updated as of July 22, 2022
Marketplace sellers will be charged a 2% commission (VAT-inclusive) on the sale of items on the platform, effective July 25, 2022.
The commission is calculated from the Item Price, minus any seller promotional charges like Vouchers, Coins, and Flexi Combo. Kindly view the example below:
By July 25, 2022, sellers enrolled in Free Shipping Max or Cashback will not only enjoy program subsidies but also discounted commission rates for Marketplace seller:
+Commission will appear in the Account Statement as a reversal, to be credited to the seller's account on the succeeding payout.
*Rates effective from July 25, 2022. A 14-day lock-in period will apply for opted-in sellers. Eligibility rules, terms, and conditions apply.
1. Why is Lazada now charging a 2% commission fee for Marketplace sellers?
To allow us to serve you better and provide more opportunities for sellers on our platform. Lazada will start to charge a 2% commission fee for Marketplace sellers starting July 25, 2022.
2. Are LazMall sellers affected by this change?
No. LazMall sellers are charged 2-5% commission, depending on the item category. Click HERE for the full LazMall rate card.
3. How is the commission computed?
The commission is calculated as a percentage of the Item Price, minus any seller-created promos like Vouchers, Coins, and Flexi Coins. For example:
Promo costs on Lazada-created programs like Free-Shipping Max, cashback, and Lazada Bonus are not deducted from the Item Prize.
4. Does the commission apply to all items uploaded in the platform?
The commission only applies to items sold on the platform. If the item is not sold, no commission will be deducted from the seller. Listing/uploading of producsts on Lazada is free of charge.
5. Aside from the commision fee, what are the other fees being charged by Lazada from its sellers?
Here is a summary of Lazada operational charges effective July 25, 2022:
All fees are charged per item sold. Commission is the cost for the use of the platform, while Payment Fee is the cost for the processing of buyer payments and seller payouts.
6. Does Lazada offer special proomos or offers for discounted commissions?
The 2% commission for Marketplace sellers is waived for the following:
Newly signed-up sellers, for the first 90 days starting from the seller live date.
Digital Goods sellers
1% discount will be offered for the following:
Sellers who are currently opted in the Free Shipping Max or Cashback program.
Notes:
Newly signed-up sellers will not be charged at all.
For sellers currently opted in FSMax or Cashback program or are selling Digital Goods, the commission will be charged first to the seller then afterward will appear in the Account Statement as a reversal to be credited to the seller's account on the succeeding payouts.
7. I am an Individual Seller (not Corporate Seller). Will I still be charged a 1% Admin Fee?
For Individual Sellers who are members of OMSMPC and whose payouts are being processed by the Coop, the cooperative may continue to charge an Admin Fee, depending on their agreement with their members.
For Individual Sellers who are not members of the Coop, and whose payout is being processed by Lazada through Citibank/Citidirect, no additional Admin Fees will be charged, and only the fees in #5 will apply.
8. How do I know if Lazada is the one processing my payout?
Lazada-processed payouts are released every Tuesday, with an email notification coming from Citibank/Citiidirect. The notification is sent to the email that you submitted on your Seller Profile.
9. Who are eligible for Free Shipping Max and Cashback?
Eligible sellers are nominated by Lazada or through your category manager/operators if you meet the following criteria:
The cancellation rate is less than or equal to 25%
The return rate is less than or equal to 5%
No open business risk or noncompliance points cases
No negative payout balance
Sellers who do not meet all the above criteria but are highly recommended by their category manager/operator can request to be whitelisted through our internal team but are subject to assessment and approval.
10. What is the new participation rate of Free Shipping Max and Cashback, respectively?
Free Shipping Max Standard Participation fee rate is 5% capped at Php 100 per successfully delivered item
Cashback Standard Participation fee rate is 3% capped at Php 100 per successfully ordered item
New rates are effective starting June 17, 2022, or until such period as may be notified by Lazada.
11. Should I join both Free Shipping Max and Cashback to get the discounted commission fee?
You can join one of the two programs, and you will already enjoy discounted commission. However, we recommend that you try out both Free Shipping Max and Cashback for a promo offer or just 6% participation fee, with waived commission.
12. Until when will the 2022 Free Shipping Max and cashback program run?
The program/s will run until December 31, 2022 but sellers can only sign up until December 28, 2022.
13. What are the new voucher min spends for Free Shipping Max?
The program is currently offering the following min spends and shipping fee discounts:
P40 off, P0 Min Spend (in limited amounts)
P50 off, P199 Min Spend
P50 off, P249 Min Spend
P150 off, P999 Min Spend
P200 off, P1499 Min Spend
P250 off, P1999 Min Spend
Number of vouchers available per buyer varies on a weekly and monthly basis.
14. What if a buyer does not collect any of the program's free shipping vouchers, will I still be charged the participation fee?
Yes. the participation fee is charged to the seller for every order created regardless if the buyer collects the voucher or not.
15. My program was auto-extended for me from 2021 so does this mean I cannot opt out of the program after 14 days?
No. Only sellers who opt in after the July 25 update will undergo the 14-day lock in period.
16. Can I still opt out of the program (FSMax and/or Cashback)?
If you recently joined the program, you can only opt out after the 14-day lock in period.
However, if you are an auto-extended seller, you can opt out anytime duuring the program period.
After your succeesful opt out banners, vouchers and badges will be removed from your product display pages +12 hours after actual opt out
17. What if I opt out of my current program and opt back in again after some time?
You will be charged your corresponding participation fee, 3% SRP for Cashback, and 5% SRP for Free Shipping Max but please note that we are implementing a 14-day lock-in period.
18. I recently joined Free Shipping Maz/Cashback, whwn will the 14-day lock-in period start?
The lock-in period will start on the actual opt-in date. For example, if you join July 25 you can only opt-out August 8.
19. Why is there a 14-day lock-in feature for Fre Shipping Max/Cashback?
This is to allow sellers to maximize the benefits of each program.