latest Shopee and Lazada, two leading e-commerce marketplaces in Thailand, have announced an increase in their selling fees, effective from October 2023 onwards. This announcement of an increase in commission fees on sales is the third adjustment in two years.
Effective October 15, 2023, the Shopee fee charged to non-department store vendors will increase from 3% to 4% (excluding VAT) for general merchandise. For fashion items, the fee will increase to 5% from 4% (excluding VAT). This represents a twofold increase in the commission fee compared to April.
The fee charged to department stores for electronic goods will increase to 5% from 4% (excluding VAT). For non-electronic goods categories, the fee will increase to 7% from 6% (excluding VAT).
While Lazada will increase the LazMall marketplace fees for general merchandise and fashion from 6% to 7% effective October 1, 2023, the fees for electronics will increase from 4% to 5%.
The increase in commission fees for Shopee and Lazada reflects a significant shift in Thailand's leading e-commerce marketplace, potentially leading to doubling the prices of various products. Conversely, the fee increase is not surprising, as this pricing strategy is commonly used by major global e-commerce companies.
However, this commission adjustment is another fee increase within just 7 months, as Shopee and Lazada only increased their fees on April 1st, 2023. Therefore, this fee adjustment represents an increase of 50% – 150%.
Furthermore, in Thailand's leading e-commerce market, which covers over 40 million users, there are only two major service providers: Shopee and Lazada That's it, or rather, they've created a market monopoly. This allows the two leaders to declare changes as they please, and this seems to exacerbate the situation for online merchants, as there's no one to control them.
Naturally, this fee increase will most significantly impact small and medium-sized online merchants. Opening any business already involves high operating costs, and the increased commission fees from e-commerce platforms will further double those costs. Conversely, online merchants who already sell high-priced goods will be least affected, as the fee increase is relatively small compared to their selling price.
However, while some sellers may not be significantly affected now, in the future, if e-commerce platforms adjust their commission fees, they could be impacted. Therefore, online merchants, businesses of all sizes, and small and large brands should research and start using alternative platforms, such as TikTok Shop, which has a fee of 4% and is one of the most popular platforms right now.
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Furthermore, having your own website helps diversify future risks and improves both UX (User Experience) and UI (User Interface), focusing on creating a user-friendly and aesthetically pleasing website to increase customer satisfaction and make purchasing easier.
For anyone interested in creating their own website but doesn't know where to start, HelloAds is happy to provide consultation to help all Thai entrepreneurs build sustainable brands and marketing strategies. Because we are... Digital Marketing Agency Understanding and responsive to all your needs, you can rest assured that we will always be by your side throughout your growth.
We offer website development services, including responsive websites, e-commerce websites, landing pages, and much more, to help your brand create effective sales channels. We focus on creating engaging content and promoting your products and services through these platforms.
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