A proper dropshipper has an eCommerce store where customers find products and place orders. For some, that place is Shopify or WooCommerce. For many others, their dropshipping stores are on platforms like Lazada.
Lazada is an online marketplace that is targeted primarily towards South-East Asian countries like Thailand, Vietnam, Philippines, and Malaysia. It is owned by Alibaba. In fact, in 2018, Alibaba reinvested $2 billion into Lazada.
This article is the perfect step-by-step guide on how to dropship on Lazada. Enjoy.
Step 1: Identify a market and choose a niche
The first step to dropship in Lazada is choosing what to sell. You have to select which niche to focus on and the exact products to add in your store.
The key to successfully selecting a dropshipping niche on Lazada is to analyze each target country and use that to find a niche. Lazada is mainly geared towards six South-East Asian countries – Indonesia, Thailand, Vietnam, Malaysia, Singapore, and The Philippines.
1.Think about what interests you
Make a list of the general products that you will like to dropship. Do you have a general interest in home technology, smartphones, gardening tools, skincare?
If you are looking to play the long game and build a dropshipping business that lasts, it is better to focus on products that you would buy or recommend to your friends.
Even after completing this step, the niche is still going to be too broad. At least for a beginning dropshipper.
2.Do some keyword research
As a beginning dropshipper who has no experience or audience, being very specific about the products you sell will kickstart your business.
By niching down to only a few products in a sub-niche, you stand a better chance to be unique and be an expert in that narrow field.
Keyword research will help you select a niche that is specific and yet has many potential customers.
There are two methods. You either use Lazada’s auto-suggestions or keyword research tools like Split Dragon.
To use auto-suggestions on Lazada, go on the homepage. Homepages vary by country.
Click on the search bar and input a root keyword in your niche. Something as basic as “necklace.” The search bar automatically suggests keywords like “necklace women”, “necklace Korean set”, and “necklace indian set.”
When you add other words, so that it becomes “necklace women indian”, Lazada suggests even more specific keywords like “necklace women indian set”, “necklace women indian set wedding gold”, and “necklace women indian for saree.” These give you an idea of the jewelry that people using Lazada are interested in.
Lazada automatically suggests the top 10 keywords based on search volume, click-through rate, and conversion rate.
Pros of using Lazada auto-suggestions
- Data is pulled directly from Lazada
- Keywords are arranged in order of search volume
- Free of charge
Cons of using Lazada auto-suggestions
- You don’t know the actual number of people searching with those keywords
Another method is to use keyword research tools like Split Dragon. Split Dragon researches product keywords in Lazada and Shopee. It gives you the top-performing keywords while including additional data like the search volume.
Pros of using Split Dragon
- You get the search volume numbers
- Access to additional services like competitor research
Cons of using Split Dragon
- There is a monthly subscription fee
3.Check social media engagement
Check how people engage with your products on social media. Make sure to look through the major sites – Facebook and Instagram. TikTok is great if you’re okay being on camera or hiring someone to promote the product.
Research how well your products fare in Facebook and Instagram ads. Do they get a ton of likes and shares? Do customers like to comment on posts? How will you include product links?
By researching social media engagement, you’ll know where your customers hang out and how to connect with them.
4.Do some competitor research
Now that you’ve settled on the exact products to sell and keywords to target, the next thing is to see what your competitors are doing.
Type in your keywords into the search bar and look at the top ranking products. See what product titles they’re using and how they’re incorporating keywords into their product descriptions.
Go a step further by checking if they run any ads, how many product images they use, how many shipping methods, and what sort of return policy they have. Carefully read through the reviews too.
What this does is show you what your competitors are doing so you can imitate that and kickstart your business. It also shows you where they are not doing well.
Finally, calculate how much profit you stand to make. Check the wholesale price of your products, how much they cost to store in a warehouse, and their shipping cost. Include extra costs like customer support and returns.
An ideal dropshipping product is one that allows you to have a reasonable profit margin. Even though margins vary greatly depending on the niche, 10% is good. 20% and above is considered a high profit margin.
