Effective on August 1, 2020 Shopee sellers will see their sales with a small cut to revenue as the platform imposes a 2% fee for every successful transaction, in addition to value added tax (VAT).
As per Shopee, a ‘seller transaction fee’ is described as the handling fee based on the expense of carrying out a payment transaction. Transaction fee is not necessarily an entirely new concept in the platform with it already in place since last year, albeit at a lower 1.5% rate and without the added VAT.
The announcement does not come without its qualms, however, particularly among small-time sellers. An anonymous seller in the platform claims that those who sell at a low markup would be the ones affected the most, insinuating the need to augment their prices similar to retail to offset losses on profit.
Another merchant also shared the same plight highlighting the need to sell at a lower price in order to generate sales. However, one that they will be forced to invalidate in response to the newly revisioned transaction fee computation.