The booming e-commerce industry has attracted more and more merchants to join the industry, and when choosing a platform, many people first consider profits. There is a common view that the Lazada platform has relatively low profits, especially compared with platforms such as Amazon. However, in reality, how high the profit of opening a store on the Lazada platform is depends mainly on whether the seller can effectively control costs.
1. The main cost expenditure of opening a Lazada store.
1. Logistics costs: This is a relatively high cost, usually accounting for about 25%-30% of the total cost.
2. The cost of the product itself: Whether it is bulk distribution or selected brands, the manufacturing cost of the product is one of the main expenses.
3. Platform transaction commission: For each successful transaction, the platform will charge a transaction commission of 1%-4%.
4. Value-added tax GST: The value-added tax rate in Southeast Asian countries is between 6%-12%.
5. Other fees: Including withdrawal fees, platform account rates, etc.
Sellers must fully consider the above costs when setting prices to ensure that the products have a high profit margin. When discussing how to increase the profits of Lazada products, the following three aspects are worthy of attention.
Second, suggestions for increasing the profits of Lazada stores.
1. Cooperate with high-quality suppliers.
Cooperating with high-quality suppliers may have higher costs, but the product quality is more guaranteed. Consumers’ good user experience will increase the repurchase rate, thereby increasing overall profits. Quality products not only help to establish a good reputation, but also stand out in a highly competitive market.
2. Sell branded products.
Consumers in Southeast Asia are mainly young people, who are more inclined to buy branded products. Therefore, registering trademarks, obtaining brand authorization, and selling branded products can bring higher profits. The brand effect not only increases the value of the product itself, but also creates a larger market share for sellers.
3. Reasonable pricing.
Compared with low-price competition, reasonable pricing can ensure that products and stores obtain higher profits. Price wars may lead to a decline in profits, especially for novice sellers, which will make operations more passive. Therefore, through reasonable pricing, sellers can provide better products and services, attract more buyers, and increase store profits.
Summary:
When choosing the Lazada platform to open a store, although people may worry about low profits, it is entirely possible for sellers to make considerable profits on this platform through strategies such as mastering costs, cooperating with high-quality suppliers, selling branded products, and reasonable pricing. Therefore, sellers should, on the premise of fully understanding the market rules, seize the business opportunities provided by the Lazada platform through meticulous operations and reasonable strategies to achieve greater business success.