In the cross-border e-commerce industry, many people choose to sell their products on Lazada because the Lazada platform performs well in all aspects. If you are optimistic about the Southeast Asian market, then the Lazada platform is an option that cannot be ignored. So, what is the product pricing template on the Lazada platform? The following will be introduced in detail.
Elements of Lazada Pricing Template
The final price of Lazada products depends on the following main factors:
1. Product cost: Product cost includes the cost price of the single product, shared transportation costs, and potential losses.
2. Commission: Lazada will charge sellers a commission based on the goods sold in Vietnam. The commission rate is usually between 1% and 4%, but in some cases, it may be as high as 8%.
3. Shipping: Shipping costs include costs at different stages for Lazada sellers. First, sellers need to send the products to Shenzhen or Yiwu sorting centers, which will incur domestic shipping costs. Then, sending from Lazada’s sorting center to the destination country will incur international shipping costs. Finally, after arriving at the destination country, local delivery is required, which is called local shipping costs. Domestic and international shipping costs are borne by the seller, while local shipping costs are borne by the buyer.
4. Other fees: This includes fees such as value-added tax (VAT) that may be charged in the country of delivery.
5. Expected profit: Sellers usually expect to make a certain unit profit on each product. When pricing products, in addition to considering the above factors, sellers also need to refer to the pricing range of similar products, observe the pricing strategies of competitors, and check the product’s detail page as a reference standard for pricing.
Tips for Lazada Pricing
In order to successfully price products on the Lazada platform, here are some useful tips:
Reference to market prices and competitive products: Especially when launching new products, sellers can attract more buyers by setting competitive prices. To do this, sellers need to keep a close eye on competitor product prices and ensure that their own prices are attractive.
Consider different competitors: Competitors can be divided into three categories, including competitors within Lazada, competitors on similar platform sites, and physical retail stores. Understanding the pricing strategies of different competitors can help sellers make smart pricing decisions.
Leave room for discounts: When setting prices, sellers should take into account that they may need to offer discounts or promotions, so they need to leave some room for discounts on the initial price. This helps attract more buyers and increase sales.
Use the pricing table tool: If you have a large number of items on your store, it is wise to use the pricing table tool. This tool can set prices based on rate tables and formulas to improve efficiency.
By understanding Lazada’s pricing templates and adopting the above tips, sellers can better control costs, set competitive prices, and succeed on the Lazada platform. Whether you are a first-timer or an experienced seller, understanding these elements and tips will help you achieve better sales results on Lazada.