Shopee imposing 2% transaction fee on sellers from Jan 19

KUALA LUMPUR, 10 Jan 2022:

Shopee Malaysia is imposing a 2% transaction fee for all sellers as of Jan 19, extending this commission structure beyond Shopee Mall retailers. With this move, only sellers who have yet to record 100 or more transactions – typically new sign-ons or low-volume specialty retailers – will be exempted the transaction fee.

In its website update, Shopee Malaysia said the new rule applies to sellers with more than 100 completed orders since the date joined on Shopee. The commission fee will only be charged on orders placed and completed from 19 Jan 2022 onwards.

“As Shopee continues to commit to help sellers new to e-commerce, all Marketplace sellers with less than 100 completed orders since the date joined on Shopee will be exempted from the commission fee. The commission fee will only be incurred once the 100 completed threshold is met.”

Marketplace sellers refer to all local sellers who are not part of Shopee Mall,who have already been imposed commission fees since 1 June 2021. Shopee Mall sellers pay 3% to 5% commissions, while overseas sellers pay 5% to 6% commissions.

The commission is subject to the 6% Malaysian Sales and Service Tax – effectively becoming 2.12%. “The commission fee will be charged on your product price, after deducting all Seller Vouchers and Seller Shipping Promotions,” the website explained.

When Shopee began operations in 2015, no such commissions were charged as it wooed retailers and build transaction volume. Its revenue stream only began in 2018 when the retail platform started charging for prominent search listing placements – in what regional managing director Ian Ho then described as advertising fees.