Filipino online sellers are starting to feel the burden of rising marketplace fees in the Philippines. Shopee and Lazada have both introduced a ₱5 order processing fee on top of their existing fees, and while TikTok Shop hasn’t joined in yet, it already takes a 5% cut on every sale.
At first glance, marketplaces seem cheap and convenient—but the hidden costs tell a different story.
On the other hand, owning a website comes with upfront expenses, but in the long run, it can save sellers more money and give them greater control.
So what's the bottomline?
Is it better to sell on a marketplace or run your own eCommerce website in the Philippines?
Top 5 Cost Differences
1. Hidden Marketplace Costs
Marketplaces make money by charging sellers a mix of fees:
- Shopee: 2%–5% commission, 2% transaction fee, service program charges, and now a new ₱5 order processing fee.
- Lazada: 1%–4% commission, 2% transaction fee, plus the ₱5 order processing fee.
- TikTok Shop: 5% flat commission per item (no ₱5 fee—for now).
These fees may look small on paper, but stacked together, they eat away at margins. Sellers don’t always realize how much they’re losing until they calculate their yearly expenses.
2. The Real Cost of Shopee and Lazada’s ₱5 Order Processing Fee
₱5 may not sound like much, but over hundreds or thousands of orders, it adds up fast.
👉 Example: A seller with 1,000 orders pays ₱5,000 extra just in order processing fees—on top of commissions and transaction fees.
For small businesses that rely on tight profit margins, this fee alone could mean the difference between breaking even and losing money. TikTok Shop hasn’t implemented it yet, but sellers know it could follow the same path as Shopee and Lazada anytime.
3. What It Costs to Own a Website
Owning a website is different. You don’t pay per-order fees—just predictable, fixed yearly expenses:
- Domain: Around ₱1,000/year
- Hosting: ₱2,000–₱4,000/year for basic plans
- SSL Certificate: Often included in hosting
That’s about ₱3,000–5,000/year total, no matter how many orders you fulfill. Whether you sell 100 or 10,000 products, your cost doesn’t scale with volume.
4. Side-by-Side Cost Comparison
👉 With 1,000 orders at ₱500 each, sellers spend ₱20,000–₱25,000+ on marketplace fees in the Philippines versus just ₱3,000–₱5,000 for a website.
5. Long-Term ROI: Why Websites Save You More
Marketplaces offer instant visibility, but they also hold sellers hostage to sudden fee changes. By contrast, owning a website provides more control and independence:
- Lower costs as you scale — expenses don’t rise with each order.
- Full control of your brand — design your store your way.
- Direct customer relationship — build loyalty, collect insights, and personalize experiences easier than marketplaces that keep buyers behind their platform.
- Freedom from fee hikes — you won’t be caught off guard by surprise charges like the ₱5 order fee.
Simply put: the more you grow, the more cost-efficient your website becomes compared to staying dependent on marketplaces.
Marketplace Fees vs. Owning a Website FAQs
What is the Shopee and Lazada ₱5 order processing fee?
It’s a newly introduced added charge applied to every completed order, on top of existing commissions and transaction fees. For 1,000 orders, that’s ₱5,000 in extra costs.
Is owning a website really cheaper than selling on marketplaces?
Yes. While you pay ₱3,000–₱5,000 yearly for hosting and a domain, marketplaces can take ₱20,000–₱25,000+ for the same number of orders.
How much does it cost to run an eCommerce website in the Philippines?
A basic website setup costs ₱3,000–₱5,000 per year in subscription fees. This makes websites more affordable and predictable, especially for SMEs.
Final Thoughts
Marketplaces like Shopee, Lazada, and TikTok Shop make it easy to start selling, but the hidden costs start taking a heavy toll. In contrast, owning an eCommerce website in the Philippines empowers you to save money, build your brand, and secure your business against future fee increases.
If you’re serious about long-term growth, your own website is the smarter investment.
Prosperna, Your Partner to eCommerce Success
Prosperna is an all-in-one AI-powered eCommerce platform for SMEs, entrepreneurs and digital creators. Our mission is to empower 1 million businesses with simple and affordable eCommerce software with the power of AI.
In fact, we are so passionate about helping small-to-medium sized businesses, entrepreneurs and content creators that we’re giving you a free account forever!
Want to create your online store?
Create your FREE-forever Prosperna account.
Comments
Loading comments...