Pricing
Strictly Confidential
Index
Payout
Payment Provider
Analytics/ Finance Tab
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2
Content
Overview
• Pricing
• Wrong Pricing
Lazada Commission
Shipping Fee
• LGS Shipping Fee
• Tax & Duty
Other Fees
• Payment Provider Withdrawal Fee
• Payment Fee
Competitive Pricing
• Lowest Price & Multi-sourcing
• Repricing
Campaign Pricing
• Deal Collection
• Promotion Tool
Pricing Model
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Overview
Pricing
Product Cost
•
o
o
o
o
Commission
Shipping
Fee + Tax /
Duty
Your
Expected
Margin
Other Fees
Pricing
Retail Price & Sale Price
Retail Price is mandatory.
All products outside of the price range / discount range limit
will go offline / be rejected.
 Discount cannot be larger than 80%.
 Price must be between 1 USD and 1500USD .
Prices must be in local currency of platform, e.g. Malaysia
seller center = Malaysian ringgit (MYR).
Sale Price is strongly recommended to increase your
products’ click through rate and conversion rate.
•
Why pricing is important?
o
o
Competitive prices: higher CTR & CR > more sales.
Wrong pricing will have a negative impact on sales
(see next page).
Malaysia
Singapore
Thailand
Philippines
Indonesia
MYR
SGD
THB
PHP
IDR
“50% off! I must
check it out! Now!”
“No discount? Hmm…
I prefer outstanding
bargains.”
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Overview
Wrong Pricing
•
What is Wrong Pricing?
o
o
o
Upload/update prices to a wrong venture (eg: upload MY price to ID; upload SG price to PH).
Input wrong prices due to human error (eg: missing a “0”; input a comma).
Sellers are fully responsible for wrong prices placed by themselves.
•
Wrong Pricing impacts:
•
How to Avoid Wrong Pricing
o
o
o
o
•
Order Cancellation &
Penalty
Lower Seller Rating
& Lower OVL
Fewer Orders
Less Revenue
Be very clear that prices must be in local currency of the platform.
Correctly input a full stop (“.”) in a price.
•
Only prices in SG & MY can have 2 digits (eg: 54.19), thus seller can input “.” when upload prices to these two ventures.
•
DON’T manually input “,” in any venture.
Perform sense check before mass updating the prices.
Make sure to upload the file to the correct venture.
What if wrong pricing happens?
o
o
Once you update/upload a wrong price, it is irreversible.
Please follow below instruction to minimize your loss:
Change SKU status
to “Inactive”
Update with correct
price
Contact HKPSC
• Report orders placed
under wrong prices
• Push re-QC if SKUs fall
to QC queue
Change stock to “0”,
and then active SKU
•Correct prices will be
synced to the front stage
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Check status in
Seller Center
Sell SKUs at correct
prices
•If need re-QC: correct
prices have passed QC
5
Lazada Commission
What is the commission rate?
•
Commission Calculation (eg. Item Price 100, commission rate: 4%)
GST/VAT
Venture
Item Price
Commission - 4%, including VAT/GST
VAT/GST on Commission
No GST/VAT
6% GST 7% VAT 10% VAT (Included)
SG
PH
MY
TH
ID
100.00
100.00
100.00
100.00
100.00
(4.00)
(4.00)
(4.24)
(4.28)
(4.00)
0.00
0.00
0.24
0.28
0.36
Actual commission seller pays
•
MY Seller Center > Finance > Transaction Overview (eg: 4% commission)
Actual commission
seller pays
 This commission table applies to MY, TH, SG, PH and ID; valid until further notice.
 Lazada will only charge commission on delivered orders.
Strictly Confidential
GST/VAT that Lazada
collects for local government
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Shipping Fee and Tax & Duty
•
Local Shipping Fee:
o
o
•
Shipping fee incurred from seller’s warehouse to Lazada sortation center.
Shipping fee born by sellers.
LGS (Lazada Global Shipping) Shipping Fee
o
o
o
o
o
Shipping Fee incurred from sortation center to customer, which covers customer return (>=10USD) / failed delivery.
LGS Rate Card for Global sellers (Dispatch parcels other than CN/HK/KR)
LGS Rate Card for dispatching from HK
LGS Rate Card for dispatching from CN
PH sensitive goods charge extra HKD65/item (LGS
LGS Rate Card for dispatching from KR
ID sensitive goods charge higher
Tax & Duty vary across countries
PH is open to goods dispatched from CN only)
 LGS shipping fee will be charged after order status updated to “Delivered” in seller center.
 LGS shipping fee will not be refunded if failed delivery or customer return.
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Other Fees
Payment Provider Withdrawal Fee & Payment Fee
•
Payment Provider Withdrawal Fee
o
o
•
The withdrawal fee of Payoneer or World First
For the actual rate, please check with
Payoneer or World First directly.
