Lazada Malaysia's FSM commission increase will take effect later

On August 30, according to Lazada Malaysia, in order to allow sellers time to make corresponding adjustments and enjoy more free shipping benefits during the 9.9 MEGA period, the policy of increasing the FSM commission from 4% to 5% originally scheduled to take effect on September 1, 2022 has been postponed to September 15, 2022.

The new free shipping discount voucher minimum threshold of RM8 and discount amount of RM5 will still take effect on September 1, 2022 to help sellers with the 9.9 promotion. All preferred sellers will still enjoy a 1% discount.

Previously, the news that Lazada had raised its FSM commission caused heated discussions among sellers. Some sellers said that with so many discount coupons available in one day, many people would place orders on Lazada; many sellers were also frustrated about the service fee being adjusted to 5%.

At the same time, starting from September 1, 2022, Lazada's logistics costs will also be adjusted, as shown in the figure below:

It is worth mentioning that recently, American Bank AmBank announced a partnership with Southeast Asian e-commerce platform Lazada to provide loan services to micro, small and medium-sized enterprises (MSMEs) and sellers in Malaysia.

AmBank will provide up to US$448,000 (RM2 million) in funding specifically for local entrepreneurs and sellers on the Lazada Malaysia platform to sustain and expand their online businesses.

Aaron Loo, managing director of retail banking at AmBank, said, “Through our joint efforts with Lazada, we hope that this financing solution can help many local sellers on Lazada, giving MSMEs the opportunity to raise funds to expand their online businesses and recover from the economic impact of the pandemic.”

He added that the partnership will also provide opportunities for AmBank merchants to expand their business from offline to online and conduct business on the Lazada e-commerce platform.

Lazada Malaysia chief operating officer Darren Rajaratnam said: “The company is optimistic about the strategic collaboration with AmBank as it will strengthen the e-commerce ecosystem and address the financial pain points faced by many SMEs today. With AmBank’s micro loans and financial solutions, our local sellers will be able to accumulate capital and grow their online businesses.”

It is understood that in 1988, AmBank was listed on the Bursa market in Malaysia. As of March 31, 2022, the company's market capitalization has exceeded RM12 billion. The company has more than 3 million individual and corporate customers and mainly provides banking, retail banking, commercial banking, investment banking and related financial services.