All local retailers will soon be impacted by a significant adjustment in commission costs announced by e-commerce retail giant Shopee. The commission charge rate for marketplace vendors will increase from the current 2% to between 2.5% and 4% beginning of January 10, 2023.
Local vendors that are not a part of Shopee Mall are known as marketplace sellers. The updated charges won’t apply to people who sell their goods on Shopee from abroad or via Shopee Mall. Additionally, Marketplace continues to have a policy of not charging commission fees to new e-commerce vendors on its platform and only charges commission fees to sellers who have fulfilled at least 100 orders.
The new prices will vary depending on the cluster, category, and sub-category; for example, some electronics will only be charged a cost of 2.5%, while the fashion category would be charged a rate of 4%. Remember that these rates are exclusive of the 6% SST, which means that certain sellers may be required to pay as much as 4.24%.
It’s interesting to note that the corporation exempts some necessities while charging between 3% and 4% for fast-moving consumer goods (FMCG) products. This comprises fresh and frozen food, bakery supplies, kitchen necessities, and food staples.
Orders placed and completed prior to January 10 will be charged the 2% rate even if they were finished after that date because the new commission fee rates will only apply to orders entered and completed after that date. Of course, in addition to the 2.12% transaction cost and other service charges like the rejected order fee, sellers are also subject to a commission fee.
The updated Marketplace rates are generally still less expensive than the 4% to 6% Shopee charges its official brand or store partners on Shopee Mall. The business argues that the price increase is appropriate since it intends to use the money to expand targeted seller assistance initiatives and chances for exporting abroad.