Shopee
Shopee was launched as a mobile-centric marketplace in February 2015. Shopee is a Singaporean e-commerce platform where users can buy, sell and browse products. Moreover, according to the 2021 estimate, Shopee is considered the largest e-commerce platform in Southeast Asia, where approximately 343 million users visit in a month. It claims to make online shopping easy and reliable for sellers and customers—Shopee serves its customers across various countries in East Asia and Latin America.
Shopee operates majorly in countries including:
- Singapore
- Thailand
- Vietnam
- Taiwan
- Indonesia
- Malaysia
- Philippines
- Brazil
- Mexico
Shopee- A Great Platform For Online Sellers
Shopee is a fast-growing e-commerce platform that provides many opportunities and facilities to online sellers and is becoming increasingly popular among these workers. It has become a user-friendly and highly featured platform for many online entrepreneurs.
Some Incredible Advantages Of Selling On Shopee
Following are some of the incredible advantages of selling on Shopee.
- Order Management and Effortless Shipping
- Impressive Interface
- Optimises Marketing Tools
- Guidelines For Settling Money Matters
- Allows You To Personalize Your Account
- Order Management and Effortless Shipping
With Shopee, you can ship orders to and from the buyer’s location without any effort, and this platform also allows you to manage the orders for each product successfully.
- Impressive Interface
The interface of Shopee is designed in such a way that it displays your products and makes them popular in their category. Customers can easily find the products based on their budgets and preferences, and the Shopee platform promotes your products.
- Optimises Marketing Tools
Shopee optimizes different marketing tools such as shipping fee discounts, flash deals, etc. By this, the buyers are encouraged to praise your products and help your business grow. Moreover, a relationship is established between the sellers and the customers.
- Guidelines For Settling Money Matters
Shopee provides incredible guidelines for settling money matters. Refunds are also easily manageable, as when the buyer clicks on the option Order Received, the money is automatically transferred to the seller’s account.
- Allows You To Personalize Your Account
The impressive interface of Shopee allows you to personalize your account and display your product. Once your brand gets popular, you can benefit from mass uploading your products, and mass shipment will enable you to ship multiple orders at a single time.
Shopee Commission Fee: How Much To Pay?
The Shopee commission fee is the fee that the sellers of Shopee pay for every sale they make. This is the fee which you have to pay for every transaction. Generally, the Shopee commission fee is calculated based on the price and quantity of the product the customer buys. This fee is already determined for every product. Once the customer has paid the product, the fee is immediately withdrawn from the seller’s account. It is also the fee charged to the sellers based on COGS, which is the Cost Of Goods Sold after all the vouchers and discounts the seller sponsors. Depending upon the seller type, category of items and the programs joined by sellers, Shopee charges a category-based and differentiated commission fee.
Commission Fee Rate For Shopee Mall
Shopee Mall Commission Fee Rate ranges from 1.5% to 5% depending upon the seller type, category of item and programs joined by the sellers.
Commission Fee Rate For Shopee Marketplace
Shopee Marketplace’s commission fee rate ranges from 3% to 5% depending upon the seller type, category of item, and the programs joined.
Shopee Commission Fee: How Does It Work?
As mentioned, the Shopee Commission fee is based on the quantity and price of the product that the customer buys. The commission fee of the shoppe is calculated based on the following formula:
Commission Fee=Product Price x Commission Rate
The commission rate is generally the percentage automatically deducted from the seller’s account as a commission fee for a particular product.
Example
You are selling a laptop on the Shopee platform, setting the product price at $200. The commission rate of this product is 10%; therefore, you have to pay $20 as a commission fee. If the customer buys two laptops, Shopeell withdraws $40 for that transaction, but the commission rate is still 10%.
Way To Calculate Shopee Commission Rate
There are two types of commission fees for shopees. The first is the platform fee, and the other is the seller fee.
- The shopee commission fee for a platform is a fixed rate that the shopee withdraws on every product sale. Usually, it is 2% of the total transaction value.
- The shopee commission fee for the seller is a variable rate based on the product category, which usually ranges from 3% to 10%.
Total Commission Fee
If you want to calculate the total shopee commission fee, add the seller and platform fees.
I understand that you have a question about How to optimize Shopee Commission Fee?
We already guide you in our asianbusinesside.com blog. Please, follow up there our blog.
Total Shopee Commission Fee=Seller Fee+Platform Fee
Shopee Commission Fee: Why So Important?
The reasons why the Shopee commission fee is considered the most important.
- Firstly, it helps ensure the sellers are reasonably compensated for their products.
- Secondly, it helps to keep the prices down for the buyers.
- Lastly, it helps to level the playing field between the large and the small sellers.
Incredible Techniques To Minimize Shopee Commission Fee
There are many great techniques to minimize shopee commission fees, but the two most important ones work.
- Change your product listing regularly
- Promote your top-quality and best-selling products
Change your product listing regularly.
If you want to promote a product worth more than $0 in commission, you need to update your description and change your product listing regularly. If you want to keep your product at $0, you must promote it in various ways, like advertising.
Promote your top-quality and best-selling products.
Moreover, you can use this commission fee to your advantage by promoting your best-selling product. If your product is selling at a high ratio, it is easy to promote it on the Shopee platform; hence, you will have to pay the fee out of pocket if you sell a single item.
