If you sell banned products, counterfeit and infringing products, or fail to deliver on time on the Lazada platform, you will be fined and your account may even be frozen! Let’s take a look at Lazada’s policy on fines for violations.
1. Selling products banned from the platform
SKU status: Online sales
Amount of fine: US$2 per product
2. Selling counterfeit and infringing products
(I) Sellers are found to be selling counterfeit and infringing products
SKU status: Offline
Penalty rules: Fines of up to US$500 until the seller completes retraining (watch videos + pass exams)
Tips to avoid fines: Do not sell counterfeit goods on the Lazada platform; communicate with suppliers, if it is a branded product, please check their authorization letter; purchase products from regular suppliers.
(II) Sellers are blacklisted for selling counterfeit and infringing products
Account status: Terminated
Fine amount: $500
Tips to avoid fines: Do not sell counterfeit products on the Lazada platform multiple times; communicate with suppliers, if it is a branded product, please check their authorization letter; purchase products from regular suppliers.
III. Order cancellation
(I) Sellers cancel orders within 48 hours
Sellers who do not update the order status to “Ready to Ship” within 48 hours and cancel the order by themselves will be fined.
Order status: Seller canceled
Fine amount: $2 per product
Tips to avoid fines: Update inventory levels according to the inventory reserved for Lazada; check and update inventory frequently in the Seller Center.
(II) Sellers do not take action within 48 hours to cause order cancellation
Sellers who neither cancel the order by themselves nor prepare to ship within 48 hours will be fined for order cancellation.
Order status: System canceled
Penalty amount: $5 per product
Tips to avoid fines: Log in to the seller center every two hours to check new orders; if you cannot ship within a certain period of time, please remove the product.
(III) False “Ready to Ship” leads to order cancellation
The seller updates the order status to “Ready to Ship” in the seller center within 48 hours, but the package fails to arrive at the sorting center within 7 days after the order is created, resulting in order cancellation and a fine.
Order status: System canceled
Penalty amount: $5 per product
Tips to avoid fines: If the seller cannot ship within a certain period of time, please remove the product; choose a reliable third-party logistics to deliver the package to the sorting center.
(IV) Order cancellation due to incorrect pricing
Order status: Cancelled by seller/Cancelled by system
Penalty amount: US$5 per product
Tips to avoid fines: Sellers must clearly specify that prices must be set in local currency on each platform; after product cloning, product prices should be checked and updated on each site platform before inventory can be updated and sales can be put online; when updating prices in batches, upload documents to the correct site; sellers randomly check their own stores at the Lazada front desk and sort products by price from low to high; if the price difference is not too large, please try to ship to provide a better customer experience.