If you’re from the West, you might not be too familiar with Lazada. But this e-commerce platform is big in Asia, and it allows you to tap into the booming e-commerce industry in the area.
In this article, we’ll talk about how you can sign up as a Lazada international seller even if you're not from Asia.
Related Podcast Episode: An Interview with Pierre Poignant, Lazada Co-Founder
What Is Lazada?
Lazada is an international e-commerce company that operates on multiple countries in Southeast Asia. As of writing, it runs in the following countries:
- Philippines (lazada.com.ph)
- Vietnam (lazada.vn)
- Malaysia (lazada.com.my)
- Singapore (lazada.sg)
- Thailand (lazada.co.th)
- Indonesia (lazada.co.id)
Lazada is owned by Alibaba Group Holding—better known as Alibaba—and has been in the business since 2012. Now, it has approximately 155,000 sellers serving 560 million customers. Its main headquarter is located in Bras Basah, Singapore.
Lazada is similar to Amazon in terms of its being a marketplace and the fact that both big brands, as well as smaller third-party sellers, are allowed on the platform. It also has multiple marketplaces just like Amazon.
|Similarities Between Lazada and Amazon
|Differences Between Lazada and Amazon
Lazada allows multiple product listings for the same product. This means that unlike Amazon, you don’t need to worry about competing for the Buy Box or other sellers piggybacking on and editing your listings (unless of course it gets hacked). Because of the lack of prohibition against the creation of multiple listings for the same product, the platform looks and feels more like eBay.
Lazada sellers can also set up shop in each marketplace. They can customize their products, descriptions, shipping times, and prices in different countries.
What Is a Lazada International Seller?
A Lazada International Seller (aka Lazada Cross-Border Seller or LazGlobal Seller) is one who has the ability to operate in all of the platform’s marketplaces. This type of seller can manage his businesses across multiple countries with just one account.
There are three main types of Lazada sellers:
- Lazada local sellers – ones who can sell within their country
- LazMall sellers – official or authorized sellers for established brands
- Lazada international sellers – can sell in multiple countries
International Sellers can use Lazada Global Shipping (LGS), which allows them to sell their products in any of the countries the company operates in with ease. It is similar to how Amazon Global Logistics work.
How Do I Become an International Seller on Lazada?
Even sellers who are not be based in any of the countries Lazada operates in can sign up as an international seller as long as they have all the requirements. However, based on the platform’s current sign-up page, your shop must be based in any of the following countries:
|United States of America
In order to sign up as a Lazada Cross-Border Seller, you can go to any Lazada Seller Center site. Here’s a list for your reference:
|Links to Lazada Seller Centers
Click on “Sign up as LazGlobal Seller” or the LazGlobal tab.
You need to prepare the following requirements to register as an International Seller on Lazada:
- An active business license and registration (You can’t choose to be an individual seller if you want to sign up for LazGlobal)
- Email and phone number
- Bank details
- Any of the following for security deposit:
- Enterprise Alipay with a balance of not less than 3,000RMB
- Personal Alipay of the legal body of enterprise with a balance of not less than 3,000RMB
After you register, wait for Lazada to send you a seller contract. You then have to sign this and send it back.
Once everything is set up, you can then add your products and customize your store. However, please note that Lazada limits the number of SKUs that sellers can list. This varies, depending on what type of seller you are.
Lazada Seller Fees
It’s free to sign up as a Lazada seller. However, there a couple of seller fees involved in each sale. If you’re a cross-border seller, Lazada will collect fees from every sale, ranging from 2% to 4% of the selling price.
In addition, you also have to pay a 2% payment fee, and the commission fees will be highly dependent on the Lazada marketplace or region you are selling from.
As of February 3, 2023, Lazada charges a VAT-inclusive 2.5% to 4% commission on sales. This is much lower than Amazon’s referral fees, which range from 8% to 15%.
The following tables show the complete list of Lazada’s referral fees:
Pros and Cons of Selling on Lazada
- Gives you access to a wider market because it caters to people who have no credit cards or bank accounts
- An easy way to expand your business in Southeast Asia
- You can sell on multiple marketplaces using one account
- A lot of Lazada customers prefer cash-on-delivery, which means they can easily send the item back just by not showing up when the delivery arrives.
- You are charged every time you make a sale.
Becoming a Lazada international seller is a great way to expand your business to the Southeast Asian market. E-commerce continues to grow in this region, and it’s good to explore new opportunities in the area to further broaden your business’ reach.
Have you tried signing up as a LazGlobal seller? What were the biggest challenges you had to face?