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  • Another Way to Look at Monthly Fees

    Selling on Konga Created 3 years ago | Updated 3 years ago
  • IO
    Ikenna O S
    Dear Konga, 
    
    I wish to categorically opt in my take on the suspension of proposed monthly membership fees and plan to increase commission on products. My view i believe reechoes most merchants opinions on the subject. 
    
    MONTHLY MEMBERSHIP FEES - is not entirely bad, i suggested optional monthly fees long before Konga considered to try to implement it mandatory across board. However, few things are still needed to be put in place or clarifications needed. First, merchant are still unsure how monthly fee would increase sales. Since Konga's moderators always refer to Alibaba, Amazon, eBay, how about following these platforms model of ranking searches on your platform? It could or should be that merchants that opt in to pay the monthly fees will have their stores and products rank first when potential buyers searches for item under his selling categories. Secondly, i believe unserious buyers cannot be fully weeded out without some tough decisions taken. To reduce agony of merchants, Konga should either be upfront with Prepayment only or make POD available for buyers with more than 80% acceptance ratio with minimum of 12 orders. As it currently stand, only merchants with appetite for risk survives as calling buyers to confirm placed order no longer work. The issue of KEXpress, i just cannot go there. Its sad and very poor in some places and i believe you know it well. 
    
    INCREASE COMMISSION ON PRODUCTS - this is very sad, and i see Konga vision of encouraging SMEs in Nigeria being largely affected here. Currently price competitive on Konga is fierce. Increasing commission on products will crush SMEs whose only survival depends on volume, some merchant margin could be between 5-10%. More SMEs will be willing to pay monthly fees when issues noted above is worked on than seeing his or her little margin taken away by commission increase. Sellers that offer FREE SHIPPING will be most affected, and they stand being out-priced entirely. 
    
    In summary, Konga should primarily work on issues relating to advantages of introducing monthly fees, improving other services areas and revisit monthly fees introduction. 
    
    And it could also be that merchants that opt in for monthly fees should enjoy less commission on products. To increase commission on products at this point, and with plans to introduce monthly fees sometimes in the nearest future (i suppose) in my opinion is complicating. I would prefer to have better services to pay for monthly fees and enjoy reduce commission than paying high commission on products. 

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