More balanced, constructive dialogue on e-commerce fee changes, urges Mamba

New Straits Times

2 days ago

KUALA LUMPUR: The Malaysian Micro Business Association (Mamba) has called for a more balanced and constructive dialogue on the recent fee structure changes by e-commerce platforms.
The platform fee changes, set to take effect on July 16, reportedly include a new 54 sen support fee per order, higher transaction charges and increased commission rates for 'pay later' services.
The association said this issue requires a holistic perspective, one that considers both the sustainability of digital platforms and the competitiveness of local micro, small and medium enterprises (MSMEs).
Its secretary-general Alvin Low Wei Yan said it is important to avoid scare tactics and politicising important conversations that directly affect thousands of local sellers.
"There needs to be room for discussion so that everyone, from sellers to shoppers to platforms, can win," he said in a statement.
While acknowledging that price hikes are never easy, he said current global dynamics, particularly the escalating US-China trade war and imposition of tariffs, may trigger a surge of low-cost Chinese products being redirected into Southeast Asian markets, including Malaysia.
"We are already seeing cheap imports entering the market through new and existing e-commerce platforms targeting consumers in Malaysia, undercutting local sellers and threatening their long-term survival.
"This trend is likely to accelerate in the months ahead, and we must prepare for it strategically," Low said.
He said it is essential for the government and local sellers to work together with platforms that prioritise MSMEs within their ecosystem.
To counter current pressures, he said that platforms must continue investing in infrastructure, tools and services that improve customer satisfaction such as faster delivery, reliable refund processes, better search functions and AI-powered product recommendations.
These improvements make platforms more attractive to buyers, increase traffic and in turn boost visibility and conversion rates for sellers.
"When platforms are seen as trustworthy, convenient and efficient, everyone benefits. Sellers who operate on such platforms stand a better chance of building customer loyalty and driving repeat business," he added.
Low said joint investment from both sellers and platforms is vital.
This is especially with the e-commerce market projected to reach RM67.1 billion (US$14.7 billion) by 2028.
At the same time, Mamba reiterates the significance of balancing the needs of MSMEs with rising customer expectations.
It said the poor buyer experiences due to delays, miscommunication or lack of transparency, have a real and direct impact on seller performance, ratings and returns.
"That's why blanket criticism against the e-commerce platforms may not be helpful.
"Calling for authorities to threaten or punish platforms simply for raising fees is counter-productive and risks undermining the very ecosystem we are trying to strengthen," he added.