Platform Strategy

Shopee vs. Lazada: Which Platform is More Profitable in 2025?

Feb 02, 2025
9 min read

For e-commerce sellers in Southeast Asia (Singapore, Malaysia, Philippines, Thailand, Vietnam, Indonesia), the battle is always between the two giants: Shopee and Lazada.

To the buyer, they look identical. To the seller, they are completely different financial ecosystems.

In 2025, fee hikes have changed the game. A product that is profitable on Lazada might lose money on Shopee due to hidden "Service Fees."

In this guide, we will dissect the fee structures of both platforms so you can calculate your true net profit.


The 3 Layers of Fees

Both platforms charge fees in three distinct layers. If you only calculate the "Commission," you are underestimating your costs by 50%.

1. Commission Fee

This is the fee for using the platform to sell your goods.

  • Shopee: Uses a tiered system. Approx 4.0% - 5.0% + VAT. Fashion categories are often charged higher than Electronics.
  • Lazada: Approx 3.0% - 4.0% + VAT for Marketplace sellers. LazMall sellers pay higher commissions but get more visibility.

2. Transaction (Payment) Fee

This covers the cost of the payment gateway (Credit Card, E-Wallet, COD processing).

  • Shopee: 2.12% (of the Total amount paid by buyer, including shipping).
  • Lazada: 2.12% (Standardized across most regions).

3. Service Fees (The "Program" Trap)

This is where your margin dies. Both platforms push you to join "Free Shipping" and "Cashback" programs.

Shopee FSS (Free Shipping Special):
Cost: 5.3% extra fee on every order.
Benefit: Buyers get free shipping vouchers.

Shopee CCB (Coin Cashback):
Cost: 3.2% extra fee.
Benefit: Buyers earn Shopee Coins.

The Math: If you join both FSS and CCB on Shopee, your total fees (Commission + Transaction + Service) can hit 13-15%.

Platform Comparison: Who Wins?

Feature Shopee Lazada
Total Fees (Basic) ~7% ~6%
Total Fees (Max Programs) ~15% ~12%
Traffic Type Gen Z, Impulse Buy, Fashion Higher Income, Electronics, Brands
Shipping Speed Fast (Standard Express) Fast (LEX)

The "Double Shipping" Mistake

A common mistake new sellers make is joining the Free Shipping Program (paying the 5% fee) AND manually lowering their product price to subsidize shipping.

Do not do this.

If you pay the 5% Service Fee, the platform covers the shipping cost for the customer (up to a cap). Let the platform subsidy do the work. If you also lower your price, you are paying for shipping twice.

Strategy: Which One Should You Choose?

For Low Margin Items (Under $10)

Be very careful with Shopee's FSS program. A 5% fee on a low-margin item can wipe out your profit. Calculate if the increase in sales volume justifies the fee.

For High Ticket Items (Over $100)

Lazada often wins here. Their commission cap and lower overall fees mean you keep more profit on expensive electronics or furniture.

The Multi-Channel Approach

Ideally, you should be on both. Use a synchronization tool (like BigSeller or Ginee) to sync inventory.

Pricing Tip: You can price your items slightly higher on Shopee to cover the higher fees, and slightly lower on Lazada. Savvy customers will compare, but most customers are loyal to one app ecosystem.

FAQ

Can I opt out of the Free Shipping Program?

Yes. You can opt-out using a form in the Seller Help Center. However, doing so removes the "Free Shipping" badge from your products, which will significantly lower your click-through rate (CTR) and conversion rate. It is a trade-off.

What is the VAT impact?

In countries like Malaysia (SST) and Philippines (VAT), the government charges tax on the platform fees, not just the product.
Example: If the Shopee Fee is $1.00, you actually pay $1.00 + 8% SST = $1.08. MarginMate calculators factor this in.

Do fees differ by country?

Yes. Shopee Indonesia fees are different from Shopee Thailand. Always check the specific rate card for your local market.

Conclusion

Don't sell blindly.

A 5% fee doesn't sound like much, but if your net margin is only 15%, that fee just took 33% of your profit.

Action Step: Open the MarginMate Calculator. Select "Shopee." Input your selling price and toggle "Free Shipping Program" ON. See how much money is left. If it's too low, you need to raise prices or leave the program.

Fee Calculator

Don't guess. Input your category and program choices to see the exact fee percentage you will pay.

Open Calculator