Many Daraz sellers see good sales but little money in the bank. The reason is almost always the same: the price was set as cost plus profit, and the fees, taxes and returns were forgotten.
Roman Urdu mein khulasa: Asal munafa = bechne ki qeemat − cost − packing − Daraz commission − payment fee − tax − delivery − returns ka nuqsan. Har product ke liye ye aik dafa zaroor nikaalein.
What comes off your selling price
| Item | What it is |
|---|---|
| Product cost | What you paid the supplier per piece, including bringing it to your place. |
| Packing | Flyer, bubble wrap, tape, label. |
| Commission | A percentage Daraz keeps. It depends on the category and can change, so check the current rate in Seller Center. |
| Payment fee | A small percentage for handling the payment. |
| Shipping fee | Any delivery charge that is deducted from you, depending on your program and weight. |
| Tax | Tax deducted on your sales or on the fees, as shown in your Daraz statement. |
| Returns | Some orders come back or are refused at the door. You lose the shipping and sometimes the item. |
A worked example
These are example numbers only, to show the method. Use the rates from your own Daraz statement.
| Rs. | |
|---|---|
| Selling price | 2,500 |
| Product cost | − 1,100 |
| Packing | − 40 |
| Commission (example 15%) | − 375 |
| Payment fee (example 2%) | − 50 |
| Tax (example) | − 85 |
| Returns (example: 10% of orders, Rs. 150 lost each) | − 15 |
| Profit per order | 835 |
That is a margin of about 33%. Now try the same product at Rs. 1,400, which looks like Rs. 300 profit over cost: after the same fees it actually loses about Rs. 40 on every order.
Tip: work out your break-even price (the price where profit is zero) for every product. Never put a product on sale below that price, even during 11.11.
Check your products that are already live
Go through your best sellers once a month. Fees, delivery charges and your supplier's price change, and a product that made money last year can quietly turn into a loss.
With Product Hunter
The Profit calculator lists every product in your Daraz store with its profit per piece, margin and ROI after commission, payment fee, tax, delivery and returns. Products selling at a loss are marked at once, and you can change the price and update Daraz in one click.
Try Product Hunter free for 3 days. Research, profit and seller tools for Daraz in one Chrome extension. Add to Chrome or ask us in the chat.