Tokopedia, one of the largest e-commerce platforms in Indonesia, will increase admin fees for Power Merchant and Power Merchant Pro sellers by up to 10% starting September 16 2024. This increase has sparked unrest among sellers, especially those operating in high-cost categories such as electronics and fashion. This article will discuss the impact of this increase in admin fees, sellers' concerns, as well as alternative admin fee-free solutions offered by Lariss.
Admin Fee Increase: What Does It Mean for Sellers?
This increase in admin costs cannot be underestimated. With the new tariff reaching 10%, sellers on Tokopedia face the potential for a significant reduction in profit margins. For those operating in categories such as electronics, where production costs and price competition are already fierce, these increases could necessitate price adjustments that risk reducing the product's appeal in the market.
Risk of Increased Product Prices and Competitiveness
Sellers affected by this increase may be forced to increase their product prices to offset higher admin costs. However, increasing prices could make their products less competitive compared to other sellers, both inside and outside Tokopedia. In a highly competitive e-commerce ecosystem, losing competitiveness can have a direct impact on declining sales and business growth.
Sellers' Concerns
Sellers expressed their dismay at this change. Many feel that increasing admin costs will make it difficult for them to maintain already thin margins, especially amidst stiff competition. Some sellers are even considering switching to other platforms or looking for more cost-effective solutions to mitigate this negative impact.
Admin Fee Discount: Not Always Enough
Although Tokopedia offers 20% discounts for several product categories, this is not enough to address sellers' concerns. This discount only applies to certain categories and only reduces the effective admin fee to around 8%. For many sellers, this still feels burdensome, especially if their profit margins are already low to begin with.
Lariss: Solution Without Admin Fees
In the midst of this unrest, one solution has emerged as a more attractive alternative—Lariss from Panemu. Lariss offers an eCommerce platform with no admin fees, giving sellers the freedom to keep profit margins high without worrying about ever-increasing fees. With Lariss, sellers can focus on business development and sales strategies without having to consider potentially detrimental price adjustments.
Benefit Lariss for Seller
By using Lariss, sellers can maintain their competitiveness in the market without having to increase product prices. Free from the burden of admin costs, sellers can also be more flexible in running promotions and providing special offers to customers, which can increase loyalty and sales volume. It is an ideal solution for sellers who want to remain competitive in an increasingly challenging e-commerce market.
Conclusion
The increase in admin fees on Tokopedia has caused reasonable concern among sellers. With profit margins at risk, many sellers are looking for ways to overcome this negative impact. Lariss from Panemu comes as a solution that offers freedom from admin costs, allowing sellers to focus on business growth without worrying about decreasing profits. In the midst of the disturbing increase in operational costs, Lariss is a wiser choice for sellers who want to remain successful in the world of e-commerce.