E-commerce platform's new fee structure will squeeze sellers, says group
A group of six online sellers have raised the alarm over an e-commerce platform's latest fee structure, warning that the changes — set to come into effect on July 16 - could have serious implications for small businesses across the country.
The revised charges will affect nearly every stage of a seller's operations, including transaction fees, marketplace commissions, platform support costs, withdrawal charges, promotional activity fees, shipping surcharges, and deductions linked to its "pay later' instalment scheme.
E-commerce seller Ricky Mah, who has been in the industry for seven years, said the new structure would increase operating costs by between 18% and 40% for local businesses.
One of the most contentious additions, he said, is a platform support fee amounting to RM0.50 plus 8% SST (RM0.54 per order), which applies to most active sellers — particularly those with listings over 120 days old or more than 100 completed orders.
'This fee, combined with higher transaction charges and increased PayLater commission rates, has sparked serious concern among sellers,' he said.
Mah added that since the start of this year, rising platform fees have already led to higher product prices — with some sellers reporting a 10% to 70% drop in sales, based on internal data.
Catheline Teoh, another e-commerce seller, said local entrepreneurs are not struggling due to poor products or lack of effort, but rather because of an increasingly unbalanced operating environment.
'It's the constant shifts in platform policies and an ecosystem that's becoming harder for local sellers to navigate. We're struggling to survive even on home ground.
'If a buyer simply changes their mind, it's the seller who bears the cost including shipping. That's a huge financial strain.
'It also encourages more impulsive shopping, since buyers know they can easily return items. That's unhealthy for the entire ecosystem,' she said when attending a press conference held at Wisma MCA on Friday (July 11).
She called for a more balanced approach, where sellers are not left shouldering the full responsibility, adding that her sales had dropped 20% since the past few months.
She also said that without timely intervention, the country could become increasingly dependent on foreign brands, compromising its digital sovereignty.
Adding to the growing chorus of concerns, MCA Public Complaints Bureau deputy chief and lawyer Ivan Tan has urged Shopee to delay the roll-out of the new charges.
He said the Domestic Trade and Cost of Living Ministry will be holding a town hall session on July 17 to gather feedback on the review of e-commerce legislation.
'The session is meant to address ongoing concerns about online consumer complaints and to strengthen regulation within the sector,' he said.
'In light of this, the platform should suspend the implementation of the new fees until the necessary consultations have taken place.'
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