Business Model

Business model

Daraz is primarily a B2C platform. It connects businesses (sellers) and individual consumers, allowing them to buy a variety of products online.

Daraz business model is based on a multi-seller marketplace, in which independent sellers list their products for sale on the platform. Daraz offers these sellers a virtual storefront, complete with powerful tools and analytics to help them improve their sales performance (Vizologi, 2024)

Daraz collects revenue through commissions (can range anywhere from 0% to 17.2% depending on the specific product category or subcategory), where a percentage fee is charged to sellers on each sale made through the platform, Sponsor ads, such as enhanced product listing placements and marketing support for sellers, for an additional fee, and logistics.

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