Make Money Online: How to be a Shopee or Lazada Online Seller
Published: May 19, 2021 | Updated: July 23, 2021 | Posted by: Moneymax | Personal Finance
Published: May 19, 2021
Updated: July 23, 2021
Posted by: Moneymax | Personal Finance
Shopee and Lazada are two of the leading e-commerce websites in the Philippines and Southeast Asia—not just for consumers but also for business-minded Filipinos who want to make money online.
These platforms for online sellers are beginner-friendly. Lazada and Shopee don’t charge new online sellers a registration fee. And for as low as PHP 10,000, you can start selling and earning profits. You just need a computer or smartphone, internet connection, and, of course, your products to sell and a bank account to receive payments.
It also doesn’t matter if you’re in Manila, in the province, or even abroad. You can run your shop anytime and anywhere while reaching customers all over the Philippines.
What’s more, starting as an online seller on Lazada or Shopee is simple even for newbies.
Interested in starting your online business soon? Here’s a guide on how to become an online seller, specifically how to be a Lazada or Shopee seller.
Lazada vs Shopee: Which is the Better Online Selling Platform in the Philippines?
Both online selling platforms have their pros and cons for a Lazada or Shopee seller. For instance, they offer an easy sign-up process for online sellers. Just a few taps and you can have your online store fully set up.
Of course, high marketplace traffic is an important factor to consider if you’re an online seller. More visits to your site mean more chances of selling your products. For this category, Shopee is the better option with 57 million visits in the last six months.
Shopee also has more payment options, which means more customers can shop and pay with their preferred payment methods, resulting in more potential sales for sellers.
When it comes to payouts, online sellers on Shopee get paid faster. When the customer clicks on “Order Received” or when the Shopee Guarantee period is over, the payment is released.
Meanwhile, Lazada has a scheduled payout for sellers, which is every Thursday of the following week. And if you’re a new seller, you’ll need to wait three weeks after your first delivered order to get paid.
So whether you want to be a Lazada or Shopee seller, consider the pros and cons of both before following before setting up your online shop.
How to be a Lazada Online Seller
Lazada Online Seller Types
Before you start selling on Lazada, it’s important to know the different types of online sellers you may apply for. Choose a Lazada online seller type that fits you best.
1. LazMall Seller
These online sellers are authorized distributors or owners of brands. LazMall is the premium type of online seller account, offering exclusive access to LazMall campaigns and additional seller tools.
LazMall sellers also enjoy higher overall search ranking, which means they are among the brands that shoppers see first when they search for a product on Lazada.
Another advantage of being a LazMall seller is that customers tend to trust and buy products with the LazMall logo. It’s because LazMall guarantees authentic products and a superior shopping experience.
However, Lazada charges LazMall sellers commission fees when their products are sold.
2. Lazada Marketplace Seller
These are individual or corporate Lazada online sellers who are based in the Philippines. They also have access to online seller tools. Lazada doesn’t charge commissions from its local sellers.
First-time entrepreneurs who want to make money online most likely start as Marketplace sellers on Lazada.
3. Lazada Fresh Seller
As a Lazada Fresh Seller, you can sell fresh fruits and vegetables, as well as meat, seafood, breads, pastries, dairy products, desserts, and ready-to-eat or ready-to-cook food. So if you have a stall in the market that sells these fresh goods, you can start selling them online, too, as a Lazada Fresh Seller.
4. LazGlobal Seller
Lazada also accepts online sellers with a registered business who are based in Hong Kong, Macau, China, Taiwan, South Korea, or Japan. Like other Lazada online seller types, overseas sellers can access the e-commerce platform’s seller tools. LazGlobal sellers ship their products to Lazada’s overseas sort center.
LazGlobal sellers pay a commission fee to Lazada when they make a sale.
