Lazada is to Southeast Asia what Amazon is to North America. As the leading eCommerce platform in the region, Lazada serves as a gateway to the world’s fastest-growing eCommerce market. It’s an open platform that welcomes every seller, including ones located outside of its target market, including Europe, Mainland China, Hong Kong, and the United States. If you’re a seller from the aforementioned countries looking to tap into the Southeast Asian market, consider Lazada. The platform is a fantastic avenue to use when selling to consumers in Vietnam, Thailand, Singapore, the Philippines, and more—even when you’re short on capital.
With more roughly 200 million (and counting) visits monthly, Lazada is a platform where lucrative opportunities are nearly limitless. Currently, there are 300 million stock keeping units (SKUs) on the site, many of which engage in 3C products, home goods, toys, fashion apparel, and sports equipment. Demand will only grow from here!
If you’re an international seller considering Lazada as your platform of choice, here’s what you need to know:
Where is Lazada available?
While Lazada is open to sellers hailing from other countries, it mostly operates in major ASEAN countries, including:
- Vietnam (Lazada.vn)
- Singapore (Lazada.sg)
- Malaysia (Lazada.com.my)
- Thailand (Lazada.co.th)
- Philippines (Lazada.com.ph)
- Indonesia (Lazada.co.id)
Why should I sell on Lazada?
The scale of Lazada’s online presence is the principal reason it’s worth pursuing. Since it primarily caters to Southeast Asia—currently the fastest growing eCommerce market in the world (surpassing China)—you will get the opportunity to sell your products to millions of people.
Lazada also accommodates cash on delivery as a payment option, which cannot be said for other major platforms like Amazon. You’ll be able to tap into a market that doesn’t have access to credit and prefer transacting in cash instead.
Add all these to the fact that Lazada is friendly to new sellers. Unlike China’s Tmall Global or JD Worldwide, it has a lower barrier to entry, allowing almost anyone to sell their products to an ever-expanding consumer base.
If you’re looking to grow your business in Asia, selling on Lazada can be the best move you make!
Can I sell on Lazada even if I reside outside ASEAN?
Absolutely! In fact, you can sell products from anywhere in the world. Lazada already accommodates a massive number of sellers, even in China and Hong Kong. Sellers located in the United States, Europe, and Australia can choose to ship their products directly to the Lazada hub in Hong Kong, which will then handle the delivery and payment to customers in Indonesia, Vietnam, Thailand, Singapore, Malaysia, and the Philippines.
Do I need to register my company in ASEAN to qualify as a seller?
Lazada has no hard and fast rule that necessitates you to set up a company in any ASEAN country. If you already have an existing entity, you can use that. If you don’t have one yet, however, it’s recommended that you set up a company in Hong Kong.
If you set up a company online, everything can be managed online, essentially ridding you of the hassle of flying between countries. The best part of setting up an online company is that the process can be done in less than two weeks. Additionally, it only costs somewhere in the range of $1000! You aren’t required to be a resident in Hong Kong or prove that you have a connection to any Chinese territory.
Once your company is set up, you can start the process of registering an account on Lazada, which primarily involves paying for warehousing and logistical costs.
Can individuals sell on Lazada?
If you want to qualify to sell on Lazada, it’s a must that you have a registered company and accompanying documentation to support that. You will also be asked to provide a business license, so you should be able to present one, should you be asked to.
Do I need to set up one account for each country?
One of the best things about selling your products via Lazada is it lets you streamline your operations. As a result, you’re allowed to manage all your platforms with only one account.
Should I use Fulfillment by Lazada (FBL)?
If you’re not planning on fulfilling the orders by yourself, then know that Lazada can do the heavy lifting for you through their Fulfillment by Lazada (FBL) service. Their team will handle all the storing, picking, packing, and delivering of items. They have massive fulfillment centers that allow them to do this efficiently on behalf of multiple sellers.
Of course, FBL requires you to pay additional fees in exchange for taking care of your products. Keep in mind, however, that the prices may vary depending on the size of the item. Choosing the FBL route also requires that you attend an onboarding session so that they can acquaint you with everything you need to know about selling on Lazada. Once you’ve been through the official processes, you can begin arranging for your goods to be delivered to their warehouse.
After a quality control check, your warehouse system will be updated, and you will be able to start selling your products. Remember, however, that it’s your responsibility to monitor your own inventory and replenish your stock when necessary.
What are my other options for order fulfillment?
If you don’t want to self-manage delivery or opt for FBL, you can also choose to import your products to other ASEAN countries via fulfillment services. For instance, Vietnam has a company called boxme.asia, which helps international eCommerce companies import and store products in the country and aid in delivering the products without requiring the sellers to register a local company.
How do I manage customer returns?
Returns are standard in the eCommerce world. Fortunately, Lazada sellers don’t have to fret—Lazada will handle it all! Items are typically shipped back to the sorting center in Hong Kong and back to your inventory, ready to be sold to a different customer. You also won’t have to pay any additional import duties.
If you plan on becoming a Lazada seller, Split Dragon has all the tools and resources that you will need to achieve success on this fast-growing eCommerce platform. Get in touch with us today to see how we can help.
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