Lazada and Shopee are now two of the largest and most popular e-commerce marketplaces in Malaysia. As such, some of the most commonly asked questions I get from people who want to sell on marketplaces are:
"Should I sell on Lazada, or Shopee?"
"Which platform should I sell on?"
"What are the fees like on each platform?"
To help my readers answer this question in more details, I've decided to compile this quick article to give you an overview of each e-commerce marketplace as well as the similarities and difference between them.
Lazada launched in 2012 by Rocket Internet as one of the fastest growing e-commerce marketplaces in Malaysia.
May 2019 Statistics
21.87million sessions (SimilarWeb)
#44 most popular app in Malaysia (SimilarWeb)
Pros of Selling on Lazada
Cons of Selling on Lazada
Shopee launched by Sea Group (formerly Garena) as a mobile-first e-commerce marketplace in Malaysia in 2015.
May 2019 Statistics
22.95m sessions (SimilarWeb)
#20 most popular app in Malaysia (SimilarWeb)
Lazada and Shopee: 5 Ways They are Alike
Free to list
You can create a seller account for free on both Shopee and Lazada and start selling right away. There aren't any registration or annual fees.
Right now, Lazada and Shopee doesn't charge commissions on any sales made on the platform. Other than a 1% payment fee, you get to keep all profits you make without having to give the marketplace a cut.
Although there is no sales commissions, both Shopee and Lazada charge a payment fee for transactions made on the platform.
Large amount of traffic
Lazada and Shopee are currently two of the largest e-commerce marketplaces in Malaysia. If you want to expose your listings to a large traffic, these two marketplaces are your best bet.
No cross-border sales using Malaysian seller account
Although both Lazada and Shopee have websites in countries outside Malaysia, unfortunately you won't be able to sell in those countries if you have a seller account in Malaysia.
Instead, if you want to sell on Lazada Singapore, for instance, you'll need to incorporate a Singapore company.
Lazada and Shopee: 5 Ways They are Different
Shopee is mobile-first, Lazada is desktop first
Shopee launched in 2015 as a mobile-first e-commerce marketplace, taking advantage of the increasingly mobile first behaviours of Malaysian shoppers.
Lazada, on the other hand, started as a desktop marketplace, struggling to perfect its seller app, which remains buggy.
Shopee is open to both individual and corporate sellers, Lazada is only open for corporate sellers
Although Lazada used to be open to individual and corporate sellers, now only SSM registered sellers with corporate bank accounts can sell on the platform. On the other hand, both individual and corporate sellers can freely sell on Shopee.
Staff accounts on Lazada, single account on Shopee
Shopee is built for the single seller, without the team in mind. Lazada, on the other hand, allows you to create staff accounts. If you have a big team, you can give each of your staff a role specific account.
Shipping is just better on Shopee than Lazada
Shopee offers a lot of free or discounted shipping programs right now, but Lazada doesn't offer any kind of shipping program. Sellers have to create their own shipping offers.
On top of that, Shopee's shipping process is pretty straightforward, whereas for Lazada, sellers are often overcharged for shipping, eating into their profit margins.
Return process on Shopee is simpler than Lazada
If you have a dispute with your buyer on Shopee, the process is streamlined and fast. But on Lazada, things can get complicated. Lazada has attempted to solve this problem using Direct Return to Merchant (DRTM), but only time will tell if more improvements will be made.
Verdict: Which One Should You Sell On?
Now that you've taken a look at each platform in more detail, which one should you sell on?
Personally, I would say sell on both. It's free to list anyway, so if you think you can handle operations for two sales channels, then go ahead.
Do note that you'll need to adopt different strategies on each platform.
Let me know: does this help answer your questions about the similarities and differences between selling on Shopee and Lazada? If not, let me know what other questions you have in the comments below.
Get to know more about selling on Shopee and Lazada using my guides:
How to Sell on Lazada Malaysia
live chat support is available on Shopee now
Is that so? From my dashboard, I can only see a green chat button which is for communicating with customers, but not between seller and Shopee. Help page also does not have live chat. Please clarify where do you find this feature so I can check?
And also FBS (Fulfilled by Shopee) is available now… I think this article is in a serious need for an update… JS.
While I appreciate your comment, there isn’t much I can do to ensure it’s always up to date to the minute since Shopee and Lazada are in a competitive space and are constantly rolling out changes on a daily basis. We can only update this on a periodical basis once all the major changes are rolled out.
You can only treat most of the free information you find online as a reference. That’s what I expect from free information unless I pay for it. If you wish, you may start your own site on Shopee and Lazada and invest time in keeping it up to date… JS. Cheers!
Go to ‘My Shop’ in Shopee app, then tap on Help Center.. scroll down to see Chat Now! option.
Good luck ????
Thanks for the info! Will update this article accordingly.
Most welcome ????????
oh thank you so much! good article & easy to understand. very helpful 😀
You’re welcome! All the best! 🙂
– Lu Wee
i am selling from china brand drop shipping on shoppe but sales very less
Thanks for sharing your experience
Hi Lu Wee, very good information for a person like me who wish to start to sell something online. One question which will greatly help me is :
Do I need to add the shipping cost into my selling price? Is Lazada or Shopee automatically add the shipping cost (based on weight) on top of my selling price?
In short, when customer place an order, he has to pay for sell price + shipping price (determined by Lazada or Shopee)?
Hope to hear from you.
Thanks for your kind compliments Steven.
No, you don’t add the shipping cost into your selling price. Shipping cost will be calculated separately based on your shipping 3PL and customer location. The only time when you might want to consider shipping cost as part of your pricing is if you opt to offer free shipping to your customers.
Hope this helps!
I have refund on SHOPEE took morethan 2 months not yet return until now. for me shopee not good. the seller mention product on Malaysia and i choose this seller because FULLFILLED BY SHOPEE and I trust because fullfilled but i was wrong. I order 11 August 2021 and till 21 September 2021 till now not solve the issue, i email already shoppe keep promises after failed to ship automatically refund but i was not true the schedule keep rescheduling the shipment till not cannot refund.
Thanks for sharing your experience, Raffy!