how to sell on shopee

How to Sell in Shopee: Everything You Need to Know

In this post is a compilation of everything a beginner needs to know about how to sell in Shopee. Consider this post as your table of contents. Everything I write about Shopee will be linked from this page. So if you wanna check for updates from time to time, this is the page you should bookmark.

Here’s everything you need to know about how to sell in Shopee, how to set up your store, the capital you’ll need, and how to increase your sales by making use of Shopee’s free feature.

What is Shopee?

Shopee is an online shopping site where buyers and sellers meet. It was founded last 2015. Since then, it continued to grow its operation in the Philippines, Taiwan, Thailand, Singapore, Malaysia, Indonesia, and Vietnam up to the present.

For the sake of beginners out there, think of Shopee as a typical mall. Sellers come to sell their products; buyers come to buy.

The only difference is the whole buying and selling process are done online.

Therefore, there are 3 parties involved: The seller, the buyer, and Shopee who owns the site where the transaction happens.

Why sell in Shopee?

1. Shopee offers free shipping.

When I say free shipping, that means, neither the buyer nor the seller pays for it. Shopee does.

What does this free shipping mean to you as a seller?

Naturally, free shipping attracts more customers. And the more customers Shopee attracts, the more potential customers will buy from your store leading to even more sales.

This means that if you’re looking for the perfect time to gain leverage as a seller, the time to start selling in Shopee is now

By starting now while the Shopee is seller-friendly, you can already establish your store as one of the best, and gain excellent customer reviews to help you in the years of competition to come.

How Shopee’s free shipping works.

Free shipping applies when a purchase reaches 500 pesos per seller, not per order.

Let’s say you’re the buyer. You want to buy your son 3 pieces of Angry Birds shirts from Seller A. That purchase amounts to 501 pesos. Perfect, that means you’re eligible for free shipping from Seller A. Shopee doesn’t make money from you on this one.

But let’s say you want to buy another item: a lipstick. Sadly, Seller A doesn’t sell the lipstick you want. Instead, you found it on Seller B’s store for 200 pesos. Now, you aren’t getting free shipping because you didn’t reach the 500 peso mark, which means Shopee earns from your 50 peso shipping fee.

2. Lower commission rate.

Unlike Lazada and Zalora who charge around 1.80% to 8.90% and 15-25% (as of the date of this writing), Shopee Philippines is only charging 1.5% transaction fee of the total payment you receive from your buyers.

This is why items from Shopee are super cheap compared to Lazada and Zalora even if most of them are coming from the same suppliers.

3. Shopee offers cash on delivery.

Buyers are reluctant to share their card info online. After all, where there is money, there are scammers. Shopee’s solution? Cash on delivery.

And sure enough, the sales skyrocketed after COD. Customers are trusting Shopee more and more.

4. You don’t need a business permit to start (in the Philippines, at least)

This I confirmed with a call center agent named Alec from Shopee: You don’t have to register to SEC or DTI to run your Shopee business.

How Shopee makes this legally possible, I have no idea. But if you don’t want to deal with the confusing, complicated, tiresome permits and documents, you don’t have to.

Note: If you want to establish your own brand name though, you do have to register your business and get the necessary government papers. The free permit only applies to sellers with unbranded items.

5. Expats in the Philippines can earn from Shopee too.

Are you an expat who can’t find a job that pays nearly the same rate in your own country? Then Shopee is an excellent business idea for you.

Disclaimer: I don’t know much about how it works with foreigner business owners but I heard that when a foreigner creates a business in the Philippines under his name, a Philippine law dictates that he will not own the 100% share of his company, even if he wants to. (Again, I could be wrong. All I know is owning a business in the Philippines under your name when you’re a foreigner could be messy.)

As a result, expat business owners end up registering their business under Filipino names. Needless to say, that’s pretty risky. In Shopee though, that isn’t something you’ll have to worry about.

How much capital you need to start selling in Shopee

You can start selling in Shopee for as low as 10 thousand pesos for your stocks alone, excluding your internet cost. This figure only applies if you’re close to your supplier and don’t have to pay for transportation. I literally live 5 minutes away from Tiangge in Taytay Rizal where a massive selection of clothing is waiting for wholesale buyers.

If you’re far from your supplier, however, you’ll need more than that. I recommend a minimum of at least 80-100 thousand pesos. With this amount, you’ll already get a fair amount of stocks to display on your store.

Can you sell in Shopee with no capital?

You can’t. You have to invest in something. And that includes a laptop (not just the mobile app, if you’re dead serious about this venture), an unlimited internet connection, and your stocks.

Bear in mind as well that you won’t get sales straight away right after posting your items in Shopee. It’ll take weeks for an item to get views, depending on what’s trending. Therefore, don’t feel discouraged if you don’t make sales right away.

