You’ve dug into a long list of articles, watched so many YouTube videos, and trawled through forums and online threads. Now the only thing left is the action bit – where you fully immerse yourself into the business and become a successful Lazada seller.
You’ve already pumped in so many hours of research, invested a lot of your hard-earned money. And now you’re nervous. We get it – been there, done that (got the T-shirt).
What’s your goal?
To become a successful Lazada seller, of course. You want to rank high, rake in as much profit as you possibly can, and become the owner of a successful online business.
In short, you’re here for some pointers on how to become a top-seller on Lazada.
And well, my friend, that’s what we plan to help you out with, in this article today.
A Brief History of Lazada – the Amazon of Southeast Asia
Lazada was founded in 2012. They started by opening their operations in Thailand, Vietnam, Malaysia, and the Philippines in March 2012.
Come June that same year, and they would expand by opening their first fulfilment centre in Thailand. But it was until May 2014 that they decided to launch Lazada.sg in Singapore.
Worth mentioning is that Lazada has been the leading or most popular ecommerce platform in Singapore, until recently when Qoo10 ousted them. They now sit in the second position, with Zalora and the Carousell hot on their heels.
Who Owns Lazada?
Lazada was founded by a Singapore-based company called Rocket Internet, in 2012. However, it would later on be sold to Alibaba Group, a Chinese company that’s now the current owner. This Chinese company also happens to own some of the leading ecommerce platforms in China, including Tmall.com and Taobao.com.
Becoming a seller on Lazada is an achievement in itself. That’s because you’ll be selling with one of the most competitive brands in the country.
According to a recent valuation, Lazada commands more than 43% of online shoppers in Southeast Asia. This comes after Alibaba bought the platform in 2016. A year later, Alibaba would go on to invest a further $1 million in the business.
This would see to it that they immediately start dominating the ecommerce space in the six major Southeast Asian countries.
- Lazada is the second most popular ecommerce platform in Singapore. Other popular shopping sites in the country include Qoo10, Shopee, and Zalora.
- Lazada attracts more than 52 million visitors per month, and the number is uniformly growing. You can, therefore, expect it to get even bigger with time.
- There over 300 SKUs on the platform, with a majority of them dealing in 3C products, fashion apparel, home appliances, toys, sports equipment, and so forth.
- Lazada is one of the most popular shopping platforms in the Philippines.
- They have less requirement for registering as a seller. This makes it one of the easiest platforms to open.
- In March 2018, Alibaba decided to re-invest in the platform by pumping in a further $2 billion.
What Can You Sell on Lazada?
Lazada has so many product niches to choose from if you’re aspiring to sell with them. Examples include toys, beauty products, home décor, and electronics. However, the most popular categories are fashion, electronics, and home wear.
You must also keep in mind that there’s a list of items that you’re not allowed to sell on Lazada, and they include:
Food items that are not complying with the policies and regulations set by Food Regulations boards.
- Harmful or duplicate software
- Any sort of weapon
- Telecommunication equipment
- Anything that portrays vulgarity
- Obscene images
- Toxic chemicals, acid, or gases
- Anything illegal
If you list any of the items we’ve mentioned, your account will be banned from selling any item. You might even be suspended or completely blocked from Lazada’s seller account.
How to Start Selling on Lazada?
On average, Lazada attracts more than 184 million eyeballs from all across the region in a day. This makes it one of the most profitable platforms to sell on. The only problem is that their platform isn’t that attractive and comprehensible to sellers.
Conditions for Selling on Lazada
Before you register an account on Lazada, there are a few things that you must get in order. This applies to all new sellers.
Here are essential conditions to those looking to start selling on Lazada:
- Have a business license
- Have a Payoneer card. This card must be registered as a business. It’s only after you’ve successfully managed to dock your Payoneer account in Lazada’s seller centre account that you may be allowed to go live.
