Cancellation

Fulfilment process - Overview

within 24 hrs
Seller Penalties

- Update the stock regularly

and precisely Penalty fee imposed:
Cancelled due to
Item Price x 2.5 x
out of stock - Allocate sufficient stock to
Lazada
commission % + GST%

- Pay attention to the daily

pending order email sent by
Lazada and process orders in Penalty fee imposed:
Slow time Item Price x 2.5 x
commission % + GST%
fulfilment - Check Seller Center daily to
process new orders promptly

- Do not update the

status of orders to Penalty fee imposed:
Ready to Ship until
Fake order orders have been packed
RM50 per item cancelled
+ GST%
status and ready to handover
to 3PL

- Regularly check the price of

all SKUs in Seller Center
Wrong price - Be extra careful when submit
promo prices to Promotion
Tool in Seller Center
Penalty fee imposed:
Item Price x 2.5 x
commission % + GST%
When are orders cancelled and why?

Orders are cancelled by Sellers:

• If they have received orders but do not have the stock to fulfil the orders.

Orders are cancelled by Lazada under the following reasons:

a. Sellers did not process the orders in time (24 hours from the time order was
received, not inclusive of weekends and national public holidays).
b. Orders remain Ready to Ship status and sellers fail to provide the necessary proof of
handover to 3PL as evidence that they have already handed over the parcel..
c. Sellers send in request for orders to be cancelled due to system error, pricing or
content error.
High Cancellation – Causes

No FIFO (First In First Out)

No Stock

Fulfilment from separate/multiple location

Shop closed without prior notification

No proper schedule for order fulfilment

Not responding to emails from PSC requesting order status

updates

System Error / Pricing Error

 High Cancellation - No Stock

Overview: Situation where the seller has no stock to sell further or fulfil an order

Impact: Customers will be buying another products OR in the case of overselling,

the sellers will be required to cancel the orders and consequently pay a penalty
fee to Lazada.
Solutions – What do I have to do to avoid no stock?

1. Schedule inventory count and update Seller Center, at least once a week
2. Set a minimum quantity, and automate alarm/trigger once the minimum quantity is hit
3. If your backend management system allows it, connect it to your Seller Center account
via API
4. Use ERP system to manage your store
5. Never overstate your stock quantity in Seller Center
6. Cancel the order immediately if you realize there is no stock to fulfil
7. Do not wait for new stocks to arrive in order to fulfil the orders, unless the stock will
arrive within 24 hours.
8. Do not click Ready to Ship if you do not have the orders picked, packed and ready to
ship. You will be penalized for faking orders. Please note that when you click Ready to
Ship, customer receives an email notification stating that the order is being shipped.
High Cancellation - No First In, First Out (FIFO)

Overview: Sellers must always process orders from oldest to most recent
Impact : Orders that are not processed (from Pending to Ready-to-ship)
within 24 hours will be cancelled.

Solutions – What do I have to do to avoid FIFO issue?

1. Sort pending orders by aging before processing

2. Ensure orders are printed, picked and packed from oldest to new

3. Always handover the oldest orders to 3PL first

High Cancellation - Fulfilment from multiple
/ separate location

Overview: Sellers are always advised to co-locate the item storage area,
packing area, document printing area and handover area

Solutions – What do I have to do to avoid fulfillment from multiple/separate

location issue?
1. Co-locate the item inbound, document printing, item storage, item packing and
item outbound processes if possible

2. If seller must operate from different locations, then enable multiple access to
SC and practice fulfilment from the different locations. Drop off the item at
the nearest 3PL branch

3. Converge top selling SKU’s into one location, and only list a minimal qty for slow
moving SKU’s

4. Avoid printing in one location and processing in another. This will cause
unnecessary risks and delays
 High Cancellation - No proper schedule for order
fulfilment

Overview: Plan and place a schedule for order processing and inventory
management. Start the day by attending to Lazada orders

Solutions – What do I have to do to avoid missing out fulfilling orders issue?

1. Identify the 3PL pick up time

2. Move packed inventory to outbound area on time

3. RTS packed orders at least an hour before the pick-up time

4. If you have high order volume, schedule a fixed time to pick, pack and RTS

5. Always ensure you have sufficient resources to process all orders in a day

6. Assign specific person to specific tasks. But make sure they are properly cross-trained.

7. Monitor email and SMS regularly for new order alerts.

8. Use Lazada Seller Centre app to monitor your orders

High Cancellation - No response to PSC emails
requesting order status updates

Overview:Lazada will constantly communicate on orders that are at risk of

being cancelled. It is the sellers responsibility to update the information that
is being requested for

Solutions – What do I have to do to avoid no response to PSC emails issue?

