Daraz Choice, explained for sellers: how it works and how you get paid

Updated: October 2026

On Daraz Choice you stop being a shopkeeper and become a supplier.

Your goods sit in Daraz's warehouse. Daraz picks, packs and ships them, handles the buyer, and decides what the item sells for. You are paid a supply price you agreed in advance — not the price on the listing, and not what the buyer paid.

Almost everything sellers find confusing about Choice comes from that one sentence, so it is worth taking slowly.

The two prices, and why they are never the same

There are two numbers on every Choice item, and mixing them up is the single most expensive mistake on this channel.

• The supply price — what Daraz pays you per unit. You agreed it. It does not move when the shelf price moves.
• The live selling price — what the buyer sees. Built on top of your supply price, and not yours to set.

Your deductions are worked out on the live price. Your payment is worked out from the supply price. The live price is the bigger of the two, so a deduction quoted as a percentage always takes a larger share of what you actually receive than the percentage suggests.

That is not a trick. It is arithmetic, and it is predictable — but only if you know it is happening.

A worked example, in rupees

Take one unit with a supply price of Rs. 1,000, in an order of four items weighing 1.5 kg in total, with Rs. 190 of shipping on the order.

Building the shelf price

What comes off

What it leaves

Now look at the two percentages again. Four and three make seven. But Rs. 79 came off a payment based on Rs. 1,000, which is 7.9% of what you were actually paid on — not 7%. The gap is small on one unit and it is not small on a month, and it widens as the mark-up grows.

The percentages above are the ones that show up in real supply agreements. Daraz does not publish a Choice fee schedule, so yours may differ. Do not price anything on the figures in this article — put your own agreement's numbers into the free Choice profit calculator, where every rate is a box you can change.

The part that surprises everyone: a bigger mark-up pays you less

It feels like it should work the other way, so it is worth stating plainly.

The mark-up raises the live price. Both deductions are taken on the live price. Your payment is the supply price minus those deductions. So:

A ten-point swing in mark-up moves your payment by a few rupees — downward. What the mark-up actually buys you is a shelf position: it decides how the listing competes against everything beside it. It does not decide what reaches your account. Treat it as a pricing lever for sales volume, never as a lever for margin.

How Choice differs from selling on Daraz normally

Neither is better. They answer different questions. Normal selling gives you control of price and stock and hands you all of the work; Choice takes the work and most of the control with it.

One consequence catches people out: on Choice you cannot fix a stock problem by editing a number. The units are physically in someone else's building. If your records and the warehouse disagree, only paperwork resolves it — which is why the next section matters more on this channel than on any other.

The four numbers of a warehouse shipment

When Daraz asks you to send stock, one line of that request turns into four different numbers before it is finished. Sellers who treat them as one number lose stock on paper and never find out where.

1. Asked — the quantity on Daraz's fulfilment request. This is a request, not a fact.
2. Sent — what you actually shipped. Short stock, a damaged carton, a line you pulled: it is routinely less than asked.
3. Received good — what the warehouse accepted, which arrives in an inbound report several days after the delivery.
4. Defective — what arrived and was rejected.

Anything left over — sent, minus good, minus defective — is a variance. Those units are in nobody's building as far as the paperwork is concerned.

The rule worth taking away: treat the request as an intention and the receiving report as the fact. Your books should move on the receiving report. Booking the sale value of a shipment when the request arrives means booking goods the warehouse may never have accepted.

Defective and short are not the same problem

They both look like "stock that did not arrive" and they must be handled differently.

Defective units physically come back. They exist. Do not write them off — when they arrive at your door, they rejoin your stock, and the only thing that changed is that you paid to ship them twice.

Short units are a claim first. The warehouse sometimes finds them later and reissues the report. If you write off a short unit the moment you see it, and it turns up next week, you have now counted it twice — once as a loss and once as stock. Mark it as claimed, chase it, and write it off only when the answer is final.