- Have a dedicated phone number and email that you’ll use to register the account
- Have prior ecommerce experience with sites such as Amazon, eBay, or AliExpress. This will make it easier for you to understand the platform.
Getting Approved as a Seller on Lazada
There are two ways you can be approved as a seller with Lazada. You must either have a physical location in one of the six countries or have your products delivered and stored in one of their distribution hubs.
However, the process gets a bit convoluted if you’re a foreigner looking to test the waters with the Asian market.
It’s to be understood that Lazada’s distribution process is the most efficient option. There are costs to be incurred though. The first one is the cost of housing your products, which goes for about $3 per day per meter cubic of the products stored.
The second one is the cost of handling your products, which ranges from $0.69 to $2.99 per product or item.
The Process of Registering a Seller Account on Lazada
- Head over to their official Lazada.com.sg website, and click on “sell on Lazada.”
- In the page that opens up, click on “become a seller now.”
- Fill in all the requested information to set up your seller account.
- After submitting the application form, you’ll be provided with a contract. Usually, it takes a while before your application is approved. In the meantime, you can use this time to apply for a business p-card.
- After you receive the contract, you can go ahead and sign it before sending it back.
- Ta-da! You have successfully registered as a seller on Lazada. To confirm everything, you’ll be emailed with details on how to log into the account and change your password. Some of the emails will bear training materials and information on how to register your p-card.
Just activating your Lazada sellers account and you’re good to go.
Locating Your Products at Lazada
After you’ve activated your account, you’ll be directed at Lazada’s marketplace where you can upload your product listing. The process of managing and using Lazada’s marketplace is pretty simple and straightforward. You should have no difficulty understanding anything on the platform.
How to Upload Your Products on Lazada
Uploading your products on Lazada is a no-brainer. Remember the products can be uploaded one at a time or in large quantity at a go.
Here are the steps to follow when uploading the products one by one:
- Navigate to the top bar and click on Products.
- From the dropdown menu, click on “Add Products.”
- Choose a category that best describes your product. You have to be keen on this one to avoid placing your products in a wrong category.
- Fill in all the requested details, including your product description, pricing, images, and other details.
Here are the steps to follow to upload the product in large quantity at once:
- Navigate to the top bar section and click on products.
- From the dropdown menu, click on “Add Products.”
- The next menu item to click on is “Import Products.”
- Go to the “download template” section and choose a template category.
- In the templates, select “product category” level 2.
- Proceed to make an excel template and save it once done.
- You can now upload the template by clicking on the “import section.”
Reselling Products on Lazada
With Lazada, you have the opportunity to drop ship items and resell it directly from the supplier. Lazada will handle everything, including the shipping part for you. You get to choose a product to sell and then find a supplier. Next, list the product on Lazada and let them handle the rest.
Use this guide to find out more about drop shipping and how to conduct it in Singapore.
Lazada Order Fulfilment
Lazada has two primary delivery options that you’ll be asked to choose from:
- Lazada Global Shipping
- Self-managed delivery
With option A, Lazada handles everything on your behalf. It’s the most interesting and less stressful of the two options.
Option B, on the other hand, is exactly as it says – you manage the warehousing, and the deliveries yourself, and only use the platform as a landing page.
Lazada Seller Fee
Unlike many marketplaces, Lazada has no monthly or fixed charges for creating an account with them or listing your products. Instead, they only charge you a 2% payment fee and 1 to 4% cross-border order value commission.
Here’s what makes Lazada unique:
- No setup fees
- Low sales commission (2%)
- No monthly charges
- Low cross-border value commission (1 to 4%)
How to Become a Top Seller on Lazada
Your business doesn’t end with you creating your seller account and listing your products. You have to run with the business like a real professional. It all starts with the products you choose to your marketing strategy and your ability to track everything and re-calibrate.
How to Choose the Best Product to Sell on Lazada
If you already have a stellar product lined up, you’re allowed to skip this part for the next step.
However, if you’re like most people reading this, then you’re probably worried about finding that one right product.
