Before becoming a seller on the Souq platform, it is crucial to understand the platform’s commission fees. The commission fee is a fee that every seller needs to pay to the platform when selling a product. It consists of two parts: processing fee and commission fee.
First, let’s take a closer look at these two fees.
1. Processing Fee:
The processing fee is a fee that needs to be paid for every order, regardless of the sales amount. It has a fixed fee of 7.5 UAE Dirhams (AED) or Saudi Riyals (SAR).
Please note that the processing fee is only charged when the order sales amount exceeds 50 AED/SAR.
2. Commission Fee:
The commission is a percentage fee based on the sales amount, and the specific fee depends on the category of the product.
The commission is calculated by multiplying the sales amount (total order amount) by the commission percentage of the corresponding product category.
Next, let’s look at some examples to help you better understand how these fees are calculated.
Example 1: Suppose you sell a mobile phone with a sales amount of 70 AED/SAR, which belongs to the smartphone category and the commission rate is 10%.
Handling fee: 7.5 AED/SAR
Commission: 70 AED/SAR × 10% = 7 AED/SAR
Total fee: 7.5 AED/SAR (handling fee) + 7 AED/SAR (commission) = 14.5 AED/SAR
Example 2: If your order contains two products with different commission rates, one with a sales amount of 50 AED/SAR and the other with a sales amount of 70 AED/SAR, one belongs to the mobile phone accessories category (10% commission) and the other belongs to the shoes category (20% commission).
Handling fee: 7.5 AED/SAR
Commission (mobile phone accessories): 50 AED/SAR × 10% = 5 AED/SAR
Commission (footwear): 70 AED/SAR × 20% = 14 AED/SAR
Total fee: 7.5 AED/SAR (handling fee) + 5 AED/SAR (mobile phone accessories commission) + 14 AED/SAR (footwear commission) = 26.5 AED/SAR
Now that we understand how the fees are calculated, let’s take a look at the commission rates for different product categories. Here are the commission rates for some major product categories:
1. Mobile phones, tablets, prepaid cards, smart watches
UAE: 5%
Saudi Arabia: 5%
2. Books
UAE: 5%
Saudi Arabia: 5%
3. Mobile phone accessories, tablet accessories, earphones and headphones, screen protectors
UAE: 10%
Saudi Arabia: 10%
4. Pet food and supplies, tools and home improvement, toys
UAE: 10%
Saudi Arabia: 10%
5. Eyewear and optics, jewelry and accessories, perfumes and fragrances , watch accessories
UAE: 15%
Saudi Arabia: 15%
6. Rings, necklaces and pendants, earrings, bracelets, loose gemstones and diamond jewelry sets, jewelry accessories, men’s small jewelry, pendants
UAE: 15%
Saudi Arabia: 15%
7. Backpacks, handbags, trolley bags and handbags, wallets, luggage bags, packaging and bag accessories
UAE: 20%
Saudi Arabia: 20%
8. Shoes
UAE: 20%
Saudi Arabia: 20%
Please note that these commission rates are the same for Saudi Arabia and UAE. Sellers should calculate the commission fees based on the product categories they sell and the sales regions.
By understanding the commission fee structure of the Souq platform and the commission rates for each product category, sellers can better plan their sales strategies and ensure that their costs and profits are controllable. Hopefully this information will be helpful to sellers selling products on the Souq platform.