The Marketplace Fee Hike: A Wake-Up Call for Malaysian Online Retailers

Starting mid-July 2025, two major marketplaces—Shopee and Lazada—are rolling out significant changes to their fee structures in Malaysia. Shopee introduced a new Platform Support Fee per successful order starting July 16, 2025, while Lazada implemented a revised all-in-one commission fee effective July 18, 2025. These changes follow previous fee hikes in 2024. For many sellers, these fee hikes are yet another blow to already razor-thin profit margins.

We recently encountered a marketplace seller running a team of 20 permanent staff, who is now downsizing due to these margin pressures. Although the exact financial figures are not made known to us, the impact is clear: they are actively exploring migration to their own website. This real-world example underscores the growing urgency among sellers to seek greater control over their businesses.

The marketplace fee hikes are not just a cost issue—they’re a wake-up call. It’s time to shift from being tenants on rented digital stalls to owning your brand destiny on your own terms.

The New Reality: Breaking Down the 2025 Fee Increases

What’s Changing?

Lazada:

Lazada is implementing a further increase in its commission fees on top of the rise introduced in 2024. Effective July 18, 2025, Lazada standardizes an “All-In-One” commission fee that bundles former variable fees for free shipping, campaign vouchers, and LazCoins discounts into a single, simpler rate dependent on product categories. This update results in an overall commission increase of about 3% to 4% compared to previous fees.

For example, categories like fashion now face a flat 15% commission, FMCG up to 16%, and electronics around 14.5%. The new commission applies to all local sellers after their initial 120-day exemption period, and an 8% Sales and Service Tax (SST) is applied on top of the commission. Lazada emphasizes no additional platform support fees or transaction fees are introduced with this revision. This consolidated fee model aims to provide sellers greater cost predictability while continuing to offer platform-led promotions and enhanced support.

Shopee:

Shopee’s new fee structure starting July 16, 2025, introduces a RM0.50 Platform Support Fee per successful order for sellers active over 120 days or with at least 100 fulfilled orders, excluding those in Shopee’s Fulfilled by Shopee (FBS) program and onboarding new sellers. This fee is subject to an 8% SST. Beyond this, Shopee’s commission increases are more moderate, with category-specific commission adjustments ranging from around 1% to 3% higher compared to prior rates. The combination of the new platform fee plus incremental commission hikes subtly raises the total cost for sellers but less aggressively than Lazada’s 3-4% jump.

The Key Takeaway

Regardless of whether it’s a 1% increase or a 4% hike, both Shopee and Lazada are tightening their grip on sellers by raising fees and costs. The bottom line is clear: sellers are at the mercy of these platforms. No matter the number, margins are being squeezed, and reliance on marketplaces means sellers have little control over their business fate.

The Squeeze Was Already Happening

The 2025 fee increases did not happen in isolation. Sellers have been facing mounting pressures for some time, tightening already narrow margins.

SPayLater (Shopee’s Buy Now, Pay Later): Shopee increased the seller fee for SPayLater transactions from 3.5% to 4.5% starting May 2025. This means sellers incur a higher cost on orders paid through this popular installment payment option, adding to their expenses.

2024 Fee Increases: Both Shopee and Lazada implemented fee hikes in 2024, including commission and transaction fee increases, compounding seller cost pressures.

Tough Competition and Price Transparency: Marketplaces foster intense price competition where buyers quickly compare seller prices side-by-side. This transparency keeps pricing highly competitive, which can further squeeze seller margins, making it challenging to differentiate on price alone.

Together, these factors illustrate a marketplace environment where sellers must constantly navigate rising costs, increasing competition, and platform-controlled policies — all of which squeeze profitability and underscore the vulnerability of selling on rented digital space.

The Solution: It’s Time to Diversify and Build Your Own Asset

In the face of rising marketplace fees and tighter margins, the strongest move for sellers—new or old—is to diversify sales channels and build your own digital asset: a dedicated e-commerce website that you fully control.

Why Own Your Website?

There are several things that you need to consider when operating on a marketplace vs your own website. In short, owning your website means you:

• Control your brand experience end-to-end (pricing, policies, customer journey).
• Own your customer data, enabling direct marketing and loyalty building without sharing profits or losing touch.
• Reduce dependency on marketplaces that can suddenly hike fees or change rules.
• Increase profitability by avoiding marketplace commission fees and relying only on minimal payment gateway fees.
• Build a sellable asset that holds lasting value beyond day-to-day sales.

The “Hub and Spoke” Model

Treat your website as the hub of your business, where you nurture customer relationships and brand loyalty. Marketplaces like Shopee and Lazada become the spokes—valuable for discovery and traffic but not the sole source of your revenue.

Actionable Guide for Different Seller Profiles

New Sellers: Starting Strong

• Begin with Marketplaces:
  Shopee and Lazada offer a 120-day grace period with lower fees for new sellers, making it a practical starting point to build sales and brand recognition while you prepare your own website.
• Choose Your E-Commerce Platform:
  Popular Malaysian-friendly choices include:
  • WooCommerce (WordPress): Great for sellers comfortable with WordPress, offering flexibility, strong customizability, and control.
  • Shopify: Known for ease of use, scalability, and robust app ecosystem.
  • SiteGiant and EasyStore: Also good options that cater well to local sellers with marketplace integration and local payment gateways.
• Manage the Pivot:
  Building your website means taking on full ownership of customer service and fulfillment logistics. This transition requires new operational capabilities such as handling inquiries, returns, and shipping on your own or via service partners.
  • Use Marketplaces as Spokes:
    Maintain Shopee and Lazada stores to keep acquisition flowing, but start directing customers towards your site through personalized packaging inserts or limited-use discount vouchers redeemable on your website.
  • Invest in Learning & Marketing:
    Build email lists, cultivate social media presence, and improve search engine visibility to drive traffic to your owned store.

Established Sellers: Taking Control and Growing

• Enhance Customer Retention via Website:
  Offer exclusive incentives on your website that aren’t available on marketplaces. For example, include a voucher with each marketplace order that customers can redeem on your site for special discounts or gifts, encouraging repeat visits and direct purchases.
• Focus on User Experience:
  Invest in fast, mobile-optimized websites with simple checkout flows and responsive support to compete with marketplace convenience.
• Use WooCommerce if You Prefer Flexibility:
  Many Malaysian established sellers appreciate WooCommerce for its deep customization, SEO capabilities, and control over hosting and data.
• Maintain Marketplace Sales Smartly:
  Continue leveraging Shopee and Lazada for new customer acquisition, but systematically shift repeat buyers and loyal customers to your website, reducing fees and building direct relationships.
• Streamline Operations:
  Prepare for greater responsibility in customer service and fulfillment as you grow your owned channels. This might mean hiring or training staff, or working with third-party logistics (3PL) providers to maintain service quality.

Final Thoughts

Building your owned e-commerce site—whether on WooCommerce, Shopify, SiteGiant, or EasyStore—is no longer optional; it’s essential. Especially for sellers facing rising marketplace fees, owning your brand’s digital home empowers you to control profits, customer relationships, and your business future.

If you’re ready to take control of your online business by building a professional, fully owned e-commerce website, Solbright Digital Services specializes in creating customized WooCommerce sites tailored to Malaysian sellers’ needs. Whether you’re a new seller looking to start strong or an established business aiming to pivot away from rising marketplace fees, we can help you design, develop, and launch a site that puts you in the driver’s seat.