•
GST/VAT
Venture
Item Price
Payment Fee - 2%, including VAT/GST
VAT/GST on Payment Fee
Payment Fee
o
o
o
Payment fee Calculation (eg: Item Price 100, Payment Fee at 2%)
No GST/VAT
6% GST 7% VAT 10% VAT (Included)
SG
PH
MY
TH
ID
100.00
100.00
100.00
100.00
100.00
(2.00)
(2.00)
(2.12)
(2.14)
(2.00)
0.00
0.00
0.12
0.14
0.00
Actual payment fee seller pays
2% across all ventures (SG, PH, MY, TH and
•
ID).
It will be charged for all orders show in the
seller center – delivered, failed delivery,
customer return, order cancelled.
Check calculation process and how it shows in
seller center on the right.
MY Seller Center > Finance > Transaction Overview (eg: Payment Fee at 2%)
GST/VAT that Lazada
collects for local government
 Exchange rate risk: Payment to sellers` account will be in local currency of
each platform; while the withdrawal will be in USD.
 Payment Fee will be charged if an order is created in seller center, and will
not be refunded.
Actual payment
fee seller pays
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Competitive Pricing - 1
Lowest Price & Multi-sourcing
•
Lowest Price feature in Seller Center
Click this icon to see
details of the lowest price
Click on the hyperlink to access
the competitor product page
If your price is the lowest, you will
see this in Lowest Price column
•
Example
Multi-sourcing
o Why?
 For identical products, pricing plays an important role in customers’
purchase decision.
 Lazada will recommend the products of low price, and the lowest price
one will show on the top.
o How?
 Compare your price with competitors.
 Don’t forget to check prices in physical stores as well as online.
 Give attractive discounts to recommended retail prices.
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Competitive Pricing - 2
Repricing
•
Purpose: Lazada aims to help sellers sell and
grow across SEA.
•
Lazada helps by:
o Monitoring the market place for price changes
on competitor platforms.
o Sharing with sellers their SKUs that are
uncompetitive as part of the weekly 3R
process.
•
3R definition
Seller’s recommended action
o Check the 3R attachment for detailed
suggestions.
o Fix the prioritized SKUs immediately and
continue working on the other SKUs.
Lazada University
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Campaign Pricing
Promotions & Deal Collection
Lazada’s Annual Promotions
Time:
Promotion:
•
•
Lunar New Year
CNY Sales
March
Lazada Anniversary Sales
May to June
Ramadhan Festival
Overview of Lazada annual biggest promotion
Deal Collection
o Before campaign, Lazada will send deal collection email to
the sellers with potential SKUs for different deals, such as Hot
Deal, Killer Deal and Storewide Discount.
o Seller Action:
 fill in your committed Campaign price and submit by
clicking the button within the email.
 Submit other SKUs that you wish to have discount via
Promotion tool in seller center.
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11.11 & 12.12 Mega days
11.11 - 12.12 Online Festival
Deal
Collection
email
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Pricing Model
How to Use It?
•
Pricing Model (Click Here to Download)
Tab
Definition
Seller Action
Procedure
Intro
Instruction and each tab introduction.
Read only.
Step 1
Assumptions
Exchange rates, tax and duty, Payoneer withdrawal fee,
payment fee, commission rate and GST / VAT.
Can edit exchange rates;
can edit the actual Payoneer Fee Rate.
Step 2
Pricing Model
Seller inputs information to get calculated product prices for
each venture.
Choose from Input Currency and LGS Option;
Input SKU information: name, category, weight, cost
and margin.
Step 3
Cost Breakdown
Check cost breakdown for each SKU that calculated in
Pricing Model Tab.
Select venture only.
Step 4
LGS Rate Cards
LGS rate cards for dispatching from CN, HK or KR.
Read only.
N/A
Tax and Duty
Tax and Duty charges apply when the product price exceeds
certain thresholds.
Read only.
N/A
Special Categories
Categories for commission rate calculation;
Sensitive categories for LGS rate calculation in Indonesia.
Read only.
N/A
If any problems, check as listed below:
 Use Excel 2007 version or above
 Enable macro in Excel
 Unprotect Sheet
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Related Files
Lazada University > Related Documents > Agreements and Policies
•Lazada Crossborder New Commission Table
Lazada University (EN version) > Related Documents > LGS (Lazada Global Shipping)
•Global LGS Rate Card (for sellers dispatching parcels from the countries other than KR/HK/CN)
•Hong Kong LGS Rate cards (for sellers dispatching parcels from Hong Kong)
Lazada University (CN version) > Related Documents > LGS (Lazada Global Shipping)
•LGS Rate Card for dispatching from CN
Lazada University (KR version) > Related Documents > LGS (Lazada Global Shipping)
•LGS Rate Card for dispatching from KR
Lazada University > Related Documents > Join Our Campaigns
•Promotion Tool
Lazada University > Related Documents > List Your Products
•Pricing Model
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Thank you