Plan to open an online store on Lazada Singapore? Understanding Lazada fees is essential for managing your profits effectively. By learning about Lazada fees and their structure, you can set yourself up for success as an eCommerce seller.
In this blog, we’ll highlight the latest seller fees on Lazada Singapore:
1. Lazada Payment Fee
The Lazada Payment Fee is a small percentage of each transaction to cover secure payment processing. It varies by payment method and region. The GST rate has been raised to 9% since January 1, 2024.
a. How is the Lazada Payment Fee 2024 calculated?
Here is the general calculation for the Lazada Payment Fee:
| Payment Fee 2% X ( Item Price – Seller Funded Vouchers Total + [New] Customer Shipping Fee ) |
b. Example for payment fee calculation:
i. Scenario 1 :
| SDG100 unit price with SGD20 Lazada voucher. Payment fee 2% x ( SDG100 + New customer fee ) |
ii. Scenario 2 :
| SDG100 unit price with SGD20 Seller voucher. Payment fee 2% x ( SDG100 – SDG20 + New customer fee ) |
2. Lazada Commission Fee
Lazada Marketplace and LazMall sellers have different commission rates based on product categories. Since May 1, 2024, Lazada has adjusted these rates for both seller types.
a. How is the Commission Fee calculated?
The commission is based on the item price after subtracting promotional charges like Seller Vouchers, Flexi Combo, and Lazcoin Discount. Platform-funded discounts are not deducted.
| Commission fee = Commission Rate x (Item Price – Seller Promotions) + 9% GST |
i. Example for commission fee calculation:
| Initial Item Price: – The seller’s item is listed at SGD 100. Discounts Applied: – Flexi Combo Discount: – SGD 20 – Seller Voucher: – SGD 40 Subtotal (Base Amount for Commission Calculation): – SGD 40 (after applying discounts) Commission Fee Calculation (including 9% GST): – Marketplace Rate: 4.36% → SGD 1.74 – LazMall Rate: 9.81% → SGD 3.92 |
b. Lazada Marketplace Commission Rate
All local vendors who are not affiliated with LazMall but sell on the Lazada Marketplace platform are known as Lazada Marketplace sellers. Below are the latest Marketplace Commission fees:
| Lazada Marketplace Commission Fee | ||
| Product Category | New Commission(from 1 May 2024) | Current Commission |
| Electronics(Mobile & Tablets, Computer & Laptops, Large Appliances) | 4% capped at $30 | 2% capped at $30 |
| Other Electronics | 4% capped at $30 | 2% capped at $30 |
| Non-Electronics | 4% capped at $30 | 2% capped at $30 |
* For local Marketplace sellers only
c. LazMall Commission Rate
LazMall is a dedicated marketplace, allowing Lazada’s official brand partners to sell authentic branded goods. This setup ensures a worry-free shopping experience for customers. The latest LazMall Commission fee is outlined below:
| LazMall Commission Fee | ||
| Product Category | New Commission(from 1 May 2024) | Current Commission |
| Electronics(Mobile & Tablets, Computer & Laptops, Large Appliances) | 7% capped at $75 | 3% capped at $75 |
| Other Electronics | 9% capped at $75 | 5% capped at $75 |
| Non-Electronics | 9% capped at $75 | 5% capped at $75 |
* Applicable for LazMall sellers only
3. Lazada Shipping Fee
A shipping fee is the cost of transporting packages from one location to another. Factors such as the size and weight of the merchandise and the delivery destination significantly influence these costs.
There are five types of shipping fee charges:
i. 3PL Standard Shipping Fee:
| Parcel Weight (kg) | [New] Buyer Shipping Fee | [New] Seller Shipping Fee |
| < 1 | $1.99 | $1.53 |
| 1.01 – 5 | $2.37 | |
| 5.01 – 10 | $2.88 | |
| 10.01 – 20 | $4.92 | |
| 20.01 – 30 | $9.50 |
ii. 3PL Collection Point Delivery Fee:
| Parcel Weight (kg) | Buyer Shipping Fee | [New] Seller Shipping Fee |
| < 1 | $0 | $1.53 |
| 1.05 – 5 | $2.37 |
iii. Scheduled Delivery Shipping Fee:
| Weight (KG) | Buyer Shipping Fee | Seller Shipping Fee |
| < 10 | $5.04 | $2.03 |
| 10.01 – 15 | $5.04 | $3.04 |
| 15.01 – 20 | $5.04 | $6.07 |
| 20.01 – 30 | $5.04 | $9.10 |
iv. Postal Mail (Untraceable) Shipping Fee:
| Postal Type | Weight (KG) | Item Price | Buyer Shipping Fee | Seller Shipping Fee |
| Postal Mail (Untraceable) | 0 – 2 | ≤$10 | $0 | Borne by seller according to SingPost stamp price |
[New] Bulky Delivery Shipping Fee: (Effective 21st Nov 2024)
| Weight (KG) | Buyer Shipping Fee | Seller Shipping Fee |
| 30.01 – 35 | $6.99 | $14.50 |
| 35.01 – 40 | $8.99 | $16.50 |
| 40.01 – 45 | $10.99 | $18.50 |
| 45.01 – 50 | $12.99 | $20.50 |
| >50 (subsequent every kg) | + $1.00/kg | + $1.00/kg |
How can sellers keep an eye on the fees that Lazada charges?
In summary, the latest Selling Fees for Lazada Singapore outline the key charges sellers can expect, including payment fees, commission rates, and shipping costs. These fees impact transaction costs, influencing pricing and profit margins for online businesses.
If you’re a seller with multiple Lazada stores and other marketplaces, SiteGiant’s Payment Reconciliation is a powerful tool to streamline your business. With it, you can:
- Access up to 12 reports to cross-check marketplace order payment status, overcharged or free shipping fees, claimed amounts, transactions, commissions, and more.
- Auto-calculate the shipping fee difference between Lazada and other marketplaces and what customers have paid. This saves you from manual calculations and instantly highlights any overcharged shipping fees.
- Easily filter orders by selecting “paid” or “unpaid” under Income Status to quickly identify which orders have been paid by Lazada and other marketplaces.
Track your fees charged by Lazada with SiteGiant’s Payment Reconciliation today!
Image Credits and References: Lazada Seller Center