Consider your capital as the amount of money you’re willing to lose. This way, you aren’t agitated when a day goes by without you making a sale. It’s normal if you’re still beginning.

Can you sell in Shopee if you’re not in Manila?

It doesn’t matter if you’re in Visayas or Mindanao as long as you have the capital, items to sell, laptop, and internet. Clothing supplies tend to be really cheap in Manila region but that doesn’t mean you can’t sell clothing if you’re not in Manila.

In a shopping platform as big as Shopee, the cheapest doesn’t always get the sale.

I’ve sold the same exact items as other sellers and I still earn sales even if I charge a little bit higher. It’s because Shopee is so big that it’s impossible for buyers to compare the prices for the same items all at once.

While it certainly helps if your prices are cheaper than other sellers, it doesn’t mean you won’t make any sales just because your prices are higher.

Can you sell second-hand items?

Absolutely! If you don’t want to invest on new stocks just yet, you can try selling your own pre-loved belongings as an experiment. Just make sure to indicate the condition of your item.

Here’s a guide I’ve written about things you need to remember when selling second-hand items in Shopee.

How to create a Shopee seller account

Before setting up your Shopee seller account, prepare the following:

  • Laptop (I won’t be using a mobile in the tutorial)
  • Internet connection
  • Your store’s profile and cover photo. To design yours, go to canva.com.
  • Your final username: You cannot change a username once it’s set. So think hard and good before picking one. I suggest that you choose one that’s easy to remember, spell, and understand. Remember, it’s the word that your customers are going to remember and search you by.
  • Your shop name: You can only change your shop name every 90 days. So make sure it’s not something you’ll regret. Like your username, choose one that’s easy to remember and spell by your buyers.

Then watch this tutorial. I’ve recorded 4 videos showing you step-by-step instructions demonstrating everything you need to completely set up your Shopee store from scratch.

How to ship Shopee orders

Read this if you’re a beginner seller who’s still confused about how Shopee shipping works. This will clear up the confusion for you and help you make sense of Shopee’s shipping process. This post will explain the following for you:

  • How to pack your shipments
  • Where to get the pouches and waybill sticker
  • Is your area serviceable by Shopee pick-up?
  • How to pack shipments that don’t fit inside a pouch

How to increase Shopee sales

You can pay for ads to get more exposure for your products. That’s if you can afford some risk and have money to spare in the first place.

Otherwise, you can try the free techniques in this post to get buyers’ attention and maximize your chances of bagging more sales.

This post will show you how to:

  • create vouchers and set discount promotion for your store,
  • nominate your products on Shopee’s Campaigns,
  • highlight certain items by placing them on your shop’s homepage,
  • customize your products’ categories,
  • and more Shopee features that will provide more exposure for your products for free.

Note: Use your laptop for this tutorial as most features discussed here are not accessible via Shopee app.

How to receive your sales payment.

After your buyer confirms that receipt of her order, the funds will be released to your Shopee wallet. If she doesn’t confirm the receipt of the item, you’ll have to wait around 3-5 business days for the funds to be automatically released from the delivery date.

Once released to your Shopee wallet, you have the option to withdraw the amount. Remember that at this point, you should already have entered your bank account info under Shop Settings > Back Account/ Cards. Only a valid bank account is accepted (not GCash). Within 2-3 business days, you should see the amount reflect on your bank account.

How the heck does Shopee earn from sellers?

Zalora and Lazada charge sellers a commission fee for every item sold. But why not Shopee?

How does Shopee earn its profits when it’s not charging sellers for their sales and even providing 3 free shipping for each buyer each month? Will the free shipping and free zero commission remain the future? This post will attempt to answer that for you.

Stay tuned for more Shopee selling tips in the future. Hope this helps. That’s all for now.

Join the discussion

43 comments
    • Yes. Once the buyer’s order is ready, there is an option in the app where you can schedule a pick up the next day. The courier then will come to your pick up address the next day with a pouch. As to what courier, it depends on your location. In my location, only Black Arrow is available. If I have to ship through LBC (through buyer’s request), I’d have to personally go to LBC to do the shipment. I’ll write another article detailing the shipment process next month.

  • Can we know more abt the shipping process of the products from sellers to buyers? Also, if you personally do the shipment, do the seller shoulder the shipping fee? Thanks!

    • Bernie, it should work. Shopee operates in Mindanao. It would be better for you and your customers if you’re based in a city where Shopee do pick ups and cash on deliveries since most customers prefer to pay via COD. What kind of products are you trying to sell and where are your suppliers based, if there’s any?

