NEW SELLER PROGRAM: GROW

UNDERSTAND DARAZ FINANCE

& YOUR ACCOUNT STATEMENTS
About Daraz Finance

Like in retail, an ecommerce business also requires

financial management that every seller must be
attentive towards.

To familiarize sellers with Daraz finance, this

presentation will focus on the following points:

• Understanding Daraz fees and Sellers Payout

• Payment cycle
• Shipping fee charges
• Understanding account statement on Seller Center
Understanding Daraz Fees and Sellers Payout
Seller Fees: For every order that is fulfilled by Sellers, Daraz charges the following fees upon delivery of a
product to the customer and returns it upon returned status

• Item Price – Price listed on the platform by the seller

• Commission Fee - A fee payable to Daraz for the service of providing the e-commerce platform for
sales transaction.

• Shipping Fee - Amount charged for transporting product from one location to another.

• Payment Fee - Cash Handling fee for delivered items

• VAT – Value Added Tax applicable on shipping/payment/commission fee in accordance with

applicable provincial laws.

NET SELLER PAYOUT: ITEM PRICE – COMMISSION – SHIPPING FEE – PAYMENT FEE – VAT
Daraz Finance - Payment Cycle

Payments for delivered products are settled on a weekly basis,

according to the following structure:

• If the order is received by the customer between the 1st to 7th of

any month, the seller is paid by 5 working days from 7th

• If the order is received by the customer between 8th to 14th of

any month, the seller is paid by 5 working days from 14th

*In case of public holidays/weekends falling upon these dates, the

payment date will be released in the first upcoming business day
Shipping Fee
How is it calculated?

The shipping fee is the cost used

to ship items to a buyer

Mainly it is charged to the

customer except in scenarios
where seller has activated free
shipping feature or Daraz is
providing a subsidy on it

The seller only bears the VAT on

shipping fee which again
depends on certain scenarios – to
be covered later
Shipping Fee
Who pays the shipping fees in different scenarios?

Scenario 1: Shipping Fee is charged to the customer
No subsidy provided on the shipping fee by Daraz as part of
any campaign nor Seller has activated the free shipping. In this
case, the seller will bear the VAT on shipping fees. The table
below illustrates an example
Scenario 2: Shipping Fee is entirely funded by Daraz
Daraz provides subsidy on shipping fee as part of a promotional
campaign and bears the shipping fee along with VAT on it. In this
case neither seller nor the customer will bear any shipping fee
charges

Description Scenario 1
Conditions
VAT Rate 13%
Shipping Fee of Item 100
Paid by Customer 100
Daraz Discount -
Seller Discount -

Impact on Seller Statement

Automatic Shipping Fee (113)
Shipping Fee (Paid by Customer) 100
Auto Shipping Fee Subsidy (by Daraz) -

Increase / (Decrease) in Seller Payout (13)

Shipping Fee
Who pays the shipping fees in different scenarios?
Scenario 3: Shipping Fee is entirely funded by the
Seller
This occurs when Seller activates free shipping on his products
and bears the shipping fee along with VAT on it. In this case
neither Daraz nor the customer will bear any shipping fee
charges
Scenario 4: Partial Shipping Discount by Daraz
This occurs when the seller and Daraz both provides a discount on
the shipping fee and bear the charges. Each party will bear
shipping fee along with its VAT on it. In this case customer will not
pay any shipping fee
 Shipping Fee
Reasons for extra shipping fee

• Inaccurate package dimensions and weight: If the seller updates wrong package dimensions and weight on
Seller Center, the shipping charges to be borne by the customer will be affected.

• Solution: Update the dimensions of the package, and not the product (e.g. a bed-sheet can be easily folded
in a small package)
Understanding Account Statement
How to view?

Step 1: Login to your Seller Center with your

registered ID & Password

Step 2: Go to Finance Tab and click on Account

Statements
Understanding Account Statement
How to view?

Select the period of the account statement you would

like to view. The statement shows various fees broken
down till level 3.
Account Statement on Seller Center
Account statement explanation

Orders section captures all the transactions pertinent to delivered orders

Orders Item Charges

Item Price Credit Unit price of delivered item
Promotional Charge General Seller Promotional discount on delivered item
Promotional Charges Bundles Seller Promotional discount on delivered item
Promotional Charges Vouchers Seller Promotional discount on delivered item

Claims
Other Credit
Shipping Fee (Paid By Customer) Actual Shipping fee amount collected from the customer
Daraz Fees
Commission Commission charged by Daraz on delivered item
Commission Rebate Commission incentives provided, per policy
Payment Fee Cash Handling fee for delivered items
Auto. Shipping fee subsidy (by Daraz) Shipping discount by Daraz reimbursed to seller
Automatic Shipping Fee Shipping fee charged to seller
Account Statement on Seller Center
Account statement explanation
Refunds section captures all the transactions pertaining to returned or cancelled orders
Account Statement on Seller Center
Account statement explanation

Other Services section captures all the transactions pertinent to other adjustments

Other Services Services

Adjustment Others
Other Services Fee Storage fees deduction from vendor payout
 Amounts not visible in the Account Statement
Voucher Discounts

Sellers cannot directly see the discounts applicable on statements, but can get visibility to Voucher Discounts
by following the steps below:

1
2

3
Amounts not visible in the Account Statement
Voucher Discounts

Voucher discount can also be manually calculated using a formula on the order exports data:

Voucher Amount = Unit price - Paid price - Voucher discount (if any)
1
2
4

3
 Amounts not visible in the Account Statement
Bundle Discounts

Sellers cannot directly see the discounts applicable on statements, but can get visibility to Bundle Discounts
by following the steps below:

1
2

3
Amounts not visible in the Account Statement
Bundle Discounts

Bundle discounts can also be seen in the order exports data under Bundle Discount column

1
2

3
 Account Statement on Seller Center
How to export transactions reports?

1. Go to the Transaction Overview

tab
3 4
2
2. Select the time period for which
you want the transaction report

3. Select the type of transactions

you want

4. Click on Export and a pop up

will appear 1

5. Click on Download
5

Once the file has been

downloaded you can close the
pop up window
 Account Statement on Seller Center
How to extract your account statement?
Go to the Finance tab, click on Account Statements. Upon arriving at the account statement, click on Export
A popup will appear, you may now download the export of any particular statement

3
 Account Statement’s Export
Benefits of exporting your account statement

• Visibility on Seller SKU, Amount, Order Number, Order ID, Item order status, etc.

• Tracking inventory via reconciliation using Order No and Seller SKU

• Amount column reconciles to total payout value, inclusive of all fees charged by Daraz. This amount matches
with the one mentioned in the account statement

• Clear record of payment received against each item sold/returned

• Improved record-keeping and shop management

 We hope this tutorial is helpful for you!

Good luck with your account statements!

For more tutorials, courses and policies,

Visit Daraz University