Shopee raises seller fees above rivals' to bolster margins

Sea's Shopee has raised the commissions it charges merchants in many core markets by about a third since the start of the year, underscoring the South-east Asia e-commerce leader's renewed attempt to boost its bottom line.

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The moves, which have not previously been reported, reflect Sea's growing confidence it can retain merchants in key markets, despite competition from TikTok, Temu and Lazada.

Its commission now exceeds its rivals', with its fee in Thailand rising to as much as 13 per cent in July from 10 per cent previously, according to its website. TikTok charges as much as 8 per cent and Lazada up to 10 per cent, according to a JPMorgan report.

The commissions are also known as take rates and are levied as a percentage of a product's sale or transaction price.

The fee hikes show that Singapore-based Sea feels secure in its own efforts to become a crucial partner to merchants, helped by the e-commerce pioneer's broad user base and well-established delivery services. Yet the strategy is risky PDD Holdings' Temu and Byte Dance's TikTok have quickly gained users, and sellers could jump ship if they deem Sea's services too pricey.