How does Lazada charge commission? Introduction to the charging standards

If you want to open a store on Lazada, you must first understand the store opening fees of the Lazada platform and other fees to be charged. This article will talk about how Lazada charges commissions.

How does Lazada platform collect commissions?

On most e-commerce platforms, the merchant's transaction commission is calculated by the product price on the listings details page × commission rate. However, on the Lazada platform, sellers are required to pay a 6% service tax in addition to this. In other words, the seller needs to pay a sales commission of (product price - promotional discount/coupon amount) × commission rate + 6% commission service tax.

Moreover, the commission rates for different categories are different, ranging from 1% to 4%. Therefore, when sellers calculate the sales commission that the platform will charge, they also need to determine the commission rate for the category in which their products belong.

In addition to the commission, Lazada also charges sellers a handling fee, the specific amount is: product price × 2%. Just like when calculating sales commission, you also need to add the corresponding commission service tax, so the actual payment fee should be 2% × (product price - general promotion discount - bundled sales/promotion discount + shipping fee paid by the buyer) + 6% service tax × handling fee.

Lazada's charging standards:

The cost of opening a Lazada store is mainly divided into two parts: one is the fixed fee charged by Lazada, and the other is other fees such as logistics.

The fee can be expressed as follows:

Lazada fees = order commission + value-added tax (GST) + accounting processing fee (2% of total sales) + shipping and other

1) Order commission

The commission that Lazada platform takes from sellers' orders will vary depending on the product category.

2) Value Added Tax (GST) Lazada’s platform targets six Southeast Asian countries. The value added tax in each country is different, namely: Malaysia – 6%, Singapore – 7%, Thailand – 7%, Indonesia – 10%, Philippines – 12%, Vietnam – 10%.

3) Account processing fee: The account processing fee in Lazada store opening fees is a fixed 2% of the total amount of each order.

4) Shipping and other costs Lazada platform has launched the LGS global delivery plan, and sellers can also ship by themselves. Therefore, the shipping cost is calculated based on the different shipping methods chosen by the seller. In addition to shipping costs, other costs include: tariffs in various countries, payoneer handling fees, etc.

In general, the commission that Lazada takes from sellers’ orders will vary according to different product categories. The category commission ratio is between 1% and 4%.