Now you’re ready to create your Lazada seller account.
Step 2: Sign up with Lazada
The first step to opening a Lazada seller account is filling an application form.
1.Fill an application form.
You can decide to open an individual or a corporate seller account on Lazada. The main difference is the documents that you are required to upload.
As an individual seller on Lazada, you have to upload your government ID and bank account statements. If you want to be a corporate seller, you’ll be asked to upload copies of signed electronic contracts, business licenses, and business bank statements.
The bank statements you send have to include the bank name, account number, and account name. The file formats allowed are image files, PDFs, and Word documents.
Other information to include are your name, address, business name, and email address.
2.Activate your seller center account.
After you’ve completed the application form, a confirmation email will be sent to you. Click on the link in the email to activate your seller account.
3.Choose a verified payment method.
You don’t collect payments directly from buyers. Lazada collects them on your behalf and then pays you regularly.
So, in this step, you’ll be asked to choose a payment method. Right now, Lazada pays sellers through either World First or Payoneer. Choose which one suits you the most.
After this, your account will be reviewed. It takes 5 to 7 working days. Once your account is verified, you’re ready to sell on Lazada.
4.Upload your first product.
Soon after, you’ll receive an email prompting you to upload your first product. Lazada will use the term SKU.
SKU, in the world of sales, means a distinct item in an inventory for sale. It stands for Stock Keeping Unit. An SKU has a unique product number for tracking inventory stock.
It will take another 3 days for Lazada to review your product. Once confirmed, you are ready to sell on Lazada.
Step 3: Find a good dropshipping supplier for your Lazada store
It is better to partner with a supplier before uploading your first product. Once an order comes in, the fulfillment process is carried out fast.
The key to choosing great suppliers is looking at value and cost. Choose a Lazada dropshipping supplier that will deliver quality products on time while charging low wholesale prices. If possible, find one that will also take care of order fulfillment.
Here are three best dropshipping suppliers to kickstart your Lazada dropshipping business.
Bestfulfill is a dropshipping agent that provides services at all levels. The agent takes care of finding amazing suppliers in different countries.
They analyze your niche products and then contact the suppliers that will be the right fit. If you want nothing to do with it, Bestfulfill does all the work of finding them and connecting with them.
Bestfulfill has been doing business with dropshippers and suppliers for 10+ years. They have a warehouse of 3000+ square meters and a staff that works round the clock to fulfill orders and provide product images.
Bestfulfill does custom packaging and branding. They also run quality inspections on your products. Bestfulfill is rated 4.4 on Trustpilot.
- Pricing is customized
- You don’t do the hard work of finding suppliers
- Products can only be stored in bulk
CJDropshipping has been around since 2002. Now, they fulfill more than a million orders every month.
More than 60,000 products are available on the platform for you to choose from. They integrate automatically with Lazada, Shopify, and WooCommerce. That means that you can import products directly into Lazada.
CJDropshipping has a dedicated mobile app and operates their own shipping called CJPacket. CJdropshipping also provides product images.
- 60,000+ products to choose from
- Has a mobile app
- Operates CJPacket
- You source suppliers yourself
- Interface is not very well designed
- Not very cheap
NicheDropshipping is an agent that connects dropshippers with the best suppliers for their Lazada store. The agent is based in China.
Apart from finding Lazada suppliers, NicheDropshipping fulfills orders, stores products in warehouses, takes professional product photographs, custom packages and brands products.
Even though NicheDropshipping doesn’t automatically integrate with Lazada, it is a great place to find the best suppliers for your business.
- Has a long track record
- Brands products
- Has monthly subscriptions payments
Step 4: Add products to Lazada
To add products to your Lazada store, login to your account or open the Seller Central app.
This is how to add a single product to your store:
- Locate ‘Products’ and choose “Add products” from the drop-down menu.
- Complete all fields, including Images, Pricing, Other Information, and Main.
- Click the ‘Submit Everything’ button.
