Exclusive: Lazada Upgrades Logistics Pricing System, Subsidizing Cross-border Freight to Invite Merchants with an Average Order Growth of 30%

[Ebrun Exclusive] On April 2, Ebrun has exclusively learned that Lazada, the Southeast Asian e-commerce platform under Alibaba, has recently upgraded their logistics pricing system and introduced a new project named Global Plus. This aims to provide subsidies for cross-border merchants on first-mile logistics, thereby enhancing the price competitiveness of their goods.

Previously, the front-end product prices for Lazada's cross-border merchants were composed of two parts: product prices without postage and logistics price cards, both independently calculated and reported by the merchants. The product price without postage consists of product costs, commissions, marketing costs, expected profits, etc., while the logistics price card represents the logistics cost, which needs to be dynamically adjusted based on logistics expenses and shipping methods in different areas.

Now, merchants who join Global Plus will have access to a new logistics pricing system. By providing subsidies for first-mile logistics through a "price card," they can reduce cross-border logistics costs for merchants, offer price discounts to consumers, and drive order growth—all without altering the merchant's gross margins.

From an operational perspective, merchants who join only need to submit the "price without postage" for their goods. The new logistics pricing system will automatically calculate the final subsidized price for the goods based on the "price card." Merchants only need to confirm it. Compared to the previous frequent price adjustments based on logistics conditions in various countries, this simplifies the operations on the merchant side.

(Image: Information about the Global Plus logistics pricing system provided by merchants)

According to a business recruitment document obtained by Ebrun, after enjoying the subsidy price card, merchants can achieve a maximum 78% reduction in logistics costs, compared to the LGS (Lazada Cross-border Logistics) price card. Based on the data provided by merchants, the initial orders for participating goods have grown by an average of 30% compared to the overall average, while the conversion rate has increased by 20% year-on-year.

According to merchants, the Global Plus project is currently in the trial operation phase, and some cross-border merchants have already received invitations to join.