Best eCommerce platforms for Malaysian sellers: Fees comparison

For Malaysian businesses seeking to expand their reach, selling on online marketplaces offers a potentially cost-effective strategy to connect with both local and international customers. Considering that global retail e-commerce sales reached an estimated six trillion U.S. dollars in 2024, with projections indicating a 31 percent growth to nearly eight trillion dollars by 2028,¹ it's clear that establishing a presence on these platforms is no longer optional but a vital pathway to a significant customer base, including the increasingly digital-savvy Malaysian market. Ecommerce platforms provide established infrastructure and access to a vast user base, streamlining the process of setting up an online storefront. However, it's crucial for sellers to understand that marketplace fees can significantly impact their overall profitability. Therefore, taking the time to evaluate marketplace fees and compare commission structures before choosing a platform is a vital step towards maximizing earnings.

This guide will break down the various platform fees, commissions, and potential additional costs associated with popular ecommerce platforms. We will provide Malaysian sellers with a clear understanding of the financial implications of selling on different marketplaces, ultimately helping them make informed decisions and select the best ecommerce platform for their specific needs and products. By carefully considering these factors, Malaysian entrepreneurs can position themselves for success in the dynamic world of online sales.

Understanding marketplace fees & commissions

Before delving into specific platforms, it's essential for sellers to understand what marketplace fees and commissions are, as they directly influence profit margins. The fees charged by an eCommerce marketplace are not a minor detail but a significant factor that can determine the profitability of your online venture. Different marketplaces employ varying commission structures, meaning the percentage deducted from each sale can differ substantially. For sellers operating on tight margins, even a small difference in commission rates can have a considerable impact on net earnings. Furthermore, the presence or absence of other fees, such as listing or subscription charges, can further alter the overall cost of doing business on a particular platform. Therefore, a careful comparison of these structures is paramount for Malaysian sellers aiming to optimize their profitability.

Types of fees to consider:

• Listing fees: These are charges incurred for each product you add or list on the marketplace. Some platforms may offer a certain number of free listings, while others charge per listing or after a certain threshold is reached. 
• Transaction fees: These are fees deducted from each successful sale you make on the marketplace. Transaction fees are often calculated as a percentage of the total sale price, including shipping costs. The percentage can vary depending on the product category and the platform itself. 
• Commission Fees: On platforms like Lazada and Shopee, sellers often encounter a commission fee in addition to a transaction fee. Commission fees are similar to transaction fees in that they represent a percentage of the final sale price that the marketplace retains for connecting the seller with the buyer and enabling the transaction. The specific rate for these fees is highly dependent on the product category, with variations often seen between high-value or niche items and everyday goods.
• Payment processing fees: These are charges levied by the payment gateway integrated with the marketplace. These fees are typically a small percentage of the transaction value plus a fixed fee per transaction. While often less significant than transaction fees, they still contribute to the overall cost of selling.
• Fulfillment & shipping fees: Some marketplaces offer their own fulfillment and shipping services, such as Fulfillment by Amazon (FBA) or similar programs by Shopee and Lazada. While these services can streamline logistics, they come with associated fees for storage, picking, packing, and shipping. Malaysian sellers considering these options need to carefully assess these added expenses against the benefits of outsourced logistics.
• Subscription fees: Certain marketplaces offer different seller plans, some of which involve monthly or annual subscription fees. These plans often come with benefits such as lower commission rates, access to advanced tools, or increased listing allowances. Sellers should evaluate whether the benefits of a subscription plan outweigh the recurring costs based on their sales volume and business needs.

Marketplace fee comparison for Malaysian sellers

To help Malaysian sellers navigate the diverse landscape of online marketplaces, we've compiled a comparison of fees and commissions on some of the most popular platforms for general sellers. Keep in mind that specific fees and commission rates can vary based on product category, seller level, and any promotional offers. It's always recommended to check with the platform for the most up-to-date information.

