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  • I'm surprised most merchants prefer increased commission to paying 2500

    General Discussion Created 3 years ago | Updated 3 years ago
  • CJ
    Chidozie J S
    I'm not sure most merchants have done the maths before jumping on the bandwagon of preferring this new commission rate than paying 2500 a month 
    we realize there's a 50% increase across board for the commission, this commission increase for me is less friendly than paying 2500. I think we merchants have short changed ourselves 

Comments

  • B
    Bammy B
    Posted 3 years ago
    Dear Konga,
    
    The additional 4% increase in Konga's commission is so ridiculous and for me (my opinion) is that this will only benefit some particular sellers. Well, I am also opposed to the N2500 monthly payment but with the new additional proposed commission by Konga, the N2500 and the new commission would be a rip-off on us as a seller.
    
    See below my short analysis:   An item of N15,000 with 8.5% commission = N1275 but now we will be mandated to pay N1800 for my category additional 4%. The implication of this is that prices of items will be increased and the effect is will reduce sale and this will affect but the sellers and Konga i.e the more sales we make as sellers the more Konga's commission is  increased. Also take a look at which at the item is N40,000 - Konga's commission will be N4800 and how much do we have to make as seller ?
    
    I also noticed that their is no uniformity in the increased commission's,some categories were increased by 1-2 % by my category Baby, Kids and Toys was in creased by 4% , is there any reason for this ? Are we going to be giving more priority than others  .
    
    Kindly the review the commission rate and also the N2500 issues as a new seller in Konga we will have extend our means of making sale by joining other online platforms.
  • ia
    ify a B
    Posted 3 years ago
    Please I would like to know konga s reason for commission or payment for store,because from what I understand konga states that they want to sieve unserious sellers.
    Now my question is why should all sellers suffer for some bunch of unserious sellers?I proffered a solution to that where a time limit should be set up for a seller to default in shipping,after which that person's store is blocked ,for the tore to be opened again,the seller pays a fee,
    Thereby only the offender bears the consequences of payment.
    Unless konga just wants sellers to start paying for stores or they just want to increase commission,they shouldn't tag it as driving unserious sellers.
    What happens to kexpress that delays delivery ?nothing is done to them,what happens to buyers that rejects items for no reason?nothing
    So why should sellers be the one to suffer it all.
    Konga should know they have other online malls as competitors,and once you add anything to your sellers,they would also increase the price of their items,which would chase buyers away.
    Merchants need to be careful and understand the implication of this action konga is about to take.
    I have an item to be delivered iin epe and its still with lekki kexpress as I rite,if that buyer should reject the item due to late delivery,what disciplinary measures is been taken by konga .
    This are issues that should be dealt with and not unnecessary issues
    I rest my case
  • OO
    Oloseigbuan O S
    Posted 3 years ago
    How can you prefer the monthly payment to increased commission? It is a no brainer.  With commission, you pay only after making successful sales. I even expect most of the cost to be passed down to buyers. But with monthly fees, you pay a fixed charge whether you sell or not. A friend's store has not gotten any order in almost a month and with just commissions, he can be rest assured that he would not pay anything. However if the monthly thing was enforced, he would be preparing to pay 2,500 in a few days on no sales.  Furthermore, commissions are incentives for konga to work harder to improve services and reduce returns. Simply put, if we do not sell, konga will not earn a dime. If our goods are returned, konga loses from shipping cost and no commissions but if the monthly fee was still on the table, konga could fold their arms and still earn millions every month whether you sell or not. As at the last count (before selling was opened to states outside Lagos), konga had 15,000 merchants. Let us assume only 10,000 merchants decide to pay the 2500 every month. That will earn konga 25 million naira every month whether we make successful sales or not. So I don't see how and why a merchant will prefer a system that takes money from them irrespective of how your business is doing and earn konga millions. It is a no brainer. Commissions over monthly access charge anyday, anytime
  • DA
    Dorcas A B
    Posted 3 years ago
    Konga should try and review the new commission rate, when we say they should choose either commission or monthly fee, we are not saying the rate should be this high.
    I do fashion and children as well, this new rate is on the high side. konga should remember that customers have choice.
    Konga was collecting commission before they came on board with monthly fee, they never said they wanted monthly fee without commission that was why most people clamor for either of the 2.
    I am a new seller here and i sell on only konga.
     As it is now, i think i need to spread my tentacles.
    The new rate is on the high side konga!
  • as
    adedotun s B
    Posted 3 years ago
    All fingers are not equal.
  • AO
    Akorede O S
    Posted 3 years ago
    I still don"t want to believe some merchants knows what is involve with increase commission,it is now obvious that konga is not on a quest to eliminate unserious sellers but only out to generate more income for themselves ,
    with what konga wrote on the mail,it means the issue of monthly fee is only suspended not cancelled, it therefore means ,konga can increase the commission today and by this time next year or even by December they will come up with the monthly fee again, then we will have no excuse.
    I know its very unrealistic to pay a rent when sales is not guaranteed but increase commission is not gonna be a best deal for we merchants.
    its better our price is fair than our competitors on other platforms but when all merchants are forced to increase price to almost or the same price with other platforms ,then, tell me where we are competing with them.
    
  • IO
    Ifeoma O S
    Posted 3 years ago
    I agree with you that a 50% increase on commission is actually on the high side. What we asked for was for Konga to use only one type of fee that is either commission or monthly fee. The rate of increase is something we didn't bargain for. I believe we should use this space to compel Konga to review it downwards, they always listen.
  • VD
    Victor D S
    Posted 3 years ago
    That awkward moment when many merchants make hatsty, shortsighted comments.
    
    It's a better option for Konga to increase commission than the membership fee. Anyway, we hope for increased sales and low returns
    
  • TO
    Tolulope O S
    Posted 3 years ago
    I dey tell you, I'd have preferred the monthly sum as long as sales like before self fulfil are guaranteed.
    
    But I pay higher commissions on other platforms so it's a simple matter of adjusting prices to match those and intensify prayers on my Konga store.
    
    The item visibility here is indeed a challenge.

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