MP Seller Starter Kit - Malaysia

1. Strictly Confidential MP Seller Starter Kit Indonesia PhilippinesMalaysia ThailandSingapore Vietnam

2. Introduction The objective of this document is to introduce some key aspects on working with Lazada Introduction to Seller Center Content Production Price & Stock Management Order Fulfilment Returns Financial Reconciliation If you are going through this document in self- learning mode, we encourage you to open Seller Center in your web browser and try the functionality simultaneously Please ask questions to the Trainer or the Partner Support Center if any part of the document is not fully clear. Please note this material is supplemented by videos and more detailed guides. You will also need to clear the Assessment test on these topics. 2

3. Agenda Brief introduction to Lazada and Marketplace (MP) platform Secrets to success on Lazada MP platform Key topics for successful partnership with Lazada Introduction to Seller Center Content Production Price & Stock Management Order Fulfilment Returns Financial Reconciliation Resources for further help and questions 3

5. Welcome to the Lazada family! Lazada is the #1 e-commerce website in Malaysia We get more than 180 000 visitors on our website everyday . It is more than double the volume of daily visitors in Malaysias largest shopping mall, One Utama We have 940k + Facebook fans. More than Maxis, Starbucks and McDonalds! Everybody has a fair chance to succeed! Average sales for our top 100 sellers have grown over 20% every month 3 of our top 5 sellers only joined our MP platform in the last 3 months! 5 We are very happy that you have decided to partner with us. We are keen to invest in making you successful on our platform!

6. Your friends at Lazada 6 Sales manager Onboarding manager Introduced you to Lazada, will help you to set up (e.g., create content to upload on Lazada website) before handing over to Vendor manager Explain basics of working with Lazada in Open University. Will continue to be your coach (especially during your first 30 days) Vendor manager Your Account manager, will take responsibility for your success, and be your point of contact on Pricing, Assortment, Marketing Partner Support Center Your point of contact for queries, requests and complaints on all topics not covered by Vendor manager Operations, Finance, IT

7. Secrets to success at Lazada 7 Top 3 seller in Mobiles on Lazada Top 3 seller in Fashion on Lazada Top 5 seller in Home Appliances on Lazada Earlier my warehouse staff would not check for orders we get from Lazada everyday. We missed many orders because of this. Now, I ask them to log in to Seller Center first thing in the morning and set up time with 3PL for pick up. And the sales impact is dramatic, one thing leads to another and my account manager also takes interest and helps me get more traffic to my products! In my experience, it is most important to invest in describing products in detail. My sales really shot up once I took effort to write interesting description and photos for my products What has been helpful for me is to check price and stock level of my fast moving items I try to constantly stay on top of these SKUs as they generate most of my business

9. Introduction to Seller Center 9 Web address - https://sellercenter.lazada.com.my/ Seller Center is your access to all key information on doing business with Lazada: Commission and payment terms Product creation on website Stock and price updates for SKUs Orders received Order fulfilment Returns status Financial Reconciliation Important news and updates It can be accessed through any web browser with your unique ID and password You will get your access details in your email once you have registered with us Hot Tip: You should get the person who will manage your inventory and ship orders trained on Seller Center

10. Seller Center - Homepage 10 1. Merchants Shop Name 2. Menu Tab 3. Pending orders 4. All orders Summary 5. News- Latest news by Lazada to merchants 6. Sales Summary of the merchant 1 2 3 4 5 6 Hot Tip: You can update your general information (e.g., Bank Account) at Settings -> Your Profile

12. Content Production Why is it important 12 Content Production refers to the description and photo of the products that you want to sell on Lazada It is an investment on your part to boost your sales similar to the offline shop where you create displays We request you to use the Seller Center to either create product pages one-by-one or through bulk upload What is Content Production? Why is it important? Direct correlation of quality of content to sales!

