Get Started as a Lazada or Shopee Seller: Which is the Better Platform?

Lazada and Shopee are two of the leading e-commerce websites in the Philippines and Southeast Asia—not just for consumers but also for business-minded Filipinos who want to make money online. 

These platforms for online sellers are beginner-friendly. Moreover, starting as an online seller on Lazada or Shopee is simple, even for newbies. If you’re interested in starting your online business, here’s a helpful guide on becoming a Lazada or Shopee seller.

Lazada vs Shopee: Which is the Better Online Selling Platform in the Philippines?

Lazada and Shopee don’t charge new online sellers registration fees. For as low as ₱10,000, you can start selling and earning profits. You just need a computer or smartphone, an internet connection, your products to sell, and a bank account to receive payments. 

It doesn’t matter if you’re in Manila, the province, or abroad. You can run your shop anytime and anywhere while reaching customers all over the Philippines.

Both online selling platforms have pros and cons for a Lazada or Shopee seller. For instance, they offer an easy sign-up process for online sellers. You can fully set up your online store with just a few taps. 

When it comes to differences, however, Shopee got over 50.5 million visits in June 2023 alone. If you’re an online seller, high marketplace traffic is an important factor to consider. More visits to your site mean more chances. 

Shopee also has more payment options, which means more customers can shop and pay with their preferred payment methods, resulting in more potential sales for sellers. 

When it comes to payouts, online sellers on Shopee get paid faster. The payment is released when the customer clicks “Order Received” or the Shopee Guarantee period is over. 

Meanwhile, Lazada has a scheduled payout for sellers every Tuesday of the following week. And if you’re a new seller, you’ll need to wait three weeks after your first delivered order to get paid. 

So whether you want to be a Lazada or Shopee seller, consider the pros and cons of both before following before setting up your online shop.

How to Start Selling in Lazada Philippines

Sure, becoming part of one of the pioneers of online selling in the Philippines is exciting. But there’s work involved before you finally get to place your products and earn money. Here are things you need to take note of.

🔷 Lazada Online Seller Types

Before you start selling on Lazada, you must know the types of online sellers you may apply for. Choose a Lazada online seller type that fits you best.

LazMall Seller

These online sellers are authorized distributors or owners of brands. LazMall is the premium type of online seller account, offering exclusive access to LazMall campaigns and additional seller tools. 

You can have a LazMall Flagship Store as a brand owner or exclusive distributor. You can also have a LazMall Authorized Store as a non-exclusive distributor or a LazMall Verified Store as a reseller or retailer.

LazMall sellers also enjoy a higher overall search ranking, which means they are among the brands that shoppers see first when they search for a product on Lazada.

Another advantage of being a LazMall seller is that customers tend to trust and buy products with the LazMall logo. It’s because LazMall guarantees authentic products and a superior shopping experience.

However, Lazada charges LazMall sellers commission fees when their products are sold. 

Lazada Marketplace Seller

These are individual or corporate Lazada online sellers who are based in the Philippines. Lazada doesn’t charge commissions from its local sellers. First-time entrepreneurs who want to make money online most likely start as Marketplace sellers on Lazada.

These sellers also have access to online seller tools.

Lazada Fresh Seller 

As a Lazada Fresh Seller, you can sell fruits and vegetables, meat, seafood, bread, pastries, ready-to-eat or ready-to-cook food, and baby and pet care products. If you have a stall in the market that sells these fresh goods, you can start selling them online as a Lazada Fresh Seller. 

LazGlobal Seller

Lazada also accepts online sellers with registered businesses based in Hong Kong, Macau, China, Taiwan, South Korea, or Japan. Like other Lazada online seller types, overseas sellers can access the e-commerce platform’s seller tools. 

LazGlobal sellers ship their products to Lazada’s overseas sort center. They pay a commission fee to Lazada when they make a sale.

