Is it profitable to open a store on Lazada? How to increase profits?

Nowadays, no matter which platform you join to do e-commerce, everyone will first consider profits. Profits are the driving force for everyone to stick to it. Then the profits of different platforms are different, because the rules for opening stores on different platforms are different. Is it profitable to open a store on Lazada?

1. Is it profitable to open a store on Lazada?

Many sellers may think that Lazada’s profit is not high, especially compared with platforms such as Amazon, the profit is even less. But in fact, the profit of Lazada products mainly depends on whether you can control the cost.

First of all, when doing Lazada, the seller’s costs mainly include:

1. Logistics costs: This cost accounts for about 25%-30% of the total cost, which is a relatively high cost.

2. The cost of the product itself, whether it is for general distribution or high-quality products, requires product cost expenditure, which is also one of the main expenses.

3. Platform transaction commission: For successful transactions, the platform will also charge a transaction commission of 1%-4%.

4. Value Added Tax (GST), which is mainly the value added tax in Southeast Asian countries, is between 6% and 12%.

5. Other fees, such as withdrawal fees, platform account rates, etc.

Therefore, when sellers price their products, they must take the above costs into consideration to ensure that the products have a good profit.

It is also very simple to increase the profit of Lazada products. First, you need to determine how much profit you want to get and what is a reasonable product price to control production costs. You can refer to the following pricing formula:

Total price = product cost + commission + payment handling fee + shipping fee + import tariff + other related fees + target profit.

Second, it is recommended to improve the profit of Lazada store from the following three aspects:

1. Cooperate with good suppliers:

Although the cost of a good supplier is higher, the quality of the product is relatively good. If the buyer has a good experience after purchasing your product, then he will definitely continue to buy from you, increasing the repurchase rate and thus increasing the overall profit.

2. Selling branded products:

Consumers in Southeast Asia are mainly young people, so they prefer branded products. Then you can choose to register your own trademark or obtain brand authorization to sell. On the one hand, the profit of branded products is relatively high, and it is easier to place orders, which can greatly increase the overall profit.

3. Reasonable pricing:

Compared to pursuing low prices, a reasonable price can make products and stores have higher profits. And if a price war is launched, it will be more disadvantageous for novice sellers, because the profit is low, and the subsequent operation will also require more expenses, which will make them passive.

Therefore, if sellers want to have higher profits, they must find a good product, provide good services, and set a good price. This will naturally attract more buyers to buy, and the store profit will increase, and you can earn more.

Recommended reading:

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