Cross-border sellers on Ozon platform may find their actual profits differing from expectations despite careful pricing strategies. The key factor behind this discrepancy lies in the platform's commission mechanism. This article provides an in-depth analysis of Ozon's commission system to help sellers better understand cost structures and optimize profit margins.
Commission Basics
Ozon charges sellers a commission fee calculated as a fixed percentage of the product price set when creating product listings. Unlike some other platforms, Ozon deducts commissions only after buyers confirm receipt of goods, which helps alleviate sellers' cash flow pressure. Importantly, commission rates vary by product category, making it crucial for sellers to factor this into their overall cost calculations when selecting product categories.
Discount Mechanism and Credit System
To encourage promotions, Ozon periodically offers discounts to buyers. When products sell at discounted prices, the difference between the original listing price and the sale price is returned to sellers as credits. These credits can be used to offset future sales commissions, partially mitigating the direct impact of promotions on sellers' profits and incentivizing participation in platform promotions.
Key Consideration for Pricing Strategy
Notably, Ozon calculates commissions based on the seller's original listing price, even when products sell at discounted prices. This means sellers must carefully consider commission factors when setting prices to maintain reasonable profit margins during promotional periods. Implementing precise pricing strategies becomes essential for success on Ozon's platform. Sellers need to monitor platform policy changes closely and adjust pricing strategies flexibly to stand out in competitive markets.
Understanding Ozon's commission structure represents a critical step for cross-border sellers to optimize costs and enhance profitability. Through strategic pricing and effective utilization of the platform's credit offset system, sellers can better manage operational costs and achieve sustainable business growth.