This document provides an agenda and overview for a Lazada workshop on selling through their business-to-consumer platform in Southeast Asia and Malaysia. It discusses e-commerce trends in the region, Lazada's operations and market position across multiple Southeast Asian countries, and how sellers can get started using Lazada's regional fulfilment hub in Malaysia to access Southeast Asian markets through a simplified process. The document also addresses frequently asked questions about the registration process, costs, product listing, and other operational details of selling through Lazada's cross-border e-commerce platform.

1. Strictly Confidential
Indonesia PhilippinesMalaysia ThailandSingapore Vietnam
Strictly Confidential
DFTZ LAZADA : BUSINESS TO CONSUMER (B2C) WORKSHOP

2. Agenda
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SEA & MY Ecommerce Trends
Introduction to Lazada SEA & MY
How to get started to be DFTZ sellers ?

3. 3
Southeast Asia E-commerce Opportunity for SMEs
Source: Bain & Co, Temasek Holdings & Google Strictly Confidential

4. There are 3 converging mega trends currently
taking place in South East Asia
Booming macro
environment
Lower barriers to entry
through e-commerce for
brands
Highly engaged and fast
growing internet
population
1 32
▪ Strong GDP growth
o SEA GDP expected to grow
from $2T to $4.7T in 2020.
o 2016 SEA PPP-adjusted
GDP per capita ($12K)
close to that of China ($15K)
▪ Growing disposable
income
o 145M people achieving a
disposable income greater
than 3K USD in 2016
▪ Young and growing
population
o 60% of SEA population will
be < 35 by 2020, vs. 47% in
China
▪ Lower barriers to entry
o Brands can leverage on
their existing access to tier
3/4 cities which are lacking
offline retail alternatives
o SKU level customer
engagement and purchase
data to enable data-backed
decision making
▪ Internet savvy population
o ~260m internet users,
~200m Facebook users,
mainly on mobile devices
▪ Rapid adoption of low-cost
mobile phones and tablets
o increasing smartphone
penetration
o accelerating the shift to
online
▪ Growing KOL e-commerce
and online content
o drives customers purchase
decision
Source: Google | Temasek e-Conomy SEA, eMarketer
4Strictly Confidential

5. A Mobile- First Market
SEA higher than Global Average
5Source: We are social
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6. Mobile Revolution
~2 Mn~6 Mn
Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15
Desktop Mobile
... And so are we
Anywhere.
Anytime.
Always On.
Use their phone on
the go
72%Mobile usage for
online purchase
outside cities
45%
Look at their
phones first thing in
the morning
34%
Time spent daily on
phone
3.8 hrs
Mobile
penetration
145%
Consumers are becoming mobile…
Gross Merchandizing Value by platform
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7. Agenda
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SEA & MY Ecommerce Trends
Introduction to Lazada SEA & MY
How to get started to be DFTZ sellers ?

8. Lazada, your strategic partner to DFTZ
8
COMPANY OVERVIEW LAZADA PRESENCE
▪ The online destination site in SEA for customers,
brands
- HQ in Singapore with local operations in 6
countries
- Launched 5 markets in March 2012: ID, MY, VN,
PH, TH
- Launched Singapore in May 2014
▪ One-stop shop to access locally and internationally
sourced more than 247 M assortment across 18
categories
▪ Created an end-to-end ecosystem enabled by
best-in-class logistics and payments capabilities to
address key challenges in South East Asia
▪ More than 400K items are transacted daily across
SEA
China
Thailand
Pop: 68m
Malaysia
Pop: 30m
Indonesia
Pop: 254m
Philippines
Pop: 108m
Singapore
Pop: 6m
#1
#1 #1
#1
#1
Lazada B2C
eCommerce market
position
Vietnam
Pop: 93m
HK / Shenzhen
Sourcing hub
Consistent with Alibaba’s vision of Electronic World
Trade Platform, eWTP
To reduce barriers + to make it easier for SMEs to
participate in global trade
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9. Agenda
Strictly Confidential 9
SEA & MY Ecommerce Trends
Introduction to Lazada SEA & MY
How to get started to be DFTZ sellers ?

10. Strictly Confidential 10
SETUP
ASEAN’s regional fulfilment hub that your brands &
products to access SEA markets – via a fast & simplifed
eCommerce platform
Simplified set up to test target markets, leveraging on
Lazada’s existing B2C expertise and logistics network
Direct access to more than 550M population across 6
countries
Centralized bonded warehouse for efficient sharing of
inventory within the region, avoiding local warehousing,
reducing complexity
1 Single contract to access SEA markets : 1 set of terms
and conditions
1 time content upload : you create your products in one
platform only, Lazada takes care of replicating them in
each platform
Lazada e-Logistics offers the best shipping rates and
lead time in the region, with connectivity via Lazada
Shipping Solutions
DFTZ with Lazada
Able to offer a simplified access to SEA markets from a centralised
bonded hub with minimal barriers to entry
Thailand
Pop: 69mn
Malaysia
Pop: 31mn
Singapore
Pop: 6mn
China
Indonesia
Pop: 261mn
Philippines
Pop: 103mn
Vietnam
Pop: 93mn

