How Marketplace Fees Work in the Philippines
A complete guide to Shopee and Lazada seller commissions, payment fees, COD charges, and shipping costs — so you can price your products and actually make money.
Contents
Want to skip the math? Use our free calculator to get exact numbers for your product.
Open Calculator →1. How Marketplace Fees Work
Every time you make a sale on Shopee or Lazada, the platform deducts fees before depositing your payout. These fees fall into three buckets:
- Commission fee — a percentage of your item’s selling price, set by category
- Payment/transaction fee — covers credit card, GCash, and online banking processing
- COD fee (optional) — charged when your buyer pays cash on delivery
On top of those, you bear shipping costs — either absorbed fully or partially offset by buyer-paid shipping at checkout.
Understanding each component lets you set a floor price below which you’re losing money, and a target price that gives you a healthy margin.
2. Commission Rates by Platform & Category
Commission rates in the Philippines vary by product category and seller tier. There are four tiers: Lazada Marketplace, LazMall, Shopee Regular Seller, and Shopee Mall.
Mall and LazMall tiers pay higher commissions in exchange for the official store badge and better search placement.
| Category | Lazada Marketplace | LazMall | Shopee Seller | Shopee Mall |
|---|---|---|---|---|
| Fashion & Accessories | 5.00% | 7.00% | 4.50% | 6.72% |
| Electronics – Mobile | 2.00% | 4.00% | 2.00% | 4.00% |
| Electronics – Other | 3.00% | 5.00% | 3.00% | 5.00% |
| Beauty & Personal Care | 5.00% | 7.00% | 5.00% | 6.72% |
| Health & Wellness | 4.00% | 5.00% | 4.00% | 5.00% |
| Home & Living | 4.00% | 5.00% | 4.00% | 5.00% |
| Sports & Outdoors | 4.00% | 5.00% | 4.00% | 5.00% |
| Food & Grocery | 4.00% | 5.00% | 4.00% | 4.00% |
| Books & Media | 3.50% | 4.00% | 3.50% | 4.00% |
| Toys & Hobbies | 4.00% | 5.00% | 4.00% | 5.00% |
| Digital Products | 2.00% | 3.00% | 2.00% | 3.00% |
Rates as of Q2 2026. Always confirm with your Seller Centre dashboard.
3. Payment / Transaction Fees
Both Shopee and Lazada charge a 2.24% payment processing fee on the item’s selling price. This applies to all payment methods — GCash, credit card, online banking, and COD alike.
So your total platform fee rate is: commission % + 2.24%
For a Fashion item sold on Shopee (Regular): 4.50% + 2.24% = 6.74% of your selling price goes to the platform before shipping and COGS are considered.
4. COD Surcharges
Cash on Delivery (COD) is extremely popular in the Philippines — many buyers distrust online payment. But it comes with an extra fee charged by the courier:
- J&T Express: 1.5% of order value (no minimum)
- Flash Express: 1.5% of order value, minimum ₱20
- LBC Express: COD not commonly integrated with marketplace seller accounts
On a ₱500 order via Flash: COD fee = max(₱20, ₱500 × 1.5%) = max(₱20, ₱7.50) = ₱20.00 (minimum applies).
On a ₱1,000 order via J&T: COD fee = ₱1,000 × 1.5% = ₱15.00.
If you’re selling low-ticket items (under ₱1,333) via Flash, the ₱20 minimum makes COD disproportionately expensive. For items above that threshold, 1.5% is equivalent across couriers.
5. Shipping Rates: LBC, J&T, Flash Express
The three most popular couriers for Philippine marketplace sellers each have different strengths:
LBC Express
Most trusted brand in the Philippines. Higher per-kilo rates but excellent rural coverage. Good for heavier items where reliability matters more than cost.
J&T Express
Strong balance of price and speed. Popular default courier on Shopee. Generally cheaper than LBC for metro and provincial destinations.