General marketplaces (Multi-category platforms)

• Amazon: Amazon offers several benefits to its sellers. One of its key advantages is that it offers access to a huge consumer base, with hundreds of millions of worldwide active customer accounts and more than 200 million paid Prime members globally. This makes it the largest e-commerce site in the world. It’s particularly attractive for first-time sellers, as their listing fees are low and you are only required to fork out a cut if you make a sale. The checks Amazon puts in place also reassure buyers that you are a credible company selling quality goods.
• Lazada: Having established itself as a leading ecommerce platform in Southeast Asia, Lazada boasts a vast and diverse customer base across the region, making it an attractive option for Malaysian sellers looking to reach both local and neighboring markets. Lazada provides sellers with a range of tools and programs designed to facilitate sales and growth, including marketing support and various seller features. With its focus on the Southeast Asian market, Lazada offers a localized experience and infrastructure tailored to the region's specific needs and consumer behaviors, potentially offering a more regionally focused audience compared to global giants.
• Shopee: Similarly, Shopee has rapidly grown into one of the dominant ecommerce platforms in Southeast Asia. Known for its strong mobile-first approach and high engagement among local users, it offers a user-friendly interface and a wide array of features designed to enhance the buying and selling experience. Shopee frequently runs promotional campaigns and offers various seller tools to boost visibility and drive sales. Its strong presence in the Malaysian market and focus on community engagement can provide Malaysian sellers with access to a large and active local customer base, making it a key platform to consider for reaching consumers effectively.
• eBay: A list of online marketplaces is not complete without eBay. As one of the first companies that connected buyers and sellers online starting in 1995, eBay has now become a household name all around the world. “In the third quarter of 2024, eBay had approximately 133 million active buyers worldwide”, notes Statista.⁷ Those who choose to sell on eBay also have the flexibility to set their own shipping policies, return policies, and shipping charges. Hence, those who are hawking their wares can go with a third-party logistics provider they feel most comfortable with.

Niche marketplaces (Specialized product platforms)

When exploring niche marketplaces like Etsy, Tmall, and Carousell, Malaysian sellers will encounter distinct fee structures that often differ significantly from the general multi-category platforms. The types of fees, their calculation, and their impact on profitability can vary considerably from one specialized platform to another.

For instance, Etsy, a popular marketplace for handmade, vintage, and craft supplies, primarily utilizes a listing fee model, charging sellers 0.20 USD for each item listed. Additionally, it levies a transaction fee of 6.5% on the total sale price, which includes the listing price plus any charges for delivery and gift wrapping. For sellers in Malaysia, Etsy also applies a payment processing fee, which is typically 4.5% of the total order value plus a fixed fee of 2 MYR.⁷

In contrast, Tmall, a leading platform in China, operates with a different model. Instead of per-item listing fees, Tmall often requires sellers to pay a substantial security deposit upon opening a store. Furthermore, Tmall charges an annual technical service fee, the amount of which varies based on the store type and product category. Transaction fees, or commission fees, on Tmall typically range from around 2% to 5% of the sale price, again depending on the specific product category. For Malaysian businesses selling cross-border into China via Tmall, cross-border transaction fees may also apply.⁸

Carousell, known for its focus on secondhand goods, collectibles, and various other categories, including beauty and personal care, employs yet another fee structure. While offering a quota of free listings each month (the exact number depends on the seller type and category), Carousell charges a transaction fee of 5% specifically for sales within the beauty and personal care categories.⁹ Fees for other categories may differ or be absent.

Given these diverse approaches, it is crucial for Malaysian business owners considering selling on niche marketplaces to conduct thorough research into the specific fee structures of each platform relevant to their products. Always refer to their official websites for the most up-to-date and accurate information on their fees, as these can change over time. Understanding these nuances is key to accurately assessing the profitability and suitability of each specialized platform for your Malaysian eCommerce venture.

How to choose the most profitable marketplace

Selecting the right ecommerce platform for your Malaysian business isn't solely about identifying the one with the lowest fees. Profitability is a multifaceted equation that involves several key considerations, and a crucial aspect of this decision-making process is understanding how to evaluate marketplace fees effectively.