Read more: How to Start a Dropshipping Business in the Philippines in 2023

🔷 Lazada Seller Requirements

The requirements depend on the type of seller you’ll apply for. Here are the requirements you need to submit based on your seller group:

Requirements for Individual Sellers

• Valid government-issued ID
• Bank documents (bank statement or passbook)

Requirements for Brand Owners (Flagship Store) 

• Brand logo
• Valid brand trademark certificate
• Valid company business registration information (BIR 2303)
• Bank account and registered company name (must be the same)

Requirements for Exclusive Distributors (Flagship Store) 

• Brand logo
• Valid brand letter of authorization from brand owner 
• Valid company business registration information (BIR 2303)
• Bank account and registered company name (must be the same)
• Official website or social media account 

Requirements for Non-Exclusive Distributors (Authorized Store) 

• Brand logo
• Valid brand letter of authorization from the brand owner or distributor
• Valid company business registration information (BIR 2303)
• Bank account and registered company name (must be the same)
• Official website or social media account 
• Upload products of approved brands

Requirements for Reseller and Retailers (Verified Store) 

• Brand logo
• Valid proof of authenticity (purchase invoice from authorized sources) 
• Valid company business registration information (BIR 2303)
• Bank account and registered company name (must be the same)
• Official website or social media account

🔷 How to Become a Seller in Lazada

Ready to be a Lazada online seller? Follow these steps to set up your Lazada online shop. 

Step 1: Set Up Your Store Registration

Once you have the required documents for seller registration, create your account at Lazada Seller Center.^[3]

First, complete a Lazada online seller registration form on the Seller Center website or mobile app. Input your brand name, mobile phone number, and verification code. 

Take clear photos of your documents and upload them. Prepare your bank account information, as you’ll receive payments weekly from Lazada via bank transfer. 

Submit your application to Lazada for document verification and Brand Suitability Assessment, which will take approximately three days.

Step 2: Add Your Products

Start decorating your Lazada store. Prepare at least three products available that you can sell. Take note of the items you can’t sell, like weapons, gambling products, and malicious software.

Upload photos of approved brand products using your desktop or the Seller Center App. Visit the Lazada Seller Center and log into your account. Tap Add Products and enter the product name, category, product attributes, product highlights, and variation. 

Set the price and quantity. Don’t forget to set the package dimension and package weight as well. You can upload products individually or as one batch. Make sure to add your warehouse and return address, too.

Step 3: Manage Your Online Store

Lazada allows its sellers to manage their virtual store on Seller Center. View your online store's performance and make necessary adjustments through the seller tools. Just tap Business Advisor to access the dashboard for managing your Lazada online shop.

Step 4: Ship Products

When you receive an order, it’s time to deliver it to your customer. Pack the item and wait for Lazada to pick it up and deliver it to the customer.

To know which products need to be processed, log in to the Lazada Seller Center, go to Orders & Reviews > Orders > Pending.

Step 5: Receive Payments

Every week, payments for your purchased products will be credited to your registered bank account. Check your account statement on the Seller Center website or app.

Note that the payment schedule for all sellers is every Tuesday of the following week. This means that all orders delivered from Monday to Sunday will be delivered on a Tuesday.

Read more: Online Business Ideas from Home to Try If You Have a Small Capital

🔷 Lazada Seller Fees 

If there’s anything that can perhaps discourage you from selling on a major online marketplace like Lazada, it’s probably the many seller fees. Here are just some of them: 

• Payment Fee: Item price - promotional charges + shipping fee paid by the customer, inclusive of 2.24% VAT
• Commission (applicable to LazMall Sellers only): 4% to 7% depending on the category and based on the price of the item charged per order item 
• Marketplace Commission (applicable to Marketplace sellers): 3.5% to 5% (item price - promotional charges (Coins, Vouchers, or Flexi Combo) 
• Digital Goods Commission: 1 to 3%
• Promotional Charges Vouchers: Discounts given for seller vouchers 
• Promotional Charges (Flexi-Combo):  Discounts given for bundled items 
• Payment Fee (Correction for Undercharge):  Charges for paid lost claim

How to Start Selling in Shopee Philippines

The duration of Shopee’s presence in the Philippines may be shorter compared to Lazada’s. But this online platform is a force to reckon with. If you’re excited to sell on this platform, here are some things you need to know about how to start a Shopee online business.

🔶 Shopee Online Seller Types

Want to know how to sell in Shopee? First, get familiar with the different types of sellers on this online selling platform. 

