Daraz Business Module

Roadmap for Daraz

At AH Square, we understand the complexities of launching a successful store on Daraz. This roadmap outlines the essential steps and considerations for starting and scaling your business on Daraz. Here's what we will cover:

1. Types of Models

There are several business models available on Daraz:

• White Labeling (Individual Account): Perfect for entrepreneurs looking to start with their own branded products.
• Micro Private Label (Business Account or Convert Later): Ideal for small-scale operations with the option to scale and convert to a business account in the future.
• Daraz Mall: Requires a registered trademark and other specific requirements, offering premium visibility and access to a broader audience.

2. Investment Breakdown

To successfully launch and scale your store on Daraz, here’s a breakdown of the investment:

• Initial Investment per Product: Approximately 100k, divided as follows:
  • Testing Inventory Cost (50-60%): For initial product testing and small batch orders.
  • Bleeding Cost (20-30%): Includes marketing and promotional expenses.
  • Other Costs (10%): Miscellaneous expenses such as account setup and minor fees.
• Long-term Scalability: The total investment ranges between 350k-450k, depending on your plan and the number of products.

3. Steps

Follow these steps to successfully launch your product on Daraz:

1. Product Hunting: Conduct thorough research and analysis to identify profitable products.
2. Product Sourcing: Source products online or physically from suppliers.
3. Opening Seller Central: Complete the account setup with all required documents.
4. Logo Design, Photography, and Editing: Create professional branding and product images.
5. Keyword Research and Analysis: Optimize your listings for better visibility.
6. Product Listing: Create SEO-friendly product listings.
7. Product Ranking: Implement strategies to improve product ranking.
8. Maintaining Scorecard and Customer Service: Ensure timely responses, accurate shipping, and manage your scorecard.

4. Tips and Tricks

With over 4 years of experience on Daraz, here are some essential tips:

• Invest Time in Research: Prioritize product hunting and keyword analysis.
• Avoid Rushing: Take time for thorough research and planning.
• Maintain a High Scorecard: Aim for a scorecard of 90% or higher.
• Respond Promptly: Ensure timely replies to customer inquiries.
• Ship Orders Quickly: Aim to ship within 24 hours.
• Seek Experience: Work with experienced partners if you’re new.
• Invest in Branding: Don’t skimp on photography or logo design.
• Start Small: Begin with one product and scale as it grows.

5. Time Frame

Here’s a general timeline for launching and scaling your store:

• Initial Product Growth: Allow 2–3 months for your first product to gain traction.
• Account Growth: Plan for 6-8 months to launch multiple products and achieve significant revenue.
• Daraz Mall Conversion: Allow an additional 4–6 months to meet all requirements for Daraz Mall.

Evergreen Business on Daraz

For those considering long-term investments on Daraz, here's a detailed guide:

Investment

Initial Investment: Approximately 70k.

Long-term Scalable Business: Between 250k-300k, depending on your strategy.

Breakdown of Investment

• First Inventory Charges: For testing (30-50 pieces).
• Logo Design and Photography: Includes editing.
• Flyer Charges: For marketing and promotions.
• Product Ranking Costs: For achieving initial visibility.

Steps to Follow

Main steps include:

1. Product Hunting + Tracking + Analysis: 12-15 days.
2. Product Sourcing: 4-5 days (locally within Pakistan initially).
3. Daraz Account Formation: 4-5 working days.
4. Product Shipping: 5-7 days (depends on courier service). During shipping, perform keyword analysis and prepare listings.
5. Product Listing and QC Approval: 3-4 working days.
6. Product Ranking: Up to 30 days, depending on competition.

Once the first product is ranked, follow this formula for scaling:

• 3-5 Tested Products: Achieve a 100% scorecard and on-time shipping rate.

Key Metrics to Monitor

• Ship on Time Rate
• Return Rate
• Cancellation Rate
• Response Rate
• Product Rating