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Daraz Profit Calculator

Designed specifically for e-commerce sellers in Pakistan. Models Daraz marketplace deductions including category commission, payment handling fees, provincial sales tax (VAT on commission), packaging, seller shipping, and return allowances.

Daraz Profit Calculator

PKR Native

Model commissions, payment handling, provincial sales tax (VAT), and COD return allowances in Pakistan.

Marketplace note: Estimate only. Verify category commission rates, VAT on services (Sindh 13% / Punjab 16%), and packaging rules in your Daraz Seller Center dashboard.

Return Allowance Assumption: In Pakistan’s Cash on Delivery (COD) market, failed deliveries (RTS — Return to Shipper) and customer returns typically range from 5% to 15%. This model sets aside an allowance percentage of the retail price to absorb the lost packaging, shipping drag, and damaged inventory.

Daraz Selling Price (PKR)*

Rs.

Retail listing price customer pays

Product Sourcing Cost (PKR)*

Rs.

Wholesale purchase / manufacturing cost

Category Commission %

Daraz category marketplace commission

Payment Handling Fee %

Payment processing charge (1.25% - 1.75%)

Provincial VAT on Fees %

Sales tax on Daraz services (16% Punjab, 13% Sindh)

Packaging & Seller Shipping

Rs.

Flyer, bubble wrap, local drop-off costs

COD Return Allowance %

Buffer for RTS / return order risk

Daraz Net Payout & Profit Summary

Net ProfitNet Gain

$564.90

After product, Daraz fees & return allowance

Profit Margin

37.66%

(Net Profit / Selling Price) × 100

Net Daraz PayoutBank Transfer

$1,299.90

Selling Price minus Total Daraz Deductions

Total Daraz Platform FeesDaraz Cut

$200.10

Comm: $150.00 + Payment: $22.50 + VAT: $27.60

Daraz Pakistan Marketplace Formulas

1. Category Commission

Commission = Retail Price × (Category Commission % / 100)

Daraz marketplace commission based on your specific product subcategory.

2. Payment Handling Fee

Payment Fee = Retail Price × (Payment Handling Fee % / 100)

Gateway handling fee charged by Daraz (typically 1.25% to 1.75%).

3. Provincial Sales Tax (VAT)

VAT = (Commission + Payment Fee) × (Provincial Tax % / 100)

Government sales tax on Daraz services (16% in Punjab, 13% in Sindh).

4. Return Allowance Buffer

Return Allowance = Retail Price × (Return Allowance % / 100)

Reserved fund per unit to cushion against Cash on Delivery (COD) failed deliveries and customer return loss.

5. Net Daraz Bank Payout

Net Payout = Retail Price - (Commission + Payment Fee + VAT)

Exact net funds credited to your bank account on weekly Daraz statement cycles.

Worked Example: Electronics Accessory on Daraz PK

You sell a smart fitness tracker on Daraz for Rs. 1,800. Sourcing cost from wholesale market is Rs. 750. Category commission is 12%, payment handling is 1.5%, Punjab VAT on fees is 16%, packaging is Rs. 70, and you reserve a 5% COD return allowance.

Input Values

Daraz Retail Price:: Rs. 1800
Wholesale Sourcing Cost:: Rs. 750
Category Commission (12%):: Rs. 216.00
Payment Handling (1.5%):: Rs. 27.00
Provincial VAT on Fees (16%):: Rs. 38.88

Calculated Output

Total Daraz Deductions:: Rs. 281.88
Net Weekly Bank Payout:: Rs. 1518.12
Return Allowance Reserved:: Rs. 90.00
Net Seller Profit:: Rs. 608.12
Net Profit Margin:: 33.78%

Breakdown: Daraz commission is Rs. 216.00 and payment handling is Rs. 27.00. 16% VAT on these service charges (Rs. 243.00) equals Rs. 38.88. Total Daraz deductions are Rs. 281.88, providing a net bank payout of Rs. 1,518.12. Deducting product cost (Rs. 750), packaging (Rs. 70), and return allowance (Rs. 90.00) leaves a net profit of Rs. 608.12 (33.78% margin).

Frequently Asked Questions

What fees does Daraz deduct from sellers in Pakistan?

Daraz typically deducts category commission (ranging from 5% to 17%), a payment processing fee (usually 1.25% to 1.75%), provincial sales tax (VAT/GST of ~16% on services), and any seller-paid shipping or packaging fees.

Why is a Return Allowance included in the model?

In Pakistan, Cash on Delivery (COD) carries a return and delivery failure (Return to Shipper / RTS) rate between 5% and 15%. Reserving a return allowance percentage directly against retail price ensures your unit economics absorb reverse logistics costs.

How is VAT calculated on Daraz?

VAT is not charged on your full product price; rather, provincial sales tax (typically 16% in Punjab/Sindh) is levied on the service fees charged by Daraz (Commission + Payment Handling Fee).

What is Net Payout from Daraz?

Net Payout is the settlement amount transferred to your seller bank account after Daraz deducts its commission, payment handling fees, and service VAT.