13. Content Production What does the product look like on Lazadas website? 13

14. Content Production Planning content production 14 By Seller By Lazada Mass upload of SKUs One SKU at a time 1. Click Products at the Menu Tab 2. Select Import Products 3. Download the excel file, enter details, and upload it 1. Click Products at the Menu Tab 2. Select Add a Product 3. Fill online form 1. Search Lazada and online resources for royalty-free images of your products that meet quality requirements 2. Hire a photographer to come to your warehouse. If required, you can ask your sales manager for a reference of photographers who have worked with Lazada merchants 3. Bring your products to our warehouse (in-house studio). Ask your sales manager to schedule your visit 1. Create a first draft of basic product information and some key fields such as warranty 2. Submit draft to Lazada Content Production team who will build on the draft (especially on writing description) 3. Review the draft created by Lazada There are strict minimum standards for content from Lazada. We are happy to produce content for you, but strongly advise you to do it yourself to create a competitive advantage for your shop! Who produces content How to upload text field information How to upload images

15. Content Production How to use mass upload function to create content? 15 1. Click Products at the Menu Tab 2. Select Import Products

16. Content Production How to use mass upload function to create content? 16 Click on the right category to download excel file

17. Content Production How to use mass upload function to create content? 17 1. Enter the required details in the excel file 2. Save the file as per the instructions given in the Introduction sheet Hot Tip: If you don't wish to apply any special price to your product, leave the "Sale Price" field blank (dont type "0)

18. 18 1. Copy all the cells from the template 2. Download Open Office software: http://sourceforge.net/projects/openofficeorg.mirror/files/4.1.0/binaries/en-US/ Apache_OpenOffice_4.1.0_Win_x86_install_en-US.exe/download 3. Paste the cells from the template (using Ctrl+Shift+V, choose Unformatted text) in a new Open Office spreadsheet. Save file as csv, check Edit filter setting, Keep Current Format and Choose UTF 8 in Character Set and ; in field delimeter Content Production How to use mass upload function to create content?

19. Content Production How to use mass upload function to create content? 19 1. Choose Import Mode : Create New Product 2. Choose the csv file 3. Click Upload File Status (Finished/ Failed) will appear in Feeds

20. Content Production How to create content for one SKU at a time? 20 1. Click Products at the Menu Tab 2. Select Add a Product 1. Choose a primary category of your product 2. Click Select upon choosing the right product category

21. 21 Content Production How to create content for one SKU at a time? 1. Fill in Product Information 2. Fields marked with asterisk (*) is compulsory- Name, Name (Malay) and Brand 3. For Name (Malay) field, you have to copy and paste the Name that you key in English 4. You may add 3 more additional categories for your product.

22. 22 Content Production How to create content for one SKU at a time? 1. Next, click on More Product Details 2. Click at Product Description which is one of the mandatory fields (marked by asterisk) 3. Fill up the product description column. Description must be in paragraph format. You may insert image or video links in this field. 4. Copy and paste the Product Description in the Product Description (Malay) field

23. 23 Content Production How to create content for one SKU at a time? 1. Fill up Highlights field. 2. Make sure you list out the core information of your product here 3. Field must be filled with bullet point Hot Tip: Make sure you specify your warranty details in the Highlights section e.g., 1 year warranty on the mobile phone, but only 3 months warranty on the included charger

24. 24 Content Production How to create content for one SKU at a time? 1. Next, fill up Whats in the box field. Here, you can describe the content of your package. If you are only selling 1 item in that package, you have to fill it as 1 X (Product Name). Listing must be in bullet format. 2. Next, click on delivery and fill up Shipping time (min days) as 5 and Shipping time (max days) as 8. Any other values of input will be rejected by Lazada

25. 25 Content Production How to create content for one SKU at a time? 1. Next, click on measurements and fill up the dimension and weight of your product (in cm)

26. 26 Content Production How to create content for one SKU at a time? 1. Next, click on product pricing. Here you have to fill up your product SKU, Quantity (Stock the WH allocated to Lazada) and Price. SKUs must be unique for each product. 2. You can fill in sale price if you want to offer a cheaper price for your product. 3. The sale can be timed. You can choose the sale start date and sale end date to run the sale for a specific duration (e.g., to run a 1 day sale tomorrow, choose start date as tomorrow and end date as day after tomorrow)

