Operating costs on e-commerce platforms remain a critical concern for sellers. As profit margins shrink, how should businesses adjust their strategies to meet new challenges? Shopee, Southeast Asia's leading e-commerce platform, is implementing policy changes that will directly affect millions of merchants. Starting February 2026, Shopee will impose a uniform 5% technology service fee on sellers across Singapore, Malaysia, Thailand, and Vietnam. This move will significantly impact sellers' cost structures. This article examines the policy details, analyzes its potential effects, and explores strategies sellers can adopt to maintain competitiveness.
I. Details of Shopee's Technology Service Fee Implementation
Effective February 2, 2026, Shopee will charge cross-border Chinese sellers a 5% technology service fee on each completed order's sales value, automatically deducted from settlement amounts. The fee applies to all fulfillment methods—cross-border direct shipping, Shopee's official warehouses, and third-party logistics—and includes value-added tax. This universal application means all sellers will feel the policy's impact regardless of their shipping preferences.
1.1 Definition and Purpose of the Fee
Shopee explains the technology service fee will fund:
- Platform maintenance: Ensuring system stability and minimizing technical issues
- Technical upgrades: Implementing new technologies and optimizing platform features
- Service support: Enhancing customer service and merchant assistance
1.2 Fee Calculation Method
The straightforward calculation deducts 5% of each completed order's sales value. For example, a $100 order would incur a $5 fee, inclusive of VAT with no additional tax obligations.
1.3 Collection Timing
The fee deducts automatically upon order completion, with detailed records available in sellers' Shopee backends.
1.4 Special Circumstances
- Cancellations/refunds: Fees adjust proportionally for canceled or refunded orders
- Post-completion refunds: No fee reimbursement for refunds after order completion
II. Analysis of the Fee's Impact on Sellers
2.1 Profit Margin Compression
The 5% fee will substantially squeeze margins, particularly for low-margin categories like apparel and small goods. A previously 10% net profit order might dwindle to 3-5% after fees and post-sale costs.
2.2 Intensified Price Competition
Sellers may raise prices to offset costs, potentially reducing competitiveness in price-sensitive Southeast Asian markets.
2.3 Increased Return Risks
Price hikes could elevate return rates as consumers become more selective, especially for variable-quality products.
2.4 Higher Operational Costs
Sellers must invest additional resources to recalibrate pricing strategies, streamline operations, and reassess cost structures.
III. Strategic Responses for Sellers
3.1 Cost Structure Optimization
- Streamline supply chains through competitive sourcing and logistics improvements
- Enhance operational efficiency via automation and process optimization
- Implement precision operations to boost conversion and reduce returns
3.2 Pricing Strategy Adjustments
- Adopt differentiated pricing by product and market segment
- Emphasize value-added marketing to reduce price sensitivity
- Leverage promotional campaigns to maintain sales volume
3.3 Product Portfolio Refinement
- Increase high-margin product offerings
- Develop differentiated products to avoid price wars
- Identify emerging product opportunities through market research
3.4 Channel Diversification
- Expand to alternative platforms like Lazada or TikTok Shop
- Develop independent storefronts for brand control
- Utilize social commerce channels
3.5 Monitoring Policy Changes
Sellers should vigilantly track platform policy updates regarding fees, commissions, and logistics.
IV. Additional Shopee Fee Adjustments
4.1 Vietnam VAT Reduction
Effective December 2025, Vietnam's service fee VAT decreases from 10% to 8% through 2026, reducing operational costs.
4.2 Philippines Commission Changes
Starting January 2026, Philippine sellers face revised fees:
- 4% for "Super Discount" orders (max 200 PHP), plus 1% during peak promotions
- 3.36% for coin-discounted and livestream orders (max 100 PHP)
4.3 Malaysia Commission Increase
February 2026 brings unspecified commission hikes for Malaysian sellers, necessitating pricing adjustments.
V. Conclusion
Shopee's technology service fee presents both challenges and opportunities for sellers. Through strategic cost management, pricing optimization, product refinement, and channel diversification, merchants can navigate this change successfully. Continuous adaptation to platform policies remains essential for sustained competitiveness in Southeast Asia's dynamic e-commerce landscape.