Returns

Fulfilment process - Overview

within 24 hrs
 Seller Penalties
- Work with most trustworthy suppliers

- Conduct strict quality control with

frequent sample testing
Penalty fee imposed:
- Take actions once products are
returned due to the products are RM50 per item + GST%
Defective defective

- Rechecking of the items packed in

the boxes delivered to the
customer
Penalty fee imposed:
Missing parts - Make sure to pack all items stated RM50 per item + GST%
in Whats in the box on website
before ship out the order

- Pay extra attention when packing

the orders, especially during high
volume campaign days
Penalty fee imposed:
Wrong Item - Rechecking of the items packed in RM50 per item + GST%
the boxes delivered to the
customers
Ordered Delivered
Lazadas Returns Policy
Return process - Overview
Customer Returns
Item to Lazada
Return item to
Warehouse
seller

Quality team check returned item

Convenient return:
Does not fit
Below expectation
Ordered by mistake /
- Product returned Change of mind
within 14 days? Yes Yes
- Product returned in Inconvenient return:
good complete Wrong product
condition? Investigate
Parts missing
returned item
Defective Valid return?
against return
Damaged product
reason
No Wrong advertisement
Product condition
No

Order return timeline

Order Cut-off for customer to Cut-off for Lazada to
Return item to delivered initialize return ship the item to Seller
customer date
14 days 45 days
What causes High Returns?
Wrong packaging by supplier

Wrongly picked and packed by seller

Shipping label swapped by 3PL

Part missing within original sealed packaging

Seller forgot to include free gift

Damaged due to 3PL handling

Damaged due to insufficient packing

Defective batch from supplier

Insufficient instructions on how to use the item

User manual in foreign language

Wrong advertisement

Selling Unauthorized / Counterfeit Items

 High Returns - Wrong packaging by supplier

Overview: Sometimes the supplier wrongly packs the item. The package
and the item within do not match
Impact: Seller will be penalized for delivering the wrong item

Solutions What do I have to do to avoid wrong packaging issue?

1. If the SKU is delivered in a unsealed box: Perform 100% QC if the inbounded

quantity is low, sample check if the inbounded quantity is high.

2. Prioritize incoming QC for SKU's with high return rate due to wrong packaging

3. Keep track of the return rate and feedback to supplier for improvement.

4. Perform outgoing QC for SKUs not in a sealed package.

 High Returns - Wrongly picked and packed

Overview: Seller picks, packs and sends out the wrong item to customer
Impact: This leads to a very unhappy customer, and seller will be
penalized for delivering the wrong item

Solutions What do I have to do to avoid wrong item issue?

1. Clearly label storage racks and bins

2. Use Seller Center Stock Checklist with pictures to aid in accurate picking
3. Check once again before packing the item by comparing the item against what is
described in the invoice.
4. Measure picker's performance accuracy. Constantly coach pickers who are performing
poorly.
 High Returns - Shipping label swapped by 3PL

Overview: Sometimes the shipping label you place in the pouch might
fall out.
Impact: 3PL could accidently swap the shipping label with another
parcel, leading to customer receiving a wrong item. Will lead to item
return and a lengthy investigation and dispute resolution.

Solutions What do I have to do to avoid swapped shipping label issue?

1. Paste the receiver copy directly onto the parcel. By doing this, the
chances of the shipping label going missing is reduced to almost none
 High Returns - Part missing within original
sealed packaging

Overview: Suppliers can sometimes miss out certain parts of an item

Example: The earphones are not included along with the phone when in fact
it was advertised with the earphone

Solutions What do I have to do to avoid missing parts issue?

1. Feedback to supplier to make them aware of the problem

2. Consider turning off the SKU if the problem persists with specific SKUs until
supplier resolves the issue
High Returns - Seller forgot to include free gift

Overview: Seller forgets to include a free gift as advertised. Customers are

entitled to returns such orders

Impact: Will lead to item return and a lengthy investigation and dispute
resolution.

Solutions What do I have to do to avoid forgetting free gift issue?

1. Train pickers and packers to pay attention to free gifts that is stated in the invoice /
picklist
2. Communicate with pickers and packers everyday to ensure they are aware of free gifts
for specific SKUs
 High Returns - Damaged due to 3PL handling

Overview: Parcels or items within can get damaged due to mishandling

by 3PL. Sellers can help minimize this by making sure the packing is
robust
Solutions What do I have to do to react with Damaged items issue?

1. Contact Partner Support through the forms to lodge complaints on 3PL mishandling

2. Apply a fragile sticker if the parcel contains fragile items

3. Always ensure there is sufficient protection for your item within the parcel to avoid
any possible damages. Use bubble wraps, corrugated box, fillers and shrink wraps
High Returns - Damaged due to insufficient
packing

Overview: It is the sellers top priority to make sure the parcels arrive at the
customer doorstep in the best condition

Solutions What do I have to do if items are damaged due to insufficient

packing?