Lazada Online Seller Requirements
For LazMall sellers and corporate local sellers, Lazada requires the following documents to prove they’re registered with the Bureau of Internal Revenue (BIR) and Department of Trade and Industry (DTI) or Securities and Exchange Commission (SEC):
- BIR Certificate of Registration
- DTI business permit
- DTI/SEC business registration certificate
LazMall Sellers also need to provide their brand, corporate, and bank information, as well as their marketing materials.
Meanwhile, Individual Sellers must be at least 18 years old and present a valid ID to start selling on Lazada. They should also be a member of the Online Microsellers Marketing Cooperative within one month of signing up as a Lazada seller.
Furthermore, Individual Sellers must finish the Pre-Membership Education training within one year of signing up as a seller.
How to Start as a Lazada Online Seller
Ready to be a Lazada online seller? Just follow these steps to set up your Lazada online shop.
1. Register for a Lazada Online Seller Account
Once you have the required documents for seller registration, you can already create your account at Lazada Seller Center.
First, you’ll have to fill out a Lazada online seller registration form on the Seller Center website or mobile app. There are different forms for different types of online sellers:
- LazMall Seller registration form
- Marketplace Seller registration form
- Lazada Fresh Seller registration form
- LazGlobal Seller registration form
Make sure to input your mobile phone number and email address, as well as your store name.
Take clear photos of your documents or ID that you’ll submit to Lazada. Also, prepare your bank account information as you’ll receive payments weekly from Lazada via bank transfer.
2. Add Your Products
Lazada requires beginning online sellers to have at least three products available that they can sell. Take note of the items which you can’t sell, like weapons, gambling products, and malicious software.
If your products are available and you’re ready to sell them, you can start uploading your product photos using your desktop or the Seller Center App.
Visit the Lazada Seller Center and log into your account. Tap “Add Products” and enter the product name, category, product attributes, product highlights, and variation.
Set the price and quantity. Don’t forget to set the package dimension and package weight as well. You can upload products individually or as one batch.
3. Manage Your Online Store
Lazada allows its sellers to manage their virtual store on Seller Center. You can view how your online store performs and make necessary adjustments through the seller tools. Just tap Business Advisor to access the dashboard for managing your Lazada online shop.
4. Ship Products
When you receive an order, it’s time to have it delivered to your customer. Pack the item and wait for Lazada to pick it up and deliver it to the customer.
To view pending orders for shipping, tap Orders > Forward Orders > Pending.
5. Receive Payments
Every week, payments for your purchased products will be credited to the bank account you registered with Lazada. You can check your account statement on the Seller Center website or app.
Read more: Online Business Ideas You Can Start Even with Small Capital
Lazada Seller Fees
If there’s anything that can perhaps discourage you from selling on major online marketplaces like Lazada, it’s the many seller fees. Here are just some of them:
- Payment Fee: Item price – promotional charges + shipping fee paid by customer, inclusive of 2.24% VAT
- Commission (applicable to LazMall Sellers only): A percentage fee for each category and based on the price of the item charged per order item
- Promotional Charges Vouchers: Discounts given for seller vouchers
- Promotional Charges (Flexi-Combo): Discounts given for bundled items
- Payment Fee (Correction for Undercharge): Charges for paid lost claim
Additional Fees for Micro Sellers:
- COOP Admin Fee: 1% of item price credit/sales
- COOP One-Time Membership Fee: PHP 100 deduction on the first payout
Note: Micro sellers also need to deposit a capital share of PHP 300 to Online Micro Sellers Marketing Cooperative within one year of their application.
How to be a Shopee Online Seller
Shopee Online Seller Types
Do you want to know how to be an online seller on Shopee? First, get familiar with the different types of sellers on this online selling platform.
1. Shopee Mall Seller
These online sellers are official distributors or owners of a brand who are members of Shopee Mall, an exclusive online marketplace. Because they offer licensed, authentic products, they gain more trust from customers.
2. Preferred Seller
Preferred Sellers are an elite group of sellers with the “Preferred” label. To qualify as a Preferred Seller, a Shopee online seller must have excellent customer service and sales record, quality product listings with competitive prices, and high seller ratings. Membership to the Shopee Preferred Seller Program is by invitation only.