Shopee Mall Seller

These online sellers are official distributors or owners of a brand who are members of Shopee Mall, an exclusive online marketplace. Because they offer licensed, authentic products, they gain more customer trust.

Preferred Seller

Preferred Sellers are an elite group of sellers. To qualify as a Preferred Seller, a Shopee online seller must have excellent customer service and sales records, quality product listings with competitive prices, and high seller ratings. Membership to the Shopee Preferred Seller Program is by invitation only.

Overseas Seller

Like Lazada, Shopee accepts sellers from outside the Philippines. Shopee’s overseas sellers are based in China, South Korea, Indonesia, Japan, and Vietnam.

No Label/Marketplace Seller

No Label sellers are online resellers who buy unbranded wholesale products and sell them as a retailer on Shopee. It's a good starting point if you’ve always wanted to know how to sell in Shopee as a reseller.

🔶 Shopee Seller Requirements

The requirements to be a Shopee seller depend on the type.

If you want to know how to become a Shopee seller in the Philippines, you’ll first need to show proof that your business is registered with the appropriate government agencies:

• BIR Certificate of Registration (Form 2303)
• Mayor’s Permit
• DTI/SEC business registration certificate
• Registered official shop logo
• A legitimate bank account
• Collection receipt and invoice
• For brand owners: Trademark/IP certification
• For official distributors: Official distribution license/ authorization from the actual brand

As for No Label sellers, business registration with the DTI or SEC is not required.

Read more: Online Business Registration in the Philippines: Make Your Biz Legit

🔶 How to Become a Seller in Shopee 

Once you compile your Shopee seller requirements, it's time to learn how to start your online business in Shopee. Here are the things you need to do.

Step 1: Sign Up for a Shopee Account

How to make a Shopee seller account? Just download the Shopee mobile app on your phone via the App Store or Google Play Store. You may also sign up on Shopee.com.

Use your mobile number or existing Facebook or Google account to set up your shop. Then complete your shop profile on the mobile app or log in to the Shopee Seller Center at seller.shopee.ph. Click on Shop Settings and fill out the required fields regarding your shop. 

Don’t forget to verify your mobile number. Without a verified mobile number, you won’t be able to get your products seen by potential customers.

Step 2: Set Your Pickup Address 

On the Seller Center dashboard, click My Addresses. Click Add a New Address. Fill out the form. Check the Set as Pickup Address box. Lastly, click Save.

Step 3: Create Your Product Listing 

Now you’re ready to add and upload your products to your shop. Make sure your products are not among Shopee’s prohibited items (e.g., medicines, stolen goods, used cosmetics, etc.).

On the Seller Center dashboard, locate the Product tab. Click My Products. On the next page, click the Add a New Product tab.

Next, upload your product images via a desktop computer or the Shopee app. For every product listing, you can upload a maximum of nine photos. However, you can add more images to the product description. Shopee allows up to 12 images in this part of the product listing. 

After uploading photos of your product, provide information such as the name, category, price, description, stocks, variations, and shipping fee. Add hashtags so that customers can easily view your products.

Step 4: Set Up Your Shipping Options 

Once you’re done uploading all the product pictures, you’ll be directed to shipping settings. Provide the dimensions of the product and select the shipping provider. Note that shipping companies charge different fees based on the size and weight of the parcel.

When you’re good with all the details, click Save and Publish.

Step 5: Sell and Earn

Once you’ve completed your product listings, you can begin selling on Shopee. Check the Shopee Order ID under My Sales and then To Ship and prepare to pack the orders. 

Make sure there are no issues with the items before packing them and scheduling courier pickup. Print the air waybill after you’ve scheduled the courier pick-up. 

🔶 Shopee Seller Fees 

Just like Lazada, there are fees you need to take note of if you want to be a Shopee online seller. Here are some of them. 

Seller Transaction Fee

This handling fee covers the cost of payment transactions (2.24%) except for canceled orders by buyers or sellers, auto-canceled orders by the system, and returned or refunded orders.

