As the end of the year approaches, major e-commerce platforms are launching new policies to boost year-end promotions. However, a new fee rate adjustment policy on Shopee’s Philippines site has left many sellers feeling “under great pressure.” This time, Shopee has made several adjustments to commission rates, including raising rates for certain product categories and optimizing basic services. What exactly are these changes, and what impact will they have? Today, let’s take a closer look.

Image source: Internet

New Policy Adjustment: Rate Increase, FSS Integrated into Basic Services

Starting January 1, 2025, Shopee Philippines will adjust the basic service fee rates, focusing on products from overseas warehouse independent stores and third-party warehouse independent stores. According to the new rate table:

Commission rates for electronics, fast-moving consumer goods, and lifestyle products will be increased, with lifestyle products seeing the largest adjustment. The SLS order rate for PFF (multi-shipping from one store) will be unified at 10.08%, and the SLS order discount policy for FSS (Free Shipping Scheme) sellers will also be canceled.

Details of commission fee adjustments for overseas and third-party warehouses. Image source: Shopee

The FSS activity service fee discounts previously enjoyed by overseas warehouses and cross-border stores (such as 5.60%, 3.36%) will no longer be retained. Instead, the FSS Free Shipping Scheme will be incorporated into basic services, calculated at 4.48% including VAT on shipping fees, with a maximum charge of 100 pesos per item.

Shopee Free Shipping Scheme will be incorporated into platform basic services. Image source: Shopee

Considerations Behind the Policy: Improving Consumer Shopping Experience

The core of this adjustment is to enhance the consumer shopping experience. The FSS (Free Shipping Scheme), as a signature service of the Shopee platform, has greatly attracted consumers through free shipping and cashback offers, boosting the platform’s overall conversion rate. Integrating the FSS activity into basic services not only makes rate calculations more transparent but also allows more products to gain higher exposure through unified labeling.

In fact, Shopee has made similar adjustments in Southeast Asian markets such as the Philippines, Singapore, and Malaysia in recent years. For example, Shopee Singapore and Malaysia have already integrated FSS and CCB activities into basic services, and the rate adjustment on the Philippines site clearly continues this trend. The aim is to strengthen the FSS activity to attract more consumers to stay on the platform and drive order growth.

FSS integrated into platform seller basic services on Malaysia site. Image source: Shopee

Consumers Benefit, Sellers Under Pressure

For buyers, this policy is clearly good news. The FSS activity allows buyers to enjoy a more transparent and convenient shopping experience on the platform, directly enhancing the platform’s competitiveness. Data shows that during the 12.12 promotion in December 2024, Shopee’s cross-border orders surged eightfold within just two hours of the event’s start, and new sellers’ sales soared 36 times. These impressive results are strongly supported by services such as the Free Shipping Scheme.

However, for sellers on the platform, the situation is much more complex. The rate adjustment means increased operating costs, especially for sellers of lifestyle products who will face greater pressure. In addition, the cancellation of the FSS discount policy and the shift to a VAT-inclusive shipping fee model also pose challenges to the profits of small and medium-sized sellers.

For sellers, this is not the first time they have experienced such adjustments. Every time Shopee adjusts its rates, it is under the banner of “improving buyer experience,” but sellers end up bearing more costs. While this strategy strengthens the platform’s competitiveness, it also intensifies competition among sellers, forcing them to constantly seek breakthroughs in cost control and service quality.

Shopee 12.12 promotion kicks off with a bang. Image source: Shopee

Shopee’s Challenges and Opportunities in the Southeast Asian E-commerce Landscape

Shopee’s latest rate adjustment reflects the platform’s ongoing strategy to deepen its presence in the Southeast Asian market. As the leader in Southeast Asian e-commerce, Shopee continues to attract consumers and consolidate its market position through FSS activities and commission optimization. But for sellers, this is undoubtedly a brand-new challenge.

Sellers need to find more flexible coping strategies under higher cost pressures; meanwhile, Shopee also needs to strike a balance between seller interests and platform development, avoiding the loss of quality sellers due to overly frequent rate adjustments.

In this traffic battle in Southeast Asian e-commerce, Shopee has secured its position through policy innovation, while every seller needs to find the right direction under the new rules in order to keep moving forward in this fiercely competitive market.