21/04/2026
Ecommerce in Malaysia is much more challenging now. We often see sellers online venting about rising commission fees and ad costs on Shopee and Lazada. Why is this happening?😅
The era of marketplaces prioritizing growth over profitability is over. Pre-MCO and during the pandemic peak, the goal was rapid expansion, often fueled by heavy subsidies for sellers. We knew that couldn't last forever. Today, platforms are pivoting toward sustainability and business health.😎
If it’s any consolation, we’ve seen this before with Facebook and Google. Marketplaces naturally favor sellers who contribute to their bottom line. A 'race to the bottom' on pricing provides traffic, but minimal commissions don't meet the platform’s financial goals—which is why we’re seeing extra charges on low-price categories from the marketplaces. 😝
Conversely, sellers who invest in ads and can maintain higher margins are simply more valuable to the ecosystem, because they pay more to the marketplace, like it or not. 🥹
It’s not personal; it’s just business. We’ve are also trying our best to adapt. According to Gemini, only 5% to 10% of ecommerce businesses surviving past the 10-year mark, we’re doing everything to survive till 2028 and still be among the one standing. 💪💪
