Download - Introduction to Fulfillment by Lazada (FBL)
1This presentation is for illustrative purposes only. It will not supersede the contractual arrangements effective between the parties.
Introduction to Fulfillment by Lazada (FBL)
2This presentation is for illustrative purposes only. It will not supersede the contractual arrangements effective between the parties.
Introduction to Fulfilment by Lazada (FBL)
What is FBL
Why FBL will help you
How to join FBL
3This presentation is for illustrative purposes only. It will not supersede the contractual arrangements effective between the parties.
What is fulfilment by Lazada?
YOU SELL IT, WE SHIP IT
Fulfilment By Lazada (FBL) is a hassle free fulfilment solution
provided by Lazada to selected sellers
4This presentation is for illustrative purposes only. It will not supersede the contractual arrangements effective between the parties.
How does FBL work?
You send
products to the
Lazada
fulfilment center
Lazada
stores your
products
Lazada takes
care of the
pick & pack
Lazada delivers
products to
customer
Customer
purchase
your products
Return
management
handled by
Lazada
End-to-end fulfilment solution
Lazada will be responsible for your order fulfilment
We store, pick, pack & deliver all orders for you
Full flexibility to only use FBL
for parts of your assortment
5This presentation is for illustrative purposes only. It will not supersede the contractual arrangements effective between the parties.
Introduction to Fulfilment by Lazada (FBL)
What is FBL
Why FBL will help you
How to join FBL
6This presentation is for illustrative purposes only. It will not supersede the contractual arrangements effective between the parties.
With FBL you will sell more while reducing your cost and
complexity of operations
Grow sales
Improve marketing
Save cost
Simplify operations
4
3
2
1 • Conversion rate is higher for products on FBL
• Benefit from combined shipping with other FBL and Lazada products
• Customer satisfaction is higher with FBL and leads to repeat purchases
• Improve shipping economics with “Buy More Save More” and postal
• No fixed cost for rent and labour
• Only variable cost of RM1.99 per item delivered
• SKUs are eligible for Express and Postal delivery and all related
promotions
• Better boosting increases visibility on the Lazada website
• Unlimited Order Volume Limit (OVL) for FBL SKUs
• No penalties (for cancellations, fake RTS or wrong/incomplete items)
• Faster payment
7This presentation is for illustrative purposes only. It will not supersede the contractual arrangements effective between the parties.
Customers are more likely to buy FBL items because they
value shorter lead time and higher reliability
1
FBL delivery is up to 1.5 days faster Conversion rate increases across categories
7.3%
6.1%
5.3%
2.6%3.2%
3.8%3.2%
2.0%
Home & Living Baby &Toddler
Computer &Laptops
Sports &Outdoors
3 months conversion rate
FBL Dropshipment
2x
3.2
2.7
3.22.8
3.1
2.3
4.3 4.3 4.3
3.63.9
3.4
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16
End-to-End delivery lead time (days)
FBL Dropshipment
Customers see the faster
lead time promise on the
product page
1.5
8This presentation is for illustrative purposes only. It will not supersede the contractual arrangements effective between the parties.
On-site marketing exposure will be higher for your FBL
products
2
Boost your search ranking and participate in exclusive
campaigns, e.g. for Express Delivery!
9This presentation is for illustrative purposes only. It will not supersede the contractual arrangements effective between the parties.
FBL SKUs join our “Buy More Save More” shipping fee
program across all FBL and Lazada products
3
• For purchases below RM100 customers will
bear part of the shipping fees
• For purchases below RM100 the merchant will
only bear a maximum of RM2.30 to West and
RM5.30 to East Malaysia
• Above RM100 full shipping fees will be borne
by the merchant
• Customers are offered a cheap postal shipping
option for small items
• Customers can pick from all products in the
warehouse, i.e. FBL and own Lazada products
Customers are encouraged to buy more
10This presentation is for illustrative purposes only. It will not supersede the contractual arrangements effective between the parties.
FBL SKUs is entitled for COD – Cash on Delivery 3
What is COD?
• COD stands for Cash On Delivery. With this
payment method, customer can pay in cash
to the delivery agent upon receipt of their
order.
How will COD benefit the merchants?
• Competitive Advantage & Increase Sales:
Offering the service as a differentiator with
respect to competition.
• Increase wider market: Reaching a wider
base of customers such as students,
housewives etc., who typically do not have
credit/debit card/online banking.
• Win trust and gain loyalty: Customer often
has higher level of trust for seller on COD
payment option and will to buy from them
over those that don't
11This presentation is for illustrative purposes only. It will not supersede the contractual arrangements effective between the parties.
FBL only charges you an all inclusive fee per item and
eliminates all your fixed operations cost
3
Direct delivery from your supplier to the Lazada fulfilment center
can reduce cost even further
FBL charge
RM1.99
per item
Includes manpower for pick & pack
Includes cost for packaging materials
Includes storage cost (rent, utilities, insurance)
12This presentation is for illustrative purposes only. It will not supersede the contractual arrangements effective between the parties.
FBL shipping and fulfilment rate card Subang warehouse (item weight and value)
13This presentation is for illustrative purposes only. It will not supersede the contractual arrangements effective between the parties.
FBL simplifies all of your operation processes to make your
life easier
4
Full flexibility to put only parts of your assortment on FBL
No penalties for cancellations, fake RTS or wrong product sent
Easier returns management as re-sellable items go directly back into stock
Unlimited Order Volume Limit (OVL) for FBL SKUs
Faster payments
14This presentation is for illustrative purposes only. It will not supersede the contractual arrangements effective between the parties.
