Cash on Delivery for Delivered by Seller items
Lazada Fresh | Delivered by Seller
We heard you and we listened!
CASH-ON-DELIVERY is now available for Lazada Fresh and 'Delivered by Seller' (DBS) Program, in order to cater to ALL Lazada customers – even those with no access to credit cards or electronic wallets.
For more details about the Delivered by Seller Program, click here.
BENEFITS OF CASH-ON-DELIVERY
Expand your store to more customers!
Instant payout: automatic debit, no remittance needed
No initial cash out: No security deposit required upon onboarding; security deposit kicks in once you've grown in the platform
MECHANICS
1. Automatic debit from non-COD payments
All cash-on-delivery transactions will be automatically debited from non-COD payments. Payments collected will be directed
2. Commission Structure
Transactions will be subject to this commission structure.
3. Security Deposit
To ensure that the financial balance of DBS sellers remain positive, a security deposit will be clawed back from non-COD payments, once the seller reaches a specific gross merchandise value (GMV) threshold for its DBS COD orders
Total deposit/payment on hold will only be capped at 70K
GMV DBS COD basis is cumulative starting 3rd week
Based on GMV of COD orders delivered
The security deposit will be returned to the seller once they opt out of the program. This is after all available credit balance is deducted from the deposit.
4. Optional: you can opt-in/opt-out of the service if you want to
HOW TO GET STARTED
1. Just visit this linkhttp://bit.ly/DBSProcessing and choose CASH-ON-DELIVERY for your request.
2. Choose YES under “Enable Cash on Delivery (COD)” and fill-up all the other necessary fields.
3. Do not forget to read and accept the Terms and Conditions and acknowledge by ticking the box “I have read, understood and agreed to the terms and conditions mentioned in the T&C”
4. Please wait for an email within 48 hours for your COD to be turned on.
*Same form for existing and new sellers
*One-time application only
HOW TO KNOW IF ORDERS ARE CASH-ON-DELIVERY
You can find it in the Payment Method column in Orders Overview. You can also use the filter for easier check.
How much should a buyer pay for, especially for orders with mixed items from different sellers?
You can find break down in the Order Details:
HOW TO FULFILL ORDERS USING CASH-ON-DELIVERY
1/ For sellers using own fleet/delivery service
Sellers themselves can collect payments from buyers. The amount collected will be automatically deducted from the following week's payout.
2/ For sellers using third party logistics
Book the service: You can use the Pabili/Purchase or round trip service of your chosen third-party logistics service (ieGrab, Lalamove, MrSpeedy, Transportify). Usually, they charge extra for cash handling, purchase service, and round trip service.
Some services you can try:
Grab Express Delivery
You can book a round trip service via the Grab app.
Lalamove Round Trip
Few reminders:
- Call buyer: Coordinated with your customers on their availability and complete and accurate delivery address prior to the booking.
- Give rider clear instructions: Make sure to give the rider clear instructions on how much they need to collect from the customer/s using the service of choice (via app or separate note).
- Note that Lazada is not liable for any issues faced with your chosen third-party logistics provider.
- For details on insurance, please reach out directly to these companies.
DELIVERY GUIDELINES FOR CASH-ON-DELIVERY
1. Call the customers first to confirm the complete and accurate buyer address and delivery time/date, especially if the same day/next day delivery.
2. Establish a procedure for delivery that eliminates in-person interaction.
a. Call customers to prepare the exact amount and a pen for the proof of delivery.
b. Few minutes before arrival, call the customer to leave the payment outside their door/gate, before you drop off their parcel.
c. Pick-up the payment. Count if exact. Drop off the parcel, the change (if necessary), and proof of delivery for their signature.
d. Wait for the customer to sign the proof of delivery and ask them to leave it on their door/gate.
3. Ensure physical distancing. Stay at least 2 meters away.
4. Disinfect the cash paid by customers.
5. Ensure employees thoroughly wash or sanitize hands and wear face masks.
PAYOUT DETAILS
1. Payout is every Thursday of the following week when an order is tagged as delivered
2. Commission Structure below based on the seller type.
3. Security deposit based on GMV DBS COD threshold
Security deposit to be deducted from non-COD payments, once the seller reaches a specific GMV threshold for its DBS COD transactions:
- Total deposit/payment on hold will only be capped at 70K
- GMV DBS COD basis is cumulative starting3rd week
- Based on GMV of COD orders delivered
Important things to note:
- For hybrid sellers, this will just be based on GMV of your COD orders delivered
- No security deposit if your DBS COD GMV is still below 50K
- GMV does not include shipping fee
Security Deposit: Case Study
FREQUENTLY ASKED QUESTIONS
A. Setting Up
What if I want to stick with non-COD?
No action needed.
