Detailed explanation of Kikuu platform product pricing: how to calculate the front-end sales price and fee composition
On the Kikuu platform, the price set by the seller in the backend is the unit price of the product, and the sales price displayed on the front desk of the App is the sum of the unit price of the product and the trunk logistics cost. Therefore, it is crucial for sellers to understand the formula for calculating price and its fee components.
Basic formula
On the Kikuu platform, the front-end sales price can be calculated through the following formula:
- Front-end sales price = Back-end product unit price + Main line logistics fee
Furthermore, the calculation formula for the unit price of backend products is:
- Backend product unit price = FOB price + Return cost + End operation fee + Commission< /strong>
The following is a detailed description of each key component:
- FOB price: It must include profit, domestic freight, ordering agency fee and other costs.
- Unit: The unit price of the backend product is priced in US dollars. Sellers can refer to the exchange rate in the past two weeks to set the price.
- Return Cost: Sellers can calculate this based on their store’s historical return rate.
Cost composition
On the Kikuu platform, the fee consists of multiple parts, including:
-
Commission ratio: The platform commission is 12%.
- Calculation formula: Platform commission = (unit price of product x quantity + trunk logistics fee – store discount amount) x 12%
-
Domestic Shipping Fee:
- This fee includes the courier fee for transporting the goods to the transit warehouse and the warehouse order fee if necessary (usually $1/order).
-
Logistics costs:
- The calculation formula for international shipping is: International shipping = Product weight (kg) x shipping standard.
- The terminal operating fee is US$0.65/logistics order.
Understanding these pricing mechanisms and fee components, sellers can better set product prices to ensure the smooth progress of their sales on the Kikuu platform.