Flash Express
Cheapest for lightweight packages in Metro Manila (NCR). Rates become less competitive on heavier items in remote areas.
| Region | Courier | 0.5 kg | 1 kg | 2 kg | 5 kg | 10 kg |
|---|---|---|---|---|---|---|
| NCR | LBC | ₱79 | ₱79 | ₱150 | ₱285 | ₱570 |
| J&T | ₱65 | ₱75 | ₱140 | ₱380 | ₱520 | |
| Flash | ₱60 | ₱75 | ₱95 | ₱155 | ₱280 | |
| Luzon | LBC | ₱97 | ₱97 | ₱177 | ₱331 | ₱662 |
| J&T | ₱80 | ₱86 | ₱171 | ₱419 | ₱572 | |
| Flash | ₱75 | ₱85 | ₱105 | ₱170 | ₱310 | |
| Visayas | LBC | ₱105 | ₱105 | ₱181 | ₱366 | ₱732 |
| J&T | ₱88 | ₱90 | ₱180 | ₱450 | ₱608 | |
| Flash | ₱85 | ₱95 | ₱115 | ₱180 | ₱330 | |
| Mindanao | LBC | ₱105 | ₱105 | ₱181 | ₱366 | ₱732 |
| J&T | ₱92 | ₱95 | ₱198 | ₱495 | ₱626 | |
| Flash | ₱90 | ₱100 | ₱120 | ₱190 | ₱345 |
Rates as of Q2 2026. Verify with your courier before quoting shipping to buyers.
6. The Net Profit Formula
Once you know all the components, the calculation is:
Net Profit = Selling Price − COGS − Seller Vouchers − Net Shipping − Commission − Payment Fee − COD Fee
Where Net Shipping = Courier Cost − Buyer-Paid Shipping.
Worked example
You sell a ₱500 fashion item on Shopee (Regular Seller). COGS is ₱180. Package weighs 0.5 kg, shipping to NCR via Flash. Buyer pays ₱0 shipping. No COD, no vouchers.
- Shipping: ₱60.00 (Flash NCR 0.5 kg)
- Commission: ₱500 × 4.50% = ₱22.50
- Payment fee: ₱500 × 2.24% = ₱11.20
- Total deductions: ₱180 + ₱60 + ₱22.50 + ₱11.20 = ₱273.70
- Net Profit: ₱500 − ₱273.70 = ₱226.30 (45.3% margin)
Now change courier to LBC (₱79) and add COD: shipping jumps ₱19, COD adds ₱7.50 → net profit drops to ₱199.80 (40.0% margin). The difference matters at scale.
Run these numbers instantly for your own product with our free calculator.
Try It Free →7. Shopee vs Lazada: Which Pays More?
For most categories, Shopee Regular Seller and Lazada Marketplace have comparable commission rates (within 0.5%). The real differences come down to:
- Traffic: Shopee dominates monthly active users in the Philippines, so listings often get more organic views.
- Voucher pressure: Both platforms push sellers to participate in flash sales and voucher programs. These discounts eat into margin if not priced for.
- Mall tier value: Shopee Mall commission (up to 6.72%) is slightly lower than LazMall (up to 7.00%) for the same category, making Shopee Mall marginally cheaper to operate at the premium tier.
- Shipping integrations: Shopee has tighter courier integrations with J&T and Ninja Van. Lazada works well with LBC and J&T.
The best approach: list on both, price identically, and use the Platform Compare tab to confirm margins before setting prices.
8. Pricing Tips for Philippine Marketplace Sellers
Calculate your floor price first
Floor price = COGS ÷ (1 − total fee rate − target margin). For a ₱100 COGS item targeting 30% margin on Shopee Regular with Fashion commission: floor = ₱100 ÷ (1 − 0.0674 − 0.30) = ₱158.59. Price below that and you lose money.
Build shipping into your price, not as a surprise
If you offer free shipping to win the Buy Box, make sure the courier cost is already baked into your selling price. Use the Shipping Rate tab to look up the cheapest courier for your most common destination.
Watch the COD minimum on small orders
Flash Express’s ₱20 COD minimum wipes out margin on sub-₱300 orders. Either price those items higher for COD customers or switch to J&T (which has a proportional 1.5% with no minimum floor).
Vouchers are invisible costs
Platform-issued vouchers (where the platform reimburses you at a discount) still reduce your gross. Track voucher usage and include it in your margin model, not just your selling price.
Review rates quarterly
Shopee and Lazada adjust commission rates seasonally or per campaign. Bookmark the SellerCalcPH calculator and re-check your numbers whenever either platform announces rate changes in its Seller Centre.