LazMall Guarantee Seller Program Policy

Effective date: 28 July 2023

The LazMall Guarantee Seller Program Policy aims to encourage all LazMall sellers to deliver reliable and consistently high fulfillment service levels across Fast Fulfillment Rates (FFR), Ship-On-Time (SOT) and Seller Cancellation Rates (CR) (collectively, the “Service Levels”). High Service Levels aim to create a superior customer experience and provide a greater level of confidence for LazMall Customers to expect their parcel on time and reduce anxiety from order cancellations. For orders that did not meet the required Service Levels, there may be compensation to be made to the buyer.

LazMall Guarantee Seller Program will be applied to all LazMall sellers.

1. LazMall Guarantee Seller Program Service Levels

LazMall sellers should meet and maintain the Service Levels for your seller account, and also avoid having Breached Orders.

1.1 Seller account Service Level metrics

1.2 Breached Orders

An order will be considered as a Breached Order if:

-an order was cancelled due to the reason of LazMall Seller;

the order’s FFR SLA was not met due to seller reasons

1.3 Calculation of metrics and SLAs of CR and FFR

You may refer to the following links for more information on the calculations and SLAs of CR and FFR:

•Seller Cancellation Rate (CR); and

•Fast Fulfillment Rate (FFR)

2.Order Breach Fee

2.1 Scenarios for Order Breach Fee

Order Breach Fee will be calculated per breach order item if below criteria are met:

1. The LazMall Seller’s FFR of the prior month falls below 75%. Lazada will assess the LazMall Seller’s Fast Fulfilment Rate three (3) working days before the end of each month AND

2. The order was cancelled due to the reason of LazMall Seller and the seller-fault cancellation rate on the 8th date from the order breach date is more than 1% OR

3. The order’s FFR SLA was not met due to seller reasons and the FFR on the 8th date from the order breach date is lower than 75%

2.2 Order Breach Fee Charges

Based on the above, the Order Breach Fee shall be charged at 1% of the listing price of each of the LazMall order item which has caused the breach of the order, with a cap of PHP 50 per order.

Illustration – Charging of Order Breach Fees

3. Appeal

LazMall Sellers with a Breached Order may appeal within 7 days from the date of Breached Order.

The LazMall Sellers will be charged the Order Breach Fee after the abovementioned 7-day window if there is no appeal or if the appeal is unsuccessful.

LazMall Sellers can appeal the status of their breached order on Seller Center under LazMall Guarantee Seller Program page.