11. Strictly Confidential
Operation Model and Physical Flow - MY to SEA
(Fulfilment)
11
3PL picks
up
Pick up from Seller in MY Deliver to
Customer in SEA
Arrive at SEA
hub
Customer
receives parcel
Day 0-2 Day 2-3 Day 3-5
Arrive at
DFTZ
International
Line Haul to
SEA
Lazada
International Line Haul to SEA
Storage
in DFTZ
Order
Creation
• LT Savings of min 2 days from B2C model
• Full visibility on inventory management
• Fulfilment plan start up based on historical orders from B2C
• Cost reduction on reselling the items at destination country vs re-routing back to origin country for any fail
deliveries.
• Simplified operations as Lazada will manage end-to-end operations

12. Strictly Confidential
Operation Model and Physical Flow - MY to SEA
(Dropship)
12
3PL picks up
Pick up from Seller in MY Deliver to
Customer in SEA
Seller RTS
Arrive at SEA
hub
Customer
receives parcel
Day 0-1 Day 1-2 Day 2-3 Day 3-4 Day 4-7
Arrive at DFTZ
International
Line Haul to
SEA
Seller Lazada
International Line Haul to SEA

13. Strictly Confidential 13
Failed Delivery in Other Countries - Reverse Logistics
Last mile 3PL
fails to deliver
to customer
Last mile 3PL
attempts 2 more
times to deliver
to customer but
fails
Item delivery
to
Destination
Reverse
Center
Reselling for
1 month
Re-routing
back to
Origin
Country
Return items
arrived to
Malaysia
Seller pickup
from bonded
warehouse
Failed Delivery Reasons
• Consignee not at home
• Impossible to reach consignee
• Wrong Consignee Information
Phase1 : Sending Failed Delivery Parcel to Bonded Warehouse Phase 2 : Return Shipment
LAZADA SELLER

14. Prohibited List by Country
List by categories in SEA
14
Category Examples ID TH SG PH VN
Home Appliances Air Conditioning, Refrigerators, Washing Machines
Irons, Blenders
Vacuum Cleaners, Sewing Machines
Health and Beauty Toothpaste, Thermometers, Condoms, Medical Equipment, Over the Counter Medicines
Bath and Body, Skin Care, Food Supplements, Fragrances, Hair Care, Make Up, Slimming
Massagers, Men's Care
Electronics Computers & Laptops, E-Cigarettes, Walkie-Talkies, Drones
Batteries, Power Supply Unit
Fashion Socks, Tights, Underwear
Sports and Outdoors Elliptical Training, Camping Lighting
Motors Auto Oils & Fluids,
Moto Tires & Wheels
Media, Music and Books Religious Books
Groceries Wines, Beers & Spirits, Breakfast, Candy & Chocolate, Gourmet Food, Beverages, Tobacco,
Bakery, Dairy & Chilled, Fresh Produce, Frozen, Meat & Seafood
Canned, Dry & Packaged Foods, Snacks, Laundry & Household, Baking & Cooking
Watches, Sunglasses and Jewellery Prescription Eyeglasses
Mother and Baby Feeding, Diapering & Potty, Baby Safety Gear
Swings, Jumpers & Bouncers, Moisturizers & Creams, Aromatherapy, Colic & Gas Relief
Toys and Games Art Scissors
Activity & Playmats, Doll Accessories, Beauty & Fashion, Flying Toys
Balloons, 3D Puzzles, Ball Pits, Remote Control Toys, Traditional Battling Tops
Pet Supplies Food (Cat, Dog, Bird, Fish), Dog and Cat Perfume/Deodorizers
Furniture & Décor Beds
Lighting
Kitchen and Dining Fruits and Vegetable Tools (Knives)
Tools & DIY Head Protection, Fire Extinguishers, Batteries, Specialty Knives & Multi-Tools, Heat Guns, BBQ
Pits, Garden Soil & Fertilizers
Stationery & Craft Scissors & Cutters
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15. General Examples of Prohibited Items for
Specific Categories
15
• Food and Beverage: No sale of live, fresh or raw produce, food that contain medicinal
claims, noxious food products, non-pasteurized dairy products, wild mushroom, and any
other food hazardous to human health
• Health and Beauty: Used cosmetics, contact lenses, misbranded dietary supplements, any
illegal health products that may be announced from time to time
• Fashion: No counterfeit items or items that infringe the trademark of brands.
• Mother and Baby: No sale of infant formula for infants under the age of 6 months, sale of
toys that are dangerous and do not comply with the applicable international standards
• Home and Living: Products that do not meet applicable safety standards. Home
appliances DO NOT fall under this category
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16. 3 Simple Steps to Become Lazada Seller
16
Register
• Complete your application form with promocode: DFTZ
Activate your Account
• You will receive an email titled “Registration for Seller Center” from each
country
• Reset your password to activate your Seller Center accounts
List your products & start selling!
• Upload SKUs and follow the requirements
• Sign the e-contract sent via email
You will receive an SMS after this event to your registered mobile
number; please click on the link to register!
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17. Strictly Confidential 17
Required Documents
*All documents submitted are required to be not older than 12 months from date of submission
* All documents should be legible and clear

