📉 Rising Costs & Algorithm Shifts: Why Sellers Are Diversifying.

Shopee, once celebrated by sellers for its low fees, user-friendly interface, and high traffic, is now facing growing frustration. Marketplace sellers across Southeast Asia and beyond are sounding the alarm over rising fees, opaque algorithm updates, and shrinking returns on investment. Here’s what’s happening—and what it might mean for your brand.

💸 1. New Platform Support Fee in Malaysia

From July 16, 2025, Shopee Malaysia will impose a RM0.50 platform support fee (plus 8% SST) on every successfully delivered order, targeting experienced sellers who’ve posted their first product over 120 days ago or completed 100+ orders

While Shopee justifies it as necessary for maintaining platform improvements, many sellers view this as an unexpected cost-per-unit that eats directly into tight margins—especially for high-volume, low-margin products.

🏷️ 2. Commission & Transaction Fee Increases

Shopee is also raising commissions and transaction fees across multiple markets:

  • Cross-border seller commission in Malaysia climbed from 16.2% to 18.36%, and in Singapore fees are now a flat 14%, dwarfing local seller fees
  • A Reddit thread reports in Singapore, non-FBS (non-Fulfilled-by-Shopee) sellers saw commission rise from 5.45% to 7.63%, transaction fees from 2.18% to 3.27%, and an increase in shipping fees.

In Vietnam, platforms like Shopee and TikTok Shop doubled to tripled seller fee structures, compounding pressure on SMBs.

🔍 3. Algorithm Changes Hitting Visibility

Beyond fees, sellers are dismayed at sudden changes to Shopee’s search and recommendation algorithms, which dramatically impact product visibility and sales—often without warning.

One South-East Asian blog explains that algorithm updates frequently shift search rankings, forcing constant re-optimization.

On Reddit users complain of bizarre, irrelevant product suggestions and unpredictable listing placements—with one moderator noting:

“The whole ‘algorithm is based on your search’ is just not true anymore. They are randomly promoting garbage now.” reddit.com

These shifts can devastate store performance overnight, disrupting sellers’ ability to budget and market effectively.

😣 4. Sellers in Distress: Costs Up, Support Down

A Vietnamese report highlights the combined effect: while platforms raise fees, they’re reducing promotions and tightening support policies, leaving sellers struggling to compete

In Malaysia, similar voices are emerging—especially among SMEs, which rely on Shopee for almost all their online presence. Many say they’re forced to raise prices or remove items from Shopee just to stay in the black.

🧭 What Sellers Should Do Next

1. Reassess your cost structure

  • Assemble a complete fee breakdown: commissions + transaction + support fee + shipping.
  • Calculate true profit margins before deciding on pricing or promotions.

2. Diversify your channels

  • Don’t depend solely on Shopee. Use TikTok Shop, Lazada, or your own DTC store to hedge risks.
  • Maintain your own sales and distribution stack, even if it’s smaller.

3. Sharpen your SEO & product relevance

  • Stay proactive with listing optimisation after algorithm shifts.
  • Focus on high-converting SKUs, strong reviews, and complete listings.

4. Monitor platform changes closely

  • Join seller communities (e.g., Reddit, Facebook, Telegram) to share intelligence and precede shifts
  • Re-evaluate your return on investment monthly.

✅ Final Word: Short-Term Pain, or Long-Term Shift?

Shopee’s rising fees and algorithm volatility mark a pivotal moment for online sellers. Platforms may still offer reach—but only if brands can absorb shrinking margins and unpredictable visibility.

Those who prepare, diversify, and adapt will survive. Those who rely on a single platform risk being squeezed—and finding their margins disappear overnight.

🚀 Why Now Is the Time to Go DTC — with the Right Partner

For brand owners, this is a clear signal: it’s time to take back control. By building your own DTC (Direct-to-Consumer) channel, you can reclaim your customer relationships, protect your margins, and create a branded experience that platforms can’t match. But to succeed in DTC, your logistics must be just as seamless.

That’s where SnT Global Logistics comes in.

SnT helps brands go DTC with confidence—offering tech-enabled fulfillment, multi-channel inventory visibility, fast delivery, and value-added services like returns and branded packaging. Whether you’re launching a Shopify store, scaling TikTok Shop sales, or serving retail partners, SnT gives you the backend power to compete with the giants—without losing your identity.

It’s time to future-proof your business. Shopee was the starting point. DTC is the next move.