How to calculate Shopee profit? What is the calculation method?

The cross-border e-commerce Shopee is a distribution platform, so most sellers adopt the method of small profits but quick turnover. Therefore, we must make scientific pricing when pricing products. So how do we calculate Shopee profits? The following is an introduction for everyone.

How to calculate Shopee profit?

Shopee is still a little different. The shipping fee is not calculated according to the front-end display, so Shopee's pricing is: selling price = cost + profit + hidden shipping fee. To be more specific, it is the cost at the time of purchase + profit + domestic shipping fee + additional shipping fee when overweight + part of the platform commission - shipping fee borne by the buyer.

1. Purchase cost: the cost price you buy from wholesale websites such as 1688;

2. Domestic shipping cost: shipping cost from purchase to warehouse + shipping cost from labeling to Shopee warehouse;

3. International freight: If you use the official logistics SLS, it will be calculated according to the logistics price list;

4. Overweight surcharge: For example, for packages over 1KG in Malaysia, a surcharge of 1.5RM will be charged for every 250g;

5. Shipping costs borne by the buyer: If the product is not free of shipping, the buyer needs to pay the basic shipping cost;

6. Platform commission: Shopee collects platform commission, generally 6%;

7. Profit: The profit the seller wants to obtain.

Shopee's profit is generally around 30%-50%. Because Shopee can see profits in a short period of time and the operation is relatively simple, it is mainly based on store groups. Shopee has a total of 7 sites, and one set of information can be used to open all sites.

However, for the first site, only Taiwan and Malaysia sites can be opened. The remaining sites need to operate for a period of time before they can be opened. Since a store group definitely consists of more than one or two stores, the more stores the better. The more stores we have, the more we can earn.

The biggest advantage of this model is that you don’t have to order or stock up on your own. This can effectively save warehouse costs, logistics costs, and labor costs, and can also effectively avoid the risk of inventory backlogs.

When running a store, profit is indispensable. Only profit can accurately reflect the success of your store. After we open a store on Shopee, we need to adopt various methods to increase the traffic and sales of goods.

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