Launching and running a successful e-commerce business on Shopee requires serious consideration for different aspects, from product, storage and inventory management all the way to shipping and fulfilment. Understanding shipping fees or shipping cost levied by the platform influences sales on your online shop – it lets you set competitive pricing, determine the type of shipping cost to apply for products, determine packaging and infills for your products, and lets you implement measures to cut costs.
Read along as we discover more about the intricacies of shipping fees for Shopee seller.
What are Shopee Shipping fees?
Shipping fees, also known as shipping costs or delivery charges, are the costs associated with transporting products from a seller to a buyer.
For Shopee sellers, shipping fees play a crucial role in determining overall product costs, influencing customer purchasing decisions, and impacting business profitability. Understanding and effectively managing shipping fees is essential for Shopee sellers to achieve success in the competitive e-commerce landscape.
This comprehensive guide will delve into the world of shipping fees for Shopee sellers, providing insights into various shipping options, fee structures, and strategies for optimising shipping costs.
Types of Shipping on Shopee and Fees Involved
By gaining a firm grasp on shipping fee management, Shopee sellers can enhance their profitability, attract more customers, and establish a thriving online presence.
Standard Shipping
Standard shipping on Shopee serves as the most common and cost-effective delivery method for a wide range of products. This method utilizes Shopee’s preferred logistics partner or lets sellers go with third-party logistics providers to transport parcels from sellers to buyers across the country. Shopee’s standard shipping guidelines outline default settings and weight-based fee structures to streamline the shipping process for sellers.
Weight-Based Shipping
Weight-based shipping fees are calculated based on the actual weight of the product being shipped. This straightforward approach is suitable for sellers with products that fall within standard weight categories. The advantages of weight-based shipping include its simplicity and predictability, making it easy for sellers to estimate shipping costs and budget accordingly. However, it may not be the most economical option for bulky or lightweight products.
Non-weight-based Shipping
In certain scenarios, non-weight-based shipping fee structures offer a more cost-effective alternative to weight-based fees. This approach considers factors beyond weight, such as product dimensions and packaging methods, to determine shipping costs. Non-weight-based shipping is particularly advantageous for bulky or lightweight products that would incur higher fees under a weight-based system.
Shipping Fee For Multiple Items
When a buyer purchases multiple items from the same seller, Shopee’s shipping system automatically calculates the shipping fee based on the combined weight or volumetric weight of all items in the order. This approach ensures that buyers are not overcharged for multiple shipping fees, providing a transparent and cost-effective shopping experience.
To determine the shipping fee for multiple items, Shopee considers the actual weight of each item or calculates the volumetric weight using the following formula:
Volumetric Weight = (Max Length x Max Width x Sum of Heights) / 5000
The shipping fee is then based on the higher value of either the actual weight or the volumetric weight. This approach ensures that bulky or lightweight items are not overcharged for shipping.
How to Set Shipping Fees
As a Shopee seller, setting appropriate shipping fees is crucial for ensuring a smooth and profitable sales process. By following these simple steps, you can effectively manage shipping costs and maintain a positive customer experience.
Step 1: Navigate to Seller Center: Begin by accessing the Seller Centre through your Shopee account. Locate the “Me” tab and tap on either “My Shop” or “Start Selling,” depending on whether you want to modify existing products or add new ones.
Step 2: Select the Product or Add New Product: Once you’ve entered the Seller Centre, choose the product for which you want to set shipping fees. If you’re adding a new product, go to the “Add New Product” section and complete the necessary product details.
Step 3: Access Shipping Fee Settings: After selecting the product, locate and tap on the “Shipping Fee” option. This will open the shipping fee settings panel, where you can define the shipping parameters.
Step 4: Input Accurate Product Dimensions: Provide accurate measurements of the product’s dimensions, including length, width, and height. This information is crucial for calculating the shipping fee based on volumetric weight.
Step 5: Choose a Preferred Courier: Select the preferred courier service for shipping the product. Shopee offers a variety of logistics partners, in-house and third-party, each with its own shipping rates and delivery timelines.
Step 6: Save Shipping Fee Settings: Review the shipping fee settings and ensure they accurately reflect your desired shipping arrangements. Once satisfied, tap the “Save” button to apply the changes.
How do Shopee Sellers waive shipping for a listing?
Shopee offers sellers the option to waive shipping fees for their listings, making their products more appealing to price-conscious buyers. This strategy can be particularly effective for sellers of low-priced items or those targeting specific customer segments.
Here’s how to Waive Shipping Fees
- To waive shipping fees for a listing, Shopee sellers follow these steps:
- Access the Seller Centre and navigate to the product listing.
- Locate the “Shipping Fee” section.
- Toggle the “I will cover shipping fees” option.
- Save the changes.
Now you may be wondering when to opt for this option. Here are some of the cases where it might be wise to waive the shipping fee:
- High-Value Products: For expensive items, offering free shipping can make the overall purchase more attractive to price-sensitive buyers.
- Promotions and Discounts: During special promotions or clearance sales, waiving shipping fees can incentivise customers to make purchases and boost sales volume.
