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Can Merchants Survive Online Platform Fees?

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Enterprise Explores

Helping you navigate the ever-changing universe of business, from headlines to the bottom line
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Shoppers are turning to e-commerce platforms for almost everything, from groceries and clothes to furniture and car parts. But is it easy for local merchants to do business on them? Are the platforms helping sellers find customers and fulfil orders, or are sellers being squeezed for every sen? With Chinese platforms now entering the market, what's at stake for local merchants?

Dr Sunny Ooi, Founder and CEO of ClickAsia and President of Internet Alliance Malaysia, and Gary Ng, Co-founder and CEO of modest fashion brand ZUCCA, join us to discuss.

We get into:

  • The fees: How platform fees have climbed, with Shopee's new 5% support fee and Lazada revising commissions three times in under a year, and what a seller is left with after paying them.

  • Beyond fees: What else squeezes sellers, from paying for ads and the pressure to keep livestreaming, to disputes with buyers and having no access to customer data.

  • The China factor: How Pinduoduo, nine months into the market, is affecting local sellers, with one SME association reporting sales drops of up to 30%.

  • The government response: What a regulatory framework for ecommerce platforms should include

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Enterprise Explores

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