How is Shopee's commission calculated? What are the standards?

There is no charge for opening a store and registering an account on the Shopee platform, but the Shopee platform will charge a commission fee for sellers. Therefore, sellers who want to open a store on the Shopee platform must understand how Shopee's commission is calculated? What are the calculation rules?

1. Commission collection policy of Shangpai platform

Orders subject to commission:

(1) Transaction commissions are only charged for completed orders (the commission base does not include order shipping costs);

(2) No commission will be charged for cancelling orders;

(3) The same seller shall be exempted from transaction commissions on each site on the platform within the first three months of that site.

Notice:

Shopee reserves the right of final interpretation and does not rule out adjustments to fees and standards. The current version of the rate is applicable to the new commission rate released by the Shopee platform.

2. Calculation rules for the commission-free period for new sellers on Shopee platform:

Shopee provides a 3-month commission-free period for new sellers entering the platform for the first time. The commission-free period for new sellers on each site is calculated from the date the seller opens a store on the corresponding platform.

example:

(1) Seller A opens a store on the Singapore website on July 1 and starts collecting commissions from October 1;

(2) Seller A opens a store in Malaysia on September 1st. From December 1st, the store in Malaysia will charge commission.

How much is the handling fee?

Starting from January 1, 2019, the Shopee platform will charge sellers a 2% transaction fee. This is actually a transaction fee that needs to be paid to the transaction clearing service provider. So far, this fee has been borne by Shopee.

Transaction fee charging standard:

(1) The commission rate is 2%;

(2) For completed orders (cash on delivery and cashless orders will be charged a fee);

(3) A handling fee equal to the order amount (including shipping costs paid by the buyer);

(4)Handling fees and platform commissions are independent of each other.

Currently, Shopee has several warehouses in China that provide transportation services for sellers. Sellers must first transport the goods to the Shopee warehouse, and then Shopee will package and transport them to the destination warehouse. Both transportation processes require sellers to pay a certain amount of transportation fees. The specific fees are subject to the transportation fees of the logistics company and Shopee.

The withdrawal fee is mainly charged based on the payment method chosen by the seller. For example, the withdrawal fee of Payoneer is about 1.2%; Lianlian is about 0.7%. It should be noted that this fee is different from the withdrawal fee of the payment, and both fees are paid by the seller.

Generally, the pricing of other e-commerce platforms is mainly based on selling price = cost + profit. However, Shopee is a little different. The shipping fee is not calculated according to the display on the front desk. Instead, selling price = cost + profit + hidden shipping fee. To be more specific, it is the cost of purchase + profit + domestic shipping fee + additional shipping fee when overweight + part of the platform commission - the shipping fee borne by the buyer. These are the pricing standards for Shopee products.

Procurement cost: the cost we spend when purchasing products on domestic wholesale websites

Domestic shipping cost: shipping cost when purchasing products to our address + shipping cost from our address to Shopee warehouse

International shipping fee: The shipping fee when delivered to the buyer using Shopee's official self-built logistics SLS

Overweight fee: The extra fee that needs to be paid when the product exceeds the weight standard. It is not required if it is not overweight.

Platform commission: Shopee platform will charge 5%-6% commission after the store is opened for three months

Profit: The profit the seller wants to make

In addition to commissions and transaction fees, sellers also need to pay fees such as cash withdrawal fees, logistics fees, product packaging fees, etc. Compared with other platforms, Shopee charges less fees and has lower fee standards.

Recommended reading:

How do Shopee sellers control costs? Tips to share

Does it cost money to open a Shopee store? Shopee store opening process

Does opening a store on Shopee require company qualifications? What are the conditions?