27. 27 Content Production How to create content for one SKU at a time? 1. You can add product variation if your product comes in different sizes or content 2. Click on Add another product variation and you will see another row of inputs 3. Add the variation. Ex. Shoes, Put the size in variation column and fill up the SKU, Quantity, Price and Sale Price (if any) 4. You may add in more variation according to the variation of the product 5. For colours, you MUST add in as a different product. Different colours are considered as different products

28. 28 1. Next, click Images. You can add up to 8 images for one product. 2. Each image must be at least 600 x 600 pixel and a maximum of 2000 x 2000 pixel. 3. Each image MUST have a white background. You may use www.bonanza.com/background_burner to edit your images to have a white background 4. Once you are done, click Submit All and Finish 5. Your product will fall in Lazadas QC queue. 6. The process of approval for QC will take a maximum of 3 working days Content Production How to add images? Hot Tip: You can check the dimension of your image by a right click of mouse button> Properties> Detail

29. Content Production QC Requirement Ensure following are adhered in your product inputs: Product Description : Must be in paragraph format with at least 50 words Highlights & Whats in the box: MUST be in bullet format Delivery lead time : Compulsory to be Min 5 days and Max 8 Days Image: Background MUST be WHITE, NO watermarks/scribbles, Only ONE product per image Measurement of the product in cm 29 Important Note Branded products listed and sold in Lazada MUST be authentic. Merchants must provide licenses or distributorship for branded items. Any counterfeit product that is listed and sold will result in termination of contract and merchants must refund customers at their cost Compulsory fields: 1. Name 2. Name (Malay) 3. Brand 4. Product Description 5. Product Description (Malay) 6. Highlights 7. Whats in the box 8. Delivery time 9. Measurement and weight

30. 30 Content Production How to check status? 1. To check the status of your added products, click Products on your Seller Centers main tab. 2. Then click on Manage Products Hot Tip: It generally takes 2- 3 days for uploaded content to be approved

31. 31 Content Production How to check status? 1. Here, you can check the status of your uploaded products 2. Those products with a green tick at the visible column are LIVE at Lazadas website 3. Those with a cross is pending to LIVE, due to some reason. Click on the cross and check on the reason.

32. 32 Content Production How to check status? 1. If your product does not pass QC, it will fall under Poor Quality. 2. Click on it and you can check the reasons the product was rejected. 3. Then click on the pencil icon under Action tab and edit whatever necessary

33. 33 Content Production Detailed guide on Dos/ Donts is available Hot Tip: The last slide of this deck has the link to download this detailed guide

35. Price & Stock Management Why is it important 35 Stock management refers to a seller allocating the appropriate amount of stock in the warehouse for Lazada for a SKU based on its forecasted demand. The seller should also update this on Seller Center We recommend sellers to update stock three times a week, but it depends on the SKU and if there is a marketing promotion - e.g., for a SKU with high sales volume, recommended is to update it on a daily basis Price management refers to timely update of the price of a SKU in Seller Center. We recommend a regular review of prices so that orders do not have to be cancelled because of outdated prices What is Price & Stock Management? Why is it important? Direct correlation of regular stock and price management to cancellation and customer satisfaction! 00.511.522.533.544.55 Cancellation rate (%) Customer Satisfaction Rating

36. Price & Stock Management What is the correct price and stock level for a SKU 36 Price Stock Vendor managers understand pricing trends at a SKU and category level sometimes a 5% price reduction can help bring the SKU to an inflection point that will help increase sales 10x and clear inventory While maintaining seller confidentiality, they can share competitor insights, both on Lazada and in the offline world Partner Support Center Topic Who to contact How can they help Vendor manager PSC has access to experts who can analyze past trends and forecast future volume for SKUs and categories They can share the optimum stock level and re-order point for your SKU

