How do low-profit Shopee sellers make money?

How do sellers on Shopee make money with such low prices?

"The prices of products on Shopee are too low. At least 85% of the products on the front page are priced below 15, or RM," an Amazon seller complained to the editor.

Some successful Shopee sellers also admitted that 30% of the products in their stores have no profit or have very low profit.

In such an environment, how can the Shopee platform scientifically set prices to make a profit?

The general product pricing formula is: Profit = Revenue - Cost, that is, selling price = Cost + Profit.

Considering that Shopee’s shipping fee is not charged based on the actual shipping fee, the pricing formula on Shopee can be: selling price = cost + hidden shipping price + profit.

To be more specific, the price of Shopee products = purchase cost + domestic shipping fee + profit + international shipping fee + overweight surcharge + platform commission - shipping fee borne by the buyer.

Southeast Asia is a developing country. To be honest, the income and consumption levels of local residents are not high. In terms of profits, it certainly cannot compare with Amazon, whose audience is mostly in developed countries. However, Southeast Asia has a large population and the market potential is still considerable.

Of course, things are valuable because they are rare, and this is true no matter where you put it.

In other words, if you want to make higher profits than others on Shopee, then you need to find products with less competition to sell.

Usually, the launch of new products will always attract a lot of attention, and the initial price will be relatively high, but in order to sell new products quickly, you need to pay attention to them frequently, and know what new styles will be released. If you put them on the shelves before others, you will get higher profits when selling them.

Every store will have a traffic-generating section and a profit section.

The products for attracting traffic are priced low, and their main purpose is to attract traffic to the store. There is no profit or even loss.

But sometimes customers who come in will not buy just one, many times they will choose to buy a combination.

Here you can use the combination pricing method to set the price. You can set a hard target of a certain amount before shipping.

This way the overall price doesn’t seem high, and customers don’t mind buying a few more;

Or they can be sold in bundles , where you need to buy one item together with the other; each item is cheap, but must be purchased in combination.

In short, whether you choose to go low or high depends on your personal understanding of the actual situation. Both have good and bad performance.