
In this article, you’ll learn the following:
- How you can receive orders from customers on Lazada
- How to communicate with Lazada when receiving orders
- Process when receiving orders
- How to manage returns and failed deliveries
- Acceptable reasons for order cancellations
How can I receive orders from customers on Lazada?
Sometimes, people ask me how they can receive orders from customers on various marketplaces, might it be Tmall Global in China or Lazada in Southeast Asia.
I often get questions like:
- Do I need to use the same order system as the marketplace?
- Do I need to develop my own order system?
- Should I receive orders manually in an Excel-file instead?
You don’t need to worry about that on Lazada as you’re operating directly on Lazada’s platform, using your own Seller Center.
In case you don’t know what Seller Center is, it’s a dashboard integrated into the platform.
Here, you can check statistics, get news, manage orders, and much more.
Thus, no third parties, like Tmall partners, are needed when managing orders. It’s a closed system where you, as a seller, have full responsibility to manage the orders on Lazada’s platform.
How do I communicate with Lazada when receiving and managing orders?
Each seller has an account manager that’s available to support, in case you have any questions or need help.
If you use Fulfillment By Lazada (FBL), which I highly recommend, you’ll communicate with Timeslogistics. It’s a logistics company based in Hong Kong that takes care of Lazada’s fulfillment services.
Some of these include:
- Managing the pick-up of sellers’ products
- Order dispatch
- Customer returns / failed deliveries
Thus, you manage the orders in your Seller Center, but will need to register with Timeslogistics’ OMS system.
Process when receiving orders on Lazada
You’ll see all new orders in Seller Center. In addition, Lazada will send you an email once you received a new order, you’re kept up-to-date continuously.
To manage orders, simply go to Seller Center and follow the below steps:
- Go to Orders > Manage Orders
- All new orders show under the tab “Pending”, here’s where you need to take action
- Change the order status from “Pending” to “Ready to Ship” within 48 hours (excluding weekends and national holidays), otherwise the order will be cancelled. You can also cancel orders manually, instead of dispatching the parcel
- Next to the tab “Ready to Ship”, you’ll find a second tab called “Shipped”. Press on it and you’ll see all parcels that are “In Transit” or “Shipped”. If it’s in transit, Timeslogistics has scanned the parcel, but not sent it yet. If it says “Shipped”, it’s on its way to the customer
- The final tab is called “Completed”. Here, you’ll find all parcels that have either been delivered to end customer, cancelled, the delivery has failed, or been returned
You can bundle orders together, but be sure to do so in Seller Center first.
How often should I check for new orders in Seller Center?
It’s recommended to check Seller Center for new orders every 2nd hour.
If this is not manageable, I suggest you to at least check Seller Center directly in the morning, once in the afternoon, and once in the evening.
How to manage returned orders and failed deliveries
Some cross-border sellers worry about returned orders and failed deliveries, as they’re sometimes operating from the other side of the globe.
But there’s no need to worry. You don’t need to be present in Asia at all, or incorporate a company in Hong Kong for that matter.
Everything can be managed with Lazada’s logistics services and separate 3PL companies.
The process goes like follows when a customer returns an order or when a delivery fails.
- Lazada does a quality check in the local country
- Products valued above USD 10 are shipped back to Hong Kong
- Products arrive in Hong Kong
- Products to be delivered to the seller, or picked up by the seller
The lead time from Lazada’s quality check until you receive the products is usually 10 – 60 days.
All countries in ASEAN allow customer returns, except for Vietnam.
If a customer returns a product, Lazada will help you and try to resell the product for up to 4 weeks. This is managed through one of its local cross-border ventures.
Just keep in mind that the re-routing program is not available in Singapore, thus, products are sent back directly to Hong Kong.
Where can I find returned products in Seller Center?
To find returned orders, simply go to Orders Overview > Completed > Returned.
Click on “Book for Self-Pick” within 15 business days from the day your item arrived in Hong Kong, otherwise Lazada will dispose the articles.
In addition, you should inform Lazada prior to your visit by pressing “Book for Self-Pick” for your selected order number at least 24 hours in advance. You shall also send an email to the persons in charge at Timeslogistics.
Updating stock levels and prices
It’s important that you update your stock levels and prices continuously in Seller Center.
In fact, if you don’t update the stock levels within 60 calendar days, Lazada will change to stock-level to “0” and customers can’t place any orders.
You can either single update the stock-levels and prices. If you’re dealing with many SKUs, you also have the option to mass-update stock-levels and prices.
Just follow the below steps:
- Select “Products” and click on “Import Products”. Under “Product Updates”, download an excel file for either “stock update” or “price update”
- Update the information in the excel-file. Save the file in a .csv format
- Set the Import Mode to “Update products” and upload the .csv file
What leads to order cancellations for sellers on Lazada?
Lazada can cancel your orders in case any of the below events happen:
You don’t update the order status from “Pending” to “Ready to ship” within 48 hours after the order is placed
Your packages don’t arrive at Timeslogistics’ sortation center and being scanned within 5 calendar days after the order is placed
You cannot send the parcels to Timeslogistics due to insufficient stock
You refuse to send the parcel due to wrong pricing
What is OVL?
OVL stands for Order Volume Limit and is the maximum amount of orders you’re allowed to receive per day.
What happens if my order cancellations are too high?
If your order cancellations are between 10% – 70%, Lazada will do the following:
- Set your current Order Volume Limit (OVL) to merely 50% of the average orders received from W-2 to W-5, where W is your current week. This is not applicable to new sellers for the first 8 weeks
- You need to watch the Training Video & submit Engagement Survey (within notification Email)
If your cancellations reach above 70%, Lazada will also put the shop in “Holiday Mode”.
What is COD?
COD stands for Cash On Delivery, which means that the customers pay in cash when they receive the products.
COD has been groundbreaking in Southeast Asia, where people prefer to pay in cash, or some buyers simply don’t have any credit cards or bank accounts.
Do I need to pay any extra to offer Cash On Delivery (COD) or Lazada’s re-routing program?
No, it’s completely free of charge. In the case of customer returns, Lazada will even pay for the transportation back to Timeslogistics’ sortation center in Hong Kong.