This is not an overnight process. It takes time and a lot of patience to go through all the available product options and settle on only a few selections.
Rather than go into detail, we’d like to point you to an article we wrote earlier on about this.
However, it all boils down to choosing a product that’s in high demand and has less competition.
Expert Tips on How to be a Top Seller on Lazada
To be a successful entrepreneur in any business, you have to keep the following in mind:
- Before you get into any line of business, you have to study your target market and understand it fully.
- Conceptualise your brand.
- Focus on building and retaining your customers.
You also have to stay abreast on the latest tech and marketing trends.
Here’s a step-by-step guide that we prepared to help you steer your business towards success:
Understand the Market and What it Really Wants
Ask any expert for some advice on how to succeed as an online seller, and they’ll be quick to suggest that you work towards satisfying a need. The first step to creating a successful business online is ensuring there’s a sure demand for it.
You first have to embark on a thorough market study. Have some goals in place, and then proceed to find who your target market is. Take your time to study this market and make sure that you understand it well.
After you’ve pinpointed these, you can go ahead and gather actual data. You’re also allowed to enlist market research professionals if possible. Be sure to conduct your own survey or focus group discussions (whether online or in the meat world).
Where possible, give your participants some free samples of your products or services. Also, while starting, forget about profits and instead focus on making the customer happy. Your second priority should be your team of employees. Shareholders should come in third as you closely follow.
Create, Design, and Standout
Think of the first impression your products or business, in general, will create. Of course, branding is broad, and one common mistake new online MSMEs make is focusing on their business’ aesthetics while ignoring the message they’re communicating.
Here are some guidelines to help you out with branding your business:
- Brand/Products/Service name: Your business name matters a great deal. You’re not just choosing a name, but settling for a name that best describes what you stand for. The name must be catchy, and a true representation of everything you stand for. Here’s an article to help you out with choosing the right name for your business.
- Logo: You have to come up with the idea of a logo before you bring yourself to the idea of consulting an artist. What symbol do you think best represents your company? What colour palette sets the right mood? Listing all these will help you come up with the perfect visual elements for your company. Creating a design rationale will also help you process why certain visual elements are perfect for your business or company.
- Brand Personality: Your brand must have a personality. You can begin by choosing a language or character traits that best resonates with your target audience. The personality you choosing must enhance the experience of shopping with you.
Plan everything. Plan how you’ll package your brand and interact with your customers. The goal should be to create a memorable impression. Remember that you’re not only doing this to create a memorable impression, but to also establish your business as the go-to place for shopping for a particular type of products.
You’re simply working towards finding out about what appeals to your target market better so you can position yourself accordingly.
It’s possible to do all this without a big budget. The first thing you need is a more authentic and compelling social media presence. You don’t need a budget to pull this off. You just have to be consistent with the image you put out there – on your website, online shop, and customer service hub.
Perform Competitor Research and Analysis
You have to find out what forces you’re up against. What market are your competitors targeting, and what strategies are they using? You want to learn from their mistakes and come up with selling ideas that you’re sure will give you an edge. There’s no harm in buying some of your competitors’ products to understand their quality. Find out about their marketing strategies and what they’re doing to attract new customers.
Learn about their return policies, after-sale services, and everything there’s to know about them. Find out if they have a website of their own? Their level of engagement on social media and so on. You can even try buying the same product from the marketplace and their website and note the difference in their selling process.
Adopt a Multi-Channel Selling Program
You’re not restricted to only selling your products on a single channel. You can list your product with as many marketplaces as you can for a chance to sell even more products and increase your profitability. Use this strategy to expand your market and reach more customers.
Remember that every marketplace will only be focusing on a particular group of buyers or community. By listing your products with multiple of them, you’ll be increasing your chances of reaching an even bigger audience. So, after you’ve listed your products with Lazada, don’t be afraid to also list it with the likes of Qoo10, Carousel, and so on.
