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The Harsh Reality: High Sales ≠ High Profits
The Harsh Reality: High Sales ≠ High Profits
Every Singaporean e-commerce business dreams of making big sales on Shopee. But here’s the cold truth: “Sold Out” or more orders don’t always mean more profit.
Why? Behind it all is a maze of hidden fees—platform commissions, shipping subsidies, packaging costs, and more. These invisible profit killers silently eat into your margins.
Is this also a challenge you’re facing right now? If yes, let’s explore how EasyParcel can help you save money and simplify your logistics!
The Real Math: How Much Do You Actually Earn from a S$10 Product?
The Real Math: How Much Do You Actually Earn from a S$10 Product?
Let’s take a common scenario you’ll recognize: selling that S$10 phone case on Shopee. Seems profitable? But when we break down the actual costs, the results might surprise you…
| Cost Factor | Amount (SGD) |
|---|---|
|
Product Cost |
3 |
|
Shopee Commission (4.36 – 7.36%) |
0.44 – 0.76 |
|
Transaction Fee (3%) |
0.30 |
|
Shipping Subsidies (Seller-Covered) |
1.50 |
|
Packaging Materials |
0.50 |
|
Labor (Packing Time) |
0.50 |
|
Total Cost |
6.24 – 6.56 |
|
Your Profit |
3.44 – 3.76 per sale |
👉Refer Shopee Commission
👉Refer Transaction Fee
And that’s if everything goes smoothly! If returns, damages, or delivery failures happen, your margins shrink even more. So, how can you keep more of your hard-earned cash?
Before we dive into cost-cutting strategies, let’s tackle the big question: How can shipping work for you, not against you? The answer is simple: smarter logistics, strategic cost-sharing, and efficient packaging.
3 Strategies to Slash Hidden Costs & Boost Profits
3 Strategies to Slash Hidden Costs & Boost Profits
1. Automate & Optimize Shipping with EasyParcel’s Multi-Channel Intergration
Shopee Supported Logistics offers convenience, but do they cost you more than necessary? With EasyParcel, you can:
- Sync orders automatically by using the Integration features.
- Smart rate comparison to find the cheapest, reliable courier.
- Bulk print shipping labels to save hours of labor.
2. Reduce ‘Free Shipping’ Reliance – Share Costs Wisely
Offering free shipping boosts sales, but if you’re covering the full cost, it can drain your margins fast. Here’s how Shopee sellers can make it work without losing money:
- Boost Average Order Value: Set a “Free Shipping Threshold” like “Free above S$15” to encourage customers to add more to their carts.
- Save on Delivery Costs: Offer “Pickup Options” to cut down on last-mile delivery fees.
- Streamline Checkout: Use EasyParcel to show real-time rates to avoid bearing excessively high shipping costs, reduce cart abandonment, and smoothen checkout.
3. Optimize Packaging & Eliminate Waste
Use right-sized, lightweight packaging to cut shipping fees and material costs without sacrificing protection.
- Use Easy Parcel’s “Packaging Advisor“ to recommend the most cost-efficient method.
- Switch to lightweight materials (e.g., bubble mailers instead of boxes).
- Insure high-value items with EasyCover to protect against lost or damaged parcels
Take Control of Your Profits!
Take Control of Your Profits!
Don’t let hidden costs eat away at your earnings. With EasyParcel, you can optimize shipping, reduce expenses, and boost your bottom line. Start shipping smarter today and turn every Shopee sale into real profit!
