On the shopee platform, after sellers have selected products, they need to set a suitable and competitive price for their products. This is related to future sales and profits, so how to ensure profits and sales? Next, set the shopee product price. This article will introduce how shopee sellers price products? What is the pricing formula?
In the process of product pricing, sellers can comprehensively evaluate and price products from the following aspects: product cost, profit, freight, hidden price, commission, transaction fee, and event service fee.
1. Domestic shipping fee refers to the shipping fee of the product when the seller delivers the package to the platform’s domestic transshipment warehouse.
2. Hidden price means the cost covered by the seller’s use of shopee logistics services during the process of poor price evaluation.
3. Commission is the fee charged by the shopee platform to sellers. It will be deducted from the amount allocated for each order. The commission for each site is different. Commission = order amount * commission rate. In order to attract more sellers to the platform, new sellers are exempt from commission for three months after opening a store on the platform.
4. Transaction fee refers to the fee paid to the transaction clearing service provider, including bank card transfer, debit card, credit card and other forms. This fee will be deducted from the allocation amount when settling the allocation amount for each order.
5. When sellers participate in platform activities, the platform will charge corresponding fees.
It is recommended that you follow this formula for pricing: final product pricing = (cost + profit + domestic transportation fee + hidden price) * (100% + commission % + transaction fee %) + buyer’s shipping fee * Transaction Fees%.
Based on the pricing obtained by this formula, you will basically get a more appropriate price. There may be a difference, but it is not big. You can reserve some profit margins based on this price, and you may wish to refer to the pricing of competing products from the same industry.
The above is some sharing of product pricing by sellers on shopee. Sellers can compare their own negative reviews, expenditures in various aspects, and comparison with peers to formulate a suitable price. Competition is getting bigger and bigger now, and sellers need to constantly optimize themselves.