And when you do write one off, it is a loss of goods, not a payment. No money left your bank. It belongs in your books as the cost of the unit, not as an expense you paid someone.

How and when you get paid

Payment arrives against a settlement statement, which for Choice is a spreadsheet — a CSV or Excel file from Seller Centre, not a PDF. The PDF you are thinking of is the fulfilment order, a different document for a different purpose.

Three habits are worth building:

Read the rows, not the total. A statement total can look reasonable while individual lines are missing from it, because adjustments move the total anyway. A missing line raises no error.

Expect last cycle's refunds in this cycle's file. A return processed after a statement closed lands in the next one. If you compare a cycle's payment against that cycle's sales alone, the two will not agree, and nothing is wrong.

Check the payment against the file, not against your expectation. This is the only document that states what you were actually paid.

The five mistakes that cost the most

1. Pricing from the supply price alone. The supply price is revenue, not profit. Deduct tax and the platform cut before you decide a product is worth supplying.

2. Raising the mark-up to earn more. It lowers your payment. See above.

3. Booking stock as gone when you send it, and never reconciling what arrived. The gap between sent and received is where Choice stock actually disappears.

4. Writing off short units too early. Some come back. A unit written off and later received is counted twice, and both entries look correct.

5. Ignoring returns when you price. A line with a high return rate is priced by its returns, not by its margin. The shipping legs were paid either way.

FAQ

What is Daraz Choice, in one sentence?

A programme where you supply stock into Daraz's warehouse at an agreed price and Daraz handles the listing, the price, the packing, the delivery and the buyer — paying you on the supply price rather than on what the buyer paid.

How do I become a Choice seller?

Through Daraz itself — Seller Centre and your account contact there. The commercial terms, including your supply prices and what is deducted, come in a supply agreement rather than from a public rate card. We are not going to print eligibility rules here, because Daraz does not publish them and a stale rule in an article is worse than no rule at all. Ask Daraz, and read the agreement they send you closely — the percentages in it are the ones that will govern every payment you receive.

Am I paid the price the buyer saw?

No. You are paid your supply price, less the deductions on your agreement. The buyer's price is higher and is not yours to set.

Why is my payment less than my supply price minus the stated percentages?

Because the percentages are applied to the live selling price, which is larger than the supply price you are paid on. Seven percent of the bigger number is nearly eight percent of the smaller one. The Choice profit calculator shows both figures side by side.

Can I sell the same product on Choice and on my normal Daraz shop?

Yes, and that is exactly when your stock figure needs to be one figure. The units in the Choice warehouse are committed; they cannot fill an order from anywhere else. Counting them as available is how overselling happens.

Does the shipping charge come out of my payment?

No. The shipping share is added into the live selling price — it is part of what the buyer pays, not a deduction from what you are paid. It matters because it raises the live price, and the live price is what the deductions are worked out on.

What is the difference between the fulfilment PDF and the settlement file?

The fulfilment order is Daraz asking you to send stock. The settlement file is Daraz telling you what it paid. Different documents, different moments, different formats — the first is a PDF, the second a spreadsheet.

Is Choice worth it?

It depends on what your time is worth and how your return rate behaves. You give up price control and margin per unit; you get someone else's warehouse, someone else's packing and someone else's delivery, at volume you would struggle to reach alone. Work it out per product rather than as a decision about the channel — some of your catalogue will suit it and some will not.

Doing this without the spreadsheet

Omnek reads your Choice settlement file and reports profit per SKU after tax and the platform cut, set against what the goods actually cost you. The four numbers of a shipment — asked, sent, received good, defective — are tracked as four numbers, so a variance is something you are shown rather than something you discover at a stock count. Defective units rejoin your stock when they physically arrive, and a short unit stays a claim until you close it.

Your Choice stock sits on the same books as your normal Daraz shop and your counter, so what you own is one figure rather than three.

Everything Omnek does for a Choice seller is on one page, with the free calculator at the top.