Pricing

Strictly Confidential
List of Updates

Content Updates Detail Related Pages Update Date

Lazada Website Interface The homepage, searching result page, and product P9 12/1/2018
page
Lazada Website Update Multi-sourcing Display P9 & P10 2/3/2018

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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

Shipping Your
Product Cost Commission Fee + Tax / Other Fees Expected Pricing
Duty Margin

• Retail Price & Sale Price

o Retail Price is mandatory.
o 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 .
o Prices must be in local currency of platform, e.g. Malaysia
seller center = Malaysian ringgit (MYR). Malaysia Singapore Thailand Philippines Indonesia
o Sale Price is strongly recommended to increase your MYR SGD THB PHP IDR
products’ click through rate and conversion rate.

• Why pricing is important?

“50% off! I must
o Competitive prices: higher CTR & CR > more sales. check it out! Now!”
o Wrong pricing will have a negative impact on sales
(see next page).
“No discount? Hmm…
I prefer outstanding
bargains.”
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Overview
Wrong Pricing

• What is Wrong Pricing?

o Upload/update prices to a wrong venture (eg: upload MY price to ID; upload SG price to PH).
o Input wrong prices due to human error (eg: missing a “0”; input a comma).
o Sellers are fully responsible for wrong prices placed by themselves.

Possible influence
• Wrong Pricing impacts: Order Cancellation Seller Rating and Fewer Orders Less Revenue
OVL

• How to Avoid Wrong Pricing

o Be very clear that prices must be in local currency of the platform.
o 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.
o Perform sense check before mass updating the prices.
o Make sure to upload the file to the correct venture.

• What if wrong pricing happens?

o Once you update/upload a wrong price, it is irreversible.
o Please follow below instruction to minimize your loss:
Change SKU status Update with correct Change stock to “0”, Check status in Sell SKUs at correct
Contact HKPSC
to “Inactive” price and then active SKU Seller Center prices
• Report orders placed •Correct prices will be •If need re-QC: correct
under wrong prices synced to the front stage prices have passed QC
• Push re-QC if SKUs fall
to QC queue
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Lazada Commission
What is the commission rate?

• Commission Calculation (eg. Item Price 100, commission rate: 4%)

GST/VAT No GST/VAT 6% GST 7% VAT 10% VAT (Included)
Venture SG PH MY TH ID
Item Price 100.00 100.00 100.00 100.00 100.00
Commission - 4%, including VAT/GST (4.00) (4.00) (4.24) (4.28) (4.00)
VAT/GST on Commission 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

GST/VAT that Lazada

❖ This commission table applies to MY, TH, SG, PH and ID; valid until further notice. collects for local government
❖ Lazada will only charge commission on delivered orders.
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Shipping Fee and Tax & Duty

• Local Shipping Fee:

o Shipping fee incurred from seller’s warehouse to Lazada sortation center.
o Shipping fee born by sellers.

• LGS (Lazada Global Shipping) Shipping Fee

o Shipping Fee incurred from sortation center to customer, which covers customer return (>=10USD) / failed delivery.
o [Dispatching from Mainland China Sortation Center] LGS Rate Card
o [Dispatching from Hong Kong Sortation Center] LGS Rate Card
o [Dispatching from KR] LGS Rate Card

❖ 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 • Payment fee Calculation (eg: Item Price 100, Payment Fee at 2%)
o The withdrawal fee of Payoneer or World First GST/VAT No GST/VAT 6% GST 7% VAT 10% VAT (Included)
o For the actual rate, please check with Venture SG PH MY TH ID
Item Price 100.00 100.00 100.00 100.00 100.00
Payoneer or World First directly. Payment Fee - 2%, including VAT/GST (2.00) (2.00) (2.12) (2.14) (2.00)
VAT/GST on Payment Fee 0.00 0.00 0.12 0.14 0.00
• Payment Fee Actual payment fee seller pays
o 2% across all ventures (SG, PH, MY, TH and
• MY Seller Center > Finance > Transaction Overview (eg: Payment Fee at 2%)
ID).
o It will be charged for all orders show in the
seller center – delivered, failed delivery,
customer return, order cancelled.
o Check calculation process and how it shows in
seller center on the right.
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. Actual payment
❖ Payment Fee will be charged if an order is created in seller center, and will fee seller pays
not be refunded.

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Competitive Pricing - 1
Lowest Price & Multi-sourcing

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.

*ID, PH and VN only. MY, TH, SG please see next page.

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Multi-sourcing Update (Applicable for MY, TH, SG)

Before After
• Cheapest products were featured on top, thus sellers • Products that appear on top are due to search relevance
fight to lower price to be competitive. and not just cheapest price.
• As a result, product ranking to different customers might be
different.

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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: Lunar New Year March May to June 11.11 & 12.12 Mega days
Promotion: CNY Sales Lazada Anniversary Sales Ramadhan Festival 11.11 - 12.12 Online 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:
Deal
✓ fill in your committed Campaign price and submit by Collection
clicking the button within the email. email

✓ Submit other SKUs that you wish to have discount via

Promotion tool in seller center.

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Pricing Model
How to Use It?
• Pricing Model
Tab Definition Seller Action Procedure

Intro Instruction and each tab introduction. Read only. Step 1

Assumptions Exchange rates, tax and duty, Payoneer withdrawal fee, Can edit exchange rates; Step 2
payment fee, commission rate and GST / VAT. can edit the actual Payoneer Fee Rate.
Pricing Model Seller inputs information to get calculated product prices for Choose from Input Currency and LGS Option; Step 3
each venture. Input SKU information: name, category, weight, cost
and margin.
Cost Breakdown Check cost breakdown for each SKU that calculated in Select venture only. Step 4
Pricing Model Tab.
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 Read only. N/A
certain thresholds.
Special Categories Categories for commission rate calculation; Read only. N/A
Sensitive categories for LGS rate calculation in Indonesia.

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

Please login to Lazada University and download the following files：

•Crossborder Commission Table

•[Dispatching from Mainland China Sortation Center] LGS Rate Card
•[Dispatching from Hong Kong Sortation Center]Hong Kong LGS Rate Card
•[Dispatching from KR] LGS Rate Card
•Promotion Tool
•Pricing Model

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Thank you