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A lot of people says that Shopee is the best place to start online business .
A lot of coaches says that with Shopee you can earn 4 , 5, 6 even 7 figures within month.
A lot of coaches also claim that dropshipping is the best way to make money in Shopee.
How true is that ? Decide yourself after watching this video .
#1 Shopee Fees
A lot of people is not aware of different type of Shopee fees.
Why is this important?
Put it in a simple way , it is part of your cost .
This is the fees Shopee fees structure . Some may apply to you some may not .
And this fees is updated on Jan 26/2021 .
Transaction fees all to all sellers is 2.12%
Service fee for free shipping for Sellers who joined RM19 Free Shipping Package 4.24%
Sellers who joined 10% Coins Cashback Program 3.18%
If you join both it will be 6.36%
And if you are a shopee mall sellers you will be charged 5%
Lets for example ,
You are a shopee mall sellers and you join both RM19 Free Shipping Package and 10% Coins Cashback Program .
So total fees shopee charge you is
2.12%+6.36%+5.30% =13.78% and this have not include voucher , bundle deal and others discount that you give to sellers.
Imagine your products has a profit margin of 50% ,in simple calculation
You only left 36.22%
This is for shopee Mall . Most shopee mall sellers will have higher profit margin as they are the brands owner .
What about others seller.
Lets say a normal stokist.
Transaction fees all to all sellers is 2.12%
And this seller joined both RM19 Free Shipping Package and 10% Coins Cashback Program so is 6.36%
Then plus voucher discount 5% so total will be 13.48% is gone .
If this sellers have 40% margin you will left 26.52% still not too bad.
What about a dropshipper?
To be competitive, dropshipper also need to join in free joining , coins cashback , and also giving out vouchers.
So it will be pretty much same as stokist which is 13.48% .
Most dropshipper profit margin is between 15% to 30% .
30% is consider very high .
So after minus shopee fees the margin will left only 1.52% – 16.52%
Ok , it seems still ok if you are having 30% profit margin , after minus the shopee fees you still have 16.52%
But , you forgotten about cost for shopee ads .
Without Shopee ads , it is pretty hard for a new shop to get sales or even traffic to our new store.
Why sellers love to sell on Shopee ?
Simple because it is the highest traffic marketplace in Malaysia .
Type of Sellers in Shopee
For those that are new to Shopee , you may not know that there are actually different type of sellers in Shopee. I am not talking about shopee mall , preferred sellers .
# type 1 sellers
Yes ,some of the sellers in shopee that are providing sellers to dropship their products and resell back to shopee.
#type 2 overseas sellers
Yes shopee Malaysia is open for sellers overseas such as China to directly sell in Shopee Malaysia.
#Type 3 Wholesale Sellers
Yes , some sellers inside Shopee , there are also wholesaler where we can buy from them and resell back in Shopee .
#type 4 Own Brand sellers
This own brand sellers can be a sole brand owners as main distributor for a certain brand or , oem own product
# type 5 stokist
Stokist will be sellers that buy in bulk overseas or local and resell back to Shopee
#type 6 Digital products
This type of sellers will be selling digital products such as voucher , videos programme and ebook.
#type 7 Dropshipper
Dropshipper will be taking products from dropship supplier and reseller back to shopee.
So these are the main 7 shopee sellers . If you know any others sellers in Shopee , feel free to comment below .
If you look at this cycle , if the amount of own brand sellers does not grow as fast as dropshippers suppliers, overseas sellers , wholesales suppliers that sell back to shopee , all the products in Shopee will be full of “recycle products “ or duplicate products .
Because unless the brand is unique and authentic , there is a very high chance that the sellers are taking the products from overseas or local wholesaler or dropship supplier.
And it is super easy to buy from website such as 1688 , or some of the sellers are buying directly from china sellers inside shopee as well .
It is like when you go to a shopping mall, all shops are selling the exact same products and brands , because the bigger sellers inside the shopping mall are selling their products back to the seller inside the products.
What will happen ? The shopping mall will lack of “freshness” , the shopping mall is “boring” and “ stagnant” .
People will go to the mall is just look for the cheapest price , since all products are the same .
The shoppers experience towards the products are low . people go to the mall plainly for the cheap price.
And therefore , as a seller it is very important that you innovate your products and be different with others sellers.
So , after watching this short video , Can you still make money with shopee?