Mall Commission Fee

This is an access fee sellers need to pay to continue enjoying the perks and privileges of Shopee Mall. It’s a differentiated, category-based commission fee of the cost of goods sold (COGS) after seller-sponsored discounts and vouchers.^[4]

Here is the schedule of fees based on each product group:

• 3.36% commission fee - Computers, mobile and gadgets, digital goods and vouchers
• 4.48% commission fee ­- Audio, cameras and drones, computer accessories, mobile accessories, gaming consoles, home appliances
• 5.60 commission fee - Beauty, food and beverages, health, mom and baby, pets
• 6.72% commission fee ­–  Books and magazines, hobbies, stationery, fashion and accessories, home and living, travel and luggage, sports and outdoors, automobiles, motorcycles 

Cashback and Free Shipping Program Service Fee

A 2.24 to 3.36% service fee will be charged for the Cashback Program, while a 5.6% service fee is for the Free Shipping Program.

Lazada or Shopee Seller FAQs 

Setting up an account for either Lazada or Shopee is relatively easy, but you may still find yourself asking certain questions. This section aims to provide you with the answers.

1. Can I sell in Lazada without a business registration?

Yes, you can sign as an Individual Seller if you don't have a BIR-registered business. You only need a valid government-issued ID and proof of bank account.

2. How long before my Lazada seller application gets approved?

After the seller sign-up process, your Lazada seller account will be verified and undergo Brand Suitability Assessment, which will take approximately three days. You can start selling after.

3. I just received my first order on Lazada. How long do I have to process this order?

You’ll receive an email notification when a customer places an order in your shop. You have 24 hours to process the order and hand over the package.  

4. Can I sell digital goods on Lazada?

Yes. The platform allows you to sell products that aren’t physical objects, such as promo codes, prepaid load, mobile wallets, and credits for services. Just make sure these digital goods don’t violate the Intellectual Property Rights Policy^[5] and the Prohibited & Controlled Good Policy.^[6] 

5. Where can I get seller support on Lazada?  

Primarily, you can find solutions to basic seller issues by using Lazada’s Self-Service Tools or watching video tutorials on Lazada University. Nevertheless, there are three other ways to seek support from the platform:  

• ADA – Lazada’s virtual assistant can answer basic queries 24/7. Through ADA, you can submit a follow-up ticket without the need to contact a real agent.
• Partner Support – This team is available via live chat from Monday to Saturday, 8 a.m. to 8 p.m., except holidays. You can also get in touch with them via the hotline at (02) 7795-8909 from Monday to Friday, 9 a.m. to 6 p.m., except holidays.
• Incubation Manager – During your first three months on Lazada, you’ll be assigned an Incubation Manager who will tend to your seller needs and provide you with tips and insights on how to make the most of the platform. To qualify for the program, you must at least have one live product. Take note that the inclusion to the program is dependent on your shop’s performance.

6. What is the Lazada Seller Community?  

The Lazada Seller Community is a sellers-only platform that allows sellers like you to get in touch with other Lazada shop owners. In this community, you can ask your fellow sellers questions about Lazada. Solicit tips and tricks on how to grow your business. 

The Lazada Seller Community is integrated into other products to help you form your knowledge base. Questions from other sellers, Lazada University courses, and Help Center articles are referenced. 

Keep in mind that this platform is founded on a give-and-take philosophy. Make it a point to engage with your co-sellers by answering their questions and providing some tips. 

All posts are subject to the approval of the community admin. The admin reserves the right to decline posts that don’t comply with the guidelines.

7. What is the seller's chat response rate on Shopee?

This refers to the percentage of new chat threads that a seller has responded to in the last 12 hours of receiving the messages. Auto replies are not counted as chat responses. 

8. What is the Seller Penalty Points system on Shopee?

Shopee's performance-tracking system for sellers is aptly called the Seller Penalty Points. If you fail to meet your performance targets, Shopee will give you penalty points. Shopee checks areas such as listing violations, fulfillment, fraud, customer service, unfair competition, and social selling.

Penalties range from exclusion from marketing campaigns to account freeze. Penalties will be lifted after 28 days.

9. How do you get the Preferred badge on Shopee?

You earn this badge once you become a Preferred Seller. To be a Preferred Seller, you must provide a strong sales record and excellent customer service. You should also receive high ratings for your shop and items, plus comply with all of Shopee’s seller policies. 

10. Why are my products blocked from promotions on Shopee?  

Certain product categories aren’t allowed to be on promotion due to government policies. The rules in place are meant to protect the public’s health, safety, and welfare. 