1. Pay attention to reminder emails received from Lazada

2. Always respond to emails requesting for TN or sender copy

3. Submit the response via the correct forms (Link)

4. Keep your contact information in Seller Center updated

5. Make sure emails from Lazada are NOT being directed to your
spam or trash folder
High Cancellation - Shop closed but did not
inform PSC

Overview: Sellers are responsible to inform Lazada, if their online shop will
be inactive for specific period

Solutions – What do I have to do to inform about my shop closure?

1. Always inform Lazada Partner Support (PSC) ONE week in advance from the shop
closure date

2. Process all pending orders prior to shop closure

High Cancellation - System/Pricing error

Overview: If you face error messages or pricing errors during order

processing, please email to Lazada Partner Support

Solutions – What do I have to do to in case of wrong price displayed?

1. Escalate to PSC to ensure orders are not mistakenly cancelled as seller negligence

2. Pricing errors due to seller negligence will be charged a penalty. Always ensure the
price of goods sold is accurate.

3. Sellers must NOT cancel orders that are affected by system errors and pricing errors

These orders should only be cancelled by Lazada. So please reach out to Partner Support
by submitting your complain through our general form (Link).
Fulfilment by
Lazada (FBL)
What is FBL and How it works?

Fulfillment By Lazada (FBL) is a hassle free fulfillment solutions

provided by Lazada for sellers.

End-to-end fulfillment
solution

You send Lazada Customer Lazada Lazada Return

products to stores purchase takes care delivers management
the Lazada your your of the pick products to handled by
fulfillment products products & pack customer Lazada
center

Full flexibility to only use FBL for

parts of your assortment

Lazada will be responsible for your order fulfillment

We store, pick, pack & deliver all orders for you
FBL is the best way to increase your sales and ops
performance while reducing your costs

1
• Conversion rate is higher on FBL
Increase customer satisfaction • Net Promoter Score (NPS) increases for FBL
products and leads to repeat purchases

2
• No fixed cost for rent and labour
Save on warehouse cost
• Only variable cost of RM1.99 per item delivered

3 • SKUs are eligible for Express Delivery and related

Get better marketing exposure
promotions
• Better boosting increases visibility on the Lazada
website
4 • Unlimited Order Volume Limit (OVL) for FBL SKUs
• No penalties (for cancellations, fake RTS or
Improve your operations wrong/incomplete items)
• Faster payment
• Easier returns management
FBL simplifies all of your operation processes to
make your life easier

Full flexibility to put only parts of your assortment on FBL

No penalties for cancellations, fake RTS or wrong product sent

Easier returns management as re-sellable items go directly

back into stock

Unlimited Order Volume Limit (OVL) for FBL SKUs

Faster payments
FBL only charges you an all inclusive fee per item
and eliminates all your fixed cost

Includes manpower for pick & pack

FBL charge

RM1.99 Includes cost for packaging materials

per item

Includes storage cost (rent, utilities, insurance)

Direct delivery from your supplier to the Lazada fulfilment center can reduce cost
even further
Normal 3PL vs FBL

3PL Process | On Daily Basis

3PL

Order
Pick items Drop off Customer
received Pack Prepare
from items to the receives the
on Seller accordingly documentations
inventory nearest 3PL order
Center

FBL Process | On Monthly Basis

LAZADA
LAZADA

When customer orders,

Seller sends products Lazada Stores Lazada picks & packs
to Lazada WH your products and deliver to customer
Q&A
FBL SUPPORT SERVICE :
Name: Victoria Wong
Email : Victoria.wong@lazada.com.my
I have a question!

No! Actually, with FBL you avoid additional personnel,

? Is FBL expensive? ! packaging and WH costs for the fulfillment of your orders
If I sell products through FBL, can I still sell other Yes! You can sell your products through different fulfillment
? products through drop-shipping? ! models simultaneously

? Are my FBL products covered by insurance?

! Yes! All FBL products are fully covered by Lazada’s insurance
(against loss, damage, fire, etc.)
Generally, 24 hours, but if the documents are incorrect or
? How long does the inbound take? ! the packaging is faulty, it can take longer

? Does FBL mean that I need more stock?

!
No! With FBL, Lazada helps you to optimize your stocks and
avoid unnecessary inventory costs

? Do I need to update the stock on SC? ! No! Stocks will be automatically updated by Lazada

Can I get my products back from Lazada’s WH? Yes, through SC. In 3 business day you are free to collect the
? How long does it take? ! product from our wh

I need to match the product serial number with the

? Customer order. Is it possible with FBL? ! Yes! Lazada’s WH team can track this information and share
it with you

? Can I monitor my stocks and my returns? ! Yes! You can monitor your stocks and returns directly on SC
If the items are in good condition, they will be stored back in
? Do I receive the Customer Returns? ! Lazada's fulfillment center and get ready for sale. However,
you can place an order on SC and retrieve them back