What is LGS? LGS Review, Features

LGS (Lazada Global Shipping) is a global logistics and delivery solution and is the only cross-border logistics solution for Lazada. LGS has become the only logistics service provider for all Lazada sellers shipping in mainland China, providing order transportation and delivery services.

Advantages of using LGS

1. Point-to-point logistics solutions, easy control throughout the entire process.

2. Directly deliver to Southeast Asia every day, greatly shortening the delivery time.

3. By unifying freight and local logistics, the transportation charges can be reduced.

4. Through the internal sorting management organization at the shipping and receiving locations, the control over delivery and logistics distribution can be improved.

5. The modular approach enables more flexible and large-scale management of different partners to cope with peaks, lows and other unknown situations.

6. Reduce order cancellation rate and package loss:

(1) Higher delivery success rate;

(2) Lower order cancellation rate/delivery failure rate.

7. Sales growth:

(1) Shorten delivery time and improve customer satisfaction (NPS) and store ratings;

(2) Customers can filter by “delivery time”. The shorter the product delivery time, the higher the visibility.

(3) Sellers using Lazada Global Logistics Solution (LGS) can participate in specific promotions, such as limited-time promotions.

Operation process

1. The seller sends the goods to the three major sorting centers in Shenzhen, Yiwu and Hong Kong. Sellers in Shenzhen, Yiwu and Hong Kong with an average daily order volume of ≥50 orders in the past 30 days and a clear pick-up address can enjoy door-to-door collection service.

2. Chinese sellers can deliver the goods through Yiwu or Shenzhen. Sellers outside China or South Korea can deliver the goods at the Hong Kong sorting center.

3. LGS is delivered to the target customer country through international freight. After the goods arrive at the local area, they are delivered by the local customs broker 3PL, through the local sorting center, to various important city stations, and then to the satellite station. Finally, through the last mile Lazada 3PL, the goods reach the hands of the customers.

Another way is express delivery, and its operation process is to pick up the goods - 3PL sorting center - customs broker - local 3PL partner - customer receives the package. However, Lazada sellers generally use official logistics delivery.

Shipping Address

The official logistics channel has both advantages and disadvantages. The disadvantage is that the domestic logistics channel is limited to three sorting centers in Shenzhen, Yiwu and Hong Kong. When delivering goods, sellers must specify several sorting center codes: Shenzhen, LGS-FM40; Yiwu, LGS-FM41; Hong Kong, LGS-FM42; South Korea, LGS-FM43.

Limitation of Use

LGS is applicable to six stations: SG, MY, ID, TH, PH, and VN. The weight is less than or equal to 20kg, the volume-to-weight ratio is 1:6000, and the size limit is L+W+H<=300cm. SG (Singapore) requires it to be less than 1kg.

Rules of LGS Logistics Service

When Lazada chooses LGS, first of all, it ensures that the shipping label is clear and accurate, including the consignee's name, contact information and address. The barcode on the shipping label must be scannable and all information on the shipping label is readable.

·Secondly, pay attention to proper packaging specifications to avoid damage.

·Again, the order number must be accurate and timely, and the goods must be shipped on time.

Finally, make sure you have adequate inventory.

If the seller does not meet all the appeal requirements, Lazada has the right to stop providing LGS logistics services.

List of general restricted products

·Restricted products on the entire site include: alcohol, weapons, independent batteries, external power supplies, pharmaceutical products, tobacco products, and compressed products.

Indonesia site has: mobile phone, tablet computer.

Vietnam sites include: printed materials, mobile phones, tablets, speakers, and sexual products.

Although there are still stores on the platform that sell restricted products such as mobile phones, tablets, and electrical appliances, they are generally official self-operated stores or stores exclusively authorized by brand owners.

Taxes and Liabilities

Sellers will be subject to a VAP tax when they settle accounts. Currently, only Vietnam and Thailand are tax-free. In Singapore, less than 400 SGD is tax-free. In Malaysia, less than 500 MYR is tax-free. In Indonesia, less than 1,400,000 IDR is tax-free. The Philippines implements tax-free for goods shipped from non-China regions; for goods shipped from China, general goods are tax-free, and a tax of 30 HKD/package is charged for sensitive goods.

freight

The shipping cost from the sorting center to the customer, including customer returns (product value >= 10USD)/shipping failure costs.

When the order status in the Seller Center is updated to "Delivered", Lazada will start calculating and charging the LGS shipping fee; if the delivery fails or the buyer returns the goods, the LGS shipping fee will not be refunded.

Delivery time

Payment and charging mechanisms, timelines

Every Sunday: Seller Center financial statements are settled; every Friday: payments are made to cross-border payment accounts.

1. Week 1: All orders whose order status is updated to “Delivered” and “Delivery Failed” from Monday to Sunday.

2. Week 2:

(1) For orders updated as “Delivered” and “Delivery Failed” in the first week, their amounts will be shown in the financial statements on Monday of this week and will be paid to the cross-border payment account on Friday of this week.

(2) For orders updated to “Delivered” and “Delivery Failed” in the first week, their Lazada Global Logistics Solution (LGS) shipping costs will be reflected in the financial statements before the end of this week.

3. Week 3: For orders updated as “Delivered” and “Delivery Failed” in the first week, the Lazada Global Logistics Solution (LGS) shipping fee will be deducted on Friday this week.

Development History

-In September 2015, Lazada began to experiment with its own logistics method - Lazada Global Logistics (LGS), which is Lazada's exclusive one-stop logistics service and is fully open to six markets in Southeast Asia.

-In 2015, all users of the Lazada platform switched to LGS before December 4, and third-party logistics could not be used.

-In March 2017, Lazada, the largest e-commerce company in Southeast Asia, announced the unification of LGS first-mile express delivery labels in six countries including Singapore, the Philippines, and South Korea. The logistics codes will only be classified according to the sorting center.