Build a Bigger Business
There are three ways to grow your business: i) increasing your customer value, ii) reaching more customers, and iii) increasing conversions.
Regardless of what way you choose, it all boils down to investing in your business. You can start by investing in platforms that can help you expand your market. You also have to invest in new product development and sourcing. In other words, you must dedicate a few of your resources and time to making your product look better.
Work on your product image, post good product content, and focus on attracting positive reviews, and you’d be halfway there.
At the same time, you want to invest in how you interact with your customers and prospects. You want to make them feel better and happier.
Manage Your Customers’ Feedback
Many of the customers you’ll attract will be relying on the reviews left behind by other customers. Don’t just assume, always go through the feedback left behind by each customer, whether positive or negative and comment on it.
You must ensure that you maintain a good product rating and business standing.
Utilise Discounts and Product Promotions at the Early Stage of Launching Your Business
Remember: you’re starting your business from the ground up. You have no reviews, no sales history, no nothing. You’re building your business from scratch, and you’re surely going to have a hard time getting people to trust you.
The only way to overcome this and make your business visible from the word go is by offering a product discount. Have an offer that your customers won’t resist and work from there.
Make Sure Your Inventory is Up to Date
You have to make sure your inventory is up to date to avoid over-selling. Two things can happen if you’re not proactively managing your inventory:
- There’s the Risk of Overselling: You might oversell a product and be forced to cancel some of the orders, thus triggering negative reviews.
- There’s the Risk of your Product Selling Out: Your product listing might sell out and disappear from the search results. This will also affect your search rank, thus lowering your number of sales.
Optimise Your Product Listing
Learn to write interesting and easy-to-understand product descriptions. Remember, your customers are in no position to interact with your products physically. The only thing they have between them and getting a feel of how it works is your product descriptions.
You have to find a way to trigger their imagination. You have to fulfil their fantasies and convince them that that’s what they need. The easiest way to go about it is to imagine all the possible ways that the product will fulfil their wants and needs.
Lazada SEO Optimisation
Lazada has a search function that works like any other search engine out there. Their algorithm can crawl keywords and match them to customers’ queries. Meaning, you have a better chance of pushing your prospects further down the marketing funnel by working on your product descriptions. This also increases the chances of your potential customers finding you.
Add multiple product images, product highlights, videos, and product descriptions to increase the chances of your potential customers adding your products to their shopping carts. Be sure to showcase any interesting feature of your products in a manner that’s both interesting and easy to comprehend.
Key SEO Tips for Lazada
Here are a few key tips for working on your Lazada SEO:
- Lazada’s search function is designed to only pick product name. It’s, therefore, important to ensure your product title also includes the name of your product.
- Your product title must also include the relevant keywords your potential customers might use to search for your products.
For instance, if you’re selling recumbent bikes and you use “Hiram 3 Recumbent Bike’, chances are your product won’t rank that high in the search results that show.
If a customer searches for “recumbent bike for adults,” your product listing may not appear in the search results at all.
To play safe, you have to do some research on the exact words your customers use. For inspiration, be sure to spy on your competitors and find out what words they have included in their product titles. Look around for best-performing ones and take a cue from them.
Don’t just be comfortable with selling a single product. Have a diverse selection of them for your customers can choose from. Look around for complementary products.
If a customer is impressed enough after buying one of your products, the odds are high that they’ll be coming back for your complementary products.
The point is: if you’re certain that a customer might be interested in a particular item after buying one of your products, be sure to stock it ahead of time.
For instance, a customer that purchases a skincare product might also be interested in a facial cleanser. Just don’t make them look elsewhere for the product when you can easily stock it up and become a one-stop-shop for anything facial.
You have to bully your way to the top instead of waiting for some manna to fall on you. SEO can help you drive sales, but it’s not enough.
Remember, you’re in this for business. You, therefore, have to view Lazada as an investment. Spend on PPC and push your products to rank on Google.
If you understand the value of working towards the long-term success of your business, you’ll have no problem with setting aside some money for marketing.
