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Lazada Guarantee Seller Program Policy Update: PH Sellers’ Quick Guide

Jayson 21 Jul 2025 09:36ENCopy link & title

The Lazada Guarantee Seller Program Policy is crucial for every e-commerce seller on Lazada Philippines. Launched to protect buyers and reward high‑performing merchants, this policy sets clear targets for order fulfillment and cancellation rates, and for orders that do not meet the required Service Levels, compensation may be made to the buyer.

Starting from August 1, 2025, this policy will take effect for all Lazada sellers, but new sellers on Lazada shall be entitled to a 90-day grace period from their live date, during which they will not be subject to the terms and conditions outlined in this Guarantee Seller Program Policy. For more details, please check the 👉 Lazada Official Announcement

Besides, Lazada Marketplace sellers with order items of less than 20 in the last 28 days will also not be subject to the Guarantee Seller Program. Click Here to Register BigSeller For Free!👈


Lazada Guarantee Seller Program Policy Update: PH Sellers’ Quick Guide
 

1. What Is the Lazada Guarantee Seller Program Policy?


(1). Seller‑Fault Cancellation Rate (CR)

Seller‑Fault Cancellation Rate (CR) measures the percentage of orders canceled by the seller due to stockouts, listing errors, or other preventable issues. Lazada enforces a maximum CR threshold—often around 5%—to qualify for the Guarantee Program. Falling below this threshold prevents penalty fees and maintains your “On‑time Guarantee” badge on product listings.

(2). Fast Fulfillment Rate (FFR)

Fast Fulfillment Rate (FFR) tracks how quickly orders are processed, packed, and handed to the courier. Lazada typically sets an 80% FFR target: at least 8 out of 10 orders must be shipped within the specified handling time. High FFR scores translate to better search rankings, higher click‑through rates, and improved conversion.

⚠️ Note: And after August 1, the metrics are updated as follows:

 

Fulfillment Metrics

LazMall Marketplace

Lazada Marketplace

Fast Fulfillment Rate

≥ 70%

≥ 70%

Seller Cancellation Rate

≤ 1%

≤ 5%

 

2. What is the Lazada Breached Orders and How To Calculate the Fee?


An order will be declared a Breached Order if either of the following conditions are met:
  • An order was not fulfilled within the required FFR parameters.
  • An order was cancelled for seller-fault reasons.

The Order Breach Fee penalty is intended solely to support buyer compensation. For Fast Fulfillment Rate violations, the charge is determined as 1% of the order item's value, with a maximum of PHP 50 per order. For Cancellation Rate violations, the price is 15% of the order item's value, with a maximum of PHP 300 per order. This applies to both LazMall MP and Lazada MP.

(For example):

Main Order Details

Order Breach Reason

Order Breach Fee Amount

FFR Breach: 1% of item value, capped at PHP 50 per order

CR Breach: 15% of item value, capped at PHP 300 per order

Scenario

Main Order

Item Order

Item Order Value

Quantity Purchased

FFR

CR

Per Item Order

Per Order

(Sum of all item orders)

Final OB Fee Amount

PHP

Units

PHP

PHP

PHP

1

A

A-1

5,000.00

1

2.00

2.00

A-2

200.00

1

Breach

2.00

A-3

50.00

1

2

B

B-1

5,000.00

1

9.50

9.50

B-2

200.00

1

Breach

2.00

B-3

50.00

1

Breach

7.50

3

C

C-1

5,000.00

1

Breach

750.00

750.00

300.00

(Capped at PHP 300)

C-2

200.00

1

C-3

50.00

1

 

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3. How Can Lazada Sellers Check the Store Performing?


Lzada seller's performance metrics for both FFR and CR can be found on the Account Health page.

Lazada Guarantee Seller Program Policy Update: PH Sellers’ Quick Guide



Besides, sellers with multiple lazada stores can also use BigSeller to monitor all the stores health at one page, and easily grasp the situation of multiple stores. In addition, BigSeller offers punishment warnings, allowing you to identify risks in advance to ensure the normal operation of your stores.  For more details, pls check this 👉 "BigSeller Store Health Instruction"

Lazada Guarantee Seller Program Policy Update: PH Sellers’ Quick Guide


BigSeller
is the ultimate, FREE e-commerce platform for Southeast Asian sellers, designed to supercharge your business. Streamline everything in one place—from product listings and order processing to inventory management, financial tracking, and automated operations. Click Here to Register BigSeller For Free!👈

BigSeller-Blog Senior Writer: Jayson
Sir Jayson has worked in well-known e-commerce companies such as Shopee and TikTok Shop, helping hundreds of sellers to deepen their e-commerce industry, expand their business, and eventually become high-quality sellers.