💸 Fee hikes squeeze merchants
Shopee and Tokopedia recently raised seller fees in Indonesia to as high as 10%. Tokopedia's fees jumped from 6.5% to 10% on September 16, while Shopee raised its fees to 4.25%-8%. Sellers face slimmer margins as these hikes affect their profits, especially as costs, like delivery, also rise. Despite dissatisfaction, most merchants remain on the platforms. One Malaysian seller quit due to fee increases, while others, like a Singaporean apparel seller, believe switching platforms would be more costly.
🛍️ Competition intensifies
Shopee and Tokopedia are also battling TikTok Shop, which entered Southeast Asian e-commerce in 2021. TikTok’s live-streaming and low commissions fueled its rise in fashion and beauty markets. In 2023, Shopee held a commanding 48% market share, but Tokopedia and TikTok followed closely with 14.2%. Tokopedia even sold 75% of its stake to TikTok last year, finalizing the sale in 2024. Shopee’s recent partnership with YouTube shows how e-commerce platforms are fighting to stay ahead.
💥 Merchants feel the squeeze
Merchants now face tough decisions. Some feel “burned out” by shrinking margins and higher costs. One Malaysian vendor shut down after two years on Shopee, Lazada, and TikTok. But staying brings exposure—another seller said it’s "a price we must pay if we want exposure." With pressure from buyers and platforms, some merchants may turn to alternatives, but many find it hard to leave established platforms, even as they pay more.
📉 Will this impact sales?
Experts believe fee increases won’t significantly hurt these platforms, for now. "I don't foresee raising commissions impacting transactions," says Momentum Works’ Jianggan Li. Analysts say if platforms increase fees too much, competition could heat up, leading to discounts and subsidies. Historically, these platforms gained market share by offering low fees and promotions. However, with growth slowing and physical retail returning, platforms are shifting to profitability. The race for profits will likely continue, but so will the competition.
Will Southeast Asian merchants stick with these platforms?