18. What does Lazada charge?
Shipping, Storage
& Processing Fee
(depending on items weight)
Payment Fees
(2%)
Commissions
(4%)
* Weekly Payment Cycle
18
Withdrawal Fees
(2%)
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NB: Applicable to all countries except VN

19. 19
Lazada Postal rates vs. POS rack rates
Approximate shipping rate card (not inclusive of pick up, storage & processing fee)
• The rate is subject to change
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Special Rates (in MYR) Rack rates (in MYR)
Parcel Actual
Weight
ID TH SG ID TH SG
0.5 12 17 17 29.6 29.6 24.6
1 18 23 21 40.6 40.6 32.6
1.5 28 38 25 48.6 48.6 38.6
2 33 44 28 59.6 59.6 43.6

20. Strictly Confidential 20
DFTZ tax flows based on current ruling

21. Finance Reconciliation
Payment Cycle & Charging Mechanism
21
Remarks:
* 3rd party payment providers: Payoneer
* Account Statement is cut-off on every Sunday
* Payout is transferred to seller’s payout account on Fridays
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Order
delivered
Lazada weekly
Reconciliation
Payment provider Seller in MY
Payment
flow
(to seller
account)
5 to 12 days after order delivery
Time
Horizon
Local Currency USD MYR

22. Strictly Confidential
LAUNCHING MY- SG PILOT IN MAR 2018
Only 50 slots
available for potential
ready exporters !

23. Strictly Confidential 23
Frequently Ask Questions
How do I sign up as a seller to 6 countries of Lazada under DFTZ ?
Complete your registration through this link : https://lazadacb.formstack.com/forms/dftz_seller_registration
Can I select which Lazada country to sell to?
Yes, you can choose the country when you register in Seller Center
Do I need to be a Malaysian registered company to be able to sell in Lazada DFTZ program?
Not necessary, however you need to provide your respective business registration documents respective of country of origin.
How many products should I list before going live?
You can list as many products as you like, however you must have at least 1 SKU pass QC before going live.
How long does it take to process my application as a new seller ?
Registration process takes only a few minutes. After completion, you are required to attend training, pass the test and list your
products. Once you have fulfilled all the requirement, you are ready to sell!
How long is the training and where do I need to attend the training?
It will be a webinar training – around 1 to1.5 hours.
Are there charges on the training ?
No, there won’t be any charges on the training
What is the cost of business for seller ?
Commission at 4% , Payment fee 2%, Withdrawal fee 2% and Shipping ( according to respective countries’ rate)
When should I register as seller ?
Immediately as it takes longer for your products to be uploaded into the system, translated to local languages and account to
be set- up for payment.

24. Strictly Confidential 24
Frequently Ask Questions
When can I start selling to other countries of Lazada platform thru DFTZ?
First 50 sellers will be entitled to join the SG launch in April 2018.
The full DFTZ will be launched in Q2-2018 (~ May)
How should the products be priced for each countries?
Sellers have the discretion to manage their pricing differently for each countries.
Are there any GST exemptions if seller sell through DFTZ?
GST will not be applicable for exported goods. For imported products, or any domestic sale of products from the DFTZ,
applicable GST will be levied. Necessary tax will be incurred accordance to the local custom regulation.
What currency will be the local payment?
Payout will be MYR
How to register for Payoneer - 3rd party payment provider?
Payoner registration through Seller Center, (My Account > Profile > Payment > Click the button to register a Payoneer account)
What are the service available to support sellers in this program?
• Direct access to more than 550M population across 6 countries
• Integrated system enable sellers to manage the shop seamlessly across all countries.
• 1 time content upload: you create your products in one platform only, Lazada takes care of replicating them in each platform
and we take care of translation.
What would be the permits needed to export to other countries?
Lazada will assist to provide resources for sellers to seek relevant information related to the sales of their products in Lazada
University however all local permits or registrations must be applied and submitted by seller. Lazada is not involved in any local
license or permit requirements.

25. Strictly Confidential
THANK YOU
This presentation is for informational purposes only and should not be treated as constituting confirmed activities. It is not intended to be (and should not be used as) the
sole basis of any analysis or other evaluation. No representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness,
accuracy, completeness or correctness of this information or opinions contained herein. Neither Lazada, its employees nor its affiliates shall assume any liability
whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or the statements contained herein, or the fairness, accuracy,
completeness or correctness of statements contained herein, or otherwise arising in connection with this presentation. By viewing this presentation, you agree that all
information presented herein shall be strictly confidential and shall not be disclosed, disseminated and reproduced in any form without the prior consent of Lazada.