How Much Does Shopee Charge Sellers in the Philippines?

Marketplaces have grown in popularity as a means for customers to make purchases on the internet. Due to the ease and vast variety of products available for purchase on this eCommerce platform, the growth rate of this platform is rapidly expanding. In this essay, we will discuss the Shopee seller charge, including what it is, what it is defined as, and everything else you need to know.

First and foremost, Shopee, a Southeast Asian company, was founded in Singapore in 2015 and has since expanded its operations to Malaysia, Thailand, Taiwan, Indonesia, Vietnam, and the Philippines, among other countries. Shopee receives a total of 197.8 million visits every month. Shopee is the premier eCommerce platform in Southeast Asia and Taiwan, and it is dedicated to bringing convenience to the people of Greater Southeast Asia.

Does Shopee Take Commission?

New commission rates on Shopee Marketplace and Shopee Mall sales will be implemented beginning on July 1, 2021, according to the company.

Local Marketplace

All transactions involving sellers on the Marketplace will be subject to a one-percent commission fee. Sellers on our marketplace who participate in our Free Shipping Special (FSS) and/or Coins Cashback (CCB) programs are exempt from paying this commission fee at the time of publication. Sellers of Free Trials are excluded from this category.

It will take six months from the seller’s initial listing on the marketplace before the seller will be charged. Remember that new sellers may be charged for orders placed within the first two days of their business because of system constraints. If you cancel your order before it is shipped out, you will receive a refund.

Shopee Mall

Shopee Mall Brands will see an increase in their commission rates, which will be adjusted in accordance with the table below. In accordance with industry standards, we have set commission prices that will allow us to continue operating in a financially viable manner. 

The commission fee is established on the basis of the final cost of products paid by the buyer after deducting any seller-sponsored discounts or vouchers. Already, the price includes value added tax (VAT).

See also: How to Delete Account in Shopee?

How Much Percent Does Shopee Take from Sellers?

Here are sample calculations to help you see how much percent is commission.

Calculation of the Buyer’s Payment

400 Philippine Pesos (Gross cost of goods) – 20 Philippine Pesos (seller sponsored discount) – 10 Philippine Pesos (seller sponsored voucher) 270PHP minus 10PHP (redeemed Shopee coins*) = 270 PHP (buyer payment for goods).

Calculation of the Commission Fee

Price of products: 400PHP (gross cost of goods) minus 20PHP (seller sponsored discount) minus 10PHP (seller sponsored voucher) = 370PHP (cost of goods subject to commission charge) x 1 percent commission fee. 3.70PHP is charged as a commission fee.

Commission fees will not be subtracted from the cost of products when Shopee-sponsored rebates, vouchers, and discounts are used to the purchase of the goods. As part of our ongoing efforts to expand both our seller and buyer communities, for the month of July, we will be conducting sitewide free shipping and upsized cashback promotions.

See also: How to be a Reseller in Shopee?

How Much Does it Cost to Sell on Shopee?

Selling on Shopee Mall incurs a commission fee, which sellers must pay in order to continue to benefit from the services and benefits of the marketplace. Shopee will begin charging new commission fees on Shopee Mall transactions on July 1, 2021, with the first transaction taking place on July 1, 2021.

Our present mall commission rates of 2 percent will be changed in accordance with the table below, which may be seen here. These commission payments are in line with industry standards and will allow us to continue to operate in a financially sound manner in the future.

Does Seller Pay for Shipping on Shopee?

For Shopee logistics partners, shipping fees have been predetermined. Sellers must ensure that the weight and dimensions of their items are accurate, as the shipping price will be calculated based on the actual weight of the items or the volumetric weight of the package (including the external packaging), whichever is greater, when calculating the shipping fee.

Related: How to Apply as a Shopee Delivery Partner?

FAQs About Shopee Seller Fees

What is a Seller Transaction Fee, and how does it work?

• The Seller transaction fee is a handling fee that is used to defray the costs of the payment transactions associated with an order placed with the seller. For any successful transaction involving Shopee’s payment services that occurs after August 1, Shopee will collect a fee of 2 percent (+VAT) of the total amount paid by the buyer.

What is the formula for calculating the Seller Transaction Fee?

• For further information on how to compute Shopee’s Seller Transaction Fee, please go to this page or speak with your respective Relationship Management Team.

The fee is imposed on a variety of merchants. Is it applicable to all Sellers or just some?

• Sellers who complete successful order transactions are subject to a transaction fee charged by Shopee.

Does it apply to all orders or just some of them?

• Yes, it applies to all orders placed on Shopee, with the exception of orders placed on Shopee that were:

• Buyers have canceled their orders.
• Sellers have canceled the order.
• The system automatically cancels the transaction.
• Returned/Refunded

When will the increase in the Seller Transaction Fee come into effect? 

• The increase in our Transaction Fee will take effect on August 1, 2020, and will be retroactive.

Aside from the Seller Transaction Fee, are there any other fees that will be changed?

• By August 1, 2020, the only fee that will change is the Seller Transaction Fee.

What is the purpose of including the Shipping Fee in the Transaction Fee calculation?

• In most cases, the Transaction Fee is based only on the total value of the transaction, which is the sum of the items purchased by the buyer and not the amount credited to the seller.

Will Shopee be responsible for submitting taxes on behalf of sellers?

• No, it is the seller’s responsibility to report their own taxes (including VAT, if applicable) to the Bureau of Internal Revenue.

Is it possible for Shopee to issue VAT invoices to its sellers?

• The company Shopee gives legitimate receipts for all transaction fees that are charged to the customer. However, due to the high amount of transactions currently being processed, we recommend that you coordinate your receipt request with Customer Service or your respective Relationship Manager before submitting it.

Why is VAT included in the computation of my Transaction Fee?

• In accordance with local tax legislation, the Shopee transaction costs are subject to VAT. The VAT levied does not apply to the product sold by Sellers, but rather to the transaction fees levied by Shopee on their behalf.

Ginee is A Good Partner of Shopee

Do you have online stores that are registered on Shopee, but you’re feeling overwhelmed by the management of those stores? Have no fear, Ginee Philippines is here to assist you with everything related to the management of your online stores from a single Ginee dashboard. It will be easier to manage the stores and to enhance sales with Ginee on your team. 

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