High e-commerce fees squeeze margins


As of November, 10.2 million small and medium enterprises (SMEs) in Indonesia have gone digital as the pandemic pushed businesses to move online.

JAKARTA: Many small food and beverage companies feel their margins are being squeezed by high commission fees on e-commerce and food delivery platforms, putting their businesses in a tough spot, as mobility restrictions also compel them to digitalise to survive.

For Marwah Devianty, co-owner of homemade snack brand Mamichin, closing her online store on Shopee was a no-brainer as she paid higher fees and received lower profit margins compared with running her own webstore. The 26-year-old said that Shopee imposed a more than 3% fee for each successful transaction, higher than the 1% to 2% on other online selling channels.

Subscribe or renew your subscriptions to win prizes worth up to RM68,000!

Monthly Plan

RM13.90/month

Annual Plan

RM12.33/month

Billed as RM148.00/year

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!

e-commerce , commission fees , digital

   

Next In Business News

Ringgit seen trading at 4.42-4.44 with upside bias against US dollar next week
Robust earnings drive Public Bank’s profit optimism
Struggling Tan Chong faces long and rough journey
QI Group makes Cimier tick
Unleashing innovation in pet wellness
Equities pricey, bonds resilient
Bludiamond, shining bright
PRIMED FOR PRECISION
Will the SEZ work this time?
Finesse in a cuppa

Others Also Read