In the field of cross-border e-commerce, the Souq platform has attracted much attention for its broad user base and efficient operation model. However, for merchants, understanding and being familiar with the fee structure of the Souq e-commerce platform has become an important part of successful entry. This article will explore the fee structure of the Souq platform and some merchant entry strategies.
I. Overview of Souq e-commerce platform fees.
1. Order service fee.
Souq platform charges a service fee for orders, charging 7.5 dirhams per order, equivalent to about 13 yuan. It is worth noting that when the order amount is less than 50 dirhams (equivalent to about 87 yuan), the service fee will be waived. This flexible policy provides a more friendly entry environment for low-value orders.
2. Platform commission.
The commission system of the Souq platform varies according to different sites. In the UAE site, the platform commission covers a range of 5% to 20%, while in the Saudi site, the commission consists of a 3% transfer fee, a 2% ESG service fee, and a 5% VAT. Merchants should carefully evaluate the pricing strategies of their respective products to ensure that they can make reasonable profits on the Souq platform.
3. Free delivery policy.
When the order amount exceeds 100 dirhams (equivalent to about 175 yuan), the Souq platform will waive the delivery fee from the overseas warehouse to the buyer. This preferential policy helps to increase the amount of the shopping cart and save some operating costs for merchants.
2. Notice for merchants entering Souq.
1. Company qualifications and legal operation.
Similar to Shein, the Souq platform also requires that merchants entering the platform must be formally registered companies and have legal business qualifications. This means that merchants should ensure that the company’s registration certificates, tax registration certificates and other relevant qualifications are complete before entering the platform.
2. Product quality and supply capacity.
The Souq platform has certain requirements for product quality, and merchants’ products need to meet certain quality standards. At the same time, in order to maintain the stability of the supply chain, merchants need to demonstrate sufficient supply capacity to meet potential high demand.
3. Foreign trade and e-commerce experience.
Merchants with foreign trade experience are more likely to adapt to the operational needs of the Souq platform. Merchants who have experience in operating other e-commerce platforms can also be more comfortable in the process of entering Souq.
4. Preparation of settlement materials.
Merchants need to prepare corresponding settlement materials when entering the Souq platform, including the company’s corporate registration certificate, product quality certification certificate, trademark registration certificate, etc. The completeness of these materials directly affects the smooth progress of the settlement application.
Three, settlement process and precautions.
1. Fill in the settlement application form.
Merchants first need to fill in the settlement application form of the Souq e-commerce platform, and fill in the company information, product information, etc. in detail. Ensuring the authenticity and completeness of the information is the key to successful settlement.
2. Review the settlement materials.
The Souq platform will review the settlement materials provided by the merchants to ensure their authenticity and validity. Merchants should actively cooperate with the platform’s audit work and deal with possible problems in a timely manner.
3. Sign a cooperation agreement.
After the audit is passed, merchants need to sign a cooperation agreement with Souq to clarify the rights and responsibilities of both parties. Merchants should read the content of the agreement carefully before signing the cooperation agreement to ensure that their own rights and interests are not harmed.
4. Store construction and product listing.
After signing the cooperation agreement, merchants can start to build stores and list products. Well-designed stores and attractive product pages will help increase user click-through rates and purchase conversion rates.
5. Training and guidance.
Souq platform will provide corresponding training and guidance for merchants to help them better operate stores and promote products. Merchants should actively participate in training and understand the operating mechanism of the Souq platform to improve their own business level.
As a well-known cross-border e-commerce platform in the Middle East, Souq e-commerce platform provides merchants with abundant business opportunities. By understanding its cost structure and entry strategy, merchants can formulate a more comprehensive operation plan and maximize the opportunities provided by this platform for their business expansion and growth. Success on the Souq platform requires merchants to continue to learn, flexibly respond to market changes, and maintain close cooperation with the platform. I hope that the information in this article can provide practical guidance for merchants who are about to or have already planned to settle on the Souq platform.