Pre-Order Policy

1. Introduction

1.1.Pre Order listings are listings that require a longer lead time for order preparation of 7 or more days. Such items are typically items that need special arrangements or are custom made. These items would usually take longer than the time stipulated to hand over the order to the logistic partner (or delivered to the buyer if the order is delivered directly by the seller) from the time the order is created.

1.2 This article sets out the (a) limit to the number of orders that can be listed as Pre Order; (b) SLA for Pre Order items; and (c) Policy and enforcement actions.

2. Pre-Order Feature

2.1 Activating the Pre Order feature on Product Management page on ASC:

2.2 Setting the number of business days to process the Order (i.e. setting the Pre Order SLA):

2.3 Viewing the Pre Order limit on Product Management page on ASC:

2.4 A Pre-Order icon and a Pre-Order tag will be displayed for Pre-Order items in Order Management Page for sellers to easily differentiate them:

Pre-Order Icon

Pre-Order Tag

2.5 Sellers need to create separate packages for: (i) Pre-Order items and non-Pre-Order items; and (ii) Pre-Orders on different SLAs.

3. Pre Order Listing Limit

3.1 Table 2 sets out the maximum number of products a seller may list as a Pre Order listing.

Type		Criteria
Non-LazMall	% Pre Order products	10% or 5 products, whichever is higher
	Maximum number of Pre Order products	100
LazMall	% Pre Order products	20% or 5 products, whichever is higher
	Maximum number of Pre-Order products	100

4. Pre-Order SLA and Duration set by Sellers

4.1 For Pre Order listings, a seller may set the SLA between a minimum of 7 business days, and a maximum of 30 business days, according to the SLA definition below.

Order Type	SLA[TTWJ1]
Non-Delivered by Seller (DBS)	Pickup: HMP to RTS; DO: HMP to TTS
DBS	HMP to Delivered

5. Policy

5.1. A seller shall not initiate a cancellation once a Pre Order listing is being placed by a buyer. This will be deemed as a Seller Fault Cancellation.

5.2. A seller shall fulfil a Pre Order within the Pre Order SLA. The Pre Order will be automatically cancelled if the order is not shipped in 2 business days after the Ship Lead Time set by the seller.

6. Enforcement and Penalty

6.1.Lazada takes into a consideration the following factors in determining the appropriate enforcement action. Sellers will be able to see these metrics on Account Health:

a. Number of Pre Orders cancelled; and

b. Number of Pre Orders cancelled arising from Seller Fault Cancellation compared to the total number of Pre Orders received (“Seller Level Seller Fault Cancellation Rate”). Seller Level Seller Fault Cancellation Rate is calculated based on the following measures:

i. Seller Level Seller Fault Cancellation Rate is calculated daily over a period of 38 days;

ii. This period covers orders created 7 days ago to orders created 45 days ago (i.e. D-7 to D-45, with D being today). For example, Seller Level Seller Fault Cancellation Rate shown in Seller Center on 11 December 2020 takes into consideration the orders cancelled and received from 27 October 2020 to 4 December 2020;

iii. The period between D-6 to today is excluded as orders placed in this period may not have been fulfilled;

6.2.Sellers who commit a violation will have the Pre Order feature removed, regardless of their eligibility status at that point in time. The evaluation period will be on a monthly basis.

i. This means that sellers are unable to add new items to Pre Order.

ii. The sellers’ existing Pre Order products with high product level seller-fault cancellation rate will also
be deactivated.

iii. The rest of the existing Pre Order products can remain, but sellers are unable to edit the Pre
Order SLA. However, if sellers would like to change this back to the normal platform SLA, sellers would first need to deactivate the Pre Order product and then reactivate it again.

6.3.These penalties will take effect for 1 month for first-time offenders, 3 months for second-time
offenders, and 6 months for third-time offenders or more.