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Guide for Daraz Sellers

Is Daraz Selling Profitable? The Math, Fee by Fee

Updated

Short Answer

It can be, but it depends on three numbers you control: your cost, your category's commission and your return rate. In our worked example a Rs 1,500 item leaves about Rs 206 profit at a 12.9 percent category and about Rs 109 at 18.5 percent. We cannot promise any income. Run your own numbers before you buy stock.

Whether Daraz selling is profitable is not a yes or no question. Some sellers make good money and some lose it, and the difference is usually arithmetic, not luck. This page does the arithmetic for one order, then shows how a category, a return rate and your fixed costs change the answer.

I have sold on Daraz since 2015 and run 14 Daraz stores. I will not tell you what you will earn, because I do not know your products, your costs or your market. Every figure below is an example with made-up prices, so you can copy the method, not the result.

What Does Daraz Take from One Sale?

On the statements we checked, an order pays out the item price minus several separate lines. In order:

  1. Commission, a percentage of the item price set by category. Rates come from Daraz University and exclude VAT. Source: Daraz University PK commission rates, effective 1 June 2026, excluding VAT.
  2. Payment fee, 2.25 percent of the item price, plus 15 percent VAT on the fee, which is 2.5875 percent in practice.
  3. Item handling fee, a small per-item amount that depends on the price. Check the exact amount on your own statement.
  4. VAT, 15 percent on commission, handling, shipping charges and Coins fees.
  5. Withholding taxes, taken from your payout. On real weekly statements we saw sales tax withholding of about 1.9 to 2.0 percent of the item price and income tax withholding of about 1.6 to 1.7 percent. These are observed estimates, not legal rates. Check your own statement and FBR guidance.
  6. Shipping, where the net charge, after any shipping discount, equals the fee the buyer pays on the statements we checked, so the buyer's fee cancels out the net charge. The 15 percent VAT on that net amount does not cancel, so it stays with you as a cost.

The full line-by-line view is in the Daraz seller fees guide.

What Is the Profit on One Order? A Worked Example

Example: Store A sells a product at Rs 1,500. It cost Rs 900 to buy and Rs 40 to pack. The category commission is 12.9 percent (the top-level rate for Mobiles and Tablets in the table). For handling we assume Rs 15, a made-up figure for the example. Taxes use 1.95 percent sales and 1.6 percent income withholding. The buyer pays Rs 150 shipping, which offsets the net shipping charge of Rs 150, so only the 15 percent VAT on that net charge (Rs 22.50) is a cost to Store A.

Line Rs
Item price 1,500.00
Commission, 12.9% -193.50
Payment fee, 2.25% -33.75
Handling (assumed) -15.00
VAT, 15% of the three lines above -36.34
Sales tax withholding, 1.95% -29.25
Income tax withholding, 1.6% -24.00
VAT, 15% on net shipping (buyer paid Rs 150) -22.50
Payout 1,145.66
Product cost -900.00
Packing -40.00
Profit 205.66

Daraz's lines took Rs 354.34, or about 24 percent of the price, and the margin on price is about 14 percent. Notice that the margin is smaller than most people guess from the commission alone, because the payment fee, VAT, taxes and shipping VAT add roughly eleven points on top of it.

How Much Does the Category Change the Answer?

Same price, same cost, same packing, three different category rates. Rates are real top-level rates from the table, excluding VAT. Your own category may differ, so look up the exact path in the Daraz commission list.

Category rate Daraz lines (Rs) Share of price Profit (Rs)
4.44% (Groceries) 208.40 13.9% 351.60
12.9% (Mobiles and Tablets) 354.34 23.6% 205.66
18.5% (Fashion) 450.94 30.1% 109.06

The point is not which category is good. A low-commission category usually has thin product margins and heavy competition, and a high-commission one needs a bigger markup. The point is that you should know the rate before you buy stock. Try your own numbers in the Daraz profit calculator.

What Do Returns Do to Profit?

A returned or cancelled order earns nothing, and you may still have paid for packing and time. We do not have a sourced rule for exactly how Daraz charges you on every kind of return, so model it as a cost per returned order and use your own history.

Example: Store A ships 100 orders in a month at the 12.9 percent category. 10 come back. Assume each return costs Rs 190 (Rs 40 packing plus Rs 150 of other cost, both made up).

  • 90 delivered orders: 90 x 205.66 = Rs 18,509
  • 10 returns: 10 x 190 = Rs 1,900 lost
  • Profit on orders: about Rs 16,609

At the 18.5 percent category the same month gives 90 x 109.06 = Rs 9,815, minus Rs 1,900, about Rs 7,915. A few more returns and the number shrinks quickly. Track your own return rate before you scale. The returns and claims view helps you see them across stores.

What Costs Sit Outside the Statement?

The statement does not show everything you pay to run the business. Think about:

  • Fixed costs: a packer, internet, a phone, storage space, your own time.
  • Advertising you buy outside Daraz.
  • Money tied up in stock while it waits to sell and while you wait for a payout.
  • Stock that does not sell, which you may have to clear below cost.

Example: if Store A has Rs 12,000 of fixed costs a month, the 12.9 percent category in the example above leaves about Rs 4,609 after them (16,609 minus 12,000). The 18.5 percent category leaves a loss of about Rs 4,085 (7,915 minus 12,000). Same store, same volume, different category.

So Is Daraz Selling Profitable?

It is profitable when four things line up: a product you can buy cheaply enough, a category rate you can afford, a return rate you can live with and enough orders to cover your fixed costs. Anyone who gives you a single income figure for Daraz sellers is guessing or selling a course.

Some honest limits. Rates change, and the table above is effective 1 June 2026, so check the date. Our tax figures are observed estimates. And a calculator cannot tell you if a product will sell. It can only tell you whether it is worth trying.

What Should I Do Next?

  1. Pick one real product and find its category path in the commission list.
  2. Enter your real cost and packing in the profit calculator and edit the handling fee to match your statement.
  3. Add a realistic return cost and your monthly fixed costs by hand.
  4. Read how we source our fee data so you know what the tool can and cannot be trusted for.
  5. New to selling? See software for new Daraz sellers, or read the tax withholding guide.

If you already run several stores, the pricing page shows what a multi-store workflow costs.

Questions

How much profit can a Daraz seller make?

We cannot say, and anyone who gives one figure is guessing. It depends on your cost, category commission, return rate and fixed costs. In our made-up example a Rs 1,500 item left about Rs 206 at a 12.9 percent category.

Which Daraz category has the lowest commission?

In the table effective 1 June 2026, among normal selling categories the lowest top-level rate is Kids' and Baby Fashion at 2.95 percent, and the highest is 20 percent for Watches, Sunglasses and Jewellery, excluding VAT. Charity and Donation (0 percent) and Special Digital Products are not normal selling categories. Always look up your exact category path in the commission list.

Do returns hurt profit on Daraz?

Yes. A returned order earns nothing and you may still carry packing and time costs. Estimate a cost per return from your own history and include it in your numbers.

Do I pay tax as a Daraz seller?

Tax is withheld from your payout. We observed roughly 1.9 to 2.0 percent sales tax and 1.6 to 1.7 percent income tax withholding on real statements, but these are estimates, not legal rates. Check your statement and FBR guidance.

Sources

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