When should you consider using Snapdeal’s Margin Switch feature?

Snapdeal claims it is only two years away from profits. To keep striving towards this goal with the help of its sellers the online marketplace is introducing new features and facilities to satisfy them. We informed you that the etailer allows you to change the tax rates of your listings, now it also enables you to choose your preferred marketing fee structure for product categories. To do so it has introduced the margin switch option.

What does Margin Switch help you do?

Snapdeal has two types of marketing fee structures now. The Gross margin fee structure is a new addition and applicable to only certain categories. With the help of margin switch you can choose between the following fee structures:

1.Standard marketing fee (SMF)

Here a fixed commission is charged on categories. It has three main fees and does not include service tax.

2.Gross margin

In this case, a flat percentage is charged on a category. It is inclusive of marketing fee, payment collection fee, fulfilment center charges, logistics service provider fees and applicable service tax shall be charged extra.

Comparison of Standard fees and gross margin. (Product Details:- Category: family nutrition, Marketing Fees/Commission: 9%, Product Weight: 650 gms, Packing Dimension(cm): 10x8x50)

According to an email from Snapdeal to its sellers, with the help of margin switch you can:

1. Change your marketing fee structure once a day for one or many categories
2. Change marketing fee structure of all SUPCs within a selected category
3. Switch to gross margin for
   • Simpler calculation of overall margin of a subcategory
   • Easier listing of products that have low value to weight ratio (which may have been difficult to list because if fixed logistics and packaging charges)

How to use Margin Switch?