Onboarding Marketplace Finance

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Sibyl Norris
5 years ago
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1 Onboarding Marketplace Finance

2 Agenda Understanding Lazada Fees Payment Cycle Computation of Payout Shipping Fee Account Statements on Seller Center Tax Invoice Seller Support Questions

3 Definition of key terms Term COD Listing Price Platform Product Description Cash on Delivery The price indicated by the Seller for the sale of goods on Lazada s platform, including GST but excludes any coupons or other unilateral discounts provided by Lazada to Buyers The Lazada s website, lazada.com.my and any other internet domain property or mobile application owned by Lazada An item ordered by the buyer from Lazada s platform

4 Understanding Lazada Fees

5 Understanding Lazada Fees For every order that is fulfilled by Merchants, Lazada charges the following fees on delivery of a product to the customer: Type of fee Definition Calculation Commission fee Shipping fee Payment fee A fee imposed by Lazada for providing the e-commerce platform for sales transaction Amount charged for transporting product from one location to another. Payment gateway fee for prepaid and handling fee imposed by 3PL for COD Listing unit price x Commission rate (Commission fee + 6% GST) 3PL chargeable weight x Lazada rate card (Merchant bears only the first kg, ie RM5.00, GST inclusive) Listing unit price x 2% (Payment fee + 6% GST)

6 Understanding Lazada Fees Penalties Penalty of RM53.00 would be imposed by Lazada for non-compliance of Section 4 of the Marketplace Agreement. The below gives a snapshot of common violations : Type of transaction Definition Calculation Fake Order Status Wrong fulfilment Counterfeit product Order status appears as ready to ship, but the product still not packed and ready to be handed to the shipper Wrong item being delivered to the customer Fake product, which is an imitation of original product or replica of a brand name, violating any intellectual property right RM53 (inclusive GST) for each product

7 Understanding Lazada Fees Lazada also charges other fees which are variable depending on the transactions, as follows : Type of fee Definition Calculation Shipping fee (product returned) Shipping fee that Lazada charges for item(s) returned by the Customer due to an error caused by Merchant. Example : Wrong, damaged or defective product 3PL chargeable weight x Lazada rate card + 6% GST Cancellation fee A fee that would be charged to the merchant due to not fulfilling an order within 24 hours Unit price x commission rate x % GST (Minimum amount RM10 and maximum RM50 for every item)

8 Understanding Lazada Fees Lazada would credit the seller s account in the following circumstances : Type of credit Definition Calculation Commission credit (Return) Shipping fee credit Seller credit Commission would be reversed on receiving a valid return from the customer Amount received by Lazada on behalf of the Seller Any other credit not indicated above, arising from dispute which would be credited to the Seller after being confirmed by PSC s investigation Commission fee charged at the time of order 2 nd kg onwards

9 Payment Cycle

Payment Cycle First payment cycle is from the 1 st 14 th of the month Second payment cycle is from 15 th 30 th / 31 st of the month (Depending on which date the month ends) Payments will be received

10 Payment Cycle First payment cycle is from the 1 st 14 th of the month Second payment cycle is from 15 th 30 th / 31 st of the month (Depending on which date the month ends) Payments will be received after 5 working days from the end of each payment cycle Twice Monthly Payment Cycle 1st 14th +5 working days 1st payment cycle Payout Period 15th End of month +5 working days 2nd payment cycle Payout Period

11 Computation of Payout

12 Computation of Payout per order Payout = Listing Unit Price Commission Shipping fee - Payment fee Example of normal payout RM2,199.00

13 Computation of Payout per order Description Rates Total (RM) Unit Price 0 RM2, Commission 2% RM43.98 GST for Commission 6% RM2.64 Payment Fee 2% RM43.98 GST for Payment Fee 6% RM2.64 Shipping Fee (incl. GST) RM5.00 RM5.00 Net pay-out 2,100.76

14 Shipping Fee

Computation of Shipping Fee Merchant bears the shipping fee for the first kg i.e., RM 5.30 (incl. GST), balance shipping fee to be borne by customer. Areas 1 st kg Subsequent kg WM WM RM5.

15 Computation of Shipping Fee Merchant bears the shipping fee for the first kg i.e., RM 5.30 (incl. GST), balance shipping fee to be borne by customer. Areas 1 st kg Subsequent kg WM WM RM5.00 RM1.50 WM EM RM10.30 RM10.60 EM-EM (Sarawak- Sabah & Sarawak Rural Areas) RM5.00 RM8.80 EM - WM RM10.30 RM10.60 Within Sarawak Major Towns Within Kota Kinabalu Area RM5.00 RM5.00 RM1.50 RM1.50

16 Reason for extra Shipping fees Inaccurate package s dimensions & weight Seller updated wrong package s dimensions & weight in Seller Centre X Actual dimensions Actual weight = 5kg

17 Account Statements on Seller Center

18 How to view Account Statements on SC Select Reports Account Statements 1

19 Account Statement Date Range Based on twice monthly cycle (Eg: 1 st -14 th Sept/ 15 th -30 th Sept),for all delivered orders. Opening balance Unpaid (negative) sum from last statement Sales Revenue Comprises of item price credit, seller credit, shipping fee credit, etc Fees Lazada s charges including commission, payment fee, shipping fee, etc Refunds Arising from returned or cancelled orders, comprises of refund on fees, commission, etc Payout The final amount receivable by Seller

20 How to generate transactions report from SC At Transaction Overview tab, select Date Range -> All Transactions -> Export

21 How to generate transactions report from SC After clicked to Exports section and a click Download to retrieve detailed report The detailed transaction is generated as follows.

22 How to use the search tool The search tool helps with searching transactions information by inputting order number/ transaction number/ etc. Eg: Order number 1. Date 2. Transaction Type 3. Amount Date of transaction (Delivered date) The break-down of revenue/fees Revenue Item Price Credit Fees Commission, Shipping Fee, Payment Fee Amount payable to or receivable from seller.

23 Tax Invoice

24 Tax Invoice Cycle Month 1 Month 2 1 st 19 th 20 th 28 th The subject month for tax invoice (full month) Send invoice to sellers Sellers verify and feedback (if discrepancy found) Tax Invoice Lazada would send invoice to sellers every month. The tax invoice will be distributed to sellers on 19 th of the following month. If seller does not receive the invoice & finds any discrepancies in the tax invoice, contact PSC by filling up the General form on Seller support center.

25 Seller Support

26 Seller Support Seller Center Lazada University Partner Support Center Service Market Place Seller Community

27 Questions

Onboarding Market Place Finance

Onboarding Market Place Finance Agenda Understanding Lazada Fees Payment Cycle Computation of Payout Shipping Fee Account Statements on Seller Center Tax Invoice Seller Support Questions Definition of