In the previous post, we shared our initial impression on Qoo10 upon registering as a seller. In this post, we are going to share our thoughts on listing and selling items as a Qoo10 seller.
We love how we can list and sell our items quickly on Carousell and Shopee. The concept of “Snap and List” is very easy and quick. These apps make listing a no-brainer work. As compared to these apps, Qoo10 is on an extreme end. It requires more inputs (a lot more) from the seller. We find it really difficult to get on-hand in the beginning because we are so used to Carousell.
QSM: Qoo10 Seller Management
Once you’re done with registration, you will be given access to Qoo10 Seller Management Portal (QSM). This is supposed to be a one-stop portal for sellers to maintain their product listings, inventory, customer orders and customer enquiries. It is fairly difficult to use and we have yet explore the system fully.
Listing the Products
As a first-time Qoo10 seller, we did what everyone else will probably do. We headed straight to “New Item Listing” to register a new item. We were overwhelmed by the number of inputs we have to enter before we can list a single product. There are a few options that might not be obvious for a first-time Qoo10 seller.
Chooinsg an Item Category
Item category determines where you item will be listed in Qoo10. For each main category, there are at least 1 sub-category. Your item has to be listed mandatory in the sub-categories (i.e. you cannot be lazy and stop at main category). If you remember the category code, you can enter the code straightaway.
We suspect the categories are meant to make it easier for buyers to search for relevant items. On the other hand, Qoo10 has an awesome search function. If you give the right keywords, chances are you will find what you need without the need to narrow down to categories.
Here’s a tip for seller: If you list your products in popular categories, you will need to spend more in advertise your items.
Most of the marketing tools in Qoo10 requires sellers to bid for advertising spaces (e.g. category’s today sales). If you list your items in the popular categories, you’re basically competing the space with more sellers. You have to use more cash to make a winning bid for that advertising space!
Demand > Supply.
Of course, we are not saying that you should put your items in unpopular categories. Your items have to be relevant, but a slight deviation should not make a big difference!
Deciding the Product Price
Needless to say, it is very important to decide your listing price as it reflects your earnings at the end of the day. There are two main concerns in deciding a product price in Qoo10.
First, if you’re going to use Qoo10’s “Discount” feature to attract buyers, you will have to note that the reflected price will not be what you are seeing from the system. You have to take into account of the fact that total transaction amount takes consideration of the listing price but not the discounted price. Hence, your service fees will be dependable on your initial listing price but not the discounted price.
Second, if you have more than one item options in your listing, your product price will decide the range of your options’ price. Assuming you have a pencil selling at $1.00 and you’re looking at releasing bundle special (e.g. with an eraser or something), you can only list the option price range between -50% and 100% (-$0.50 and +$1.00). This means that your bundle special can only be priced at either $0.50 or $2.00. Well this is not very useful. Imagine you are looking to release a bulk purchase discount as an option, you will not be able to list things like 5 pencils for $4.00 (+$3.00).
Hence, when you’re deciding your product price, you will have to be very careful in choosing the initial listing price.
“Discounts” for Your Items
This part deserves a blog post of its own but we decided to cut down our complains and only speak about “Discounts”. QPoints or QCash? Meh.
“Discounts” is supposed to be used such that your item attracts buyers. Cause you know, we all have budgets and love all sorts of discounts. If your listing price is $1.00, you can offer a 50% discount for 2 weeks. Or you can offer a 50% discount forever like how the closing down sales work. But you have to bear in mind that your settled fee will be different from what the system has reflected.
So here is a tip. Your item selling at $1.00 will look as good as another seller’s item selling at a discounted price $1.00 (original priced at $2.00).
The Bottom Line
We love how we are given autonomy in designing our item description page. We can make it as fanciful as possible to attract potential customers.
But we really feel Qoo10 is sucking money too much. If you have daily transactions worth $1,000, you’re paying Qoo10 $120/day. This is a lot of money if we consider that Carousell and Shopee are both free! We feel that Qoo10 has dropped in their popularity in the recent years. As more online shopping sites are launched, many online shoppers are dispersed to different platforms.
At this stage, we have a really bad feeling about Qoo10. If we are to cater the service fees into our cost price, we have to increase our price in Qoo10 to make it equal profit as what we have in Carousell and Shopee. This means that our items will be more expensive than other platforms. We are quite sure that many sellers are caught in the same dilemma as us. If we are the buyer, we should move to other places to find cheaper alternatives. Doesn’t this mean that Qoo10’s business model indirectly hurt its popularity in this market? In this case, should we still use Qoo10?
We discuss more about the marketing tools in the next post when we fully exploit the system.