What is Lazada? Lazada Review

introduce

Lazada mainly sells electronic products, clothes, appliances, books, cosmetics, etc., and its market scope covers Indonesia, Singapore, Malaysia, the Philippines, Thailand and Vietnam.

Platform Advantages

1. Promotional activities drive traffic

During the LAZADA promotion, traffic increased by up to 5 times and sales increased by up to 10 times, attracting more new customers to the seller's store and significantly improving all sales data indexes.

2. Localization + Globalization

LAZADA has more than 4,000 employees across Southeast Asia, 85% of whom are locals. With a global mindset, it is focused on building the most professional e-commerce platform in Southeast Asia.

3. Resources favor sellers

LAZADA integrates online resources to manage product categories, pricing, and promotions for small and medium-sized enterprises and sellers to achieve sales. It also has LAZADA University to provide online support services to sellers.

4. Covering five major countries in Southeast Asia

The business covers Indonesia, Malaysia, the Philippines, Thailand and Vietnam, with overseas warehouses established respectively. The delivery centers cover 80 cities, and have strategic cooperation with 58 express transportation companies, and can also provide logistics support to customers in rural areas.

Store opening requirements

Lazada's store opening requirements are not high. Since the official cooperation with Payoneer, the requirement of having a foreign currency public account has been cancelled. In other words, to open a Lazada store, a business license and a copy of the ID card are enough.

Details

1. Registration form (the company and applicant names must be in Chinese and English, and the address must be in English);

2. New MP Seller Account Information form;

3. Business license of the company to be applied for, and a copy of the ID card of the applicant or legal representative;

4. Register a Payoneer corporate account with the same company name

Submit 1 registration form. After passing the review, the Lazada platform will send the online signing agreement and registration link to the email address submitted by the seller when applying. The seller can download the form for item 2, fill it out, and send it to the Lazada platform together with item 3.

Lazada store opening process

1. Complete the application form. It should be noted that all information must be filled in English. After completing the form, upload your store's valid business license as required, and finally sign the relevant electronic cooperation contract. The form content includes: country, email address, full name, phone number, company name, website address, mailing address, etc.

2. Activate the Seller Center. Filling in the above form is only the first step in applying to open a store. If you want to successfully activate your account, you need to find the password reset email sent by Lazada in your email. The email name is "Registration for Seller Center". After the user resets the password, the Seller Center account can be activated.

3. Participate in training. To ensure that merchants can learn the correct way to open a store, Lazada provides corresponding training courses. There are two ways of training. One is online real-person entry training, and the other is for merchants to watch the relevant entry videos and courseware carefully prepared by Lazada. After watching, as long as they pass the final Lazada entry test, they can complete the training course. If you don't have the time and energy to participate in the training in person, online training is a better way to master the skills of opening a store.

4. Connect with cross-border payment methods. Connecting with cross-border payment means registering for a P card. The Lazada platform will send a registration email to the merchant's mailbox, and the merchant only needs to provide the information as required. The company account used to register for the P card is the payee account in subsequent transactions.

5. SKU review. After completing the account registration, merchants also need to upload at least 50 SKUs to the Lazada official website and submit them to the platform for review. It usually takes about three working days. Only after passing the quality review can they officially open a store on Lazada.

Confirm registration success

Once you register online to become a LAZADA seller, please check your registered mailbox (including spam) in time. You will receive our email immediately. Please fill in the online application form and upload your business license or business registration certificate in time. Once you complete this step, you will receive another email asking you to accept the electronic contract.

If the seller's application form information and business registration certificate are correct and valid, Lazada will open the seller center in a short time and notify you by email.

cost

There are no fixed fees on Lazada, no product display fees, and no other hidden fees. The platform only charges a commission based on the unit price of the product of the order seller. Lazada's fee structure is a low commission plus a 2% transaction fee (including credit card, handling fees, marketing and local customer service fees). Only after the product is successfully sold will the platform charge the corresponding commission (6%, 8%, 10% for different products) and transaction fees according to the product category.

Prohibited products and brands

Malaysia Platform

Prohibited products: Food, edible health products, tobacco and electronic cigarettes, weapons and knives, fireworks and their devices, diamonds from the Republic of Côte d’Ivoire, pirated and counterfeit products.

The banned brands include: Meizu, Xiaomi, ose and Beats by Dre.

Indonesian Platform

Prohibited products: food and beverages, any medicines, narcotics and health products, traditional Chinese medicine, explosive and dangerous goods, flammable materials and fireworks, tobacco-related products such as cigarettes and electronic cigarettes; alcohol and other alcoholic beverages, firearms and weapons, sex products and pornographic products, counterfeit, pirated or imitation products, counterfeit banknotes, bills or coins.

There are relatively many brands that are banned from sale, distributed in four categories: electronic products, home appliances, home life and travel luggage.

Singapore Platform

Prohibited products: chewing gum, tobacco, e-cigarettes or hookahs, weapons, expired or harmful medicines, banned or unlabeled health products, indecent adult toys.

Banned brands: Jays' H series, Oppo, Bose.

Thailand Platform

The banned products include: tobacco, e-cigarettes or hookahs, weapons, alcohol products, sex toys, counterfeit or restricted medicines, machines containing chlorofluorocarbons, bubble blowing and bubble gum, food containers that may be contaminated with lead, diamonds from Sierra Leone, and plants.

The banned brands include OnePlus One mobile phones.

Philippine Platform

The banned products include: adulterated or substandard food, raw shrimps and prawns, tobacco, weapons (including toy pistols and imitation guns), drugs and equipment used for abortion, and products containing rare metals (such as gold and silver).

The banned brands include: Huawei's Honor 6, ZTE, Xiaomi, and Meizu.

Again, in addition to the banned products mentioned above, there are some brands that have obtained exclusive authorization to sell on Lazada platforms in various countries. You cannot sell products of these brands.

Development History

Four rounds of funding were raised in 2012 and early 2013: Swedish retailer Kinnevik invested $40 million in November, German private equity firm Summit Partners invested $26 million in December;

In January 2013, Tengelmann invested about $20 million;

In June 2013, Lazada announced that it had raised an additional $100 million and launched mobile apps for Android and iOS devices. In December 2013, Tesco PLC, Access Industries, and other existing investors raised a total of $250 million.

In November 2014, Temasek Holdings in Singapore led a $2.5 billion funding round.

In 2014, the company had revenue of $154.3 million, but a net operating loss of $152.5 million.

As of 2015, Lazada faces growth challenges such as preference for physical shopping among customers, with only about 1% shopping online, compared to 10% of U.S. shoppers, lack of credit cards and corresponding requirements for arranged cash-on-delivery systems, reliable delivery especially in rural areas, and competitive threats from Amazon and Alibaba.

Lazada claimed in March 2016 that its annual sales in six markets in Asia totaled $1.36 billion, making it the largest e-commerce company.

In April 2016, Alibaba Group announced its intention to acquire a controlling stake in Lazada by paying US$500 million for new shares and purchasing US$500 million worth of shares from existing investors.

References

• 1. Temasek Holdings Financing: techcrunch official website [cited on 2018-03-11T16:00:00.000Z]
• 2. Lazada becomes the largest e-commerce company: digitalnewsasia official website [cited on 2018-03-11T16:00:00.000Z]
• 3. Lazada’s revenue: forbes official website [cited on 2018-03-11T16:00:00.000Z]