How to Set Price in Shopee and Modify It Strategically

As a business person, there are times when you will encounter difficulties when implementing a pricing strategy. How to set price in Shopee? You don’t need to worry, because this often happens both among novice entrepreneurs and even among senior entrepreneurs.

It cannot be denied that price is one of the most important aspects of a product. Price is the cost that must be paid by the buyer to be able to own your product. As we know that price is one of the main considerations when consumers will buy a product. Therefore, you must really do the right pricing strategy for your product, which of course is also in accordance with the quality offered.

Perhaps you are currently thinking that a pricing strategy is a way of pricing a product in order to make a profit for the business. However, in its development, the pricing strategy is also based on other non-economic considerations, not only about how much profit can be obtained.

What Need To Define Before You Set Price In Shopee (Pricing Strategy)

You need to define several things before setting the product’s price in Shopee. Your pricing plan should consist of the following components: 

• Cost of Goods Sold (COGS): This refers to the cost of materials invested in the purchase or production of a product. 
• Landed cost: Cost of goods sold (COGS) + refers to all Shopee shipping fee calculation and taxes for shipping the product to the warehouse 
• Operating costs: Rewards paid to warehouses or customer service personnel (staff). 
• Warehousing Cost: Refers to the cost of renting or purchasing a product storage facility 
• Packing costs: The cost of fixing the product with protective material before shipping the product 
• Advertising Costs: Shopee price range per product associated with paid advertising and other campaigns 
• Profit Margin: If you subtract all costs from the price, the profit margin is the profit you get from each sale or sales. To reach the profit margin, you can use the following formula: Profit margin = Selling price – COGS + All other costs above.

After knowing components that should be there when setting price, calculating the price of the product gives the following will give results: 

• Optimize your product for visibility, click through rate, and conversion rate. 
• Brings optimized profits
• Helps you achieve specific goals in your product list in your own phases (release and steady state)
• Bring more sales and profits 
• You will be able to overcome your competition 

You also should know the product variations and consider whether to give the same price or not. Do not forget to pay attention to the shipping fees too. Here are Shopee variation tutorial and shipping fees in Shopee.

Set Product Variations

How to add multiple price in Shopee is by setting product variations. You can use the Seller Center and the Shopee app to set up to two product variations in your list. How to get local seller tag on Shopee, you can also use the Shopee App as well. To set product variations in the Seller Center, create a new listing or go to an existing list. 

Select Enable Variations under the Sales Information section, and select variation Names, Options, Prices. Enter the stock level and SKU. Check the parent SKU Shopee example first. Different images can be uploaded for each variation type. 

Read Also: Shopee Product Template: How to Make Products Interesting

Set Shipping Fees

1. Access the Seller Center and then My Products. To start modifying the product list such as Shopee wrong price, you need to find the product and click Edit. 

2. Click the product you want to edit to edit the weight and dimensions of the product. The shipping charges below will vary depending on the updated weight. 

3. Enter the weight and dimensions of the product. If you’re a seller with not supported logistics Shopee, you can click Set Shipping Fee to edit the shipping cost of your item directly. 

How to set free shipping in Shopee is by clicking “I will cover shipping fees”. This will deduct the final payment from the applicable shipping cost used to ship the item. You can also pay the buyer’s shipping costs so that the buyer pays only the price of the item.

Read Also: The Benefits of Joining Shopee Shipping Program to Your Shop

How Do I Set A Minimum Purchase On Shopee?

Minimum Purchase Quantity (for selected sellers only) sellers could set a minimum buy amount required for a product throughout all variations in a single order. This means that there may be a minimal amount of a product (not of a variation) that needs to be met in order to be placed. 

If the inventory to be had is much less than Minimum Purchase Quantity set, buyers will now no longer be able place an order for this product. 

You can set a Minimum Purchase Quantity to your products through the My Products page in the Seller Centre. By default, Minimum Purchase Quantity is set as 1. To set a new Minimum Purchase Quantity criteria, simply input a preferred range for the minimal amount.

Can Ginee ERP / Ginee Ads Advice Me To Set Pricing On My Product?

With Ginee Ads, you can get a comprehensive marketing strategy and media plan for your business. So you can analyze your competitor price with the Shopee price tracker to set the competitive price. Besides using online marketing tools, Ginee ERP will help you to manage your product management, order management, stock management, promotion management, data reporting and many more. 

Conclusion

What you need to define before you set price in Shopee should consist of these components: Cost of Goods Sold (COGS), Landed cost, Operating costs, Warehousing Cost, Packing costs, Advertising Costs, and Profit Margin.

Another crucial thing of your pricing method needs to be placing minimal and maximal costs for every of your products. This will assist make sure that you don’t get caught up in reacting to price changes too much and hurting your profitability beyond the allotted amount.

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When using Ginee Malaysia, you will be able to manage your orders easily from the time you receive the order, arrange the shipping, print the labels, until the customer receives the goods. Sign up for a free 7-day trial today so you don’t miss out on great features at Ginee.