Sellers must pay attention to the tariff terms of each country when pricing and optimizing products. Currently, tariffs in various countries are levied on sellers based on the declared price of the package. The declared price is calculated as follows.
Declared price = the selling price of the goods in the package displayed at the Lazada front desk on the day minus the seller’s discount (more discounts for multiple items, the coupon does not include Lazada platform coupons)
If the package is declared If the price exceeds the import amount limit of the destination country, it will be intercepted by the sorting center, causing the order to be cancelled. The upper limit of declared price of imported parcels from each country is as follows.
Thailand: 39,000 Baht
Indonesia: 15,000,000 Indonesian Rupiah
Vietnam: 1,000,000 VND (except for some categories, if the seller wants to know which categories are not Restricted, please contact the industry waiter)
Singapore/Philippines/Malaysia: There is no upper limit.
Different pricing strategies
1. Drainage products
In order to bring more traffic to the store and drive the sales of other products in the store, sellers need to List products with price advantages and high cost-effectiveness to attract traffic, and put them on the homepage of the store for exposure. These products can attract buyers to the store to browse products and place orders. In addition, traffic-draining products are also very helpful in accumulating store fans and continuously improving the store’s weight and performance.
Because the main function of traffic-draining products is to attract traffic, sellers should not pursue the profit of a single product when pricing, but should try to keep the price to the lowest price on the platform. The specific price range can refer to the prices of each site. It depends. Sellers can optimize their supply chains and rely on reliable suppliers to provide competitively priced traffic-driving products.
It is recommended that sellers set up at least 20% of low-priced products in their stores. If a product has multiple styles, sellers can set the price of one style 5% to 10% lower than other styles, which can attract traffic and ensure profits.
2. Affordable products
When setting prices for affordable products, sellers need to consider the average price of the product on the Lazada platform. Sellers can compare the prices of similar products through the search results on the Lazada front page. The pricing of affordable products in the store must not only keep the price of similar products at a similar level, but also ensure that the profit of the product meets the seller’s expectations.
3. Profit products
When pricing profit products, there is no need to pursue low prices. Sellers must comprehensively consider the cost issues mentioned in this chapter, and use products higher than those that attract traffic according to their own plans. Price the product based on its profit margin.
In order to increase the sales of profitable products, sellers need to improve the buyer’s experience by ensuring product quality and improving after-sales service levels, and make profitable products into star products in the store. At the same time, sellers need to continuously accumulate receive favorable reviews, optimize the supply chain, and continuously develop new variants to extend the life cycle of profitable products.
In addition, when it comes to the promotion settings of profitable products, it is recommended that sellers set up a single product to have free shipping, and set up full discounts to increase buyers’ desire to purchase. Sellers should also calculate the cost of free shipping and full discounts into the selling price of profitable products.
Through different pricing strategies, sellers can not only bring enough traffic to the store, but also ensure the profit of the store operation.