07:41 (GMT +7) - Tuesday 20/08/2019

Business

Tiki applies free payment fee policy

Released at: 17:38, 02/04/2019

Tiki applies free payment fee policy

Photo: Tiki

Vendors free from fees for 2 years from April 5.

by Phi Linh

Vietnamese e-commerce platform Tiki has announced it will apply a “Free Payment Fees” policy for vendors for two years, effective from April 5 to April 5, 2021.

The policy offers vendors a much more competitive fee range than that of many other e-commerce units. Shopee officially began charging commissions on its vendors from April 1 and Lazada will launch the same policy on April 15.

The average payment fee for vendors is 1 to 2 per cent per transaction. This new policy from Tiki will help vendors save a considerable amount, up to VND100 million ($4,310) over the two years if vendors make large volumes of sales and they will not have to increase product prices to offset such costs.

“In appreciation of our thousands of vendors on Tiki’s ninth anniversary, we officially announce our ‘Free Payment Fee’ policy for all those who have been cooperating with us and also intend to in the future,” said Mr. Kartick Narayan, Chief Business Officer at Tiki. “Besides investing in marketing and handling order processes for our seller-partners, Tiki supporting sellers regarding free payment fees for two years gives them major momentum to develop long-term business with us and offer the best benefits to customers.”

Ms. Vu Thi Nhat Linh, Marketplace Director of Tiki, also said that this policy is the first type of support Tiki has offered its partners this year but will implement other attractive support during 2019.

Though the announcement was made on April Fool’s Day, which made many vendors skeptical, the official announcement document from Tiki cleared up any concerns and received positive feedback from vendors.

Tiki has applied a managed Marketplace model, wherein product authenticity is 100 per cent ensured, and directly managed the operations process, including storage, packaging, and delivery, as well as taken care of all after-sales activities.

The Marketplace model continues to play a strategic role and has become a key focus of Tiki’s development in the future, supporting vendors to approach more and more customers and effectively expand their online business. This direction helped Tiki reach more than 1.5 million products at the end of 2018 after just two years since launch.

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