This is how to add a batch of products to your Lazada store:
- From “Products” select “Manage Products”
- Click on “Import”
- Download the product creation template
- Fill it in and upload again
While filling in product information, include relevant keywords in all the necessary places. These include the product title, meta description, description, and product highlights.
You’ll be required to upload not less than three product images, input the stock available, and product variation.
Step 5: Optimize and market your Lazada store
Successful dropshippers are people who know how to market their products. They know how to connect with their customers on a personal basis.
Use the following marketing channels to optimize and market your Lazada dropshipping store.
◆ Facebook and Google ads
This method gets new dropshippers noticed. By targeting the right keyword and the best platform, your products appear in front of people who are interested in them.
Using ads, you can immediately start to get your first orders and grow your online presence. This stage is critical because customers decide at this point if they want to buy from you long-term.
Make sure to fulfill orders as fast as possible and get customers speaking favorably of your store. To avoid getting your ads banned, follow Facebook ads best practices.
◆ Social media
Any online eCommerce business that wants to operate long-term is on social media. While customers may love your website and even have positive experiences buying products from you, they can forget about your store and move on.
Being on social media keeps you connected with your existing customers and helps you attract new ones. They follow you on these platforms and are informed when there are new products or discounts.
◆ Search engine optimization (SEO)
SEO means everything you do to rank on search engines. These include updating blog posts, using relevant keywords, optimizing website copy, and so on.
While you stand to connect with thousands of consumers who are ready to buy from you, the competition on Google is stiff. Target keywords with low competition and moderate or high search volumes. If you’ve taken the time to niche down properly, this shouldn’t be a problem.
◆ Email marketing
Email marketing is building an email list of interested customers and sending them email updates regularly. Email marketing is great because of the high ROI.
Even though some niches don’t need to use email marketing to succeed, email lists are a sort of backup because if you lose access to your website or social account, you can reach out to your email list.
Step 6: Scale your dropshipping business
When you’ve started to fulfill orders, think about how to scale your Lazada dropshipping business.
◆ Brand yourself
Register a new brand on Lazada to stand out from the crowd. Login to your seller account. Under “Brand” select “Click here to add a new brand.”
Have an attractive brand name that is shared across several social platforms and your website. By branding yourself, you become unforgettable.
◆ Get in your customer’s head
Be so unique that your customer actively seeks you out to buy from you. This is by telling brand stories that customers feel connected to. It also involves being active online. Regularly post updates so that you’re constantly in front of your customer.
◆ Invest in customer support
Be the Lazada store that respects customers’ needs. Hire VAs and have them respond promptly to enquiries. If you create an amazing support experience and treat each customer as a special person, they’re way more likely to buy from you again, even if you raise prices.
◆ Market yourself
There’s no way to succeed in dropshipping unless you’re constantly in the sight of customers. Find new ways to attract new customers by using new marketing techniques.
◆ Reduce costs
Reduce wholesale prices by ordering in higher quantities. This helps you make more money while keeping products in stock for a longer time.
Pros and Cons of using Lazada as a dropshipping platform
◆ Lazada Pros
- It is completely free to open a Lazada store
- More than 52 million people visit Lazada monthly
- Lazada takes care of securely collecting payment from buyers and transferring them to sellers
- Transaction fees are very low
- Has a dedicated seller central app
◆ Lazada Cons
- Controls how to pay sellers
- Only two seller payment methods available
Dropshipping on Lazada offers many benefits like completely free seller accounts, a central app, and low transaction fees. These benefits make Lazada perfect for people who want to jumpstart their dropshipping business.
Use Bestfulfill to source for the best suppliers for your business – without the hard work of vetting them. Contact Bestfulfill today for a free quote.
How do I register my brand on Lazada?
You can either register your brand directly from the dashboard or while adding a new product. Adding a brand has the same process for both ways.
Click on “Brand” and select “Click here to add a new brand.” Input brand name and select product category. You are allowed to create multiple brands. However, duplicate brand names are not allowed.