Thai online merchants are bracing for another wave of commission fee increases from the country's two dominant e-commerce platforms, Shopee and Lazada, marking the latest in a series of adjustments that began last year.
Commission Hikes: A Growing Trend
Lazada has announced that starting October 1, commission rates for LazMall stores will increase across multiple categories. Electronics will see a 5% commission rate, while consumer goods, fashion products, and general merchandise will face a 7% rate.
Shopee will follow suit on October 15, raising fees for non-mall sellers from 4.28% to 5.35%. This represents Shopee's second commission increase in just seven months, with cumulative fee hikes reaching 150% since the initial adjustment.
The coordinated timing of these increases mirrors previous patterns. In April, both platforms simultaneously raised Thai marketplace commissions from 2.14% to between 3.21% and 4.28%, with some categories experiencing 100% increases. TikTok Shop further compounded seller costs by introducing 4% commissions plus 3% transaction fees last December.
Market Pressures Drive Platform Strategies
While both platforms cite "sustained service improvements" as justification, industry observers recognize these moves as profitability measures amid intensifying Southeast Asian e-commerce competition.
The entry of new players has disrupted the market. Temu launched in the Philippines last month before expanding to Malaysia, while TikTok Shop announced billions in regional investment commitments. TikTok Shop Thailand already attracts 3.1 million monthly seller visits despite its recent entry.
Shopee parent company Sea Limited has declared "full combat mode" in response. Both incumbents previously relied on loss-leading subsidies to drive growth, making current profitability-focused adjustments an expected phase.
Thailand presents a strategic location for these adjustments. As Shopee's first profitable market (generating 21.7 billion baht revenue in 2022) and Lazada's initial profit center, the duopoly controls 95% of Thai e-commerce. With relatively lenient antitrust oversight and commission rates still below other regional markets, Thailand offers ideal conditions for incremental fee increases.
Seller Strategies: Adaptation and Diversification
Merchants face difficult choices between absorbing costs or risking price-sensitive customers. Experts recommend multipronged approaches:
- Cost Optimization: Bulk purchasing, logistics streamlining, inventory management improvements, and automation can preserve margins without quality compromises.
- Value Enhancement: Localized product adaptations, niche specialization, and premium offerings create differentiation beyond price competition.
- Channel Diversification: While Shopee (51% market share) and Lazada (44%) remain essential, testing TikTok Shop, Temu, or independent channels mitigates platform dependency risks.
The commission increases reflect both the challenges and opportunities of Thailand's maturing e-commerce landscape. While new platforms present alternatives, their long-term viability remains unproven. Successful sellers will balance platform leverage with strategic flexibility, using operational excellence to offset rising marketplace costs.