Does this apply for bothLazMalland Marketplace account?
Yes, COD processes will apply to bothLazMalland Marketplace type accounts.
How many percent of Lazada business is coming from COD?
More than 80% of Lazada business is still COD, so best to turn on COD to scale up your business.
Can we opt not to have COD?
Yes, it’s on an opt in basis. Just take note that majority of Lazada business is still on COD. You will miss out on that growth opportunity.
Can we apply COD in specific SKUS only? Can we choose which DBS items will be COD and non-COD?
Yes, this is possible. This should be requested through the same request form upon SKU creation.
When my SKUs are created, will those be automatically on COD?
If seller has previously requested for COD to be turned on, we will not touch it
Otherwise, please wait for 24 hours as we do daily manual sweep to turn off COD.
If I operate outside of Metro Manila, can I offer COD?
Yes. Make sure you have requested for geo-restriction for every new SKU you create.
Note that geo-restriction will automatically be within city of the warehouse, unless manually seller requests using the form
Can I choose payment methods for each area?
No, cannot. COD can be disabled on an SKU level only.
You mentioned that DBS COD can be turned on by SKU. Please confirm that we can allow DBS COD for SKU 1 and block DBS COD for SKU 2.
Yes, can, since the DBS COD arrangement is on a per SKU arrangement only. This should be requested through the form.
Can you turn off the COD for DBS only and turn on COD to dropshipping?
Yes, this is possible. Turning on/off your COD for DBS can be requested through the same form.
Do we have to submit SKU template for DBS every time we upload a product?
Yes, need to submit as the coverage area will be chosen. But if in Metro Manila, Geo-Res will be automatic to Metro Manila.
B. Finance
What is the purpose of the security deposit?
This is to avoid the leakages on the Lazada side, which is inevitable in COD transactions with no remittance process needed from the sellers. Upon opting out, security deposit will be returned to the seller.
What if I am a hybrid seller (Delivered by Seller and Dropship) – will I still need to pay security deposit?
Yes, Security deposit will be based though on DBS COD orders.
I have a question, what if the GMV less than 50K - still the same security deposit as 10k?
If DBS COD GMV is below 50k, then no deduction or security deposit.
If GMV shrinks below a threshold, does the security deposit also go down?
The computation is cumulative, therefore the number will only go up all the time.
Is free delivery part of the GMV for security deposit computation?
GMV is computed based on item price, so there is no shipping fee.
Where will the security deposit be deducted from?
It will be deducted from non-COD payments, but computation is based on DBS COD orders.
Is there a limit on the total COD basket?
Total platform order limit for COD is 50K. It is moving to 35K this week.
C. Order Fulfillment and Logistics
Can we use our own logistics for COD?
Yes, of course.
What if the customer paid via mixed card, automatic the shipment will go back to usual process?
Yes, still the normal non-COD process.
Third party logistics is asking for service charge for cash handling. Who will shoulder this?
This will be the seller. Remember the end-to-end fulfillment is seller's responsibility.
Who will pay for the return trip of the third party logistics for money remittance to seller?
Should there be any return trip needed, seller will have to shoulder the return trip of the rider.
PRO TIP: You may choose multiple drop-offs to maximize the return trip.
REMINDER: Just make sure that the fresh/frozen items are packaged really well to protect quality after multiple stops.
What to do with failed deliveries?
Seller will shoulder the cost for failed deliveries. Remember, in the DBS Program, sellers will be responsible for entire fulfillment process. Please take this into consideration in your costs.
Will the RTS metrics remain the still the same since we allow the arrangements on the delivery?
Yes, still the same.
Are we allowed to directly communicate with our Buyers?
With the nature of DBS, there is a need to comm with buyers due to the nature of transaction so this is okay. However, we will slowly migrate to IM and chat only. For now, it’s ok to reach out to buyers via mobile numbers.
If we enroll in COD, can we still use the Lazada logistics to fulfill orders for COD?
No, once you have chosen DBS, orders of your DBS SKUs will be via DBS.
Can we implement weekly deliveries/ship outs (example: every Friday and Saturday only delivery)
For as long as you are still within Lazada SLAs, this should be ok. At the same time, buyers should agree.
D. Shipping Fee
For Lazada Fresh, is shipping fee still 200 pesos?
Yes, still 200 pesos. Note that to make it more competitive, you can use shipping fee subsidies to adjust it. For example, you can create
Can the customer pay the orders via non-COD, and then charge the shipping fee via COD?
Cannot. Orders can be 100% COD or non-COD only.
E. Seller Support
What if the customers are cancelling (bogus buyers) and it is not because the seller failed to deliver?
For scenarios like this, you can reach out to PSC. Just share screenshots as proof to PSC so Lazada can assist you. Do not RTS unless buyers confirm.
