Is Lazada Legit And Safe? Read This Before You Buy

Lazada, known as the “Amazon of Southeast Asia,” is one of the largest ecommerce platforms in the region.

But is Lazada legit and safe for shopping? Are their products genuine and can you sell on Lazada?

In this Lazada review, I’ll explore the pros and cons of buying and selling on the platform, explain their policies, and share my thoughts on whether it’s worth your time.

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What Is Lazada?

Lazada is a leading ecommerce marketplace with a strong presence in Southeast Asia.

Maximilian Bittner founded Lazada in Singapore in 2012 to create an Amazon-like business model in the region. With Amazon yet to expand to Southeast Asia, he saw an opportunity to leverage the growing online consumer base.

By March 2016, Lazada had become Southeast Asia’s number one online shopping site, with sales reaching $1.36 billion across its operating countries.

Currently, Lazada attracts 160 million active users every month and has over one million active sellers in the following countries:

• Indonesia (lazada.co.id)
• Malaysia (lazada.com.my)
• Philippines (lazada.com.ph)
• Singapore (lazada.sg)
• Thailand (lazada.co.th)
• Vietnam (lazada.vn)

Is Lazada Legit?

Lazada is a legitimate company based in Bras Basah, Singapore, that receives over 280 million monthly visits across all devices, as per Semrush reports.

Lazada offers secure payments, dependable customer support, and free return shipping for eligible orders.

Since its launch in 2012, Lazada has successfully secured multiple rounds of funding.

The most notable company that has a controlling stake in Lazada is Alibaba Group, which now owns an 83% stake after investing an additional $1 billion in 2017.

However, Lazada isn’t accredited by the Better Business Bureau (BBB) since it doesn’t operate in the US. In addition, it has limited ratings on Trustpilot and Sitejabber, as these services do not serve Lazada’s primary customer base.

Is Lazada Safe?

Buying from Lazada is 100% safe because they have a money back guarantee program which allows customers to receive a refund if the purchased item is not as described, arrives damaged, or fails to arrive at all.

Lazada also provides estimated delivery times and a tracking number once your order ships.

However, scams do happen from time to time. Make sure to review seller ratings and read product reviews before making a purchase.

With 12 years in the business, Lazada has proven itself as a secure and dependable platform. But you should always do your due diligence and check product listings carefully to minimize the risk of getting scammed.

Lazada Products

Lazada offers over 300,000 products across 12 major categories on their marketplace.

Here’s a quick look at what you can find and some of the top picks in each category:

• Automotive & Motorcycles: Car covers, motorcycle rims, and side mirror glass lens.
• Babies & Toys: Cerelac, baby training bottle, and baby clothing.
• Electronic Accessories: Phone cases and covers, speakers, and USB cables.
• Electronics Devices: Camera, phone, and desktop monitors.
• Groceries & Pets: Multigrain beverage, dry kibble, and nail grinder.
• Health & Beauty: Body lotion, beauty tools, and food supplements.
• Home & Lifestyle: Fabric storage boxes, aluminum boxes, and home decor products.
• Kid’s Fashion & Accessories: Clothing, shoes, and eyewear.
• Men’s Fashion & Accessories: Clothing, jewelry, and accessories.
• Sports & Lifestyle: Protein shakers, bicycles, and apparel.
• TV & Home Appliances: Meat grinder, electric jugs, and food processor.
• Women’s Fashion & Accessories: Clothing, jewelry, and accessories.

Lazada not only lets sellers list a wide range of products easily but also allows sellers to reach customers in other countries within its network.

Sellers can customize their storefronts for each marketplace by adjusting their product selection, descriptions, shipping times, and pricing to meet the specific preferences of shoppers in different locations.

Note: Items larger than 300 cm in combined length, width, and height are not permitted for sale. Essentially, Lazada wants you to sell products that can be shipped in a parcel, making it unsuitable for selling large items like bedroom furniture or gym equipment.

How Lazada Works For Buyers

Lazada offers hundreds of thousands of products from popular and unknown brands on their marketplace and delivers orders within 1 to 15 days.

Here’s how you can start shopping on Lazada:

Open An Account

You’re required to register an account on Lazada to make a purchase on the platform.

Download the Lazada app, click on “Login/Signup,” and register using your mobile number.

Shop On Lazada

Lazada has three marketplaces to cater to different shopping preferences:

• LazMall: It’s a curated selection of leading international and local brands, top-rated online brands, and authorized distributors.
• Local Marketplace: It’s a marketplace where anyone, including you, can sell new and used items.
• LazGlobal: It’s where foreign sellers can sell on a local Lazada platform. These items have “Ships from Overseas” in their delivery options.

Let’s take a look at a search result for “foldable storage boxes” on Lazada.com.my to understand how the products are displayed:

As you can see, there are several listings for the same item which provides you with many choices for sellers.

This approach of not restricting sellers to only one listing for the same item (unlike Amazon’s ‘Buy Box’ system) makes the platform look similar to eBay.

