## A. Inputs and what I applied | Named input | Value applied | |---|---:| | SELLING_PRICE | 30.00 SGD | | BUYER_SHIPPING_FEE | 2.00 SGD | | SELLER_SHIPPING_COST | 3.00 SGD | | CURRENCY | SGD | | FX_RATE | 1 SGD = 1,000 KRW | | COMMISSION_FEE | 14% | | TRANSACTION_FEE | 3% | | SERVICE_FEE | 0% | | INSTALLMENT_OR_CCI_FEE | None | | TAX_OR_VAT_RULE | INCLUDED | | PAYMENT_FEE | 1% payout fee | | PRODUCT_COST | 12,000 KRW | | OTHER_COST | 1,000 KRW | | AD_OR_CAMPAIGN_COST | 0 | | Target net margin | 20% of item price + buyer shipping | Because no installment/CCI fee applies, I used the **3% transaction fee**. Because fee tax is marked **INCLUDED**, I added **no extra tax on fees**. --- ## B. Order settlement table (market currency) ### 1. Gross order amount \[ 30 + 2 = 32.00\text{ SGD} \] ### 2. Commission \[ 14\% \times 30 = 4.20\text{ SGD} \] ### 3. Transaction fee Transaction fee applies to selling price + buyer shipping: \[ 3\% \times (30 + 2) \] \[ = 3\% \times 32 = 0.96\text{ SGD} \] ### 4. Service fee \[ 0\% \times 30 = 0.00\text{ SGD} \] ### 5. Fee tax Tax rule = INCLUDED. \[ 0.00\text{ SGD additional fee tax} \] ### 6. Seller shipping deduction \[ 3.00\text{ SGD} \] ### Settlement \[ 30 + 2 - 4.20 - 0.96 - 0 - 0 - 3 \] \[ =\boxed{23.84\text{ SGD}} \] | Settlement line | SGD | |---|---:| | Selling price | 30.00 | | Buyer shipping | +2.00 | | Commission | -4.20 | | Transaction fee | -0.96 | | Service fee | -0.00 | | Extra fee tax | -0.00 | | Seller shipping cost | -3.00 | | **Order settlement** | **23.84** | --- ## C. Total costs ### Marketplace/order-level deductions Commission: \[ 4.20\times1000=4,200.00\text{ KRW} \] Transaction fee: \[ 0.96\times1000=960.00\text{ KRW} \] Seller shipping: \[ 3\times1000=3,000.00\text{ KRW} \] Payout fee is charged after settlement: \[ 23.84\times1000\times1\% =238.40\text{ KRW} \] Other business costs: | Cost | KRW | |---|---:| | Commission | 4,200.00 | | Transaction fee | 960.00 | | Service fee | 0.00 | | Extra tax on fees | 0.00 | | Seller shipping | 3,000.00 | | Payout/conversion fee | 238.40 | | Product cost | 12,000.00 | | Other cost | 1,000.00 | | Ads | 0.00 | | **Total cost against gross revenue** | **21,398.40** | --- ## D. Net profit (my currency) Settlement before payout fee: \[ 23.84\times1000 =23,840.00\text{ KRW} \] Payout after 1% fee: \[ 23.84\times1000\times(1-0.01) \] \[ =23,840\times0.99 \] \[ =\boxed{23,601.60\text{ KRW}} \] Net profit: \[ 23,601.60-12,000-1,000-0 \] \[ =\boxed{10,601.60\text{ KRW}} \] --- ## E. Net margin Revenue under your specified definition: \[ (30+2)\times1000 =32,000.00\text{ KRW} \] Net margin: \[ \frac{10,601.60}{32,000} =0.3313 \] \[ =\boxed{33.13\%} \] Your supplied target is **20%**, so this order is above that target under the supplied inputs. --- ## F. Break-even selling price Let selling price be \(P\) SGD. Commission: \[ 0.14P \] Transaction: \[ 0.03(P+2) =0.03P+0.06 \] Settlement: \[ P+2-0.14P-(0.03P+0.06)-3 \] \[ =0.83P-1.06 \] Payout in KRW: \[ (0.83P-1.06)\times1000\times0.99 \] \[ =821.7P-1,049.4 \] Net profit: \[ 821.7P-1,049.4-12,000-1,000 \] \[ =821.7P-14,049.4 \] At break-even: \[ 821.7P-14,049.4=0 \] \[ P=\frac{14,049.4}{821.7} \] \[ P=17.0979676\ldots \] ### Break-even selling price \[ \boxed{17.10\text{ SGD}} \] The exact mathematical break-even point is about **17.09797 SGD**. --- ## G. Selling price for the target margin Target margin: \[ 20\% \] Revenue at selling price \(P\): \[ (P+2)\times1000 \] Required condition: \[ \frac{821.7P-14,049.4}{1000(P+2)}=0.20 \] Therefore: \[ 821.7P-14,049.4=200(P+2) \] \[ 821.7P-14,049.4=200P+400 \] \[ 621.7P=14,449.4 \] \[ P=23.24175647\ldots \] ### Exact target threshold \[ \boxed{23.24\text{ SGD}} \] However, because the exact threshold is **23.241756... SGD**, a price restricted to SGD 0.01 increments would need to be at least: \[ \boxed{23.25\text{ SGD}} \] At 23.25 SGD, the calculated net margin is approximately **20.02%**. --- ## H. Costs that are often missed | Cost/check | Status from your inputs | |---|---| | Installment/pay-later fee | None for this order | | Program service fee | Included as 0% | | Ads/campaign costs | Included as 0 | | Return/refund costs | Not provided | | Payout/conversion fee | Included at 1% | | Taxes on fees | Marked INCLUDED, so no extra fee tax added | | Packaging | Not separately identified | The 1,000 KRW `OTHER_COST` may or may not contain packaging. Your input does not specify what that 1,000 KRW consists of. --- ## I. VERIFY / UNKNOWN items There are **no unknown fee rates required by your calculation**. Items still worth verifying against the actual order details: - Return/refund-related costs were not provided. - Packaging cost was not separately specified. - Confirm that the actual Shopee payout for this specific order used the supplied **1 SGD = 1,000 KRW** payout rate. - Confirm the actual order was charged **14% commission**, **3% transaction fee**, **0% service fee**, and **1% payout/conversion fee**. - Confirm that `INCLUDED` means there was no separate tax amount added on top of those fees for this order. The calculation is final **for the numbers you supplied**, but any unprovided order-specific cost would change the result. --- ## J. Formulas and assumptions used For this order: \[ Commission=14\%\times SellingPrice \] \[ Transaction=3\%\times(SellingPrice+BuyerShipping) \] \[ Service=0\%\times SellingPrice \] No installment/CCI rate replaces the transaction rate. No additional fee tax was added because: \[ TAX\_OR\_VAT\_RULE=INCLUDED \] Settlement: \[ SellingPrice+BuyerShipping -Commission -Transaction -Service -FeeTax -SellerShipping \] Payout: \[ Settlement\times1000\times(1-1\%) \] Ads: \[ 0 \] Net profit: \[ Payout-12,000-1,000 \] Revenue: \[ (SellingPrice+2)\times1000 \] Net margin: \[ NetProfit\div Revenue \] For break-even and target-price calculations, buyer shipping stayed at **2 SGD**, seller shipping at **3 SGD**, product cost at **12,000 KRW**, other cost at **1,000 KRW**, ads at **0**, and all supplied fee rates remained unchanged. --- ## K. Final check: which lines to compare with my actual Shopee income details for this order Compare these specific figures against the actual Shopee order/income breakdown: | Shopee line to check | Expected from your inputs | |---|---:| | Item price | 30.00 SGD | | Buyer-paid shipping | 2.00 SGD | | Commission | 4.20 SGD | | Transaction fee | 0.96 SGD | | Service/program fee | 0.00 SGD | | Extra tax on fees | 0.00 SGD | | Shipping deducted from seller | 3.00 SGD | | **Settlement before payout/conversion fee** | **23.84 SGD** | | KRW value before payout fee | 23,840.00 KRW | | Payout/conversion fee | 238.40 KRW | | **Calculated payout** | **23,601.60 KRW** | | Product + other costs | 13,000.00 KRW | | **Calculated net profit** | **10,601.60 KRW** | | **Calculated net margin** | **33.13%** | If Shopee's actual **23.84 SGD settlement** or **23,601.60 KRW payout** differs, the first things to compare are the individual commission, transaction fee, shipping deduction, payout fee, and actual Seller Centre FX rate. Check the order against Shopee’s actual lines - Test missing-cost scenarios - Reconcile the calculated payout