December 23, 2022
Lazada vs. Shopee: Which is the Better Choice for E-commerce Sellers in Singapore?
As an e-commerce seller in Singapore, you want to choose the best platform to reach potential customers and grow your business. Lazada and Shopee are two of the biggest marketplaces in the country, each offering a wide range of products and a convenient shopping experience for customers. But which one is the better choice for sellers looking to reach a wider audience and increase their sales? In this article, we’ll compare Lazada and Shopee to help you make an informed decision.
One key factor to consider is the size and reach of each marketplace. According to SimilarWeb.com, as of November 2022, Shopee has a traffic share of 61.57% in Singapore, while Lazada has a traffic share of 38.43%. This suggests that Shopee is currently more popular in Singapore than Lazada. Both marketplaces offer a wide range of products and categories, but Shopee may have a larger user base and therefore a larger potential customer base.
Another important factor to consider is the fees that each marketplace charges sellers. On Lazada, sellers are charged a commission fee of 2% on all successfully delivered orders, as well as a 2% payment transaction fee on the amount paid by the customer. All fees are also subjected to 8% GST starting in 2023.
For an order retailing at $100, with shipping fee of $3.98 shared between buyer and seller, the fees will be as below:
Item Retail Price = $100.00
Shipping Fee Paid by Customer = $1.49
Total Paid by Customer = $101.49
Payment Fee = (2% X $101.49) X 8% GST = $2.19
Commission = (2% X $100.00) X 8% GST = $2.16
Shipping Fee Paid By Seller = $2.49
Total Fees = $2.19 + $2.16 + $2.49 = $6.84
Grand Total Credited to Seller = Total Paid by Customer – Total Fees
= $101.49 – $6.84 = $94.65
On Shopee, sellers are charged a commission fee of 2% (before GST) for each order, but this fee is capped at $30 per item for certain categories such as Mobile & Gadgets, Computers & Accessories, Gaming & Consoles, Cameras & Drones, and Home Appliances. For all other categories, there is no cap on the commission fee. Shopee also charges a 2% transaction fee (before GST) on all successful transactions made through all forms of payment, as well as a service fee for participation in certain programmes such as the Coins Cashback Programme and Free Shipping Programme. Shipping fees are also charged to sellers depending on the shipping channels they use. So essentially if you are not part of any additional programmes that requires additional service fees, the fee calculations will be the same as above.
Support for Sellers
In terms of support and resources for sellers, both Lazada and Shopee offer a range of tools and resources to help sellers manage their businesses on their platform. This includes online training and support on how to optimize listings and improve sales, as well as tools to help with inventory and order management.
Overall, while Shopee may have a larger user base in Singapore and potentially more opportunities for sellers to reach customers, there is no harm for sellers to be on both Shopee and Lazada. However, it’s important to keep in mind that being on multiple marketplaces can be time-consuming and may require additional resources to manage inventory and orders. If you’re looking for a more streamlined solution to sell on multiple channels, EMMA could be the right choice for you. With EMMA, you can easily manage your inventory and orders across multiple sales channels, including Shopee and Lazada, all in one place. This can help you save time and resources, and allow you to focus on growing your business. So if you’re a seller looking to sell on both Shopee and Lazada, or even on other platforms, give EMMA a try!