Introduction to Fulfillment by Lazada (FBL)

Transcription

1 Introduction to Fulfillment by Lazada (FBL) Q1/2018 1

2 Introduction to Fulfillment by Lazada (FBL) What is FBL Why FBL will help you How to join FBL 2

3 What is fulfillment by Lazada? YOU SELL IT, WE SHIP IT Fulfillment By Lazada (FBL) is a hassle free fulfillment solution provided by Lazada to our local sellers 3

4 How does FBL work? End-to-end fulfillment solution You send products to the Lazada fulfillment center Lazada stores your products Customer purchase your products Lazada takes care of the pick & pack Lazada delivers products to customer Return management handled by Lazada Full flexibility to only use FBL for parts of your assortment Lazada will be responsible for your order fulfillment We store, pick, pack & deliver all orders for you 4

5 Introduction to Fulfillment by Lazada (FBL) What is FBL Why FBL will help you How to join FBL 5

6 Why FBL will help you? Key benefits How? Importance to seller 1 Improves buyer satisfaction Shorter delivery lead time: faster fulfilment & multi-warehouse network Reduce OOS issue Higher seller rating Customer satisfaction is higher and leads to repeat purchases 2 Higher sales Higher seller rating leads to higher conversion rate Results in higher sales for sellers Increase page vies with FBL filter Higher profit for the seller A hassle-free fulfilment solution 3 Save time and cost for sellers Lazada handle most of the process No warehouse cost No additional employee cost More time to focus on merchandising and marketing More money left to invest in the business 4 Easy to expand business Unlimited Order Volume Limit (OVL) for FBL SKUs No penalties (for cancellations, fake RTS) Can grow your business without the need to invest in capital 6

7 1 What are the benefits of FBL? Onsite visibility - FBL Filter FBL filter has been released! The function is applicable across desktop/mobile/app platforms. This is key step in improving overall customer experience and will be supplemented by actions to create brand recognition and help customers understand the benefits of FBL. In turn this will give FBL products more visibility and favourable sales uplift. 7

8 2 What are the benefits of FBL? FBL branding on product page Fulfilment by Lazada for Brand allow customers to recognize the product branding and enjoy fast shipping service at the same time. Beneficial to seller in results of higher seller rating. 8

9 FBL Dropship Process 3 What are the benefits of FBL? Simplify operations for seller Source or manufacture the products Store product in the warehouse Manage inventory, minimize OOS, know when to replenish Pick, pack, label product to deliver 3PL delivered the product to buyers Seller in charge of 3PL pick up Return management /after sales No need to invest in this area giving more time focus on core activities Seller handles Lazada handles 9

10 4 What are the benefits of FBL? On-site marketing exposure will be higher for your FBL products 10

11 5 What are the benefits of FBL? FBL SKUs join our Buy More Save More shipping fee program across all FBL and Lazada products Customers are encouraged to buy more For purchases below RM80 shipping fees will fully pass thru to customer within West Malaysia. For shipping to East Malaysia seller bear RM5.00 on 1 st kg RM 80 Above RM80 full shipping fees will be borne by the merchant Buy more save more applicable to all warehouse items. i.e. FBL and own Lazada products 11

12 What is Buy More Save More? In order to maximize your revenue and profitability from cheap items, we suggest the following levers to be utilized hand-in-hand. What are they? 1 Shipping fee pass-through Moving to a shipping fee module full pass-through means that the customer has to bear the full cost of shipping fees This will allow you to price all your assortment competitively in line with other online and offline retailers 2 Enable a cart rule to incentivize minimum spend for free shipping What is a cart rule? A cart rule is a mechanism that allows for certain automatic levers to be enabled if certain conditions are met In this case, the idea would be to incentivize the customer to spend a minimum amount with FBL products, and if this threshold is breached you offer the customer free shipping. EG: Spend RM80 with <FBL> and be eligible for FREE SHIPPING This works as you are able to cover the free shipping fees offered to the customer through the sale of multiple items 12