- Competitive Differentiation: If competitors are offering free shipping, consider doing the same to remain competitive and attract buyers.
Overcharged Shipping Fee
Overcharged shipping fees can pose a significant challenge for Shopee sellers, affecting both profitability and customer satisfaction. Understanding the causes and implementing preventive measures are crucial for maintaining a smooth and cost-effective shipping process.
Several factors can contribute to overcharged shipping fees:
- Omitting Product Dimensions: When sellers fail to input product dimensions, the system calculates shipping fees based on estimated volumetric weight, which may lead to overcharging.
- Incorrect Weight/Dimension Inputs: Providing inaccurate weight or dimension measurements can result in either overcharging or undercharging shipping fees.
- Inconsistent Pickup Addresses: Discrepancies between the actual pickup address and the default pickup address can lead to inaccurate shipping calculations, potentially resulting in overcharges.
To safeguard against overcharged shipping fees, Shopee sellers can adopt proactive measures:
- Utilise Quality Packaging: Employ appropriately sized and durable packaging materials to minimise the product’s volumetric weight and prevent dimensional discrepancies.
- Verify Product Weight and Dimensions: Accurately measure and input the weight and dimensions of products using standardised measuring tools to ensure precise shipping fee calculations.
- Update Pickup Address Promptly: Whenever the pickup address changes, promptly update the information in the Seller Centre to avoid discrepancies in shipping calculations.
How to Calculate Shipping Fees for Your Shopee Shop
Accurately estimating shipping costs is essential for Shopee sellers to manage their profitability and provide transparent pricing to customers. Shopee’s shipping fee calculator tool offers a convenient and reliable method for determining shipping fees for various products and destinations. Here’s how:
- Access the Shipping Fee Calculator: Navigate to the Seller Centre and locate the “Shipping Fee Calculator” option.
- Input Product Information: Enter the product’s weight, dimensions, and shipping zone. The shipping zone corresponds to the buyer’s location.
- Select Shipping Courier: Choose the desired shipping courier from the available options. Shopee offers a variety of couriers with different rates and delivery timelines.
- Calculate Shipping Fee: Click on the “Calculate” button to generate the shipping fee for the selected product and shipping parameters.
- Review and Save Results: Review the calculated shipping fee and save the result for future reference.
Checking the Actual Shipping Fee of Shopee Orders
Maintaining accurate shipping costs is crucial for Shopee sellers to ensure profitability and transparency in pricing. While Shopee’s estimated shipping fees provide a general guideline, it’s important to track the actual shipping fees for each order to identify any discrepancies. This helps you fine-tune the shipping charges to keep it consistent across different products sold in the shop.
Shopee sellers can access the actual shipping fee for each order at the Seller Center by following these steps:
- Navigate to Seller Centre: Log in to your Shopee account and access Seller Centre.
- Access My Income Section: Locate and click on the “My Income” section in the sidebar menu.
- Select Weekly Income Statement: Within the “My Income” section, choose the “Weekly Income Statement” option.
- Review Order Details: Select the specific order for which you want to check the actual shipping fee. The actual shipping fee will be displayed under the “Shipping Subtotal” column.
Shipping fee for Shopee Returns
For unsuccessful orders that undergo a refund or return & refund process, Shopee sellers may incur shipping fees. These fees are categorised into two types:
- Forward Shipping Fee: This fee applies to the initial shipment of the product from the seller to the buyer.
- Return Shipping Fee: This fee applies to the return shipment of the product from the buyer back to the seller.
The applicability of these fees depends on the specific reason for the order’s failure. For instance, if the order is cancelled due to the seller’s fault, the seller will be responsible for both forward and return shipping fees. However, if the order is cancelled due to the buyer’s fault, the seller may not be charged any shipping fees.
Closing Thoughts
As a Shopee seller, effectively managing shipping fees is crucial for maintaining profitability, ensuring customer satisfaction, and achieving long-term success. By understanding the various factors influencing shipping costs, implementing preventive measures against overcharging, and utilising Shopee’s shipping fee calculator tool, sellers can optimise their shipping strategies and minimise expenses.
Continuously reviewing and refining shipping practices is essential to adapt to changing market conditions and customer preferences. Remember, effective shipping fee management is an ongoing process that plays a pivotal role in shaping a seller’s success on Shopee.
What is the transaction fee for a Shopee seller?
Shopee charges sellers a 2.24% transaction fee for every successful transaction using Shopee’s payment services.
Does the shipping fee go to the seller?
No, the shipping fee does not go to the seller. The shipping fee is paid to the logistics partner that delivers the product to the buyer.
Who pays for shipping on Shopee?
The buyer pays for shipping on Shopee. The seller sets the shipping fee for their products, and the buyer is charged this fee when they checkout.
What is the cheapest way to ship?
The cheapest way to ship on Shopee depends on the product’s weight and dimensions. Standard shipping is usually the cheapest option for small and lightweight products, while non-weight-based shipping may be more economical for bulky or lightweight products.
