Selling on Shopee, Lazada & TikTok Shop: An SME Guide
E-commerce marketplaces like Shopee, Lazada and TikTok Shop let you put your products in front of millions of Malaysian shoppers from day one — no website, no traffic of your own required. The trade-off is that the platform takes a cut of every sale, sets the rules, and largely owns the customer relationship. Used well, marketplaces are a powerful, low-risk way to start selling online. Here is how they work and how to keep your margin intact.
Why start on a marketplace
Understand the real cost of selling
Marketplaces look free until you read the deductions. Typically expect some mix of:
Add these up — they can total a meaningful slice of each order — and build them into your pricing before you list, so a sale never loses money. Fees and programmes change, so confirm the current rates in each platform's seller centre.
Pick your platform (or run more than one)
Many SMEs list on two or three at once to spread reach, using the same product catalogue and inventory.
Set up to win
Don't forget the compliance basics
Selling online is still running a business: keep proper records, watch whether your turnover crosses the SST threshold, and meet e-invoicing obligations as they roll out. Marketplace payouts and fees all need to land in your books.
Marketplace vs your own store
Marketplaces give reach but rent you the customer. Your own store (or social selling) gives you the customer relationship, the data and a better margin — but you must bring your own traffic through digital marketing. The smart play for many SMEs is both: use marketplaces to get discovered, then bring repeat buyers to a channel you own. If going digital is on your roadmap, browse grants that support e-commerce adoption.
Looking for funding?
Browse verified Malaysian SME grants and check what you may qualify for.
Frequently asked questions
Is it free to sell on Shopee and Lazada?
Opening a shop is generally free, but you pay when you sell — typically a commission or transaction fee, a payment-processing fee, and optional charges for ads and free-shipping programmes. These deductions can add up to a meaningful share of each order, so build them into your price before you list.
Which marketplace is best for a small business in Malaysia?
It depends on your product. Shopee offers huge campaign-driven reach across everyday goods, Lazada is often seen as slightly more premium and brand-friendly, and TikTok Shop suits products that demo well through short video and livestreams. Many SMEs list on two or three at once using the same catalogue to spread their reach.
What do I need to start selling on a Malaysian marketplace?
You typically need to register and verify your shop with your SSM business registration and a business bank account for payouts, then list products with clear photos, keyword-rich titles and accurate stock. Fast shipping and good service to earn high ratings matter a lot, because ratings strongly influence how your listings rank.
Should I sell on a marketplace or build my own online store?
Marketplaces give you instant reach but take a cut and largely own the customer relationship; your own store gives you better margins, the customer data and direct relationships, but you must bring your own traffic. Many SMEs do both — get discovered on marketplaces, then bring repeat buyers to a channel they own.
Do I pay tax on marketplace sales?
Yes — income from online sales is taxable like any other business income, so keep proper records of payouts and fees. Watch whether your turnover crosses the SST registration threshold, and meet e-invoicing rules as they apply to you. Confirm your current obligations with LHDN or a licensed tax agent.
Sources:Shopee Seller Centre MalaysiaLazada Seller Center MalaysiaTikTok Shop Seller
General information only — schemes, rules and requirements change. Always follow the official source(s) and confirm the latest details before acting.
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