Have you ever thought of selling on Lazada? Well, try it. Fact is, there are now thousands of local microsellers, apart from the corporate sellers and big brands out there, who are realizing their business startups with Lazada. It’s worth the try then.
As a Lazada marketplace microseller myself, I should say that there is a big profit-making opportunity selling online on the giant e-commerce platform. Shopee, its rival, is also a good one. Both have the plus and minus for online shoppers and sellers. In this article though, I’ll give you the seven key benefits of selling on Lazada based on my experience as a microseller for almost a year on the platform:
[1] Bigger Market Size. You can transform your bricks-and-mortar shop into a complete digital store that caters to thousands, or even millions, of shoppers across the Philippine archipelago.
Plus, if you can manage to have warehouses in other Asian countries such as China and Singapore, you can also sell your merchandise overseas. Take note that Lazada is a southeast asian leader in e-commerce, and it continuously expands its regional market reach.
In my experience, it only took overnight before my first uploaded product got ordered, and it was shipped to Zamboanga City (from Metro Manila), one of the farthest destinations in the Philippines that Lazada can reach. That defines Lazada’s local market reach.
[2] Easy Store Management. Lazada online platform is designed for both online shoppers and sellers. On the backend, sellers manage their stores with all the available tools and features – stocks and order management, marketing and promotions, sales, finances, and many more.
It takes just a few minutes before one can fully set up an online store. Sellers can always check courses at Lazada University to improve storefronts, sales, and general business operations.
When I signed up for Lazada, I was clueless about almost everything. I had to check some courses at Lazada University, watching tutorial videos and browsing through presentations. Even now, I still check these courses from time to time to streamline my microbusiness operations.
[3] Seller Support. Lazada values its sellers, marketplace and corporate sellers alike, as much as it values millions of shoppers on the platform. While shoppers can always reach out for customer support, sellers also have dedicated channels for platform and logistical concerns.
Sellers are also updated via a private Facebook page managed by Lazada representatives. With this active channel, sellers also share their experiences particularly for the sake of the newbies and even communicate concerns to proper Lazada departments and authorities.
In months of selling on Lazada, I also experienced some tech and logistical issues. Raising these through chat support, I got immediate solutions. I’ve also been actively involved in meaningful discussions among sellers in the social media page.
[4] Small Capitalization. While Lazada itself is a multinational e-commerce platform with a huge capitalization, sellers can always start with a small capital or a few items. There is no minimum number of items and stocks.
Microsellers, or marketplace sellers, may start a store with just one item and a few stocks. However, sales will really be limited given the online exposure and the impression received from the online shoppers. It is highly suggested then to keep the product assortment growing through the weeks.
Yes, I started with one experimental product, and as it was purchased just overnight, I have been adding more and more items. Currently, I have almost fifty under a general category. The more related items I have, the higher the increase in shoppers’ basket size.
[5] Minimal Platform Fees. Unless you avail promotional services, Lazada platform fees stay at an average of 2 percent (i.e., if your gross sales revenue including the shipping fee shouldered by the buyer is 100PHP, then Lazada will collect a minimal platform fee or around PHP2). In addition, microsellers also pay additional 1 percent to the cooperative for all the taxation and other services.
This is not bad as compared to other platforms that collect almost 10 percent for the platform use and other tax-related fees. After all, there is a big seller advantage in Lazada taking over the logistics, marketing, and financial transactions.
Sellers may be challenged keeping the prices competitive while securing profits. It’s the same thing I had when I was just starting. But soon I realized that it’s more than the price, rather the value and trust. As long as I keep the product and store ratings good, there will always be buyers.
[6] Cooperative Membership. Microsellers enjoy lower fees and legitimate business operations by being a member of a cooperative, the Online Micro Sellers Marketing Cooperative. It is the community arm of Lazada that caters to marketplace sellers who are all in the transition to being corporate sellers.
Services offered by the cooperative include but not limited to management of weekly payouts, issuance of official receipts, and communication with Lazada.
All microsellers are supposed to be members of the cooperative, hence the payout deduction of 1 percent and the required PMES and membership documents. I completed these requirements and became an official member weeks after my Lazada seller registration.
[7] Centralized Logistics. Lazada has its own logistics subsidiary, LEX. However, there are third-party logistics partners for the shipping of the parcels to various regions beyond their operations. Sellers have two options for the handling of parcels — pickup or drop off.
For sellers who usually ship more than 20 parcels daily enjoy the pick-up services, while others simply drop them off the partner stations like the convenience stores and gasoline stations. Although, there have been issues related to SLAs and failed pickups, Lazada takes it seriously by continuously addressing these and finding ways to streamline operations, especially during sale seasons.
Honestly, that flexibility is what I really like about being a Lazada seller. I can manage my business on the background of my day job. I pack orders at night and drop them off at the nearby convenience store during breaks, mostly after lunch.
In the present, I am but happy fulfilling a daily average of 10 orders.
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