  • Hi how about the packaging that we will be using? We are going to pack our products right? I know I need to buy bubble wrapper but how about the other materials for packaging? TIA

    • Hi Bernard. If the items you’re selling aren’t fragile, you can just put it inside the pouch. I sell clothing so I don’t have to worry about bubble wraps. But if you’re selling breakable items, it’s your responsibility as a seller to wrap the orders securely and supply the packaging for it, on top of the pouch. Or LBC could do it for you, for a fee, most of the time. But if it’s a pick up, like Black Arrow, you should do the packaging yourself.

      • Hi why is the shipping fee of the seller abroad in china way cheaper i mean they could afford to send items in a cheaper shipping fee and the products looks like it doesn’t pay customs duties unlike aliexpress they would charge you all kinds of tax duties when your product arrives to ph can you enlighten us please

  • Hi, does the courier still check what’s inside the package or can we already seal the package if we have our own shipping pouch/box? Like it’s ok if something is gift wrapped right?

    • I’ll speak only from my own experience. I have pouch for packaging and I only sell clothing. When the pick up guy comes to get my shipments, the pouches are already sealed, then he just gives me the waybill stickers. So no, he doesn’t check it. Sometimes, I put money inside if I have to refund a buyer for some reason or give a discount and the buyer doesn’t want to reprocess her order. Putting money inside the pouch by the way isn’t allowed. πŸ™‚

      Also, you might be interested in this article: How to Ship Shopee Orders: Everything a Seller Should Know

  • Selling to shopee is really free? I can’t find an answer on how much do I owe the shopee if I sold an item using the app. Does this apps give a free service to buyer and seller????

    • Selling in Shopee used to be 100% free. However, just this month, it started charging 1% transaction fee for transferring your money to your bank account. So I guess not anymore. But still a great deal if you’re a seller.

      • what do you mean? another 1% fee for transferring money from sales in the bank account.?

        it is different ba sa 1.5% transaction fee para dun sa sale transaction?

  • Good Day I just wanna ask what if Big Business is the one who will sell in shopee how much percentage they will take in every purchases of customers?

  • As a seller, can i schedule on when to pick up the product. Like for example, the package is ready to be pick up by tomorrow around “12pm-6pm”.

  • If hindi na confirm ni buyer na na-receive na yong item. Yong amount ba ay automatically papasok sa wallet mo?

    • It will be RTS (returned to sender) at no additional cost kapag Shopee partner ang courier. If ang courier is not Shopee partner, di na mare-refund yung binayad mo sa shipping papunta sa buyer. Although di ka na macha-charge for returning it back to you.

  • Tanong lang po, regarding sa mga shopee couriers, Kung ako seller, at ppickup ung product sa kin, wala na ba ko babayaran for pickup? kung cancel ng buyer o return ung product ko, ibabalik ng courier sa kin ung product, may bayad ba ko o free lang un?

    • Kung ma rereturn to sender, wala kang babayaran na outbound or inbound shipping cost BASTA isa sa mga Shopee courier partner ang courier na gagamitin mo.

      Kung na received naman ng buyer successfully, depende kung anong nilagay mo sa account mo. May option kasi whether to shoulder the shipping cost yourself or ang buyer ang pababayarin mo.

      Kung hindi naman Shopee courier partner at na return to sender, then magbabayad ka sa outbound shipping cost, pero di ka na macha charge sa return.

  • How can I set shipping methods? I always set my shipping method but the site always say “More shipping options are coming soon”

  • Thank you for this blog .
    I have a problem , i am adding an item in the product but then when it was at “shipping” part it does not show the shipping options — it says ” more shipping options to follow soon ” . how do i proceed then with my posting ?
    thanks

  • what if, the payment information shows like this:
    product price : P798
    shipping fee paid by buyer: P 105
    transaction fee : – 14
    total order P 889

    *the courier partner that will pick up the order is the black arrow . the question is, as a seller do I need to pay any shipping fee to the black arrow personnel upon pick up of the product? then the shopee will pay me P 889?

    or just ship the product to them. then the shopee will pay me for the product cost alone.?

    • The last sentence is the answer. Shopee will pay you for the product cost less the transaction fee. The buyer will pay for the shipping fee as long as you didn’t shoulder the shipping cost when you posted the item.

  • How to set up your My Shipping option?
    Wala kase nakalagay sa account ko.

    Need paba mag register sa shoppee form bago ka makapag benta?

    • Yes dapat makapag register or maka create muna ng account before selling. Then check if your pick up address is serviceable sa Shopee. If yes, you should see a COD option after 7 days from the date you added your 10 products.

      • Need ko po ba ilagay muna yung 10 products ko? Kahit offline muna?

        Then nakagawa na ako ng shoppee and nagregister na ren. Pano ko malalaman kung ok na sya?