Short Answer
On the statements we checked, Daraz bills seller shipping as a shipping charge minus a shipping discount. The net, before VAT, equals the shipping fee the buyer paid, and 15 percent VAT is added on that net. So the buyer covers the shipping and the seller's real cost is the VAT. Free shipping max and seller-funded shipping are separate lines.
Shipping on Daraz does not show up as one line for sellers. It shows as a shipping charge, a shipping discount and VAT, and sometimes a free shipping line too. Read together, they follow a simple pattern.
This page is written for sellers, not buyers. It covers how the shipping lines on a statement work. I do not list per-kilogram courier rates, because I cannot cite an official Daraz page for them. For the other fees, see Daraz seller fees.
I have sold on Daraz since 2015 and run 14 Daraz stores. The pattern below comes from reconciling real weekly statements.
How Does Daraz Charge Sellers for Shipping?
On the statements we checked, three things appear for each order:
- Buyer shipping fee. The amount the customer paid for delivery. It is credited to you as part of what the customer paid.
- Shipping charge. Daraz's charge for the delivery. It is deducted from your payout.
- Shipping discount. An amount credited back against the shipping charge.
The shipping charge minus the shipping discount is the net shipping charge. On the statements we checked, that net, before VAT, equals the shipping fee the buyer paid.
Where Does VAT Come In?
15 percent VAT is charged on the net shipping charge. It is not charged on the shipping charge and discount separately, only on what is left after the discount.
Who Actually Pays for Shipping?
Follow the money on one order:
- The buyer's shipping fee is added to your credits.
- The net shipping charge is taken from your payout, and it equals that same fee.
- VAT on the net shipping charge is taken from your payout too.
The first two cancel out. What stays with you is the VAT. So when the buyer pays for shipping, the buyer funds the delivery and you fund the 15 percent VAT on it.
Example: Shipping Lines on One Order
Example only. "Store A" ships one order. All figures are made up.
| Line | Amount (Rs) |
|---|---|
| Buyer shipping fee (credit) | +180.00 |
| Shipping charge | -330.00 |
| Shipping discount | +150.00 |
| Net shipping charge (330 - 150) | -180.00 |
| VAT at 15% on net shipping | -27.00 |
The net charge of Rs 180 matches the buyer's Rs 180. The effect on Store A's payout from shipping is the Rs 27 VAT, since the buyer fee and net charge offset each other.
What Is the Free Shipping Max Line?
When a customer gets free shipping, part of the cost can be recovered from the seller, and this appears as its own line called free shipping max. It reduces your payout. I cannot state how Daraz sets the amount, so read the line on your own statement the first time a promotion applies.
What About Seller-Funded Shipping?
If you run an offer that covers shipping for the customer, the cost comes out of your payout. In that case the buyer fee is not there to offset the charge, so the whole net shipping cost, plus VAT, becomes your cost. Price for it before you switch on a free shipping offer.
Does Shipping Depend on Weight or Distance?
Daraz's courier charge can vary by order, and that is why the shipping charge line differs between orders. I have not published a weight and zone table, because I cannot source one. What I can say is that you can always find the real figure per order on the statement and use it to learn your own average.
How Do I Check Shipping on My Statement?
- Pick one delivered order and find three lines: shipping charge, shipping discount and the buyer's shipping fee.
- Subtract the discount from the charge. That is the net.
- Compare the net with the buyer's shipping fee. They should match.
- Multiply the net by 0.15. That should equal the shipping VAT.
- If something differs, look for a free shipping max line or a seller-funded promotion on that order.
Should I Charge Buyers for Shipping?
It depends on the product and the competition, and I am not going to give a rule. What I would do is run the numbers both ways. With a buyer-paid fee, your shipping cost is the VAT only. With free shipping, you carry the full net charge and VAT. The Daraz profit calculator has fields for the buyer shipping fee, the shipping charge and the discount, so you can test both. For the full profit calculation, see how to calculate profit on Daraz.
To see shipping lines for all of your stores together, use Seller's Revolution finance reports. For printing the labels themselves, see Smart Labels for Daraz.
FAQ
How Much Does Daraz Charge Sellers for Delivery?
It varies by order, so I do not give a flat figure. On the statements we checked, the net of the shipping charge and the shipping discount, before VAT, equalled the buyer's shipping fee, and 15 percent VAT was added on top.
Do Sellers Pay VAT on Daraz Shipping?
Yes, on the statements we checked 15 percent VAT was charged on the net shipping charge.
Why Do I See Both a Shipping Charge and a Shipping Discount?
They are two sides of the same cost. The discount offsets part of the charge, and the net is what the buyer paid for delivery.
What Is Free Shipping Max on a Daraz Statement?
A separate line that appears when a customer gets free shipping, where part of the cost can be recovered from the seller. Check the amount on your own statement.
Can I Get Daraz Shipping Charges Refunded on a Return?
Return treatment can vary by case, so check the return lines on your own statement. This page does not claim a refund rule.
Sources
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