Product Margins and Holiday Policy

Product Profit Adjustment and Vacation Mode Open Policy and Planning

Seller Vacation Mode Rules:

1. Each seller is allowed to activate Vacation Mode for 7 days or 7 times per month. Once either of the following conditions is met, Vacation Mode cannot be activated again:

   a. Reaching the 7-day limit for Vacation Mode usage.

   b. Reaching the 7-time limit for Vacation Mode usage.

2. When Vacation Mode is activated, all products in the store will be automatically delisted. At the end of the designated vacation period, Vacation Mode will be automatically deactivated, and all products will be automatically relisted. Manually canceling Vacation Mode will result in the automatic relisting of all products.

3. The number of products to be delisted cannot be less than 10. If the number of delisted products is less than 10, the system will prompt you to either change the products or activate Vacation Mode. If Vacation Mode has reached its usage limit, only product replacement will be allowed.

4. To close the store, please submit an application in the personal center. The application for closing the store needs to enter a 30-day review period from the date of application. This move is to ensure that the buyer's after-sales service is protected, and to avoid commodity problems and return problems that cannot be solved. Within the 30-day review period, if the above problems do not occur, then your application to close the store will be approved.Once the application is approved, the store will be permanently closed. Commission income from the referral committee will be automatically canceled. Pending orders will be transferred accordingly. The frozen funds and personal wallet funds of the seller will remain secure. After the funds from pending orders are unfrozen, they will be returned to the personal wallet, and the seller can withdraw them at any time.

5. Once the store is closed, it cannot be reopened. The store will be listed in Seataoo's permanent closed store list.

6. The order processing rate requirement for sellers will be lowered from ≥60% to ≥55%. Henceforth, warnings and system-enforced store closures for violations will only apply to cases where the seller's processing rate falls below the critical threshold.

Tips: The 3 days at the end of each month until the 3rd day of the following month are the reconciliation period for Seataoo platform. During this period, you will not be able to use the vacation mode. For sellers who have enabled the vacation mode, it will be automatically disabled. Please use the vacation mode properly.

Seller Product Profit Adjustment Rules:

 In order to enhance fairness and stability for sellers, promote the sale of high-value products, and provide a wider range of product options, Seataoo platform has implemented profit adjustment measures. The following are the guidelines for product profit adjustment:

 1. Logistics Cost Adjustment:

Due to the increase in logistics costs and the discontinuation of platform logistics subsidies, for products with a purchase price below 150 pesos, we will add a logistics cost of 65 pesos on top of the original purchase price. This adjustment is not an increase in overall costs for sellers but rather an automatic adjustment of the selling price of the products involved.

 2. Profit Margin Adjustment:

In order to ensure fairness for all sellers and based on negotiations with manufacturers, we have made the following profit margin adjustments for platform products:

- For products with a purchase price below 300 pesos, the maximum profit margin is 7%.

- For products with a purchase price between 301 pesos and 2000 pesos, the maximum profit margin is 8%.

- For products with a purchase price between 2001 pesos and 5000 pesos, the maximum profit margin is 10%.

- For products with a purchase price above 5000 pesos, the maximum profit margin is 12%.

 These profit margin adjustments are aimed at providing a fair and competitive environment for sellers while ensuring reasonable pricing for customers. They take into account both platform and manufacturer concessions to maximize benefits for sellers. We believe that these measures will contribute to the overall success and sustainability of the Seataoo platform.

Seller Violation and Penalty Rules:

 To ensure overall fairness and stability for all sellers, we have established the following assessment and penalty measures for sellers whose profit margin exceeds 7%:

 1. Order Processing Rate Assessment:

During the half month evaluation period, we closely monitored and evaluated the order processing rate of sellers who selected products with a profit margin of more than 7% and generated orders shipped.

 1.1 Order Processing Rate Monitoring:

The system automatically calculates the seller's order processing rate for the month each day. The ratio is determined by dividing the number of orders processed by sellers for the month by the total number of orders for the month. The total number of orders for the month is based on orders received by the seller in that month. Sellers can see the order processing rate for the month on the panel. The order processing rate is updated every hour.

Example: Seller A has received 100 orders since the 1st of this month, and he has processed 20 of them, so his order processing rate for this month is 20/100=20%.

 1.2 Evaluation Period:

On the 1st and 16th of each month, we will review the seller's order processing rate for the current month to determine if penalties are necessary. If the order processing rate is below 55%, penalties will be triggered. The assessment of the seller's processing rate for the current month is based on the order processing rate at 00:00:00 on the 1st and 16th of each month. For sellers whose order processing rate does not meet the requirements, penalty invoices will be generated at 14:00:00 on the 1st and 16th of each month. The specific penalty can be viewed and paid in the seller's personal center, My Wallet. If a penalty is not paid, the seller will be unable to withdraw funds.

 1.3 Penalty Measures:

On the 16th of each month, we deduct the portion of profit exceeding 7% from the delivered orders in the current month. The penalty amount will be displayed on a special page, and the penalty details can also be queried in real time.However, the overall profit margin for the seller remains at 7%.

 1.4 Second Evaluation:

On the 1st of each month, a second evaluation is conducted for the last month.  The system uniformly reduces the seller's overall profit margin to 6%. The penalty amount will be displayed on a special page, and the penalty details can also be queried in real time.However, the overall profit margin for the seller remains at 6%.

Example: The total picked price of the orders processed by seller A this month is 10000PHP, and the total sales price of the orders processed this month is 10850PHP, then the profit for this month is 850PHP, and the profit margin is 8.5%. The first violation will reduce the profit for the month to 7%, that is, 1.5% of the profit needs to be deducted, the amount is 150PHP. And so on.

 These measures are implemented to ensure fairness and encourage sellers to maintain reasonable profit margins. By monitoring order processing rates and adjusting profit margins accordingly, we aim to create a level playing field for all sellers on the platform.

New Platform Features:

 To facilitate product management and provide sellers with insights into their order processing rates, we have introduced the following features:

 1. Sellers can now select the profit margin for their products. This allows them to choose the desired profit margin for each product they sell.

 2. Once a product is selected, the selling price will be fixed but can be adjusted. If sellers need to modify the selling price for a specific product, they can do so after selecting the product. However, the selling price cannot be set lower than the purchase price.

 3. On the seller dashboard, sellers can view their order processing rate for the current month. This provides them with real-time information on how efficiently they are processing their orders.

 4. We have also introduced a holiday mode switch. This feature allows sellers to indicate their unavailability during specific periods, such as vacations or holidays. While in holiday mode, the seller's products will be temporarily hidden from the platform, and orders will not be processed.

 5.In order to ensure the speed of delivery and good shopping experience for buyers, each order received by the seller will be transferred to the official Seataoo mall for processing after 10 days if it is not processed for a long time. The order will still be counted in the seller's order processing rate assessment, but the seller will not receive any revenue from the transferred order.

These additional features aim to enhance the selling experience, provide more control over product pricing, and offer valuable insights into order processing rates. If you have any further questions or concerns, please feel free to contact us.

Last updated: October 25, 2023