37. Price & Stock Management How to update the price and stock level 37 Price & Stock update Mass update of SKUs One SKU at a time 1. Click Products at the Menu Tab 2. Select Import Products 3. Download the excel file for Stock Update or Price Update, enter details, and upload it 1. Click Products at the Menu Tab 2. Select Manage Products 3. Update stock and price level for the product

38. Price & Stock Management How to do a mass update of the price and stock levels of SKUs 38 Click Products at the Menu Tab Select Import Products Click on the right category to download excel file

39. Price & Stock Management How to do a mass update of the price and stock levels of SKUs 39 Use Text to columns, update the information Hot Tip: You only need to choose the SellerSku and attribute that needs to be updated. For e.g., if you want to update stock, you can include SellerSku and Quantity or to update name or description of SKU, you can include SellerSku and Name or Description Primary Category cannot be updated using this template

40. 40 Content Production How to do a mass update of the price and stock levels of SKUs 1. Copy all the cells from the template 2. Paste the cells from the template (using Ctrl+Shift+V, choose Unformatted text) in a new Open Office spreadsheet. Save file as csv, check Edit filter setting, Keep Current Format and Choose UTF 8 in Character Set and ; in field delimeter

41. Content Production How to do a mass update of the price and stock levels of SKUs 41 1. Choose Import Mode : Import Product 2. Choose the csv file 3. Click Upload File Status (Finished/ Failed) will appear in Feeds

42. 42 Price & Stock Management How to update the price and stock levels for one SKU at a time 1. Click Products on your Seller Centers main tab 2. Then click on Manage Products 3. Edit the price and stock level Hot Tip: Stock and Price updates reflect immediately on Lazada website for active SKUs of verified sellers

44. Order Fulfilment Why is it important 44 Order Fulfilment refers to the timely delivery of ordered items. The package should contain the right items in working condition, warranty, invoice and other document There are a variety of fulfilment models, but the most popular mode involves pick up and delivery by a third party logistics (3PL) company from your warehouse to the customer We request you to use the Seller Center to update the status of your order (when it is shipped) and to print documents such as shipping label and invoice. What is Order Fulfilment? Why is it important? Sellers get paid only for properly fulfilled items Customers will cancel orders if they do not hear that it has been shipped in 48 hours Customers will return orders if items have not been packed properly or contains a defective/ wrong item As per contract, sellers are liable for penalties/ delisting from Lazada if poor performance persists

45. Order Fulfilment What are the models 45 Drop-shipping Customer Seller Lazada works with 3PL companies in Malaysia TA-Q-BIN for all Cash on delivery orders and Gdex for all Prepaid orders (ipay88, PayPal, Cybersource, No payment) Lazada will email your account number with the 3PLs and their contact details to you You will receive 50 consignment notes and flyers from 3PLs at your warehouse Hot Tip: Call the 3PL if you do not receive your flyers. Escalate to PSC if you do not get a response

46. Order Fulfilment How does Drop-shipping work 46 Incoming customer orders for your products via Lazada website Lazada verifies order and transfers orders and customer information to you You validate the orders and start preparing the items for the pick- up (packaging, invoicing, etc.) Our delivery partner (3PL) picks up the items and delivers with Track&Trace service You receive information via Seller Center 24/7 4 hours later Immediately 6:00 pm 7:00 am the next day Drop-shipping by Marketplace Seller Hot Tip: You have to check SC regularly for pending orders. Any order needs to be shipped within 48 hours and same day shipping is strongly preferred

47. Order Fulfilment How to fulfill an order via Drop- shipping 47 1. Upon receiving order from customer, you will be alerted via email and orders can be seen in your Seller Center. 2. A small red circle with a number will be visible on top right of the order tab. The number is the total orders that is pending for fulfilment 3. Click on Orders and select Manage Orders We recommend you start your day at the warehouse by checking pending orders in Seller Center every morning!

