How hard could it be to become a Qoo10 seller? If there are so many doing it, you can do it too, right?
Honestly, selling on Qoo10 isn’t hard at all, but understanding the tools and channels on Qoo10 is very difficult.
Over the past two years, I have started to sell on Carousell, Shopee and Qoo10. The three platforms are different in their own ways and I find Qoo10 the most difficult to use.
Can you believe this? I have actually spent more than a week just to understand how Qoo10 works. I don’t have to use that amount of time to sell on Carousell and Shopee. Qoo10’s seller manual is so bad that you really don’t want to read them.
I am not the best seller on Qoo10, of course. But I do feel that I have already known enough when it comes to using the platform.
Here are the things I wish I would know before I have signed up to become a seller on Qoo10.
Table of Contents
1. How To Register As A Qoo10 Seller
First, you can acquire a new Qoo10 account or use an existing Qoo10 account for the seller account. Then, you have to register that account as a Qoo10 seller. You can choose to register as an individual seller (with your real name) or a business owner. You do not need to have business license number to register as a business owner.
However, you will need to upload your NRIC and bank statement to verify your identity and payout account.
It took me about 1 business day to verify my documents. If you register your store on the weekend, you will have to wait for the next few business days for your account to be verified.
Qoo10 does not charge you for setting up a shop. However, you need to purchase 10,000 Q-cash (S$ 100). Basically, you have to pay S$ 100 upfront to use their tools.
2. What Is Qoo10 Q-cash
Q-cash is a virtual currency used in Qoo10. It is mainly used to purchase marketing opportunities on their platform. In another word, you need to use Q-cash to promote your items and pay for advertisement.
To give you a quick sense of what you can get with Q-cash… you can purchase a space on top of a keyword search result for minimally 100 Q-cash (S$ 1) daily. It will potentially increase your sales since all buyers will see your items first in a search result.
What you need to know here is that Q-cash is not refundable. Once you have committed S$ 100, you will not be able to get it back in your pocket.
I find it to be very sneaky as it is nearly impossible to explore the system without paying S$ 100 upfront. This is also why I decided to write this post.
3. How Much Did Qoo10 Charge For Per Transaction
Qoo10 deducts Service Fee for each transaction. The fee varies across different seller tiers. There are three tiers – Normal, Good, and Power. The more you sell per month, the higher your tier is, then the cheaper your service fee will be.
A new seller is entitled to 12% service fee. Supposed you made a deal for S$ 10 and your shipping fee costs S$ 1, you will receive S$ 9.68 from the deal.
Total Transaction Amount = Selling Price + Optional Fee + Shipping Fee (Discounted fee is excluded)
(S$10 + S$1) – 12% = S$9.68
Hence, you must plan your selling price well such that you still can maximise your profit. This is not the end… you have more cost to remember.
4. What Are The Hidden Cost
Other than service fee, you will also need to consider all the hidden cost for each transaction. Here’s an example of the settlement details:
First, the discount amount also contributes to Qoo10 service fee. If you recall the formula I’ve shown above, the computation for service fee ignores discounted fee. For instance, if you give a discounted price S$ 1 for a S$ 10 items, the service fee remains as 12% of S$ 10 instead of 12% of S$ 9.
Secondly, you will need to pay GST for Qoo10’s service fee. It is quite a sneaky attack as we could not find this clause anywhere on their user manual.
At the end of the day, what you really need to remember is that your deductible is more than 12% of your total transaction.
5. Qoo10.sg vs Qoo10.com
A reader has asked about the difference between Qoo10.sg and Qoo10.com (Thanks, trulykirei!).
This has never crossed my mind as I have been targeting the local market.
When you go to Qoo10.com, you will notice that the items are mostly sold by the overseas seller. That’s because Qoo10.com aims to target international buyers (e.g. Japanese buying goods from Singapore). In order to register as a seller, you will be required to pay 100 USD upfront.
I have never sold to any global customers but I can see that it is important to deal with all the logistics problem (e.g. shipping).
On the other hand, Qoo10.sg targets the local market. Hence, you can see all the goods from local sellers. As I mentioned previously, you will need to pay 100 SGD upfront.
If you really want to sell to the overseas market, do bear in mind that Qoo10.sg does enable you to sell globally. You can also list your items on Qoo10.com on QSM.
These are the things I wished someone had told me before I sign up as a seller. Even though it may not affect my decision to sell on Qoo10, it will affect my costing and plans before I get on the platform.
I have never regret joining Qoo10 as it is arguably the platform with the best traffic at the moment. There are still many things to learn about using the platform effectively.
If you have great tips to use Qoo10, why not share with me in the comments below?
P.S: If you need a strategy to list and sell your items, click here!