Pricing is very basic, but it is often ignored by many people. I often hear some friends complain that they still can’t figure out the accounts after working for Shopee for several months. Regarding e-commerce finance, it should be a pain point for many e-commerce sellers. Because there are many links and factors involved. Let’s not discuss other places here for the time being, and start with the pricing of Shopee products.
01 Open the DNY123 pricing tool
02 Understand three pricing methods
Set the price: Calculate the [product profit] and [profit margin] based on the input [selling price]
Control profit margin: Calculate the [selling price] and [product profit] based on the input [profit margin]
Control profit: Calculate the [profit margin] and [selling price] based on the input [product profit]
1. Calculate profit and profit margin based on the actual bill of the Shopee backend.
Calculate profit directly: (do not consider other costs)
Selling price = 399P = 399/7.35 = 54.29
Profit = Order revenue – Product cost
Profit = 206/7.35-7.55 = 20.48
Profit rate: = Profit/selling price = 20.48/54.29 = 37.72%
2. Verify the calculation logic of DNY123 pricing tool.
1. Product amount = selling price = 399P = 54.29
2. Total freight = 113P = 15.37
3. Product cost = 7.55
4. Activity handling fee = 7% (participated in CCB+FSS activities), novice sellers can temporarily ignore this.
5. Coupon = 19P = 2.60 (temporarily included in domestic shipping)
6. Product weight = 241g
Fill the above data into the pricing tool of DNY123. The data shown below can be obtained,
Profit = 20.46
Profit margin = 37.72%
The error with the data calculated manually above is almost 0. Therefore, if you don’t understand pricing very well, you can use this pricing tool with confidence.
3. Control profit: Calculate [profit margin] and [selling price] according to the input [product profit]
The principle is the same as the method of controlling profit margin above, so I won’t expand it here.
I would like to emphasize again that pricing is the most basic skill. Although it is basic, it cannot be underestimated or evaded. The most important thing is to understand the internal logic. You can compare the data in the pricing tool with the data in the shopee backend one by one, and deeply understand the details of each fee so that you can learn from it and learn the pricing of other sites.