How To Sell In Lazada: 7 Beginner Tips

In a society primarily driven by consumerism, almost everybody spends a significant amount of money just to buy the latest products. Some can’t really afford to do so but still make it a priority over everything else.

Maybe it’s the calming satisfaction consumers get in finally acquiring the object of their desires. Instead of getting stuck along with everyone else buying products that are not really necessary, consider using those funds to start an e-commerce business.

Starting your own online business by selling products on an e-commerce marketplace is easier than you might think. The Lazada platform is the best place to do just that. Lazada is to Southeast Asia as Amazon is to the United States.

Lazada has dominated the southeast Asian market, and it would make more sense to start your business in a company that local people flock to for their online purchases.

Steps to start selling on Lazada

Thankfully, now more than ever before, Lazada is encouraging new sellers to sign up on their platform and begin selling products through their channel.

Some would be entrepreneurs would get intimidated by the knowledge that there are too many requirements before one can start selling on Lazada. However, over the years, the requirements for selling on Lazada has evolved to fit the sellers business needs.

Create a business plan

This step is essential for any new business. As the saying goes, failing to plan is planning to fail. This is true for any business endeavour. The business plan does not have to be so elaborate that it takes too much time to prepare.

Create a simple ten step plan that can help guide the daily operations of your new business. Compute for all the incurred costs of your business and what the estimated profit will be per sale of a specific product.

Perform this same calculation for all the various products that you will be selling on the platform. List the various marketing strategies that will be used to launch your different products. Take all incurred costs into account such as Lazada’s sales, delivery or fulfilment fees when computing for your bottom line.

The business plan should also contain sales targets for each product. Be aware of each product’s order lead times to ensure your e-commerce business maintains good inventory health.

Registering as a seller on Lazada

Lazada Philippines offers two tiers of memberships for sellers. For startups, they provide the individual seller account which does not require a business permit. The individual seller account is geared towards new sellers that are just starting their online business.

All that’s needed to sign up as an individual seller is one valid government ID, products to sell of course and banking information for you to get paid by Lazada. Fund transfers are made to your bank every two weeks.

The second membership option for sellers is the company account. This tier does require a business permit and is geared toward established businesses looking to sell their wares online as well.

While startups can undoubtedly choose to sign up for a corporate account, just be prepared to submit all the necessary documents to start your online store.

Company sellers need a certificate of registration of their business from the B.I.R, D.T.I permit, Mayor’s business permit, collection receipts and sales invoices.

Sourcing the perfect product

If you have exclusive access to products that are being made locally, then that would be ideal. The e-commerce business would have little to no competition selling a unique product.

In case that is not an option then you will have to perform adequate research and choose a product niche to get into. A product niche is a type of product within a product category.

Doing so will allow your startup business to sell more products to shoppers interested in buying more items within that niche. You can decide to sell baby items like clothes, toys or get into the health niche or women’s clothing.

Choose a niche which you feel passionate about because if you are not happy with the products, you are selling, how can you make other people that buy your products happy?

Selecting the perfect product to sell can be a challenging process.

Some sellers want to get on the bandwagon and just sell the best selling most popular products on the market. That can indeed work, but the amount of competition your startup will have to face will be somewhat troublesome.

Startups can source products from various wholesale B2B marketplaces such as Alibaba.com or Made-in-china.com. These two are among the most popular and most dependable websites to source your product from.

When viewing products on these sites, the product details, price and M.O.Q(Minimum Order Quantity) is listed for your reference.

Choose manufacturers compared to suppliers, manufacturers are companies that make the product themselves so buying from them would be cheaper compared to buying from a 3rd party supplier or middleman.

Browse the different products on these sites, check how much they are being sold on Lazada and make a shortlist of at least twenty or thirty products. Contact the manufacturer and ask for a sample.

Selecting a manufacturer

Only deal with manufacturers that have been doing business for at least three years or more. Another crucial filter is to choose sellers that have these badges, gold supplier, trade assurance and onsite check.

These badges are earned from the quality inspection team of Alibaba and assures these manufacturers are who they say they are.

Most manufacturers will send a sample for free, but of course, you would need to cover the shipping cost. Inspect the samples you receive and choose the best one.

Take note of the second best as a backup supplier in case you run into problems with your first choice. Then process a bulk order and have it shipped to you directly or you can also sign up for FBL(Fulfilled By Lazada).

FBL is a service where Lazada provides, storage, picks and processes each order for you in exchange of a fulfilment fee. Lazada has strict rules on order packaging and processing which all sellers must abide.

List and market your product

As soon as you receive your products you can immediately list or post your product on Lazada. The product listing where buyers will see all the information about the product. It is mostly the sales spiel for the product you are trying to sell.

The first step to a listing is to create a title for the product. Make the title as complete as possible. Indicate the brand, size, colour, product line, key feature and quantity if more than one.

Then in the product description field, enter all physical and technical specifications of the product. Compose bullet points that provide the different features of the product.

The bullet points would be the final sales spiel to the shopper so make sure to highlight the various advantages and benefits of owning your particular product.

After signing up as a seller on Lazada, you are provided access to seller central tools similar to Amazon inventory management tools. These tools allow sellers to manage their products, track orders, track seller ratings and return rates and other vital metrics.

One of the primary tools for a seller is the promotions tab on the inventory management tools. The promotions tab will allow sellers to create PPC(Pay Per Click) campaigns, make product bundles, create seller vouchers or coupons.

Effective marketing will bring your product in front of potential customers. Relying on organic sales is a thing of the past while proper marketing is the wave of the future.

Maximise the tools at your disposal, share the product listing on Facebook and utilise digital marketing plus social media to help grow your small business.

Share coupons or promotions, email marketing, and join Facebook groups that are filled with enthusiasts of your product niche. These are only some of the marketing techniques you can use to launch your products properly.

Maintaining good inventory health

Good inventory health means never running out of stock of sellable product. Keeping track of sales velocity and utilising sales reports to project future sales is essential in making sure your products do not run out of stock.

Learning to maintain good inventory health can be tricky at first, but it is a crucial skill to master.

Knowing order lead times(the time it takes for an order from your supplier to get to you) for each of your products plus setting inventory minimums will provide sellers with enough leeway to make and receive their bulk order without running out of a product.

Most new sellers often fail in this aspect of online selling. Staying on top of your inventory is essential for prosperous e-commerce business in the marketplace.

Provide excellent customer service

Seller ratings are generated when customers review your e-commerce. Customers will rate their shopping experience on your online store and will give your business a number of stars between one to five, with a five-star rating being the best of course.

Maintaining an excellent seller rating needs to be a top priority for any e-commerce business.

Strive always to provide the best customer experience to all your customers. If you lose a customer due to poor product quality or worse poor customer service, then you can rest assured that your seller rating will plummet.

Not only that but the bad reviews by dissatisfied customers will also sabotage future sales from potential customers. Take extra care of your online store’s seller rating, it can mean the difference between the success and failure of your e-commerce business.

Conclusion:

Selling products online is the perfect business for aspiring entrepreneurs. Gone are the days where you need a brick and mortar store to start a retail business.

All you need is the will to begin, minimal capital, the ability to learn new tools which Lazada so generously provides.

Lazada even provides tutorials that walk you through the different tools to help your e-commerce business succeed which will be made available to you immediately after signing up as a seller. Grab this opportunity and ride this growing business trend to success.

Author Bio

Nathan Sharpe is the entrepreneur behind the business blog Biznas. He serves practical business advice and tips to readers. Learning and helping others learn is his passion.

 

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