FBL: Fulfilment by Lazada Hong Kong Indonesia Malaysia Philippines Singapore Thailand Vietnam
How does FBL work 1 2 3 4 Sourcing specialists help with first-in-class tools to optimize your replenishments You create FBL replenishment orders anytime through Seller Center You prepare the products, together with the delivery note and a copy of the replenishment order Products arrive at the WH, pass the quality control, get labelled and registered in the WMS 5 6 7 8 Products get stored in a specific location, including cold, bulky or top security storage areas With FBL, we take care of picking, packing, invoicing and shipping your orders, 24/7 Products get delivered to Customers with reliable 3PL partners The delivery process is faster, which means satisfied Customers and a faster payment cycle 3
Why does FBL make sense B e c a u s e y o u c a n b e n e f i t f r o m L a z a d a s f u l f i l l m e n t n e t w o r k 12.500 sqm of storage capacity in state-of-the-art fulfillment centers in Jakarta and Surabaya and 21 hubs across the country. More than 650 warehouse specialists ready to help you with the fulfillment of your orders. Cold room and top security areas ensure highest quality and safety standards. Lazada s primary partner LEX has more than 300 specialist. Also reliable logistic partner JNE. 4
Why does FBL make sense No hassle in operational Doesn t need to invest in warehouse Doesn t need to hire worker No packaging cost Doesn't need to monitor delivery status Weekly report Replenishment Report Inventory Report No limitation to grow Focus on finding the right product Focus to decide the right price Focus on strategic to develop business Landing page FBL Free photo shoot 5
Why does FBL make sense 0.50% 0.40% 0.30% Weekly OOS Cancellations 0.40% 1.00% 0.80% 0.60% Weekly Returns 0.70% 10 8 6 Lead-time 9 0.20% 0.40% 4 3 0.10% 0.00% Non FBL 0% FBL 0.20% 0.00% Non FBL 0.04% FBL 2 0 Non FBL FBL WoW Sales Growth Weekly CR NSP Trend: ID 6% 0.10% 80% 5% 5% 0.08% 0.07% 60% 3% 3% 0.06% 0.04% 40% 20% 2% 0% Non FBL FBL 0.02% 0.00% 0.01% Non FBL FBL 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Non FBL FBL 6
Why does FBL make sense 7
FBL rates and rewards program FBL RATES Description Charge Frequency Handling services Inbound: unpack, sign delivery receipt, quality control, label items, allocate location, put away Outbound: generate pick-list, pick item from location, generate invoice, pack, handover to delivery team Standard packaging 6,700 IDR per item Weekly, when item is delivered Storage services Products stored at Lazada for more than 30 days. Keep item in location, perform cycle count 2,000 IDR Monthly REWARDS PROGRAM If you join within 1 month If you sell > 50% on FBL If you sell > 75% on FBL Content production Lazada provides photo-shooting service for FBL sku Premium SKU content production for the first 100 SKUs on FBL FBL fee discount 1 month free trial 10% discount 20% discount Promotion Marketing campaign exclusive for FBL Sellers on landing page Posting on Facebook, twitter & newsletter *Weight limitation: max 15 kg & less than 0.4m3 volumetric 8
FBL Landing Page 9
Selling 1000 item in Lazada Cost difference: FBL vs Manage by Seller Unit Seller FBL Comment Only FBL Only Seller Handling cost 1000 item 0 6,700,000 Discount 10% for commitment >50% and discount 20% for commitment >75% Labor cost People 7,323,000 0 Minimum wage Jakarta @IDR 2,441,000 (assumption: 3 worker) Packaging cost IDR/item 1,000,000 0 Cost per item @1000 including paper, bubble wrap, tape, box, etc Warehouse cost IDR/month 2,000,000 0 Warehouse cost per month @IDR 2,000,000 Total cost IDR/1000 item 10,323,000-54% 6,700,000 With FBL cost for handling 1,000 item/month will be cheaper Free FBL for one month 10
I have a question Is FBL expensive No Actually, with FBL you avoid additional personnel, packaging and WH costs for the fulfillment 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 fulfillment 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.) Do I have to pay more for the pick-ups No There is no charge in the pick-up service (metro area) 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 WH How long does it take Yes, through SC. You can agree on a return lead-time with Lazada, based on your specific needs and your WH location 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 If the items are in good condition, they will be stored back in Lazada's fulfillment center and get ready for sale. However, you can place an order on SC and retrieve them back 11
How to move to FBL I t s e a s i e r t h a n y o u t h i n k If you want to learn more about FBL, please contact our FBL experts: Andri: andri.mangontang@lazada.co.id Raditya: raditya@lazada.co.id If you wish, you can also arrange a visit to our WH and learn more about our fulfillment operations 12