Onboarding Market Place Finance

Transcription

1 Onboarding Market Place Finance

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

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 on 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 = Shipping fee (Merchant bears only the first kg, ie RM5.30, GST inclusive) 2% of the Listing Unit price + 6% GST

6 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)

7 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

8 Product related admin fees Administrative fee Administrative fee would be imposed by Lazada for breach of Lazada policies The below gives a snapshot of common violations : Defective - Work with most trustworthy suppliers - Conduct strict quality control with frequent sample testing - Take actions once products are returned due to the products are defective Penalty fee imposed: RM50 per item + GST% Missing parts - Rechecking of the items packed in the boxes delivered to the customer - Make sure to pack all items stated in What s in the box on website before ship out the order Penalty fee imposed: RM50 per item + GST% Ordered Delivered Wrong Item - Pay extra attention when packing the orders, especially during high volume campaign days - Rechecking of the items packed in the boxes delivered to the customers Penalty fee imposed: RM50 per item + GST%

9 Fulfillment related admin fees Cancelled due to out of stock Slow fulfilment Fake order status - Update the stock regularly and precisely - Allocate sufficient stock to Lazada - Pay attention to the daily pending order sent by Lazada and process orders in time - Check Seller Center daily to process new orders promptly - Do not update the status of orders to Ready to Ship until orders have been packed and ready to handover to 3PL Penalty fee imposed: Item Price x 2.5 x commission % + GST% Penalty fee imposed: Item Price x 2.5 x commission % + GST% Penalty fee imposed: RM50 per item cancelled + GST% Wrong price - Regularly check the price of all SKUs in Seller Center - Be extra careful when submit promo prices to Promotion Tool in Seller Center Penalty fee imposed: Item Price x 2.5 x commission % + GST%

10 Lazada s legal conditions & implications Counterfeit / Fake items Description 1. Items that apply a trademark (e.g. a brand or character logo) on the product, the product packaging, or anywhere in relation with the product, without authorization by the trademark owner 2. Items that contain specific design elements (e.g. cartoon characters or colorways) protected by a trademark, without the authorization by the trademark owner Actions New SKUs - we would proceed with the QC process once the items originality may be justified Existing SKUs - A fine of RM (inclusive GST) will be imposed per SKU for failure to justify the items authenticity within 5 working days from the date of this Items that bear such similarities with other products that they are likely to deceive buyers into thinking they are made or sold by the owner of the other product's brand (e.g. a replica of a branded item with or without altered logos) 4. Items that are in violation of any laws of Malaysia

11 Lazada s legal conditions & implications Prohibited items Description 1. Weapons: Firearms, Tasers, air gun and other controlled or banned weapons, munitions, supplies or parts, daggers and flick knives 2. Medical items: Ballpoint syringe 3. Health Supplements: Unregistered drugs under The Control of Drugs and Cosmetics Act 1984 Health supplements must not bear claims capable of curing, treating or preventing disease Products containing illegal ingredients as per listed by Malaysia Ministry of Health 4) Adult Toys: Pornography and pornographic products Explicit & obscene Bondage items (Whips, Gags,Clamps, etc) Actions New SKUs the SKUs would be deactivated at the QC level and wouldn't go online on Lazada platform Existing SKUs A fine of RM (inclusive GST) will be imposed per SKU for the second offense; which include the SKUs deactivation without our justification, or uploading of any prohibited items in future 5) Others: Items with symbols of marijuana, cannabis

12 Payment Cycle

13 Payment cycle Merchants will be paid every 2 weeks, as follows : Week 1 + Week 2 Week 3 Week 4 Monday Tuesday Wednesday Thursday Friday Saturday Sunday All delivered orders in week 1 & week 2 MP Finance processing the payout Authorize payment by Thursday / Friday Payment received by Seller on Friday or following business day* Payment Details Procedure of Payment for sellers: All delivered orders would be added together every 2 weeks Authorization for payment would be made on the following Thursday / Friday. Sellers shall receive the payment within the same or next business day. If payment not received after the prescribed date, contact PSC by filling up the General form on Seller support center.

14 Computation of Payout

15 Computation of Payout per order Payout = Listing Unit Price Commission Shipping fee - Payment fee Example of normal payout RM2,999

16 Computation of Pay-out per order Item Deductions Total Unit Price 0 RM2,999 Commission (Electronics) 1% RM29.99 GST (Commission) 6% RM1.79 Payment Fee 2% RM59.98 GST (Payment Fee) 6% RM3.59 Shipping Fee (incl. GST) RM5.3 RM5.3 Total pay-out

17 Shipping Fee

18 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.

19 Reasons for extra Shipping fees i) Inaccurate package s dimensions & weight Seller updated wrong package s dimensions & weight in Seller Centre X Actual dimensions Actual weight = 5kg ii) Bulky items may be charged on volumetric weight instead of actual weight

20 Account Statements on Seller Center

21 How to view Account Statements on SC Select Reports Account Statements 1 Current statement view Current Transactions overview 2 3

22 Overview of Account Statement Date range - Based on weekly cycle (From Monday to Sunday), 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

23 1 How to generate reports from SC Mouse hover the Sales Revenue amount to download the detailed report

24 How to generate reports from SC 2 Scroll down to Exports section and click Download to retrieve detailed report 3 The detailed transaction is generated as follows. Similarly, the detailed reports for other transactions can also be generated.

25 Understanding Transaction overview Main Content 1. Date Range 2. Filter Transaction 3. Transaction Type 4. Order Number 5. Amount 6. Export All 7. Search The filter is on weekly basis, enabling user to select the date of transactions for review User could select type of transaction for viewing, example payment fee, shipping fee credit, etc Shows all data in connection to type of transaction being selected in Filter Transaction Refers to Sales Order number Amount payable to or receivable from seller Enables the selected data being exported to a report in excel form A tool enabling the search of information by order number, transaction number, etc

26 Tax Invoice

27 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.