Lazada/Shopee Seller Fees: 15% Commission + 2% Payment = 17% of Revenue Gone
Seller on Lazada Malaysia: selling product at SGD 100, COGS SGD 60 (40% gross margin). Lazada commission 15% = SGD 15. Payment processor fee 2% = SGD 2. Shipping cost (seller-paid on deals) SGD 10. Net profit: SGD 100 - SGD 60 - SGD 15 - SGD 2 - SGD 10 = SGD 13 (13% margin). vs Own website: SGD 100 - SGD 60 - SGD 3 (payment processor) - SGD 8 (shipping) = SGD 29 (29% margin). Lazada margin is 44% lower than own channel.
Marketplace Fee Structure (ASEAN)#
Lazada Thailand: 12-15% commission depending on category (electronics higher). Shopee Malaysia: 8-12% commission. Commission + payment processor (2-3%) + shipping subsidy (0-5%) = total cost 15-25% of revenue. Most sellers ignore these hidden costs.
The Margin Erosion Problem#
Product 40% gross margin looks good. After marketplace fees (17%) = 23% margin left. Need 10% operating cost (staff, rent, utilities) = only 13% net profit. Compare: own website, same 40% gross margin, 5% cost of sales (payment + fulfillment) = 35% net profit. Marketplace is 2.7x less profitable.
(1) New product testing (low upfront cost, test market fit).
When Marketplaces Make Sense#
(1) New product testing (low upfront cost, test market fit). (2) Clearance inventory (better to get 13% margin than 0%). (3) Brand building (exposure/reviews worth margin sacrifice). (4) Low-touch operations (marketplace handles some customer service). Avoid: as primary sales channel if net margin <15%.
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AskBiz Channel Profitability#
Tracks profit by channel. "Your revenue: 60% Lazada (SGD 600K), 30% own website (SGD 300K), 10% Shopee (SGD 100K). Net margin: Lazada 13%, website 28%, Shopee 15%. Blended margin: 17%. If you moved 20% Lazada volume to own website: new blended margin 19.5% (+ SGD 15K annual profit). Investment: website ads SGD 5K/month. Payback: 2 months."
- Seller on Lazada Malaysia: selling product at SGD 100, COGS SGD 60 (40% gross margin).
- Lazada commission 15% = SGD 15.
- Payment processor fee 2% = SGD 2.
People also ask
Should I sell on multiple marketplaces?
Yes for reach, but not equally. Primary: own website (best margin). Secondary: marketplace with highest demand in your category (usually Lazada or Shopee, varies by country).
How do I improve marketplace profitability?
Negotiate: commit to high volume, ask for reduced commission (5-10% vs 15%). Most platforms negotiate for sellers >SGD 50K monthly.
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Analyze Marketplace Profitability (Optimize Channel Mix)
AskBiz tracks profit by channel (Lazada/Shopee/own website). Recommends channel mix. Margin optimization. Try free.
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