Shopee raises seller transaction fee to keep business 'sustainable'

Jessica Fenol, ABS-CBN News

Posted at Aug 04 2020 01:17 PM

Shopee raises seller transaction fee to keep business 'sustainable' 1
Shopee's logo at the regional headquarters in Singapore taken on October 17, 2019. Sofia Monica Regalado, ABS-CBN News/File

MANILA - E-commerce platform Shopee said Tuesday it raised its transaction or handling fee charged on all successful transactions to keep the business "sustainable." 

The transaction fee was increased to 2 percent from 1.5 percent on Aug. 1, Shopee said. The fee is imposed in all successful transactions via its payment services.

"Shopee transaction fee is a handling fee Shopee charges sellers on all successful transactions via Shopee's payment services such as credit card and debit card, cash on delivery payments, ShopeePay, and others," it said.

The recent fee increase is not related to the on-going digital transaction tax, the platform said.

"This move aims to create a healthy e-commerce ecosystem that sustainably benefits both buyers and sellers in the long-run and facilitates seamless payment transactions," Shopee told ABS-CBN News.

"Shopee's goal has always been to provide the best user experience, and we want to build a sustainable business through strong local user engagement," it added.

Shopee said it would continue updating its e-commerce platform with new features and to offer attractive promotions and campaigns.

The House Committee on Ways and Means on July 29 approved the proposed additional 12 percent VAT on all transactions done online, covering foreign companies such as Netflix, Google and Facebook. The measure is yet to be approved and enacted into law.

Albay Rep. Joey Salceda earlier proposed a bill seeking additional taxes on online transactions as Filipinos pivot to digital for their payments, groceries and other essential needs during the COVID-19 lockdowns.

Metro Manila, Rizal, Cavite, Bulacan and Laguna were placed under modified enhanced community quarantine until Aug. 18 to give the healthcare system some "breathing space" as cases surge.

During the period public transport is prohibited while logistics and delivery services catering to online shopping are still allowed to operate.