South East Asia’s online economy hit $100 billion in 2019, and it's estimated to triple that by 2025. The digitally literate population in this region is relatively young and has very high exposure to the internet and smartphones, making it a tempting target for cross-border sellers.

Enter Lazada, a unique and vibrant marketplace that allows international sellers who want to tap into the markets of Indonesia, Singapore, Vietnam, the Philippines, Thailand and Malaysia. Owned by the industry giant, Alibaba Group, Lazada pulls ahead of Amazon in the South East Asian e-commerce market. 

So what is Lazada, and its sister marketplace LazMall? Keep reading to discover the differences in these potentially lucrative platforms and see if they are suitable for your business.

What is Lazada?

Lazada is a leading marketplace platform in South East Asia. It has a dedicated site for each of its main territories:

• Vietnam (Lazada.vn)
• Singapore (Lazada.sg)
• Malaysia (Lazada.com.my)
• Thailand (Lazada.co.th)
• The Philippines (Lazada.com.ph)
• Indonesia (Lazada.co.id)

The platform is designed to be easy for international merchants to begin selling on Lazada and capitalise on the South East Asian market. Lazada also has a fulfilment centre in Hong Kong, which makes it a very attractive prospect for sellers — it makes logistics simpler than ever. Once you send all your products to the centre, Lazada will take care of packing, labelling, shipping and returns.

Unlike Amazon and other e-commerce stalwarts, Lazada does not charge monthly or fixed fees for sellers. You’ll pay a 2% payment fee and a cross-border sales commission fee of between 1% and 4% every time you make a sale. The rates will vary depending on whether you’re based inside or outside South East Asia.

That’s the main platform, but what about its counterpart, LazMall?

What is LazMall?

Launched in 2018, LazMall is a virtual shopping spot within the Lazada platform. LazMall sells only recognisable brands and authentic international products selected for the shoppers to view when searching product listings. 

The relationship between LazMall and Lazada is similar to how Taobao operates with TMall, its international brand counterpart. Due to the household brand names on display, LazMall is the higher-end shopping platform of the Lazada pair.

To become a LazMall seller, you must have:

• A registered brand or trademark
• Proof of authenticity for the products you’re selling. If you're a licenced distributor of designer products, you will need to provide evidence of this, and if the products are not your brand, you should provide the certification that the items are authentic.

The main differences between Lazada and LazMall

There’s a big difference between Lazada sellers and LazMall sellers – especially in terms of promotions, potential profit, and exclusive marketing opportunities. 

Guaranteed authenticity

When shopping on Lazada, the search bar shows a wide range of listings for products. However, some customers have concerns about buying counterfeit or fake goods. If you believe you may have received a counterfeit item, you can return the product via Lazada’s returns process. 

However, LazMall only allows authorised products and brands to sell in the digital mall. Customer guarantees create greater customer loyalty and better conversion rates due to LazMall’s assurance on the authenticity of its products.

Authorised LazMall perks

The benefits you can access as a LazMall merchant are better than what you’ll receive when selling on Lazada’s main platform.

When you become an authorised brand on LazMall, you’ll acquire:

• A LazMall badge on your sellers page, indicating trustworthiness to potential customers
• Better homepage visibility and greater rankings in shopper searches (basically better internal SEO)
• Exclusive access to be included in LazMall campaigns – such as their biggest sales or promotional days
• The ability to add up to six products in your Sellers Picks section, unlike Lazada which only allows three 
• Access to Golden Slots and Marketing Solutions to improve the promotion of your channel

Once authorised, you can’t go back

If you're brand new to LazMall, you can immediately sign up to be an authorised LazMall seller if you're already a trademarked brand or distributor of genuine branded goods.

But, you can also apply to become authorised if you already have a Lazada account. You'll have to prove you offer excellent customer service and the additional certification to become a LazMall seller. You’ll need to provide your brand information, logo, banner templates, plus a trademark certificate for brand owners or an authorisation letter for authorised resellers.

The application can take up to three weeks to be accepted. If you have only applied for a LazMall account, you won’t be able to get a Lazada seller listing. Additionally, if you previously had a Lazada account and have been authorised as a LazMall seller, you will not be able to revert back to your original account.

Measure your currency income with WorldFirst

When taking steps to enter a new international market, you’ll have to consider the currency and territories you’re entering — especially when Lazada and LazMall span a variety of money types and countries. Currency transfer providers like WorldFirst offer businesses innovative solutions to monitor your international income for cross-border transactions.