3. Overseas Seller
Like Lazada, Shopee accepts sellers from outside the Philippines. Shopee’s overseas sellers are based in either China or South Korea.
4. No Label/Marketplace Seller
No Label sellers are online resellers who buy unbranded wholesale products and sell them as a retailer on Shopee. If you’ve always wanted to know how to be a reseller in Shopee, this can be a good starting point as well.
Shopee Online Seller Requirements
The requirements for starting an online business on Shopee depends on the seller type.
If you want to know how to become a Shopee seller in the Philippines, you’ll first need to show proof that your business is registered with appropriate government agencies:
- BIR Certificate of Registration (Form 2303)
- Mayor’s permit
- DTI/SEC business registration certificate
- Registered official shop logo
- Collection receipt and invoice
- For brand owners: Trademark/IP certification
- For official distributors: Official distribution license/ authorization from the actual brand
As for No Label sellers, business registration with the DTI or SEC is not required.
Read more: How to Register Your Online Business and Pay Taxes to BIR
How to Become a Seller in Shopee
If you’re thinking about starting an online business, then you should know how to sell in Shopee if you want to reach more customers. We have laid out the steps below to guide you through the process.
1. Sign Up for a Shopee Account
Download the Shopee mobile app on your phone via the App Store or Google Play Store. You may also sign up on Shopee.com.
Complete your shop profile on the mobile app or log in to the Shopee Seller Center at seller.shopee.ph. Click on “Shop Settings” and fill out the required fields regarding your shop.
Don’t forget to verify your mobile number. Without a verified mobile number, you won’t be able to get your products seen by potential customers.
2. Set Your Pickup Address
In the “Me” tab, tap on “Account Settings” and then “My Addresses.” Supply the required information and then toggle “Set As a Pickup Address.” Tap “Submit.”
3. Create Your Product Listing
Now you’re ready to add and upload your products to your shop. But before you do, make sure that your products are not among Shopee’s prohibited items (e.g., medicines, stolen goods, used cosmetics, etc.).
To upload your products, click “My Shop” > “Add New Products.”
Next, upload your product images. For every product listing, you can upload a maximum of nine photos.
There are three ways to add pictures of your items:
- Take a photo using your smartphone camera (Tap “Take Photo”) and then directly upload it in-app.
- Select an existing image from your phone’s gallery (Tap “Photo Library”).
- Add a picture from your Instagram account (Tap “Instagram”).
After uploading photos of your product, provide information such as the name, category, price, description, stocks, variations, and shipping fee. Toggle the “Condition” tab to set your product as brand new or used. You may also add hashtags so that customers can easily view your products.
Lastly, tap “Save” to save all your entries or changes, and then “Publish”.
4. Set Up Your Shipping Options
If you’re a new Shopee seller, you need to set up and enable your shipping options by selecting “My Shipping” under “My Shop”. Next, toggle on the available shipping options. Shipping options that you don’t select will be removed from the list of shipping options in your shop. Click “Save.”
Enable the selected shipping options on your products by going to each product. Select “My Products” and then choose “Edit” on the product you want to enable the shipping option for.
Choose “Shipping Fee” and then add the weight and packaging size dimension. Toggle on the preferred courier before saving. And then select “Update” to save all changes made.
5. Sell and Earn
Once you’ve completed your product listings, you can begin selling on Shopee. Check the Shopee Order ID under “My Sales” and then “To Ship” and prepare to pack the orders.
Make sure that there’s no issue with the items before packing and to secure them before scheduling the courier pickup. Print the air waybill after you’ve scheduled the courier to pick up your items.
Read more: Seller’s Quick Guide to Dropshipping in the Philippines
Shopee Seller Fees
Just like Lazada, there are fees that you need to take note of if you want to be a Shopee online seller. Here are some of them.
