How to Avoid High Lazada Shipping Fees as a Seller?
Jayson 06 Aug 2024 10:41
Profit margin management is a skill that any Lazada seller needs to have. A big part of profit management involves avoiding excessive shipping costs.
Overpriced shipping is quite common in the e-commerce market, mainly because unlike in-person shopping, online transactions are not always real-time - but unfortunately, sellers bear most of the costs.
The courier team corrects the measurement at the sorting center. As a result, the seller will notice the overcharge on the bill.
Here’s what happened.
A Lazada seller creates a product listing, inputs all the relevant details, including the product’s dimensions. Since the seller is new to the platform, he has no equipment to judge the actual weight of the product. He comes up with a number that he thinks is closest to the product’s dimensions, and then starts posting his listings.
He keeps one buyer moving to another until his online business flourishes, and he never has any issues with sales.
This went on for quite some time until one day he noticed a shipping overage. He tried searching online for answers, and realized that he wasn’t the only seller to experience shipping overages.
However, not all sellers are aware of the new policy, leading to confusion about the extra fees they receive from shipping.
At the time of writing, Lazada has managed to reduce the waiting time for funds to be credited and debited to one week, but it still varies with the number of claims they receive.
They will be doing a testing period to see if they can automate the process so that credits and debits are reflected on sellers’ accounts at the same time.
To maintain good sales performance, you need to have a good grasp of the revenue you are actually generating, not to mention the fees you need to deduct from your revenue.
Shipping costs that are too high can disrupt your process of generating and forecasting sales. Simple, inaccurate sales results can hinder the advertising or campaigns you plan to invest in there. Therefore, understanding the platform’s shipping policy is crucial for your Lazada business.
5.1. Sellers can take the following steps to avoid shipping overcharges: Have a measuring device on hand so that you can accurately obtain the volumetric weight of your product. In addition to this, we recommend that you allow for an allowance for the exact weight of your product.
For example, if your product weighs 0.5 kg, it is a good idea to set it as 0.8 kg in the product listing measurement entry. This is because when the courier rechecks the weight of your item at their own sorting center, they will not remove the item from the packaging. Instead, the item will be weighed together with the packaging bag, bubble wrap, and Lazada bag.
If you do not include the space allowance when entering your product measurements, you will be subject to shipping overcharges because the package will weigh more at the sorting center.
5.1.2 Use BigSeller Shipping Fee Manage Feature
With this feature, BigSeller will auto-calculate the discrepancy between marketplace-charged and customer-paid shipping fees. You’ll no longer need to calculate the shipping fee manually, and you can quickly know the overcharged shipping fee.
Overpriced shipping is quite common in the e-commerce market, mainly because unlike in-person shopping, online transactions are not always real-time - but unfortunately, sellers bear most of the costs.
1. What Is A Lazada Shipping Fee Overcharge?
The shipping charge overage is caused by miscalculation of the volumetric weight of the shipped product.The courier team corrects the measurement at the sorting center. As a result, the seller will notice the overcharge on the bill.
2. Why Does This Happen?
Lazada shipping overages are not a discrepancy in the Lazada team’s records, but more of a mistake on the seller’s side.Here’s what happened.
A Lazada seller creates a product listing, inputs all the relevant details, including the product’s dimensions. Since the seller is new to the platform, he has no equipment to judge the actual weight of the product. He comes up with a number that he thinks is closest to the product’s dimensions, and then starts posting his listings.
He keeps one buyer moving to another until his online business flourishes, and he never has any issues with sales.
This went on for quite some time until one day he noticed a shipping overage. He tried searching online for answers, and realized that he wasn’t the only seller to experience shipping overages.
3. What Causes Shipping Fee Overcharge
There are two reasons why shipping overcharges can occur:- Wrong/inaccurate product dimensions
- Accurate product dimensions but no space
However, not all sellers are aware of the new policy, leading to confusion about the extra fees they receive from shipping.
4. How Does Lazada Mitigate This Issue?
Lazada is currently working with its team to balance the time it takes for funds to be credited and debited on sellers’ account statements.At the time of writing, Lazada has managed to reduce the waiting time for funds to be credited and debited to one week, but it still varies with the number of claims they receive.
They will be doing a testing period to see if they can automate the process so that credits and debits are reflected on sellers’ accounts at the same time.
To maintain good sales performance, you need to have a good grasp of the revenue you are actually generating, not to mention the fees you need to deduct from your revenue.
Shipping costs that are too high can disrupt your process of generating and forecasting sales. Simple, inaccurate sales results can hinder the advertising or campaigns you plan to invest in there. Therefore, understanding the platform’s shipping policy is crucial for your Lazada business.
5. What You Can Do To Prevent Shipping Fee Overcharge?
5.1. Sellers can take the following steps to avoid shipping overcharges: Have a measuring device on hand so that you can accurately obtain the volumetric weight of your product. In addition to this, we recommend that you allow for an allowance for the exact weight of your product.
For example, if your product weighs 0.5 kg, it is a good idea to set it as 0.8 kg in the product listing measurement entry. This is because when the courier rechecks the weight of your item at their own sorting center, they will not remove the item from the packaging. Instead, the item will be weighed together with the packaging bag, bubble wrap, and Lazada bag.
If you do not include the space allowance when entering your product measurements, you will be subject to shipping overcharges because the package will weigh more at the sorting center.
5.1.2 Use BigSeller Shipping Fee Manage Feature
With this feature, BigSeller will auto-calculate the discrepancy between marketplace-charged and customer-paid shipping fees. You’ll no longer need to calculate the shipping fee manually, and you can quickly know the overcharged shipping fee.