Here are the products blocked from promotions. Remember that this list is subject to change, depending on local regulations. 

• Infant milk (Up to six months)
• Follow-on milk (Six to 12 months)
• Over-the-counter medicine 

The following promotions aren’t allowed to be applied to the above-mentioned products:

• Discount promos
• Product vouchers
• Bundle deals
• Add-on deals (Add-on discount and gift with minimum spend)
• Shopee Flash Deal
• My Shop’s Flash Deals
• Product campaigns
• Shopee ads
• Wholesale price offers
• Exclusive price and gift redemption promos under Brand Membership

11. Where can I get seller support on Shopee?  

Resolve basic issues by going through Shopee’s Seller Education Hub. But if your problem warrants some advanced advice, Shopee via the following channels:

• Chat - Get in touch with Shopee customer representatives via your app or desktop account. This service is available 24/7.
• Phone - Call Shopee at (02) 8-880-5200 from Monday to Sunday; weekdays: 7:00 a.m. to 7.00 p.m.; weekends: 9:00 a.m. to 6:00 p.m.

12. Can I sell on both Lazada and Shopee?

Yes, you can sell on both platforms to reach more people. However, this might be taxing—you’ll be bombarded with more queries and you’ll be packing a lot of products (which is a good thing, to be honest).

If you have a big shop with several staff members, you may not need to choose between working as a Lazada or Shopee seller. Assign specific employees to respond to inquiries on both platforms.  

Related article: Say Bye to Being Camera Shy: These Online Live Selling Tips Can Really Help Your Business

Online Selling Tips for Beginners

Did you set up your Lazada or Shopee online store already? Great! Set yourself up for success with these helpful tips to increase your sales, decrease costs, and ensure your safety as a Lazada or Shopee seller.

• Price your products reasonably and competitively. Check your competitors’ pricing to benchmark how your items should be priced. It's a must whether you’re a Lazada or Shopee seller.
• Provide accurate and detailed product descriptions. This makes your brand and products look more legitimate in the eyes of online shoppers. Anticipate the possible questions that customers might ask and provide answers in the description.
• Complete your product’s attributes. The chances of customers finding your well-detailed products are two times higher compared to products with missing details. Similarly, a listing with complete attributes lessens customer inquiries. 
• Add high-quality photos of your products. Whether you're a Lazada or Shopee seller, consider investing in a DSLR, mirrorless camera, or smartphone that can take professional-quality photos to attract buyers.
• Upload at least three products so that you can use the Seller Picks feature on Lazada. This can help boost your visibility on the selling platform.  
• Show your products from different angles. Help customers easily visualize what your product looks like. Even better, upload a video to show how an item works. If possible, include a picture or clip showing how an actual user handles and uses the product.
• Offer discounts and other enticing deals. Join Lazada’s or Shopee’s promotional campaigns to boost your sales.
• Link your online seller account to your social networks. Share your product listings with an even wider audience.
• Provide nothing less than excellent customer service. Gain customer trust and avoid dealing with dissatisfied, irate customers. Keep your tone warm and friendly.
• Join training sessions. Whether you’re a Lazada or Shopee seller, take advantage of the learning materials and help center of each platform.
• Avoid making transactions outside the e-commerce platform to protect yourself against online shopping scams such as fake buyers.

Want to reach more customers online? Check out our articles on how to start your business on other platforms:

• Social Selling Basics: How to Jumpstart Your Business on Social Media
• A Quick and Easy Guide on How to Sell on Facebook Marketplace
• Start Selling on IG: How to Use Instagram for Business

Final Thoughts

As you can see, being a Lazada or Shopee seller is not complicated. Now that you know how to set up an online shop, start your entrepreneurial journey! May your new business prosper and help you achieve your financial goals.

Sources: 

• ^[1] Lazada.com.ph June 2023 Overview (Similarweb)
• ^[2] Shopee.ph June 2023 Overview (Similarweb)
• ^[3] Lazada Seller Center
• ^[4] Shopee Mall Commission Fee
• ^[5] Intellectual Property Rights Policy
• ^[6] Prohibited & Controlled Goods Policy