• Compare fees vs. revenue potential: While understanding the fees on the different platforms like Shoppee, Lazada, and Carousell is crucial, you must also factor in the potential revenue each marketplace offers. A platform with slightly higher commission rates but a significantly larger and more engaged audience might ultimately yield greater profits. Also consider the built-in marketing tools and support offered by each platform, as these can contribute to increased visibility and sales, offsetting higher fees.
• Consider fulfillment & shipping Costs: If you plan to utilize the marketplace's fulfillment and shipping services (like FBA or similar programs), carefully assess the associated expenses. These fulfillment & shipping fees can vary based on storage duration, handling, and shipping distances. While these services can simplify your logistics, they can also eat into your profits if not managed effectively. Factor these added expenses into your overall cost analysis.
• Look at competition & pricing: The level of competition on a particular ecommerce platform can significantly influence your pricing strategy and ultimately your profitability. Platforms with a large number of sellers in your niche might require you to lower your prices to remain competitive, potentially squeezing your margins. Research the competitive landscape on each platform you're considering and understand the prevailing price points for products similar to yours.
• Evaluate target audience: The most profitable marketplace is often the one where your ideal customers are actively shopping. Consider the demographics, preferences, and buying habits of the users on each ecommerce platform. A niche marketplace, despite a smaller overall audience, might be more profitable if it attracts a highly targeted segment that is more likely to purchase your specific products.

Optimizing costs & maximizing profits

Once you've chosen your marketplace(s), there are several strategies Malaysian sellers can employ to optimize costs and maximize profits:

• Bundle shipping & fulfillment with third-party logistics providers: Explore the option of partnering with third-party logistics (3PL) providers for your fulfillment & shipping. In some cases, especially for international shipments or specialized handling, 3PLs can offer more competitive rates and tailored solutions compared to the ecommerce platform’s in-house options.
• Use multi-channel selling to reach customers across several platforms: Don't limit yourself to a single ecommerce platform. Utilizing a multi-channel selling strategy allows you to tap into different audience segments and diversify your revenue streams. While managing multiple platforms requires effort, the increased reach can significantly boost your overall sales and profitability.
• Leverage marketing promotions & discounts offered by marketplaces to increase visibility: Take advantage of the various marketing tools, promotions, and discounts offered by the marketplaces themselves. Participating in these initiatives can increase your product visibility, attract more customers, and ultimately drive sales. Factor the cost of these promotions into your profitability calculations.
• Monitor & adjust pricing regularly based on marketplace trends: The ecommerce platform landscape is dynamic. Regularly monitor pricing trends for your products and your competitors' offerings on each marketplace. Be prepared to adjust your pricing strategy to remain competitive while maintaining healthy profit margins.

Why fast shipping matters for marketplace sellers

In the fast-paced world of online shopping, Malaysian customers have come to expect fast and reliable delivery. This expectation has a direct impact on your marketplace ratings and conversion rates. Sellers who consistently offer efficient fulfillment and timely delivery are more likely to receive positive reviews, which in turn builds trust and encourages future purchases.

Furthermore, many ecommerce platforms prioritize sellers with efficient fulfillment in their search rankings. Marketplaces want to provide a positive experience for their users, and fast shipping is a key component of that. Therefore, optimizing your shipping process can not only satisfy your customers but also improve your visibility on the platform.

For Malaysian sellers looking to expand their global reach, DHL Express offers seamless marketplace integration. This helps sellers efficiently manage their global shipments, ensuring timely and reliable international delivery.

Key takeaways: Selecting your ideal Malaysian eCommerce Platform

Choosing the right ecommerce platform for your Malaysian business is a critical decision that requires a careful balance between the platform fee, the potential audience reach, and overall profitability. Remember to thoroughly evaluate marketplace fees, taking into account not just the commission rates but also any hidden costs such as fulfillment & shipping fees. 

For sellers looking to expand internationally, partnering with a reliable international logistics provider like DHL Express can be instrumental in achieving fast, secure global shipping and enhancing your competitive standing.