Lazada, as a popular e-commerce platform, has attracted countless sellers to join. For these sellers, it is crucial to understand the calculation method of LGS shipping fees for Lazada stores. However, many people are still not very clear about how LGS shipping fees are calculated and the benefits they bring. In this article, we will take a deep look at LGS shipping fees, including its definition, calculation method, and the many advantages that sellers who adopt LGS can enjoy.
1. The concept and calculation method of LGS shipping fees.
LGS shipping fees, full name Last-Mile Global Shipping, refer to the shipping fees incurred when the package is delivered from the sorting center to the buyer. Unlike other logistics services, LGS shipping fees cover a variety of situations such as package delivery failure and return. When the seller’s order status in the Lazada Seller Center is displayed as “appropriate investment”, the Lazada platform will charge LGS logistics shipping fees. It should be noted that the platform will not refund the corresponding shipping fees when the package fails to be delivered or is returned.
The calculation method of LGS shipping fees is relatively simple, calculated by actual weight or volume weight, whichever is greater. Specifically, the weight is the sum of the length, width and height of the package, divided by 6000, in centimeters. When determining the weight, the seller does not round up, but rounds up.
For sellers, understanding this calculation method is crucial to setting reasonable prices and reducing operating costs. Therefore, before entering Lazada, sellers must understand in detail how LGS shipping fees are calculated to better plan their operating strategies.
Second, the conditions for using LGS shipping fees.
To use LGS for delivery, the package must meet certain conditions, including:
A. Weight limit: The weight of the package must not exceed 20KG.
B. Volume limit: The sum of the length + width + height of the package must not exceed 300CM.
C. Negotiate to cancel restricted product orders: Sellers need to negotiate with buyers to cancel restricted product orders to avoid being intercepted and cancelled by the platform.
Ensuring that the package meets these conditions can be delivered more smoothly using LGS, improving customer experience and order management efficiency.
3. Benefits of LGS freight.
Adopting LGS logistics services brings many benefits, allowing sellers to more easily control logistics, improve customer satisfaction, and effectively reduce logistics costs. The following are some aspects that sellers can benefit from:
1. Point-to-point logistics solutions, easy control throughout the process: LGS logistics provides a point-to-point logistics solution, sellers can easily control the transportation process of goods throughout the process and improve operational efficiency.
2. Shorten delivery time: Using LGS, sellers’ goods can be sent directly every day, which greatly shortens the delivery time. Generally, the goods can be delivered within 10 days, which improves the timeliness of orders.
3. Reduce logistics costs: LGS unifies freight and local logistics, reducing sellers’ logistics costs. At the same time, internal sorting management is implemented for delivery and receipt, which improves the controllability of orders and helps capital turnover.
4. Flexible management method: LGS adopts a modular approach, which can manage different partners more flexibly and on a large scale to cope with high and low peaks and other unknown situations. This enables sellers to better respond to market changes and demand fluctuations.
5. Reduce order cancellation rate and package loss:
Higher delivery success rate.
Lower order cancellation rate/delivery failure rate.
6. Sales growth:
Shorten delivery time, improve customer satisfaction (NPS) and store rating.
Customers can filter by “shipping time”. The shorter the product delivery time, the higher the visibility.
Sellers using Lazada Global Logistics Solution (LGS) can participate in specific promotions, such as limited-time promotions, to increase sales.
In summary, understanding LGS shipping costs and their advantages is crucial for sellers operating on the Lazada platform. By making reasonable use of LGS logistics services, sellers can improve operational efficiency, reduce logistics costs, increase sales, and create more business opportunities for their stores. Therefore, for sellers who are planning to settle in or are already operating in Lazada, in-depth understanding and full use of LGS shipping costs will become an important part of improving competitiveness.