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LAZADA Pricing PDF
LAZADA Pricing PDF
Strictly Confidential
List of Updates
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
Possible influence
• Wrong Pricing impacts: Order Cancellation Seller Rating and Fewer Orders Less Revenue
OVL
Actual commission
seller pays
❖ 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
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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.
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
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
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Pricing Model
How to Use It?
• Pricing Model
Tab Definition Seller Action Procedure
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.
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Related Files
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Thank you