For any young business here in Egypt, breaking into the online world is fundamental. Selling on Souq might just be the best way to ensure your business gets off to a flying start.
Souq.com, a company now owned by Amazon Inc, has taken the eCommerce world of the Middle East by storm, fast becoming the region’s largest platform. With their ground-breaking technology and ability to connect avid online shopping consumers with a vast array of products at competitive prices, Souq has made it possible to connect businesses small and large with an unprecedented number of customers; but knowing how to sell on Souq is just the beginning.
Here’s our quick guide for selling on Souq, along with the pros and cons associated with doing so.
First Steps – Signing Up to Sell on Souq
Of course, to get started with selling on Souq, you’ll need to sign up as a seller. This process involves divulging simple information, as you’d expect, such as your business’ contact details, company information and location (where you’re based along with where your pick-up location will be for logistics purposes). On top of this, you’ll be expected to undergo an account verification process to ensure you are who you say you are!
Once you’ve provided this information, along with agreeing to various Souq rules and regulations, your Souq seller account will be initiated… Which means, now it’s time for the fun part!
Listing Your Products for Selling on Souq
Listing products you’re going to be selling on Souq is simple enough, but it can be a time-consuming process. Here are the steps you’ll need to follow:
When you start selling on Souq you’ll need to properly list each product under the correct category, so that your customers are able to find them. Use the search bar or pre-filled options to choose the right product type and help facilitate easy searching.
Next, you’ll need to match the product with Souq’s catalogue by entering the relevant information, or use the “Add New Product” option to manually insert characteristics, specifications, images and descriptions. For a brand selling your own designs, this is much more likely to be the case – after all, each product is uniquely your own! It’s also at this stage that you’ll enter information like SKU, stock levels and other miscellaneous product information.
Once you’ve listed your products, it’s time to tell the world about them – in as much detail as possible. From material and colour to target audience and more, it’s important to provide specific, accurate information; for instance, don’t just list your graphic tees as “t-shirts”, but tell people exactly what the product entails.
How to Price Your Products for Selling on Souq
Here’s where it’s really important to understand your market, moreover how selling on Souq really works. You will want to conduct thorough research on your competitors, their value proposition and where you can do better to win the business, so the products and price point you offer are competitive.
Here are the keys things to consider when pricing your products for Souq:
Value in purchase: you need to put together a package which will appeal to customers based on an overall value proposition. That means considering the price point along with other features such as shipping costs, product bundles and discounts for purchasing more than one item at a time. Could you price your products slightly higher in order to offer free shipping? Or can you compete on price to draw the customer in, then make up your margin by charging for delivery?
Profit with a marketplace seller like Souq, you need to appear high up on search results to be seen by customers. Therefore, profit becomes a focus. Make sure you understand a) your lowest price (the lowest you can price your product whilst remaining profitable) and b) your highest price (the price which is low enough that customers will still pay, whilst maximizing your profit margin). Find a happy medium somewhere in between.
Getting your pricing right is tantamount to successful selling on Souq. And, once you’ve done so, you’re pretty much ready to go – now you need only wait for the orders to roll in.
Pros of Selling on Souq
Increase in traffic: Simply put, when you’re selling on Souq, your products now have the potential to be seen by a huge number of new customers. However, bear in mind that the marketplace competition will increase accordingly; more eyes on your product doesn’t always mean more sales.
Round-the-clock operations: Engaging with a large-scale online marketplace like Souq means that your customers can purchase any time, any day! So, it’s important to ensure that your business has the infrastructure and capacity to keep up.
Cons of Selling on Souq
High fees and commissions: while selling on Souq may drive new customers to your site, you need to consider how greatly your margin may suffer if you’re having to pay a large amount in commission.
Limited brand exposure: when selling on Souq, remember that their interests lie with their own name! Souq will push your products, but allow you limited opportunity to get your own company name, brand and voice in front of customers, thus providing little brand presence or recognition. Your sales may increase, but will your business grow?
Lengthy payment terms: when dealing with a large conglomerate such as Souq (and therefore Amazon), payments may take longer to be credited to your business, potentially leading to cash flow concerns – particularly as a blossoming venture.
The truth is, learning the ins and outs of selling on Souq doesn’t mean you’ll find it the best route for your business to grow; engaging with an online marketplace should be a partnership which benefits each party equally. Which is why here at Gotrend, we offer more than simply a place to list your products and a way to grow sales – when you partner with us, you become a part of our story, too. A story we’re writing alongside unique brands like yours.
When you partner with Gotrend, we provide not only a cutting-edge platform to help you increase your sales but also creative content services (including custom photography and copywriting), extensive customer support via various convenient channels and fast, tailored payment methods which work for you.
Learning how to sell on Souq is one thing; taking the future of your business into your own hands, another entirely.
Get in touch or visit our corporate site to learn more about how selling with Gotrend could benefit, and grow, your business exponentially.