FBL success stories range across local merchants and large
international brands
Local electronics merchant Small local merchant International sports retailer
FBL solved high cancellations
issue and boosted sales
FBL helped to grow sales with
limited operations resources
FBL managed the transition
from offline into e-commerce
70250
1,000
Week 1 Week 6 Week 12
Orders per week
• FBL as stepping stone into e-
commerce in Malaysia
• Growth to 4-digit orders per week
within 3 months
• Perfect operations performance
with 0% cancellations
• Small local merchant with limited
storage space and fulfilment
capacity; 200 orders per week
• Top 30-50 SKUs are on FBL
• Higher FBL commitment increased
seller rating
• Electronics seller had long lead
time and high cancellations
• Customer did not trust low seller
rating, despite high quality products
• Ramped up sales from 30 to 250
orders per week with FBL
10%
0%
Cancellation rate
Dropshipment FBL
40%60%
FBL share of total orders
Seller
rating
15This presentation is for illustrative purposes only. It will not supersede the contractual arrangements effective between the parties.
Introduction to Fulfilment by Lazada (FBL)
What is FBL
Why FBL will help you
How to join FBL
16This presentation is for illustrative purposes only. It will not supersede the contractual arrangements effective between the parties.
How to move to FBL?
• If you wish to join FBL, let us know and we firstly check if your contract
already covers FBL services; If not, a brief addendum needs to be signed
• Lazada will contact you and suggest you a first order of items to be sent
to the fulfilment center; If you agree with the items and the quantities, you
just need to approve the order on Seller Center
• Lazada will contact you on a regular basis and coordinate future
replenishment orders to make sure that your products are never out of
stock
• The management of FBL is quite easy for you! Seller Center provides full
control to issue replenishment orders, check stock levels, retrieve stock
back and manage your products
• Orders, shipments and returns will be fully managed by Lazada
Joining FBL is easy!
17This presentation is for illustrative purposes only. It will not supersede the contractual arrangements effective between the parties.
What changes?
Your life just got easier
Dropshipment
You
You
You
You
You
Upload products
Manage prices
Update stock
Process orders
Ensure 3PL pick-up
You
You
Focus on selling your products and let Lazada do the rest
18This presentation is for illustrative purposes only. It will not supersede the contractual arrangements effective between the parties.
What changes?
Manage your stock
• You can view your
products on FBL on SC,
by clicking on
“Products”/”fulfilment by
Lazada”
• You can send more
products to FBL by
clicking on “Send to
Warehouse” and “Create a
request”
• Fill in the request and
submit it
• You can retrieve your
products from FBL
anytime; just click on
“Products”/”fulfilment by
Lazada”
• Click on “Return from
Warehouse”/ ”Create a
New Request”
• Fill in and submit the form
• You can see all the details
of your requests by
clicking on “Show details”
of the specific request.
1 42 3
19This presentation is for illustrative purposes only. It will not supersede the contractual arrangements effective between the parties.
What changes?
Manage your customer returns (1)
1 . F a i l e d d e l i v e r i e s
2 . C u s t o m e r r e t u r n s
• The 3PL ships the product and attempts to deliver it
• After 3 failed delivery attempts (e.g. the address is not valid) the
product will be returned to its origin
• The 3PL ships and delivers your product to the customer
• Customer changes his mind and returns the product (in
accordance with the returns policy)
• For FBL orders, the 3PL sends the product back to Lazada’s
fulfilment center
• Lazada will store back and sell the item again
• Lazada checks the condition of the product
• If the item passes Lazada’s quality control it will be stored back,
ready to be sold again
20This presentation is for illustrative purposes only. It will not supersede the contractual arrangements effective between the parties.
What changes?
Manage your customer returns (2)
• Click on “Orders” and
“Manage Orders”
• Select “Returned”
• You can see the items
being returned
• You will receive an email
for each returned item
• You can also click on the
specific order number to
learn more about the
returns reason
• You can always check the
current stock of returned
items at Lazada’s
fulfilment center
• Click on “Manage
Products” and “available‘
• You will see an extra
“FBL” line with the specific
stock
• You can raise a return
request by clicking on
“fulfilment by Lazada” /
“Return from Warehouse”
1 42 3
21This presentation is for illustrative purposes only. It will not supersede the contractual arrangements effective between the parties.
What changes?
Financial reconciliation
Financial
reconciliation
cycle example
• The overall financial reconciliation process does not change
with FBL
• However, since FBL orders get delivered faster, you will
receive your payments faster
• You can view your full financial statements on Seller Center
any time
• Click on “Reports” and “Account Statement” and choose the
desired time period
Get your money faster!
22This presentation is for illustrative purposes only. It will not supersede the contractual arrangements effective between the parties.
I have a question!
If I sell products through FBL, can I still sell other products through
drop-shipping?
Yes! You can sell your products through different fulfilment models
simultaneously
Are my FBL products covered by insurance?Yes! All FBL products are fully covered by Lazada’s insurance
(against loss, damage, fire, etc.)
How long does the inbound take?Generally, 24 hours, but if the documents are incorrect or the
packaging is faulty, it can take longer
Can I get my products back from Lazada’s fulfilment center? How
long does it take?
Yes, through Seller Center In 3 business day you are free to
collect the product from our fulfilment center
I need to match the product serial number with the Customer
order. Is it possible with FBL?
Yes! Lazada’s WH team can track this information and share it
with you
Can I monitor my stocks and my returns? Yes! You can monitor your stocks and returns directly on SC
Is FBL expensive?No! Actually, with FBL you avoid additional personnel, packaging
and WH costs for the fulfilment of your orders
Does FBL mean that I need more stock? No! With FBL, Lazada helps you to optimize your stocks and avoid
unnecessary inventory costs
Do I need to update the stock on SC? No! Stocks will be automatically updated by Lazada
Do I receive the Customer Returns? The returns policy remains untouched by FBL. However, if an item
is in good condition it will be stored back in the fulfilment center
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