48. Order Fulfilment How to fulfill an order via Drop- shipping 48 1. In Order overview, look at the payment method for each order 2. If its either Ipay88, Cybersource, Paypal or No Payment, contact Gdex, provide your account number and arrange for a pick up. If its Cash On Delivery, contact TA-Q-BIN 3. It is advised to call the 3PL before 11am, so that pick up can be done on the same day from 2pm to 5pm 4. Next, click Invoice (first column in the table), type your own invoice number based on your invoicing system (either alphabets or numerical or combination of both). Click Show, print 1 copy and insert in flyer Hot Tip: 3PLs do not work on Sat or Sun

49. Order Fulfilment How to fulfill an order via Drop- shipping 49 1. Fill up Customers Name and Shipping Address on Consignment Note (CN) 2. For TA-Q-BIN, fill up the amount on the CN. The amount should be the same as the total amount on the Invoice. Tracking number

50. Order Fulfilment How to fulfill an order via Drop- shipping 50 1. Next, you will be back to the Order Overview page 2. Click Shipped under the Actions tab 3. In the prompt, choose the 3PL and insert the tracking number from the CN and click save. (Make sure you enter the correct tracking number because customer will receive an SMS with the tracking number once you click Save). You may use a barcode scanner and scan the tracking number. Now your order has been processed, you should call the 3PL to enquire about the pick up time 4. In case 3PL has not scheduled the pick up yet or does not turn up as scheduled, do follow up with them. If item is still not picked upon a few reminders to 3PL, please contact Partner Support Center

51. Order Fulfilment How to fulfill an order via Drop- shipping 51 1. Prepare necessary equipment and materials (flyer, CN, product, tape, filling materials) 2. Place the product in the center of the flyer and surround it with the appropriate filling materials 3. Use tape to seal the flyer and paste the CN on the outside 4. Keep the packed items in a staging area so they can be easily handed to the 3PL pick up guy

52. Order Fulfilment How to fulfill an order via Drop- shipping 52 1. When the pick up guy from the 3PL arrives, ask him for the pick up list and confirm the order IDs 2. Hand the packed products to him, ask him to stamp the CN and keep a copy for your records 3. If you are handing an order that is not on his list, write the order ID on his picklist manually Hot Tip: 3PL will update the status of an item from Shipped to Delivered

54. Returns Management Why is it important 54 Returns Management refers to the process that begins with 1) a notification to Lazada of an order being returned by a customer, 2) troubleshooting/ assessment to determine validity and next steps, 3) acceptance by seller, and 4) recovery (flow of physical product and money) We request your co-operation and patience to manage customer experience. We try to do a thorough and objective troubleshooting and return the item to you in a good condition at the earliest We may delist a SKU if the return rate for it is more than 10% What is Returns Management? Why is it important? A returned item goes back to your stock and needs to be sold again The ability to return an item that is not upto satisfactory level is a key moment of truth in an online shopping experience. A dissatisfied customer may never purchase online again and spread negative word about his/ her experience to others At the same time, Lazada invests significant resources to track and blacklist fraudulent customers, and minimize the time lag to return the physical product to the seller.

55. Returns Management How to check if an item is being returned 55 1. Click on Orders, select Manage Orders and Returned 2. You can see the items being returned. 3. You will also receive an email from Lazadas Partner Support Center on the items being returned and the reasons for the returns. Hot Tip: 14 days is the maximum return time frame offered by Lazada. It could take up to 1 month for the item to return to you

57. Financial Reconciliation Why is it important 57 Financial Reconciliation refers to the process where a seller is paid for the orders he has shipped Lazada calculates the amount due by deducting the charges, fees and penalties from the amount collected from the customers (i.e., value of items). The charges and fees may include commission, shipping fee, storage fee, payment fee and marketing fee as per your contract The amount is calculated by Lazada on a weekly cycle i.e., all orders shipped and returned during Monday 12.00 am Sunday 11.59pm. However, if the amount due is < RM 500, they are accumulated and paid in the following week to your What is Financial Reconciliation? Why is it important? We recognize getting paid for orders is a key moment of truth for sellers in an online marketplace Lazada invests significant resources to systematically track the amount due to sellers as per the contract and shares it in a very transparent manner with them Lazada aims to make payments on time and even allow adjustments incase it is needed. So far Lazada has paid over MYR million to our satisfied sellers!

