Nigerian ecommerce website, Konga just upped the commission charges per commodity sold by third party sellers on its marketplace.
According to a memo forwarded to merchants, starting Friday, July 31, there will be increased commission charges across all product categories on Konga mall.
In line with the increased commission charges, the minimum charge on each product will be plugged at NGN200 ($1), the company said.
The company is concerned about low sales margin that will arise from the new commission regime and is advising merchants to explore product bundling for low and medium valued products to shore up margin.
Product bundling: when a merchant bundles multiple complementary products to sell as a single unit. Usually, in that bundle is something (or maybe a couple of things) you don’t really need, but will buy because you feel it complements that other thing you do need.
It’s unclear how far up the commission spike will go on individual products or why Konga is increasing the commission. TechCabal has reached out to Konga and will update accordingly.
Konga told TechCabal the increment will range between 1% and 5% across various categories. “We are pleased to note that even with these changes, Konga’s rates will remain well below the rest of the market – we care about our merchants’ businesses and will always ensure that our platform allows them to trade profitably,” the company said.
The new charges, Konga says, will allow it make important enhancements to its logistics services.
Photo Credit: rosipaw via Compfight cc
[Update: August 3, 2015; 11:58] An earlier version did not include the range of the increase and why Konga effected the change in commission charges.
