Want to become a Qoo10 seller? Not sure what you need to do? Well, you are in luck today. Today, I'm going to share with you how you can get started selling on Qoo10!
Two years ago, I started an online business on Carousell, Shopee and Qoo10. Carousell and Shopee were easy to use but Qoo10 was really problematic. With no prior experience, I struggled understanding how I can make my business works on Qoo10. It definitely didn't become better when I realised that there are limited official resources. I spent more than a week just to understand how the selling platform on Qoo10 works.
I'm not the best seller on Qoo10. There are so many veteran sellers on Qoo10 and they probably know a lot more than me. But... I do feel these things that I know today will be very useful for you to get started on Qoo10. So... yep.
Here are a comprehensive guide that you probably need first before you become a Qoo10 seller!
How to start selling on Qoo10?
Firstly, you need to register a Qoo10 seller account. If you already have a Qoo10 account, you can use your existing account and register it as a seller. Otherwise, you will need to create an account first.
The next step is to decide whether you want to sell as an individual or as a company. You do not need to provide any business license number to register as a business owner. However, you need to provide your NRIC and bank statement to verify your identity and payout account.
It took me about 1 business day before my documents are verified. If you register your account over the weekend, you need to wait a few days before your account can be verified. I believe they manually verify the documents.
Qoo10 does not charge any fee for setting up a shop. However, you are required to purchase 10,000 Q-cash (S$100) upfront to user their tools.
There are two types of services on Qoo10. The default seller registration (No Qstore) refers to the default stores on Qoo10 website.
On the other hand, Qstore is a "total e-commerce solution" provided by Qoo10. It's something like... Shopify. You can create your brand and website using their services.
Qstore takes 5% commission for every successful sales. I couldn't find any fine prints on transaction or credit card fees. So if those fees are waived, Qstore provides cheaper rate as opposed to other providers. There is no maintenance fee for basic and standard plan.
There is a list of success stories on their official website but I believe not all of them are from Singapore. If you take a look at some of the stores, you can see that the shop is basically a replicate of Qoo10's website.
Basically, you will be given the flexibility to maintain a standalone store if you purchase the Qstore service.
Do I need a Qstore?
When it comes to a standalone store, the kind of marketing strategy that you need to execute is entirely different from the one on Qoo10. You need to worry about how your store can rank on Google's search engine. You will also need to manually attract the right leads from social media.
If you are very new to online businesses, you should start without a Qstore. Qoo10 has a huge web traffic readily for you to leverage. It is not trivial to rank your standalone website on Google. If you are going to test the market, you should not be spending S$500 doing things that you are not familiar.
Why do I need to purchase Qoo10 Q-cash
Q-cash is a virtual currency used on Qoo10 platform. It is used to purchase advertising opportunities on their website. In another word, you need to use Q-cash to promote your items.
To give you a quick sense of how much you need to pay for a space... you can purchase a space on top of a keyword search result for min 100 q-cash (S$1) everyday. Such tools can potentially increase your sales since your potential buyers will see your items first.
Q-cash is not refundable. Once you committed S$100, you will not be able to get any refunds.
I find it very sneaky because it is nearly impossible to explore the system without paying S$100 upfront. Not many bloggers write about this, which is why the reason I decided to write this post.
In order to complete your registration, you will need to top-up 10,000 q-cash.
That's it! Wait for verification and you will be good to go!
How to start listing on Qoo10?
Once your account is verified, you can head over to QSM portal to start selling. The sales manager portal allows your sales manager to track the shop's order, shipping and product listings.
WARNING: IT IS VERY DIFFICULT TO NAVIGATE THE SYSTEM.
But once you get used to the portal, it is going to be a breeze for the subsequent product listings.
Choosing Your Product "Sell Format"
There are different types of sell format on Qoo10. If you have been purchasing from Qoo10, you should take notice that there are things like time sales, group buy, auction and buy now.
You can choose a sell format when you are listing your items. The sell format determines your target audience and service fee at the end of the day.
Buy Now is fairly straightforward. You put an item on sales and your customer can purchase it immediately. There is no caveat to this sell format.
Group Buy is mainly used to "generate hypes and urgency". For instance, you can set a discounted price for the a limited number of quantity to urge the customers to purchase. To list an item under Group Buy, you need to pay 1,000 q-cash for 3 days, 2,000 q-cash for 1 week or 3,000 q-cash for 2 weeks.
Auction is simple. You set a minimum bidding price, bidding unit, a maximum bidding price, the period of bidding, and a Buy Now price for your product. Customers will have to bid for the product or directly purchase using the Buy Now price. You do not need to pay any q-cash to start an auction.
Lucky auction is simple too. You set a range of bidding price and allow the customers to bid within the range. At the end of the bidding period, the computer will pick a random winner within the range. I see that there are two factors in this type of sell format. Firstly, your product needs to generate enough hype so that you can generate a high number of bidders. Secondly, you must be willing to take risks. Most consumers will not be paying more than what they can get in the retail store. Hence, it is very rare to get someone pays more than the original retail price. If you set a bidding range between S$500 and S$2000 for an iPhone X, then you must be willing to accept the fact that most bidder will not bid S$2000.
Most of your products should be under Buy Now format.
Is there any transaction fee?
Qoo10 deducts Service Fee for every successful transaction. The fee varies across different seller tiers and different types of sell format.
There are three tiers - Normal, Good, and Power. To promote to the higher tier, you need to hit a certain revenue per month.
A new seller needs to pay 12% service fee. Supposed you make a S$10 deal and your shipping fee costs S$1, you will only receive S$9.68 from the transaction.
Total Transaction Amount = Selling Price + Optional Fee + Shipping Fee (Discounted fee is excluded)
(S$10 + S$1) - 12% = S$9.68
You need to plan your selling price so that you can maximise your profit. This is not the end...
Other Hidden Costs
There are other fees hidden for each transaction. Here's an example of the settlement details:
If you decided to give a discount (See: a-3 Discount amount) for your customer, you will need to bear the amount. What do I mean? If you give S$1 discount for a S$10 item, the service fee remains as 12% of S$10 instead of 12% of S$9.
Secondly, the Service Fee is subjected to GST. I was unable to find this clause in their seller manual... so just have to bear in mind that you will find yourself paying more than 12% of a transaction.
Is there any difference between Qoo10.sg and Qoo10.com?
The short answer is... yes, there is a difference between the domain. Not just .com, you will find Qoo10's presence in many countries.
Qoo10.com contains items that are mostly sold by the overseas seller. It targets international buyers (e.g. Japanese in Japan buying goods from Singapore). In order to register as a seller on Qoo10.com, you need to pay USD 100 instead of SGD 100 to register an account.
I have never sold to any global customer but I could see that it's important to deal with all the possible logistics problem. For example, does Qxpress support global shipping? Do you need to pay any additional fees?
On the other hand, Qoo10.sg targets the Singapore market. Most of the sellers are staying in Singapore. If you want to sell to overseas market, you can list your items on Qoo10.com on QSM via Qoo10.sg.
How to setup Qxpress?
You can now setup Qxpress Delivery service on QSM directly. In the past, you will need to send an email to activate the service for your account. When you list an item on QSM, you can choose to use Qshipping Group using Qprime-S, Qx Standard or Free Shipping.
The Qprime shipping fee has also been revised since 08 June 2018. Items less than 5kg is now S$1.99 and items up to 10kg is now S$3.99. You can take a look at the revised table here.
If you have never apply for the service before, you can click on radio button that states Qx Standard to apply for the service directly. This is really convenient!
These are some of the things that I have learned from the past two years.. 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?