The challenge is clear: platform selling is getting more expensive, and sellers can no longer rely on old playbooks. To survive and thrive, you need to adopt smarter, more diversified strategies.
 

Why Marketplace Fees Are Increasing

Marketplace fees are going up because e-commerce platforms are facing higher costs in several areas, and they need to cover these expenses to keep their businesses running.

1. More Competition Means Higher Spending

With more e-commerce platforms competing for customers, these platforms spend a lot on marketing, supporting sellers, and offering discounts or incentives to attract buyers. This increased spending leads to higher costs, which platforms often recover by charging sellers higher fees.

2. Rising Logistics Costs

The costs of delivering products like fuel, transportation, warehousing, and courier services have gone up. Since delivery is a big part of e-commerce, platforms adjust their fees to cover these higher logistics expenses.

3. Government Tax Changes

Malaysia has increased the Sales and Service Tax (SST) from 6% to 8%, and it now applies to more digital services, including e-commerce platforms. This means platforms have to pay more tax, which adds to their operating costs.

Because of these factors, platforms have made changes such as Shopee introducing a Platform Support Fee and Lazada raising commission rates across various product categories to manage these rising costs.

The Impact on E-Commerce Sellers and Consumers

When marketplace fees go up, sellers have to pay more to sell their products. This means their profit margin is smaller. To make up for this, many sellers raise their prices. But higher prices can push away customers who are looking for bargains.

If fees keep increasing over time, smaller sellers might find it hard to stay in business because they can’t afford the costs. This could lead to bigger sellers dominating the market, since they benefit from lower costs per item when selling in large volumes.
 

How E-Commerce Sellers in Malaysia Can Stay Competitive

Even though marketplace fees are going up, sellers can still protect their profits and grow their business by being smart and adaptable.

1. Diversify Sales Channels

Don’t depend on just one marketplace where you’re vulnerable to fee hikes and algorithm changes. Spread sales across multiple platforms and even create your own webstore to gain more control over pricing, promotions, and customer relationships.

2. Optimise Ad Spend

Stop wasting money on untargeted ads. Focus on high-conversion campaigns, remarketing past buyers, and using customer data to increase how much each customer spends over time.

3. Build Brand Loyalty

Create experiences and perks that make customers want to return, even if your prices aren’t the lowest. This includes personalisation, rewards programs, and exclusive offers.

4. Sell Value, Not Just Price

Position your products based on quality, trust, and service, not just the cheapest price. Leverage customer reviews, user-generated content, and a smooth omnichannel experience to stand out.

5. Improve Operational Efficiency

Use tools and automation to cut unnecessary costs, manage inventory better, and handle customer messages faster across multiple channels.

How BigSeller Helps You Manage Rising Costs and Complexity

With marketplace fees increasing and e-commerce operations becoming more demanding, having the right tools to streamline your business is essential.

BigSeller offers a free, unified platform that connects with Shopee, Lazada, TikTok Shop, and over 16 other marketplaces. It allows you to manage product listings, orders, inventory, and warehouse tasks all in one place, eliminating the hassle of switching between multiple systems.
 

Automation features in BigSeller reduce the time spent on manual tasks like batch processing orders and updating product information, helping you cut down costs and avoid errors. Real-time sales and inventory insights let you keep track of your business performance and adjust quickly to changes.

Try BigSeller for free now and see how easier it can be to manage your online stores and protect your margins.

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