Selling on Shopee, Lazada, or TikTok Shop seems like the easiest way to start an online business in the Philippines. After all, these platforms have millions of buyers, built-in marketing, and ready-to-use logistics.
But here’s the truth: while marketplaces help you reach customers fast, the hidden costs of selling on marketplaces in the Philippines can quickly eat up your profits.
If you’re a seller relying solely on these platforms, you might be making less than you think.
So it’s very important to know all the Shopee fees in the Philippines so that there are no surprises.
Let’s break it down.
7 Hidden Costs Every Seller Faces
1. Commission Fees
Every time you sell, Shopee, Lazada, and TikTok Shop take a cut.
- Shopee: Sellers pay around 2%–5% commission depending on product category.
- Lazada: Similar commission structures as Shopee, the Lazada fees in the Philippines also have extra charges for certain categories.
- TikTok Shop: Charges around 5% commission per sale.
The tricky part?
These fees eat directly into your profit margin. For example, if you’re selling a product with only a 10% profit margin, losing 5% to commission means half of your earnings are gone before you even account for shipping, ads, or packaging.
2. Transaction & Payment Processing Fees
On top of commission, there’s also a transaction fee or payment processing fee—usually 2%–2.24%.
This covers things such as:
- Payment gateway charges
- Refund handling
- Digital wallet fees
For sellers with 1,000 orders a month, even a small ₱5 per order fee adds up to ₱5,000 lost profit.
3. Advertising & Boosting Costs
Standing out in a crowded marketplace is difficult.
At times, marketplaces push sellers to use paid ads (like Shopee Ads or TikTok Ads) to rank higher in search results. Without ads, your products can get buried under competitors.
Many sellers can spend as much as 10–30% of their revenue just to maintain visibility.
4. Shipping Subsidies & Logistics
Customers love “free shipping”, but guess who shoulders part of that cost?
You!
Sometimes, marketplaces require sellers to participate in shipping promotions or cover a portion of the logistics fee. When you also add packaging and fulfillment costs, your per-order profit margin drops even further.
5. Penalties & Hidden Charges
Sellers can get charged for:
- Late order processing
- Cancellations
- Policy violations
Even a small mistake can result in penalties that reduce your hard-earned income.
6. Platform Dependency Risks
Marketplaces control:
- Algorithms (which decide who sees your products)
- Policies (which can change overnight)
- Seller ratings (which directly affect your sales)
One sudden policy change—or a competitor reporting your shop—can freeze your account or drastically reduce sales.
Shopee’s policies and fee structures in the Philippines have become increasingly complex and challenging:
- Fee overload: Between April 2024 and mid-2025, Shopee raised commission rates (up to 6–6.5%), slapped on a 1% BIR withholding tax, layered in an 8% sales tax, and then added a new ₱5 fixed processing fee starting September 2025. Shipping fees and commission discounts tied to fast-fulfillment programs have fluctuated—and perks like Fast Shipping are being axed.
- Return-shipping costs: Sellers now bear the brunt of both FSF and RSF when buyers win refunds—creating substantial losses per return.
- Fulfillment pressure: A new mandate requires sellers to ship orders placed before 2 PM on the same day, increasing operational strain, particularly for made-to-order or bulk products.
- Growing resentment among sellers: Many reports combined take rates of 15–20%, express that they're “forced” into costly programs like FSS, and feel there's little margin left to sustain their businesses.
7. Limited Branding & Customer Ownership
When you sell on Shopee, Lazada, or TikTok Shop, you don’t own your customer list.
That means:
- You can’t build a long-term relationship with buyers.
- You can’t remarket directly via email or SMS.
- Your store looks like everyone else’s—no unique branding.
At the end of the day, you’re building the marketplace’s brand, not yours.
Why This Matters for Filipino Sellers
It is true thatmarketplaces are great for initial exposure, but comes with long-term hidden costs of selling on marketplaces in the Philippines.
Your business will always be at the mercy of their rules and fees if you solely rely on them.
That’s why more sellers in the Philippines are shifting to direct-to-consumer (DTC) models by creating their own online stores.
With platforms like Prosperna, you:
- Pay zero commission fees
- Own your customer data
- Control your branding and pricing
- Continue tosell on Shopee, Lazada, or TikTok Shop—but on your own terms
FAQs about Selling on Marketplaces in the Philippines
Which marketplace charges the highest fees?
It depends on the category, but TikTok Shop often charges higher commissions (around 5%) compared to Shopee fees in the Philippines as well as Lazada.
Can I sell on multiple marketplaces at the same time?
Yes, many sellers do—but this also means more fees, more logistics, and more policies to manage.
How can I reduce marketplace costs?
Use marketplaces for visibility but build your own store for long-term growth. This way, you own your profits and customers.
Final Thoughts
Marketplace fees in the Philippines may look manageable when viewed individually, but once you factor in commissions, transaction charges, ads, and logistics costs, they significantly cut into profit margins. Many sellers find themselves working harder without seeing their income grow.
That’s why building your own online store is one of the smartest moves you can make. With Prosperna, you keep more of your hard-earned revenue, gain full control of your brand, and create a sustainable eCommerce business without worrying about hidden costs eating into your profits.
Instead of having to constantly adjust to marketplace rule changes, take control of your growth.
Prosperna, Your Partner to eCommerce Success
Prosperna is an all-in-one AI-powered eCommerce platform for SMBs, entrepreneurs, and content creators. Our mission is to empower 1 million businesses with simple and affordable software powered by AI.
We’re so passionate about helping small businesses succeed that we’re giving you full access to our powerful tools for 14 days, absolutely free. No commitments—just pure growth for your store.
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