Reinvest Everything in the Business
There’s great reward in delayed gratification. You don’t have to pocket everything you generate from your business.
As you’re struggling to bring your business up and grow it into something you can be proud of, you don’t have to take anything from it. Give your business enough time to grow and become something worthwhile.
100% of the profits that you make can be slid back into the business – more products, more marketing. Push it to grow.
The reason? Lazada is a race. More and more marketers are flooding the market – that means more competition for you.
You have to gain an edge really fast, and the only way to get there is by aggressively fighting for your way to the top.
You have to launch more and push faster and more aggressively. You might not make any serious money at present and be sure to drive enormous profits in the future.
Once you understand the numbers and start tracking them, you should be focused on how you’re going to improve them. Here are the questions to ask yourself:
- Will changing my product title improve my search ranking? An A/B test may come in handy.
- Would I have a better conversion if I used a different product image?
- How can I increase views?
- How can I increase the number of views that are converting to sales?
- How do I increase the number of buyers that are leaving 5-star reviews behind?
- How do I prevent some of the issues raised by some customers from ever happening again?
- What structure can I create that will enable me to allow someone else to run the business for me in case I want to vacation?
Strategies for Repeat Customers on Lazada
- Never compromise on the quality of products that you sell: That way, you can be sure that your customer will re-order the product or at least refer it to one of their friends and families.
- Great Customer Service: Good for inspiring confidence and getting more customers to trust in your product offering or in any word that you have to say.
- Build an Email List: When a visitor lands on your site, don’t let them leave without first entering your subscription list. This also applies to customers that buy from you. Get their email addresses so that you can follow them up and inform them about your new product offerings.
- Offer Coupon: This is a nice incentive to get your customers to reorder.
- Retargeting: Come up with a retargeting strategy that can get customers back to your site.
- Sell related products: Don’t just focus on selling a product. Focus on building a brand instead. Your customers should start associating your products with certain good qualities.
Convert Better. Rank Higher. Boost Sales
Copywriters that sell on Lazada understand this. They understand the enormous power that the pen has over sales.
Consider this, Lazada wants sales. And they’ll reward any seller that converts. Boosting your conversion rate by even 1% means more sales for you. And the more sales you get, the better you’re ranked—more traffic for you, and more success to follow.
So, fall in love with copywriting, and never compromise on its ability to influence sales.
Lazada Copywriting Tips
- Focus on Benefits and Go Slow on Features: Don’t bother explaining the features. Instead, focus on how much a user is likely to benefit from using the product. What value does the product bring to the customer’s life? Does it make life easier? Enhance something in their life?
- Simplicity Sells: Don’t overcomplicate things. Your prospects must understand your offer if you want them to buy it.
- Maximise Keyword Traffic: Strategize keywords to boost your ranking. Do some research and identify all the keywords your customers use to search for your products.
- Picture an Ideal Customer: You’re not trying to sell to everyone. You have an ideal customer that you’d like to sell to. Create their personas. What’s their gender, age range, interests, and so on?
- Understand What Your Customers Want: Why would any of your customers want to buy your product? How are they bound to benefit from using it?
- Anticipate Customer Questions: Figure out how you’re going to squash any doubt your customers may have when buying your product. Be sure to include a FAQ section that addresses some of these concerns.
Price Comparison with Other Ecommerce Platforms
Tmall Global is the most expensive of the bunch. New sellers have to part away with a cool $10, 000 to be allowed to sell on the platform.
Amazon, which operates with a different model, charges $40 per month. They also have per-item selling fees.
Lazada might start charging their sellers in the future when their userbase starts to grow. But until then, be sure to take advantage of their lower upfront fees.
Lazada is a leading ecommerce marketplace in Singapore. Their option for cross-border selling makes them very attractive to foreign sellers that want to test out a new market. We urge you to follow the steps we’ve provided, and watch as you become one of Lazada’s top sellers.