13 Exclusive shipping rate cards for selling in FBL Buy More Save More apply to item below 5kg (volumetric weight), Standard shipping type and within West Malaysia only Within West Malaysia Delivery Type Standard Buy More Save More < RM80 > RM80 Weight < 1 Kg > 2 Kg < 1 Kg > 2 Kg Shipping Paid by Customer RM 5.00 Based on the New Rate Card Nil Nil Shipping Paid by Seller Nil 0 RM 5.00 Based on the New Rate Card Delivery Type Weight Shipping Paid by Seller Notes: Within West Malaysia Express <4kg RM5.00 Only SKU with volumetric weight < 4KG will be applicable for Express Delivery. Standard (Bulky) >5kg RM2.00 SKU with volumetric weight > 5KG will not be applicable for BMSM Origin to Destination West Malaysia to West Malaysia East Malaysia to West Malaysia East Malaysia to East Malaysia West Malaysia to East Malaysia West Malaysia to East Malaysia Delivery Type Economy / Postal Standard Weight < 0.5 Kg < 2Kg < 2Kg < 0.5 Kg Kg <1kg Shipping Paid by Seller RM 2.00 Nil Nil RM 4.00 RM

14 Standard shipping Exclusive shipping rate cards for selling in FBL FBL shipping rate card and MP drop ship rate card comparison Shipping type Weight (kg) FBL Rate Card MP drop ship Rate Card SAVE shipping fees up to 50% This 14presentation is for illustrative purposes only. It will not supersede the contractual arrangements effective between the parties. 14

15 Exclusive shipping rate cards for selling in FBL How much will you save on shipping fees in FBL vs Marketplace Drop Ship? FBL with BMSM MP Dropship Scenario 1 (Basket < RM 80): Item price: RM 60 Buy a 3kg item Pass through shipping fees to customer RM 5 (< 1kg) RM 5.50 (1-5kg) Seller pay 1 st kg shipping fees - RM 5 (1 st kg) Customer pay subsequent kg) - RM 1.50 (subsequent kg) FBL Seller save RM 2.50 on shipping cost and landing price is more competitive Item landing price: RM 60 + RM 5.50 = RM Item landing price: RM 60 + RM 8.00 = RM Scenario 2 (Basket > RM 80): Buy 5 items RM20 each, total order RM 100 Total Parcel weight: 9.7 Kg ~ 10 Kg (2 items from Seller A; 3 items from Seller B) Total weight for Seller A: 3.5 Kg (2 items) Total weight for Seller B: 6.2 Kg (3 items) *Package-level Shipping Free shipping for customer Shipping fees share by 2 merchant Total RM Cost of Shipping Fee to Seller A: RM 4.15 ((3.5/9.7)* 11.5) Cost of Shipping Fee to Seller B: RM 7.35 ((6.2/9.7)* 11.5) Item landing price: (Seller A) RM 40 + RM 4.15 = RM Item landing price: (Seller B) RM 60 + RM 7.35 = RM *Item-level Shipping Seller pay 1 st kg shipping fees - RM 5 (1 st kg) Customer pay subsequent kg) - RM 1.50 (subsequent kg) Shipping fees borne by individual merchant Item landing price: (Seller A) RM 40 + RM 9.50 = RM Item landing price: (Seller B) RM 60 + RM = RM FBL Seller A save RM 3.85 on shipping cost and landing price is more competitive by 11% FBL Seller B save RM 6.65 on shipping cost and landing price is more competitive by 9% This 15presentation is for illustrative purposes only. It will not supersede the contractual arrangements effective between the parties. 15

16 FBL only charges you an all inclusive fee per item and eliminates all your fixed operations cost FBL charge Includes manpower for pick & pack RM1.99 ex gst per item Includes cost for packaging materials Includes storage cost (rent, utilities, insurance) Direct delivery from your supplier to the Lazada fulfillment center can reduce cost even further 16

17 FBL simplifies all of your operation processes to make your life easier 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 17

18 Introduction to Fulfillment by Lazada (FBL) What is FBL Why FBL will help you How to join FBL 18

19 How to move to FBL? Joining FBL is easy! 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 19

20 What changes? Your life just got easier Dropshipment Upload products You You Manage prices You You Update stock You Process orders You Ensure 3PL pick-up You Focus on selling your products and let Lazada do the rest 20

21 I have a question!? Is FBL expensive?! No! Actually, with FBL you avoid additional personnel, packaging and WH costs for the fulfilment of your orders? 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? 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? Can I get my products back from Lazada s fulfilment center? How long does it take?! Yes, through Seller Center In 7 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? 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 21