Lazada is a well-known e-commerce platform in Southeast Asia. When selling products on Lazada, it is crucial to set a reasonable price. This article will introduce the composition and calculation method of Lazada product prices, and give some pricing tips.
1. Composition of Lazada product prices
Lazada product prices are mainly composed of the following parts:
1. Product cost: This includes the purchase price of the goods, transportation costs, and possible losses.
?Purchase price: The price you need to pay to purchase the product, including the supplier’s shipping and taxes.
?Shipping costs: If multiple products share shipping, the shipping costs need to be divided equally among each product.
?Losses: If there are losses during the purchase or transportation process, these costs also need to be taken into account.
In addition, tax rates and policies in different markets may also affect pricing. For example, Lazada charges sellers 1%-4% commission in Vietnam, and this figure is as high as 8%.
2. Shipping costs: When calculating the price of Lazada products, the following factors need to be considered.
?Domestic shipping costs: shipping costs from suppliers to Shenzhen or Yiwu sorting centers.
?International shipping costs: shipping costs from the sorting center to the destination country, and from the destination country to the sorting center.
?Local shipping fee: local delivery fee after arrival in the destination country. These fees may need to be charged by weight or distance. You need to understand the specific charging standards and take them into account in the product cost.
2. Lazada pricing formula
Based on the above components, we can derive the Lazada pricing formula:
Lazada price = product cost + commission + shipping + tariffs + other fees + expected profit
3. Lazada pricing skills
1. Refer to market prices and prices of competing products: When promoting new products, understanding market demand and competitor pricing can help set more reasonable prices. You can track competitor pricing of similar products and other pricing-related factors, such as product quality, brand awareness, etc. This helps to find the positioning of your own products and find a suitable price range.
2. Reserve enough discount space: In order to attract more buyers to the product, you may need to reserve a certain amount of discount space. This can include the price reduction ratio of the product price, as well as the price reduction ratio of the promotional price. These discounts can be displayed in an intuitive way on the promotion page or main picture to increase the intensity and effect of the price reduction. Of course, these discounts will affect your profits, so the price reduction space of the product should be considered in advance when pricing.
3. Use pricing tables cleverly: If you are a merchant with a large number of products on the shelves every day, then using a pricing table tool can help manage product pricing more efficiently. This is actually a pricing template that can be made based on rate tables and formulas. By using the pricing table tool, you can quickly set reasonable prices for products of different specifications and attributes, thereby improving work efficiency.
4. Adjust prices according to market demand and product characteristics: The fluctuation of market demand and the characteristics of the product will also affect your pricing strategy. For example, if the demand for a product is high during a certain period of time, then you may increase the price. On the contrary, if the demand is low, then you may lower the price to attract more buyers. In addition, if your product is highly unique and has a high brand awareness, you may also be able to set a higher price.
5. Consider long-term interests: When setting prices, long-term interests also need to be considered. Although sometimes lowering prices can help sell goods quickly and recover costs, in the long run, too low a price may affect the brand image and profits. Therefore, when setting prices, you need to weigh long-term interests based on your own products and market conditions.
In short, how Lazada gives a product a reasonable price is a complex process that requires consideration of many factors. By carefully analyzing these factors and adopting appropriate pricing strategies, you can improve the competitiveness of your products and gain more sales.