Lazada Shipping

Lazada shipping takes 1-5 business days for standard delivery and 1-3 business days for priority delivery. Items sold by 3rd party sellers can take 1-14 business days depending on the carrier..

Here’s a snapshot of delivery times based on different shipping methods:

• Standard delivery usually arrives within 1 to 5 business days. This is the default shipping method.
• Priority delivery takes 1 to 3 business days. This faster option is available for certain sellers and locations.
• Delivery by seller can take anywhere from 1 to 14 days, depending on the seller’s process.
• Collection point delivery offers some flexibility, taking 1 to 15 working days. You can pick up your order from a specified location, similar to Amazon’s Hub Lockers.
• Store pick-up is also an option, where you can grab your order in 2 days. Plus, you have up to 14 days to collect your purchase from the store.

What Is Lazada’s Return Policy?

Lazada’s return policy allows you to return your order within 7 to 30 days, depending on the product category and shopping channel.

The standard return period is 30 days for LazMall products and 7 days for Marketplace products.

A significant benefit for buyers is that sellers are responsible for the return shipping costs.

What Payment Methods Does Lazada Accept?

Lazada accepts payments from major credit and debit cards, online banking, e-wallets, and other local payment methods.

However, Cash on Delivery (COD) is the most popular payment choice in Southeast Asia due to its convenience and accessibility.

Lazada recognizes this preference and offers COD options for purchases from both domestic and international sellers.

How Lazada Works For Sellers

When a customer places an order on Lazada, sellers can ship their products to their customers directly or use Lazada’s fulfillment service.

Here’s a step-by-step guide to getting started as a seller on Lazada:

Open An Account

You can sign up on Lazada as a Local Marketplace seller, LazMall seller, or LazGlobal seller.

Let’s look at each one in detail:

LazMall

A LazMall seller is either a brand owner, brand distributor, verified reseller, or retailer.

During the application process, you need to provide proof of your products’ authenticity. This could be a trademark certificate, a letter of authorization from the brand, or brand purchase invoices.

To submit your LazMall application, follow these steps:

• Start by creating a Seller Center account. Visit the Lazada website, click the “Sell On Lazada” tab at the top, and select “LazMall” from the dropdown menu.
• Fill in your brand name and mobile number, and enter the verification code sent to your phone.
• In the “Your Brand Information” section, provide your profile link, describe your relationship with the brand, offer proof of authenticity, specify brand authorization validity, and select your main category.
• Upload your brand logo and choose a name for your store.
• Provide your bank details and submit your application.
• Wait for your application to be approved.

Local Marketplace

A Local Marketplace seller must reside in a country or region where Lazada operates.

Unlike LazMall sellers, Local Marketplace sellers aren’t required to have a brand trademark certificate or proof of brand authenticity.

In short, the Local Marketplace is open to anyone interested in selling.

Here’s how to apply to be a Local Marketplace seller:

• Visit the Lazada website and click the “Sell On Lazada” tab at the top. From the dropdown menu, select “Marketplace.”
• Enter your mobile number.
• Choose whether to register as an Individual seller or a Corporate seller. A corporate seller must provide a business permit and related documents, whereas anybody can be an Individual seller.
• Complete the setup by choosing a store name.

LazGlobal

A LazGlobal seller, also known as Lazada International Seller or Lazada Cross-Border Seller, can operate across all of Lazada’s marketplaces using just one account.

LazGlobal sellers can use Lazada Global Shipping (LGS) to handle international shipping, much like Amazon Global Logistics for global sellers.

Here’s the criteria to be a LazGlobal seller:

• You must operate outside the country or region where you intend to sell. For example, you plan to sell in the Philippines while being based in the US.
• You have a registered business.
• You must be able to ship products to Lazada’s overseas sort center.

However, not all countries qualify for international selling on Lazada. You can check if you’re eligible here.

To submit your LazGlobal application, follow these steps:

• Navigate to the Lazada website and click “Sell On Lazada” at the top, then select “LazGlobal” from the dropdown menu.
• Choose the country where your shop is based.
• Enter your mobile number.
• Create your store with a name, email address, and password.
• Submit necessary documentation such as an active business license and registration, bank information, and a security deposit of 3000 RMB.

After you register, wait for Lazada to send you a seller contract, which you’ll need to sign and return to complete the process.

Lazada Seller Fees

Lazada charges you commission fees, shipping fees, promotion fees and payment fees when you sell on their platform.

Commission Fees

Lazada charges a 1% – 7% commission fee on the sale of each item, which varies by region and product category.

For example, if you are a Lazada Marketplace seller in the Philippines, you will be charged 1% to 5% of the item’s selling price. But if you are a LazMall seller, commission fees are a bit higher, ranging from 3% to 7%.

Similarly, if you’re a cross-border seller, expect fees from 2% to 4% of the selling price.

New sellers do not have to pay commission fees for the first 90 days. After that, standard rates apply.

Payment Fees

A payment fee is a transaction fee that Lazada charges for processing payments on their platform.

