How to Calculate Profit on Lazada: Avoid These 3 Common Mistakes
8 min read
Last month, SKU B07X lost 12% margin. We thought we were profitable. Wrong. Lazada’s seller fees, refunds, and shipping costs weren’t factored in. Here’s how to calculate profit on Lazada properly.
Why Your Lazada Profit Calculation Is Probably Wrong
You’re not alone. Most sellers underestimate costs. Lazada’s referral fees alone range from 2% to 8%, depending on the category. Add in shipping, refunds, and ad spend, and your margin shrinks fast. We switched fulfillment in March and saw a 5% profit drop before fixing our numbers.
The Hidden Costs You’re Ignoring
Lazada’s seller fees aren’t the only costs. Shipping fees, refunds, and ad spend eat into your profit. For example, if you sell a $20 item with a 5% referral fee, $3 shipping, and a 2% refund rate, your net profit is $14.20. That’s a 29% margin. But if you forget refunds, you’re overestimating by 2%. Multiply that by 1,000 units, and you’re out $40.
Step by step
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Step 1: Track Every Cost
Start with your product cost. Add Lazada’s referral fee (check your category), shipping fees, and refunds. Don’t forget ad spend. Use a spreadsheet or a tool like Gomarginify to automate this. We connect to Lazada and 9 other marketplaces, pulling in real-time data.
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Step 2: Calculate Net Profit per SKU
Subtract all costs from your revenue. For example, if you sell 100 units of SKU B07X at $20 each, with a $10 product cost, $3.20 referral fee, $2 shipping, and $1 ad spend, your net profit is $3.80 per unit. That’s a 19% margin. If you ignore refunds, you’re overestimating by 2%.
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Step 3: Monitor Daily Profit
Use a tool like Gomarginify to get daily profit reports. We email and IM (Lark, WeCom, Slack, Discord, Telegram) you the numbers. This helps you spot losing SKUs fast. For example, SKU B07X lost 12% margin last month. We caught it early and adjusted pricing.
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Step 4: Adjust Pricing or Costs
If your margin is too low, raise your price or negotiate with suppliers. For example, if SKU B07X’s margin drops below 15%, we either increase the price or find a cheaper supplier. This keeps your profit healthy.
FAQ
How do I calculate Lazada’s referral fee?
Lazada’s referral fee varies by category. Check your seller dashboard or Lazada’s fee schedule. For example, electronics have a 4% fee, while fashion has a 2% fee. Multiply your product price by the fee percentage to get the referral fee.
What’s the best profit tracking software for Lazada?
Gomarginify connects to Lazada and 9 other marketplaces. It calculates true net profit per SKU, including refunds and ad spend. We also send daily profit reports via email and IM. Try the 7-day free trial.
How do I reduce shipping costs on Lazada?
Negotiate with logistics providers or use Lazada’s fulfillment service. We switched fulfillment in March and saw a 5% profit increase. Also, bundle products to reduce shipping costs per unit.
Track your real profit across every marketplace
Learn how to calculate profit on Lazada with this step-by-step guide. Avoid common pitfalls and track your true net profit accurately.
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