Every time the e-commerce landscape in Malaysia experiences a familiar pattern: a surge in sales during the festive season, followed by a noticeable slowdown as shopping momentum fades. This month is no exception. As traffic drops, so do sales, and the impact is being felt across all major platforms. Notably, Lazada has been hit the hardest, with traffic and engagement declining more sharply than its competitors. However, industry data suggests that the true low point—the “e-commerce winter”—typically arrives in July and August, before a rebound in September as year-end campaigns ramp up.
Platform Performance: Shopee, Lazada, and TikTok Shop
Shopee: Mixed Signals and Fee Pressures
- Sales Drop Post-Raya: Shopee’s overall sales have declined as expected after the festive rush. A surprising trend is the sharp drop in Shopee Choice Global, which has fallen below the RM1 million mark. This may be due to higher cross-border fees, prompting some sellers to shift to local setups for better margins.
- Shopee Choice Local: In contrast, Shopee Choice Local is gaining traction, likely because local sellers are attracting more attention and trust from Malaysian buyers.
- Fee Increases: Shopee is introducing a new Platform Support Fee of RM0.50 per order (plus 8% SST) starting 16 July 2025, on top of recent commission hikes. This will especially impact low-priced products, but sellers can mitigate the effect by setting a minimum order quantity (MOQ) or by increasing average order value (AOV) through smart voucher strategies.
Lazada: Facing the Steepest Decline
- Traffic and Sales Down: Lazada’s traffic has dropped by over 10% month-on-month, with engagement and sales following suit presumably. The platform is struggling to retain casual browsers, though loyal customers remain. The lack of accessible data makes it challenging to analyze Lazada’s internal strategies, but the trend is clear: Lazada is under pressure to innovate or risk further decline.
TikTok Shop: Resilient and Strategic
- Seasonal Focus: TikTok Shop continues to focus on seasonal campaigns and has managed to maintain sales above the RM1 billion mark, a significant improvement over last year when post-Raya sales often dipped below this threshold. Their strategy of leveraging local creators and festive campaigns has paid off, keeping engagement high even as other platforms cool off.
Adapting to Higher Fees: Practical Tips for Sellers
With rising platform fees, especially on Shopee, sellers need to be proactive to protect their margins:
- Set a Minimum Order Quantity (MOQ): For low-priced items, require buyers to purchase in multiples to offset the per-order fee.
- Boost Average Order Value (AOV): Analyze your store’s current average spend, then create vouchers that encourage buyers to spend just above that amount. For example, if your AOV is RM18, offer a voucher for RM19 minimum spend. Test and refine these offers to see what drives the best results.
- Bundle and Upsell: Offer product bundles or upsell complementary items to increase basket size.
- Optimize Listings: Improve product titles, descriptions, and images to enhance conversion rates, as traffic alone is no longer enough to drive sales.
Mindset: Adapt, Don’t Just Complain
While it’s easy to feel frustrated by rising costs and platform changes, the most successful sellers are those who adapt their strategies rather than resist change. Focus on what you can control: your pricing, promotions, and customer experience. Monitor your metrics, test new approaches, and stay agile. The e-commerce winter is temporary, and those who innovate now will be best positioned for the rebound in September and beyond.
This report is powered by robust data analytics from three industry leaders: Mobduos for Shopee, Kalodata for TikTok and website traffic from SEMRush. But before we dive into the exciting findings, a word of caution: while our data provides valuable insights, always remember that there may be slight variations from real-time statistics. Get a free trial to Shopee and Tiktok Bigdata and let us know if you would like a promo code to purchase when you find them essential .
