Selling on TikTok Shop, Shopee, or Lazada in the Philippines seems incredibly lucrative until you receive your first payout. Suddenly, your ₱1,000 item results in a net payout of only ₱750. Where did the rest of the money go?
If you are an online seller, failing to properly compute your e-commerce fees can quickly lead to bankruptcy. Let's break down the hidden costs of selling online.
1. The Transaction Fee (2.24%)
Both Shopee and Lazada charge a standard Transaction Fee of 2.24% (inclusive of VAT). This fee covers the payment gateway costs (credit cards, GCash, COD).
The Trap: This fee is charged on the Total Order Amount, which includes the Shipping Fee! If a buyer pays ₱1,000 for your item and ₱100 for shipping, the 2.24% fee is applied to the full ₱1,100, not just your ₱1,000 item.
2. The Commission Fee (~3% to 5%)
On top of the transaction fee, the platforms charge a Commission Fee just for letting you use their marketplace.
- Shopee: Ranges from 3% to 5% depending on your product category (e.g., Electronics might be lower, while Fashion is higher).
- Lazada: Generally hovers around 3% to 5% as well.
- TikTok Shop: Averages 4% to 5% for standard sellers.
Note: Shopee Mall and LazMall sellers have completely different (and usually higher) commission structures.
3. The Opt-In Program Fees (FSS & CCB)
If you've noticed the "Free Shipping" or "Cashback" badges on your competitor's products, it's because they opted into the platform's promotional programs. But these badges aren't free!
- Free Shipping Special (FSS): Shopee charges an additional ~5.6% of your item price if you join this program.
- Coins Cashback (CCB): Shopee charges an additional ~3.36%.
- TikTok Affiliate Program: If you let creators sell for you, you will likely pay a massive 10% to 15% commission fee directly to the creator!
If you join both shipping and cashback programs, or rely heavily on TikTok Affiliates, you are giving up nearly 10% to 15% of your gross revenue on top of the base commission and transaction fees!
The Solution: Price Accordingly
If you want to maintain a 20% profit margin, you must price your products higher to absorb these platform fees. Do not blindly copy your competitor's pricing if they are a direct manufacturer.
Take the guesswork out of your pricing strategy. Use our Free TikTok, Shopee & Lazada Fee Calculator to see your exact net payout before you list an item!