Navigating Lazada's cross-border logistics fees can be challenging for sellers. With complex formulas and hidden costs, miscalculations can significantly impact profit margins. This guide provides an in-depth analysis of Lazada Global Shipping (LGS), covering transportation processes, fee structures, calculation methods, and return policies to help merchants optimize logistics costs and operational efficiency.
I. Lazada Global Shipping (LGS) Overview
Lazada Global Shipping (LGS) is an integrated logistics solution designed for cross-border sellers. The system manages the entire shipping process from seller warehouses to end customers, streamlining international delivery through standardized operations and consolidated logistics networks.
LGS offers two primary shipping methods:
- Economy Shipping: Suitable for non-urgent deliveries, typically completed within 16 days.
- Standard Shipping: Designed for time-sensitive goods, with delivery usually completed within 8 days.
II. LGS Shipping Process Breakdown
The LGS logistics chain consists of four key stages:
1. Pickup/First Mile
- Door-to-door pickup available for eligible sellers: warehouses located in Yiwu, Shenzhen, Quanzhou, or Hong Kong; minimum 50 daily orders averaged over 30 days; approved pickup addresses (multiple sellers may jointly apply for shared addresses).
- Sellers not meeting pickup requirements must deliver goods to designated Lazada collection warehouses.
2. Sorting/International Freight
Goods undergo sorting and packaging at collection warehouses before international shipment through Lazada's partner carriers.
3. Customs Clearance
Lazada assists with customs procedures upon arrival in destination countries, though sellers must provide required documentation.
4. Last-Mile Delivery
Local logistics partners complete final delivery after customs clearance.
III. LGS Fee Structure
Shipping costs comprise three components:
- Domestic Shipping: Seller's responsibility for transporting goods to Lazada warehouses, cost varies by distance and method.
- International Shipping: Seller-paid charges from collection warehouses to destination countries, calculated by weight/volume. Sellers may choose to include this in product pricing.
- Last-Mile Delivery: Customer-paid fee for final delivery, displayed at checkout.
IV. Shipping Cost Calculation
Fees are calculated using the greater of actual weight or volumetric weight:
Volumetric Weight Formula: (Length × Width × Height) / Coefficient
- Philippines coefficient: 3500
- Other countries: 6000
Package Restrictions:
- Maximum weight: 20kg
- Maximum dimensions: Length + Width + Height ≤ 300cm
- Non-compliant packages will be rejected
V. Return Policy
Lazada's return procedures vary by product value and reason:
1. Customer Returns
- Products >$10: Returned to customer
- Products ≤$10: Disposed (except Vietnam), not eligible for resale
2. Failed Deliveries
- Products >$10: Returned to customer
- Products ≤$10: Disposed (except Vietnam and Singapore where resale is permitted)
3. Sorting Center Rejections
Non-compliant packages are returned to sellers.
VI. Logistics Optimization Strategies
- Accurate Product Information: Precisely input weight and dimensions to avoid miscalculations.
- Customized Shipping Templates: Create country-specific templates for accurate cost control.
- Packaging Optimization: Minimize volumetric weight through efficient packaging while ensuring product protection.
- Policy Monitoring: Stay updated on Lazada's logistics policy changes.
- Shipping Method Selection: Balance speed and cost based on product requirements.
Mastering Lazada's logistics system is essential for cross-border success. This comprehensive guide provides sellers with the knowledge needed to streamline operations and maximize efficiency in the competitive Southeast Asian e-commerce market.