Navigating your way through all those Takealot fees and how to price your product appropriately on the marketplace?
Sound familiar? You’re not alone – many stores spend hours each week updating spreadsheets and calculating the correct product prices on Takealot to absorb some of these fees.
So what are all these fees and how are they calculated?
Takealot charge a seller 3 fees:
- A monthly fixed account fee of R400 per month
- A success fee on each product ordered calculated on the price inc VAT x the success fee % based on the product’s Takealot category, ranging from 5% to 18%. The Takealot category success fee schedule can be found here: xxxx
- A logistics fee on each product shipped from the Takealot warehouse, which are based on product size and weight, and a fixed fee drop ship orders picked up from your warehouse.
The account fee is charged monthly whilst the success and logistics fees are deducted from each order receipt in each Takealot payout.
Trying to work out the correct selling price for each product can prove a little daunting for some sellers so Takealot has made a fee estimator available here: https://seller.takealot.com/fee-estimator
Whilst the fee estimator is great on a product by product basis, reviewing and updating prices can take a lot of time if you have a large product catalogue an regularly update prices. I have seen countless reseller listings on Takealot for lower priced products, where the sum of all the fees which exceed the reseller margin, resulting in selling at a loss. Given this, it is key to ensure your product on Takealot is priced to account for all the fees and make you the required margin.
There are a few ways you can account for the fees in your Takealot pricing strategy.
- Regularly export your Takealot offers into Excel and add formulae for each product category success fee and logistics fee to calculate the correct selling price on Takealot. Remember to charge a price including VAT if you are VAT registered. You can then re-import the updated prices into Takealot in bullk every time you update your product prices
- Set price tiers in your ERP with the success fee’s and logistics charges rolled up into the calculation. Most ERP have some price tier calculation functionality, but will likely not have the success fee per category for each product.
- Add the Shopglu Price Modifier into your plan and set Takealot prices to be calculated to account for the Takealot success and logistics fee automatically for you. Hasslefree!