1. Ensure you use bubble wrap, carton boxes, shrink wrap to protect the item

2. If the item has loose parts in it that might get damaged by knocking into each other,
use packing materials to wrap the parts separately e.g. Coffee cups

3. Generate a packaging guideline by product type to ensure your packing staff have a
clear reference on what is a good and sufficient packaging standard
High Returns - Defective batch from supplier

Overview: Seller must always investigate and keep track of customer

returns

Solutions What do I have to do if items are defective batch?

1. Track return rate from different suppliers and feedback to suppliers for improvement
of goods delivered.
2. Seek alternate suppliers with better quality track record
3. If a defective batch of goods is identified, return back to supplier and request for a
replacement batch.
4. Disable the SKU temporarily on Seller Centre while the high return rate is
investigated.
 High Returns - Insufficient instructions on
how to use the item

Overview: Learn to see from a customers perspective. Always ask yourself how
easy it is to use your item

Solutions What do I have to do to avoid the insufficient instructions?

1. Request from suppliers for a more complete instruction sheet with pictures if
possible. This is especially important for items that require assembly.

2. Build and include your instruction/FAQ page based on common customer

questions/complains

3. Add notes, instructions, pictures and videos in your product description page to
educate customers during purchase of the item.
 High Returns - User manual in foreign
language

Overview: Be aware of what language the manual and instructions sheets

are in. Your customers might not speak the language

Solutions What do I have to do to avoid such situation?

1. Request from supplier for translated manual. Ensure manual is easy to

understand
2. Prepare your own translated instruction sheet if supplier is unable to
provide one
 High Returns - Wrong advertisement

Overview: Sellers often use images and item descriptions from other
sites to describe their products. Make sure the pictures, videos and
descriptions match correctly to what you sell

Solutions What do I have to do to avoid wrong advertisement?

1. Always check and verify the product description on the site matches the actual
product e.g. Product description for Iphone 6s used for Iphone 6.

2. Only use pictures of the actual product for advertisement. Do not use alternate
product pictures

3. If the product details are being obtained from the manufacturer webpage, make sure
the webpage region is selected correctly. e.g. www.samsung.com vs
www.samsung.com.my
 High Returns - Selling Unauthorized /
Counterfeit Items

Overview: Ensure the stock on sale is genuine, does not infringe on any
copyrights or patents, and you have the proper authorization to sell.

Solutions What do I have to do to avoid wrong advertisement?

1. If the items sold are not fake, be sure to obtain the proper
authentication/authorization documents from the brand principle or supplier.
Fulfilment by
Lazada (FBL)
What is FBL and How it works

Fulfillment By Lazada (FBL) is a hassle free fulfillment solutions

provided by Lazada for sellers.

End-to-end fulfillment
solution

You send Lazada Customer Lazada Lazada Return

products to stores purchase takes care delivers management
the Lazada your your of the pick products to handled by
fulfillment products products & pack customer Lazada
center

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
FBL is the best way to increase your sales and
ops performance while reducing your costs

1
Conversion rate is higher on FBL
Increase customer satisfaction Net Promoter Score (NPS) increases for FBL
products and leads to repeat purchases

2
No fixed cost for rent and labour
Save on warehouse cost
Only variable cost of RM1.99 per item delivered

3 SKUs are eligible for Express Delivery and related

promotions
Get better marketing exposure
Better boosting increases visibility on the Lazada
website

4 Unlimited Order Volume Limit (OVL) for FBL SKUs

No penalties (for cancellations, fake RTS or
Improve your operations wrong/incomplete items)
Faster payment
Easier returns management
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
FBL only charges you an all inclusive fee per item
and eliminates all your fixed cost

Includes manpower for pick & pack

FBL charge

RM1.99 Includes cost for packaging materials

per item

Includes storage cost (rent, utilities, insurance)

Direct delivery from your supplier to the Lazada fulfilment center can reduce cost
even further
Normal 3PL vs FBL

3PL Process | On Daily Basis

3PL

Order
Pick items Drop off Customer
received Pack Prepare
from items to the receives the
on Seller accordingly documentations
inventory nearest 3PL order
Center

FBL Process | On Monthly Basis

LAZADA
LAZADA

When customer orders,

Seller sends products Lazada Stores Lazada picks & packs
to Lazada WH your products and deliver to customer
FBL SUPPORT SERVICE :

PIC : Victoria Wong

Email : Victoria.wong@lazada.com.my
I have a question!

No! Actually, with FBL you avoid additional personnel,

? Is FBL expensive? ! packaging and WH costs for the fulfillment of your orders
If I sell products through FBL, can I still sell other Yes! You can sell your products through different fulfillment
? products through drop-shipping? ! models simultaneously

? Are my FBL products covered by insurance?

! Yes! All FBL products are fully covered by Lazadas insurance
(against loss, damage, fire, etc.)
Generally, 24 hours, but if the documents are incorrect or
? How long does the inbound take? ! 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 Lazadas WH? Yes, through SC. In 3 business day you are free to collect the
? How long does it take? ! product from our wh

I need to match the product serial number with the

? Customer order. Is it possible with FBL? ! Yes! Lazadas 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
If the items are in good condition, they will be stored back in
? Do I receive the Customer Returns? ! Lazada's fulfillment center and get ready for sale. However,
you can place an order on SC and retrieve them back