When selling on Lazada, it’s important to understand the different types of Lazada platform fees to optimize your shop's selling costs. In this article, UpBase will provide you with 8 types of Lazada platform fees that sellers need to know. We will also share some tips to help you avoid violating Lazada's selling rules. Read on to learn more!
8 Lazada Platform Fees Sellers Need to Know
Service Fee
The service fee is charged for handling tasks such as picking up, receiving goods at the seller's warehouse or store, and then transporting them to Lazada's centralized warehouse locations. This fee applies only to shops with more than 30 orders per day.
Payment Fee
Payment Fee (Order Processing Fee) is the transaction fee applied to each successful order and is calculated based on the total amount paid by the buyer plus shipping costs minus any discounts (if applicable). The payment fee will be refunded to the seller if the buyer returns the product.
Lazada applies a payment fee of 2.72% (excluding VAT) or 2.992% (including VAT) for each successful order. The payment fee is calculated as follows:
Payment Fee = 2.992% × (Goods Value - Supplier Funding Costs + Shipping Costs Paid by the Customer).
Supplier funding costs typically include bulk discount vouchers funded by the seller, discount codes funded by the seller, Lazcoin promotions funded by the seller, free samples, trial samples, promotional gifts, etc.
Fixed Fee
The fixed fee is a commission that sellers need to pay to Lazada for all transactions and services used on the platform. The fixed fee is applied to successful delivery and payment orders. If an order is delivered and then returned, the fixed fee will be refunded to the seller.
The fixed fee is specific to each seller on Lazada and is calculated as follows:
- For sellers on Lazmall: Fixed Fee = Fee Table × 1.1 (VAT) × (Product Price - Supplier Funding Costs).
- For premium shops: The fixed fee varies by product category, ranging from 1% to 2%.
- For standard retailers: Fixed Fee (including VAT) = 2.992% × (Selling Price - Supplier Funding Costs) and excludes shipping fees.
Voucher Accumulation Fee
Accumulated vouchers are a form of co-sponsorship between Lazada and sellers during large-scale promotional events. These programs help customers make purchase decisions faster and increase sales potential for the shop.
The accumulated voucher fee is the cost that sellers need to cover to organize promotional events with Lazada. The accumulated voucher fee for sellers = accumulated vouchers minus the accumulated vouchers sponsored by Lazada.
Shipping Fees
Shipping fees are the costs incurred for delivering an order to the buyer. Shipping fees consist of two types: fees paid by the buyer and fees collected by Lazada:
- Shipping Fees Paid by the Buyer: This is the portion of the shipping cost that the customer will pay to the seller when the order is successfully delivered, after deducting any shipping fee discounts.
- Shipping Fees Collected by Lazada: This is the portion of the shipping cost that the seller will pay to the shipping provider when the order is successfully delivered. This fee is directly deducted from the seller's revenue.
Shipping fees are calculated based on two factors:
- Actual Weight: The real weight of the package.
- Chargeable Weight: The weight used for billing, based on the dimensions of the goods. The formula is: Chargeable Weight (CW) = (Length * Width * Height) / 6000.
The shipping fee is calculated based on the higher value. For example, if the chargeable weight is greater than the actual weight, the order will be billed based on the chargeable weight.
FBL Fees (Fulfillment By Lazada)
FBL fees are applicable when you use Lazada's warehousing services and include the following types of fees:
- FBL Handling Fee: This fee covers operational activities at the warehouse (e.g., picking, packing). The fixed fee per order is 4,200 VND. Packaging fees for products are as follows: 2,000 VND per small product; 6,000 VND per medium product; 27,000 VND per large product; and 88,200 VND per bulky product. FBL Handling Fee = Fixed fee per order + packaging fee for products.
- FBL Pickup Fee: This is the service fee mentioned above.
- FBL Withdrawal Fee: If the number of products withdrawn is ≤ 5% of the total sales in a month, the withdrawal is free of charge. If the number of withdrawn products is > 5% of the total sales in a month, a fee of 3,400 VND per product applies.
- Storage Fee: Calculated using the formula Storage Volume = volume x quantity of products in storage x storage fee rate x 1.1 (VAT). The specific storage fee rates are: Free for storage under 60 days; 342,000 VND for storage between 60 and 150 days; and 1,368,000 VND for storage over 150 days.
Compensation Fees
These are fees that sellers will be reimbursed by Lazada for in cases such as:
- Any fees that were calculated incorrectly.
- System errors that result in incorrect shipping costs.
- Orders that are lost or damaged during transportation.
Marketing Advertising Costs
These are the fees that sellers need to pay related to advertising activities when selling on Lazada, including:
- Promotion Fees for Shop Vouchers: Costs associated with providing discount vouchers to users.
- Flexible Combo Promotion Pricing: The payment rate based on the promotional terms set by the seller for the flexible combo program.
- Sponsored Discovery Fees: Fees for sponsoring product visibility to ensure products appear on the first page of search results or in suggested sections.
- Affiliate Marketing Advertising Fees: Costs incurred for orders created through the Affiliate Marketing Solutions tool.
- Max Cashback Program Service Fees: Fees applicable to shops participating in the Max Cashback program.
Key Points to Avoid Violating Lazada's Selling Policies
When selling on Lazada, it is crucial to understand and adhere to the regulations to avoid violating sales laws. Violations can lead to reduced visibility of your shop or, in severe cases, suspension of your selling privileges. Here are some important points to keep in mind:
- Ensure Stock Availability: Make sure your shop always has stock available for new orders.
- Update Order Status Promptly: Update the status of orders in a timely manner and ensure it reflects the correct status.
- Follow Packaging and Product Quality Standards: Ensure that products are packaged according to regulations and match the description provided.
- Fulfill Warranty Obligations: Provide warranty services to customers as required, and do not delay or refuse warranty claims without a valid reason.
- Adhere to Product Regulations: Do not sell products that do not comply with Lazada's regulations.
Conclusion
Through this article, UpBase has provided you with a comprehensive understanding of the various types of fees on Lazada and how to calculate them. Additionally, we've shared key information to help you avoid violating Lazada's sales regulations. If you need support with operations and sales, please contact UpBase for detailed advice. Thank you for reading!