Seller Transaction Fee: Handling fee to cover the cost of payment transactions (2% plus VAT on buyer’s final amount) except for cancelled orders by buyers or sellers, auto-cancelled orders by the system, and returned or refunded orders
Mall Commission Fee: Access fee to continue enjoying the perks and privileges of Shopee Mall; fixed rate of 2% (VAT-inclusive) of the Cost of Goods Sold
Cashback and Free Shipping Program Service Fee: A 3% service fee will be charged, up to PHP 100 per item for the Cashback Program; 5% service charge for the Free Shipping Program
Lazada or Shopee Seller FAQs
1. What perks can you receive as a new Lazada seller?
As a new Lazada seller, you can avail of the 90-day jumpstart program with a team of vendor success managers helping you with your Lazada store. New Lazada sellers also get free access to “Week of Fresh Finds” where you can enroll products to boost your sales. Moreover, you get free access to flash sale slots and LazLive livestreams.
2. How long before my Lazada seller application gets approved?
Lazada has simplified its seller sign-up process, which means your Lazada seller account will be verified automatically after you finish filling out the sign-up form. You can have a Lazada store in minutes.
3. I just received my first order on Lazada. How long do I have to process this order?
You’ll receive an email notification when a customer places an order in your shop, and you have 24 hours to process the order and hand over the package.
4. How do you sell digital goods on Lazada?
Sellers must ensure the authenticity and validity of the digital goods (e.g., promo codes and vouchers should be active/not expired). Furthermore, digital goods should not violate the Intellectual Property Rights Policy and the Prohibited & Controlled Good Policy.
5. What’s the seller’s chat response rate on Shopee?
It’s the percentage of new chat threads that a seller has responded to in the last 12 hours of receiving the messages. Auto replies are not counted as chat responses.
6. How do you get the “Preferred” badge on Shopee?
You earn this badge once you become a Preferred Seller. To be a Preferred Seller, you must have a strong sales record and excellent customer service. You should also receive high ratings for your shop and your items and comply with all of Shopee’s seller policies.
Online Selling Tips for Beginners
Have you set up your Lazada or Shopee online store already? Great! Set yourself up for success with these helpful tips to increase your sales, decrease costs, and ensure your safety as a Lazada or Shopee seller.
- Price your products reasonably and competitively. Check your competitors’ pricing to have a benchmark of how your items should be priced.
- Provide accurate and detailed product descriptions. This makes your brand and products look more legitimate in the eyes of online shoppers. Anticipate the possible questions that customers might ask and provide the answers in the description.
- Complete your product’s attributes. The chances of customers finding your products are two times higher compared to products with missing details.
- Add high-quality photos of your products. Consider investing in a DSLR, mirrorless camera, or smartphone that can take professional-quality photos that will attract buyers.
- Upload at least three products so that you can use the Seller Picks feature on Lazada. This can help boost your visibility on the selling platform.
- Show your products from different angles. This will help customers easily visualize how your product looks like. Even better, upload a video to show how an item works.
- Offer discounts and other enticing deals. You can join Lazada’s or Shopee’s promotional campaigns to boost your sales.
- Link your online seller account to your social networks. Doing so will enable you to share your product listings with an even wider audience.
- Provide nothing less than excellent customer service. This helps you gain customer trust and avoid dealing with dissatisfied, irate customers.
- Join training. Lazada and Shopee have their respective university where sellers can attend training courses. Make the most of these educational tools.
- Avoid making transactions outside the e-commerce platform to protect yourself against fake buyers and scammers.
Read more: Online Scams in the Philippines to Watch Out For
As you can see, being a Lazada or Shopee seller is not that complicated a process. Now that you know how to set up an online shop, get your entrepreneurial journey started! May your new business prosper and help you achieve your financial goals.
Related reading: Online Barter: Is It Illegal and Is It Safe to Trade Goods?
With a goal to help Filipinos lead healthier financial lives, Moneymax regularly publishes tips and tricks on personal finance and lifestyle, among many other topics. For more finance-related news and articles, follow Moneymax on Linkedin.
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