Are you planning to launch your e-commerce brand in Thailand on Lazada?
It's important to understand the two types of Lazada stores available
- Lazada Store: Local Seller
- LazMall: Lazada Mall
Your choice of store type will impact which Lazada online store management tools are available to you.
Some of these are:
- Marketing Tools: Lazada Ad Campaigns Solutions
- Special Offers for Lazada Sales Campaigns such as 11.11 or 12.12
Setting up an e-commerce store is the beginning of your journey. Before you start, we recommend you take the time to compare the different options and find out what is best for your online e-commerce store. This article outlines the difference between a LazMall Seller and a Local Seller on Lazada Shop.
What is the difference between a Lazada Local Seller Shop and LazMall Store?
- The answer is that it depends on your business model. A Lazada Mall seller is the brand owner, a distributor with the exclusive or nonexclusive rights to sell the brand on Lazada, or a retailer with the right to sell multiple brands.
- A Lazada local seller is someone who is a local business owner in Thailand or Southeast Asia.
The difference between a LazMall Seller and Local Seller
What is the difference in the registration process for a Local Seller and a LazMall online store?
The main difference is the trademark registration. This will determine if you can set up a LazMall store. To open a LazMall store, you need to have proof that the brand belongs to you. The platform asks you to submit the official trademark of your brand name in Thailand during the registration process on Lazada. Therefore, you need to have the brand name registered with the local authorities in Thailand.
With an official trademark registration or proof of authenticity, you are allowed to register a Lazada Mall store. Without that document, you won’t be able to open a LazMall store as a new seller.
What documents do you need to register an online store on Lazada?
To register a store on Lazada, you need to have a company registered in Thailand. With your company registration documents and company bank account details, you can start the application process on Lazada. Do you have all the documents already? Start your registration of your Lazada store here. Once the store is online, you can start promoting your products with the use of the different types of Lazada marketing tools.
How does the online store type affect my store visibility inside Lazada?
In terms of visibility, Lazada favors LazMall stores and offers more visibility from the start. The main benefit of a LazMall is that customers can directly enter your LazMall store when they search for your brand name. In the image below, you see the “Brand Zone Banner”, which is shown directly at the top of all the search results of Lazada.
Example of a Lazada Brand Zone Banner You can use the brand banner to communicate directly with your customers. You can mention “official store” to gain trust, and promote your latest products or promotions, as you see in the example below of the Nike LazMall store.
If you are a local seller, you have to compete with other stores that are selling the same branded products as you as well.
What kind of Lazada Ad Campaign tools are available for Lazada Sellers?
Lazada offers sellers several marketing tools to boost product visibility and sales revenue, as listed below. The paid marketing tools, where you invest money to generate clicks, are called Sponsored Solutions.
Both local sellers and LazMall sellers can make use of the affiliate marketing tools and Sponsored Solutions.
- Affiliate Marketing
- Sponsored Solutions
- New Product Launch Solutions
- Lazada Sales Campaigns such as 10.10, 11.11, 12.12
Besides more brand visibility, another major benefit of a LazMall store is that LazMall sellers have access to “New Product Launch Solutions”. This is a marketing tool that offers exclusive product placement inside Lazada. It generates exposure and traffic for newly launched products. In contrast to the Sponsored Solutions, New Product Launch ads will be featured at additional places inside the Lazada app. Therefore, LazMall stores have a leg up to beat their competition.
Lazada Promotional Offers Additionally, LazMall sellers are allowed to create exclusive promotional offers that will be promoted by Lazada in special venues. What does that mean? Every month there are several platform promotions that you can join as a seller like below image.
These are for example the 3.3 and 11.11 mega campaigns. During these (mega) campaigns, you will experience very high competition from other sellers.
To give you an example, during the 12.12 mega campaign in 2023, over 40,000 sellers registered for this event. As a LazMall seller, you can bypass your competitors by offering LazMall Special Promotional Offers.
These are exclusive brand offers that are available to LazMall sellers only. That means that the number of participants is much lower than the regular promotional offer that is available to all Lazada sellers. The idea is that you provide additional discounts on top of the regular discount during the (mega) campaigns. The offer is usually only valid for a short period. Hereby, LazMall sellers can boost their visibility as they can enjoy exclusive exposure inside the platform.
That said, price promotions are not as effective as they used to be. In contrast with other (international) e-commerce platforms, Lazada does not charge a deposit from business owners. Lazada does charge you a commission based on your sales revenue. Depending on the product category, the commission percentage for Local Sellers is between 3-6%, whereas LazMall sellers pay between 5-7% commission on the selling price. Additionally, each type of seller has to pay for the payment gateways that Lazada offers to its customers. You have to pay 3.21% of the product price for every order.
In summary, setting up the store as a local seller or LazMall seller is free. As a brand, we can leverage a lot on the platform to make revenue with the good strategy , systematic store set up and maintaining store management with tactics that is helping for Conversion Rate Optimisation.