58. Financial Reconciliation How to check your registered bank account and payment terms 58 1. Click on Settings, select Your Profile and Bank Account to view bank account details 2. Click on Settings, select Your Profile and Commissions to view details of commissions and fees Hot Tip: Penalties charged Commission for every cancelled order Commission if wrong item is shipped Order is cancelled if not shipped in 48 hours

59. Financial Reconciliation How to check the amount that will be paid 59 1. Click on Reports and Account Statement 2. Choose time period as a default, you will see the most recent time period. Use the drop-down to access information for previous time periods Opening Balance is the amount carried forward from the previous statement. If the previous cycle closing balance is positive, the opening balance should reflect the deposit amount. If it is negative, it is the deposit minus the negative amount Guarantee Deposit is the deposit we keep from your first revenue. This is consistent for every seller Payout indicates amount that will be credited to your bank account Item Revenue is the current sum of the selling price of the items shipped in the current payment cycle. The final figure is visible on Wednesday Other Revenue is not a regular line item. It is used for ad-hoc adjustments such as reimbursement of shipping fee or credit for any mistakes in the previous payment cycle Fee is the sum of commission and payment fee earned by Lazada as per the agreed contract Refund is the current sum of the selling price of the items that were returned by customers upto the cut- off date that will be deducted from your payout Fee on Refund is the current sum of the commission Lazada had deducted for the orders that have been returned. This sum is now added back to your sub-total (i.e., Lazada does not earn commission on returned orders) Closing Balance reflects the Gross Payout to you. The Deposit is deducted from this Gross Payout to arrive at the net payout

60. Financial Reconciliation How to understand the details of the amount that will be paid 60 1. Click on Reports, select Transaction Overview 2. Choose Date Range as a default, you will see the most dated time period first. Use the drop-down to access information for previous time periods, or search by date and transaction number 3. For every entry, you can view the details, amount, statement cycle and reference number Transaction Type has the following options Item Price Credit shows the entry with the selling price of the item Commission shows the entry with the commission earned by Lazada Payment fee shows the entry with the payment fee charged by Lazada Item Price shows the entry with the selling price of the item that has been returned

62. Self Help resources 62 Documents Seller Center Guide https://sellercenter.lazada.com.my/ documents/SellerGuide.pdf Content Production Guide http://www.slideshare.net/slideshow/ embed_code/35474304 Videos Packaging https://sellercenter.lazada.com.my/help Content production http://www.screencast.com/t/J7UoE6wuOqPZ Price & Stock Management http://www.screencast.com/t/J7UoE6wuOqPZ Order validation and fulfillment http://www.screencast.com/t/v2PvUrUVi FR http://www.screencast.com/t/j70KVNNdCL0e

63. Recap of Key Points (hint: to pass the test)! 63 Q: Who is the right person to manage your SC account? A: The person who will manage your inventory, price, stock level update and also release, pack and prepare the shipment of the orders. Q: Minimum number of images for each content? A: 3 Q: Time for uploaded content to be approved? A: 2- 3 days Q: When is order to be paid to you? A: Once the item status is Shipped Q: Time for returned product to reach seller? A: At most it could take 1 month Q: When should order status set to be shipped? A: After the item have been packed Q: What is the maximum return rate accepted by Lazada? A: 2% of the orders Q: What happens to SKU with return rate more than 10%? A: The SKU will be delisted Q: Program needed for mass upload? A: Open Office

64. Your friends at Lazada 64 Sales manager Onboarding manager Name: Phone: Email ID: Name: Sugendren Maniam Email ID: [email protected] om.my Vendor manager Name: Phone: Email ID: Partner Support Center Phone: (+60) 3 202 747 11 Email ID: [email protected]. my Operation Hours: Mon- Fri 9:00AM - 6:00PM [Excluding Public Holidays] Hot Tip: Ask Onboarding Manager if you dont know who is your Sales or Vendor Manager!

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MP Seller Starter Kit - Malaysia