The formula to calculate the payment fee is:

Payment fee (2%) x (Item price – Seller funded vouchers total + Customer shipping fee)

Shipping Fees

If you use Lazada’s fulfillment service, there will be shipping and fulfillment fees for storing, packing, and delivering your products.

Marketing And Promotional Fees

You’ll incur additional fees if you participate in Lazada’s marketing campaigns or use their advertising services.

Choose A Fulfillment Method

If you’re a LazMall or a Local Marketplace seller, you can use Fulfillment by Lazada or Delivered by Service to delivery your goods:

• Fulfillment by Lazada (FBL): Lazada handles storage, packaging, shipment, customer service, and returns for you.
• Delivered by Service (DBS): You manage storage, shipping, returns, refunds, and customer service.

If you’re a global seller selling through LazGlobal, you’ll need to use Lazada’s end-to-end shipping solution called Lazada Global Shipping (LGS).

Lazada has cross-border warehouses in Hong Kong, China, and Korea.

As a global seller, you’ll be asked to ship your products to Lazada’s sorting center in Hong Kong. This is because the sorting centers in China and Korea are exclusively for domestic sellers.

List Your Products

After your application has been approved and you have chosen a fulfillment method, the next step is to upload your products via Lazada’s Seller Center.

You can either add products individually or in bulk. Then, you can customize your store with banners and make it look inviting.

Keep in mind, Lazada has a cap on how many SKUs you can list, which varies based on the seller type:

Lazada Pros And Cons

Lazada offers several advantages, including low sales commissions, user-friendliness for beginners, the ability to sell pre-used items, increased visibility, and access to a vast market. However, there are drawbacks such as cash on delivery and commissions on returned products.

Lazada Pros

• Low sales commission: The commission fee is only 2% to 4%, much lower than competitor ecommerce marketplaces.
• No private labeling: Unlike Amazon, Lazada doesn’t compete with its sellers by having its own private label brands, which levels the playing field for sellers.
• Beginner-friendly: The platform is user-friendly for both buyers and sellers, complemented by comprehensive guides and documentation for assistance.
• Access to a wider market: Lazada reaches customers who may not have credit cards or bank accounts, expanding your potential customer base.
• Multiple marketplaces: Sellers can list their products on various Lazada marketplaces using a single account.
• Pre-used items: You can sell or buy preloved items on Local Marketplace.
• More visibility: Since Lazada allows multiple listings per product, sellers can avoid the cutthroat competition of being the lowest price, unlike on platforms like Amazon.

Lazada Cons

• COD preference: The popularity of cash on delivery among Lazada customers can lead to higher return rates, as customers might refuse items upon delivery.
• Commission on returns: Sellers are charged a commission for each sale, which can be problematic if items are returned, as the fee is not reimbursed.

Should You Use Lazada?

Lazada is an excellent choice for shopping for new, used, and branded products if you live in one of the countries where Lazada operates.

However if you’re outside of Lazada’s supported regions, alternatives such as Shein, Temu, and AliExpress are more convenient because they deliver directly to your doorstep.

On the selling front, if you’re an experienced ecommerce seller, you can consider selling on Lazada.

Southeast Asia is witnessing rapid ecommerce growth, making Lazada a prime platform for sellers looking to enter this market.

This region offers more opportunities for new sellers than the competitive and costly Chinese ecommerce market.

However, you will likely be competing with Chinese sellers here, too. So, unless you’re private labeling or manufacturing your own goods from China or have a well-known brand, you may find it difficult to break into Southeast Asia.

FAQs About Lazada

Does Lazada Deliver To The United States?

No. Lazada doesn’t ship to the US, but customers can get around this by using a freight forwarding company.

What Products Are Not Allowed To Be Sold On Lazada?

Below is a table of prohibited products that can not be sold on Lazada.

Can A US Seller Sell On Lazada?

Yes, a US-based seller can sell on Lazada via the LazGlobal program.

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Steve Chou is a highly recognized influencer in the ecommerce space and has taught thousands of students how to effectively sell physical products online over at ProfitableOnlineStore.com. 

His blog, MyWifeQuitHerJob.com, has been featured in Forbes, Inc, The New York Times,  Entrepreneur and MSNBC.  

He's also a contributing author for BigCommerce, Klaviyo, ManyChat, Printful, Privy, CXL, Ecommerce Fuel, GlockApps, Privy, Social Media Examiner, Web Designer Depot, Sumo and other leading business publications.

In addition, he runs a popular ecommerce podcast, My Wife Quit Her Job, which is a top 25 marketing show on all of Apple Podcasts. 

To stay up to date with all of the latest ecommerce trends, Steve runs a 7 figure ecommerce store, BumblebeeLinens.com, with his wife and puts on an annual ecommerce conference called The Sellers Summit.  

Steve carries both a bachelors and a masters degree in electrical engineering from Stanford University. Despite majoring in electrical engineering, he spent a good portion of his graduate education studying entrepreneurship and the mechanics of running small businesses.