How to start selling on Shopee Malaysia in 2024?

With the rapid rise of online shopping, e-commerce platforms like Shopee have become key players in Malaysia and Southeast Asia’s digital marketplace. Boasting an extensive customer base, Shopee provides a lucrative opportunity for sellers to reach a wide audience.  In the third quarter of 2023, Shopee recorded a staggering 216 million visitors, highlighting its immense potential for businesses and individuals seeking to thrive in the competitive e-commerce landscape. 

In this comprehensive guide, we will explore the essential steps and effective strategies to successfully navigate and capitalise on the thriving Shopee marketplace, unlocking unprecedented growth and sales for your online store.

What is Shopee?

Shopee stands as a premier e-commerce platform, commanding a prominent position in the Malaysian and Southeast Asian markets at large. As an online marketplace, it facilitates seamless transactions for a diverse array of products, giving both buyers and sellers an intuitive and user-friendly interface. 

With the e-commerce market in Malaysia projected to surge to remarkable heights, it is anticipated to reach $16.98 billion by 2027. Shopee stands to provide an exceptional opportunity for entrepreneurs and businesses to harness its massive customer base. The platform’s appeal lies in its comprehensive features, including the acclaimed Shopee Mall, engaging flash sales, and dynamic live streaming, all contributing to an enriching shopping experience for users.

Who can sell on Shopee Malaysia?

Shopee opens its virtual doors to a diverse pool of sellers, ensuring an inclusive and thriving marketplace for all. Whether you’re an aspiring entrepreneur or an established company, there’s a place for you on Shopee:

1. Individuals: Aspiring sellers with valid Malaysian identification have the opportunity to register as individual sellers on Shopee. This inclusivity allows individuals to explore their entrepreneurial ambitions, showcase unique products, and grow their businesses with ease.
2. Businesses: Beyond catering to individuals, Shopee warmly welcomes registered companies in Malaysia to join its platform. This aspect expands the horizon of opportunities for established businesses to tap into the platform’s extensive customer base, foster brand visibility, and drive sales growth.

Shopee’s inclusivity and user-friendly approach allow individuals and businesses alike to take advantage of the platform’s vast potential. Whether you’re an aspiring entrepreneur or an established company, Shopee offers a dynamic space to showcase products, engage with a broad customer base, and thrive in the competitive e-commerce landscape. Hence, making Shopee a part of the larger plan to start an e-commerce business can be extremely rewarding.

What can you sell on Shopee Malaysia?

Shopee is a diverse marketplace that caters to a wide spectrum of consumer needs. Hence, sellers can explore an extensive range of product categories, allowing them to offer unique and sought-after items all over the Malaysian geography. Some of these top-selling product categories have been discussed below:

1. Fashion: Clothing, shoes, accessories, and fashion apparel find a thriving audience on Shopee, just as it does on any e-commerce platform. Apparel sellers can showcase the latest trends and timeless classics to appeal to style-conscious shoppers.
2. Electronics: From gadgets and smartphones to home appliances and tech accessories, the electronics category on Shopee attracts tech-savvy consumers seeking the latest innovations.
3. Beauty Products: Skincare, makeup, haircare, and personal care products garner significant interest on Shopee, as beauty enthusiasts seek trusted brands and new products to elevate their self-care routines.
4. Home Goods: Sellers can offer an array of home decor, furniture, kitchenware, and other household items, catering to the growing market of home improvement and interior design enthusiasts.
5. Lifestyle and Hobbies: Shopee caters to the interests and hobbies of diverse consumers, featuring products like books, toys, sports equipment, and other lifestyle-related items.

While Shopee welcomes a broad range of products, certain items also fall under the restricted category due to legal and safety concerns. These items are not allowed for sale on the platform, including but not limited to:

• Firearms and Ammunition: For the safety of users and in compliance with local laws, Shopee prohibits the sale of firearms, ammunition, and related accessories.
• Illegal Products: Any product that violates local laws or regulations, including counterfeit goods and pirated media, is strictly prohibited on Shopee.
• Hazardous Materials: Items that pose a risk to health or safety, such as explosives, chemicals, and flammable substances, are not permitted on the platform.
• Prescription Drugs and Medical Devices: To ensure consumer safety and compliance with medical regulations, the sale of prescription drugs and certain medical devices is not allowed on Shopee.
• Adult Content and Services: Shopee maintains a family-friendly environment and prohibits the sale of adult content and services.

Sellers on Shopee are encouraged to review the platform’s guidelines and adhere to the rules to ensure a safe and positive shopping experience for all users. By offering a diverse range of products and adhering to Shopee’s policies, sellers can leverage the platform’s vast potential and connect with a thriving community of buyers.

How to start selling on Shopee Malaysia

Selling on Shopee Malaysia is a straightforward yet incredibly rewarding process. Follow these essential steps to set up your store today and connect with the vast customer base that Shopee boasts.

Step 1: Register for a free Shopee account

To register with Shopee Malaysia and start selling, follow these steps:

• To get started, download the Shopee Seller App from the App Store or Google Play, or visit the Shopee website on your desktop.
• Create your free seller account by providing your basic information, such as your name, email address, and contact details.
• Complete the simple registration process and verify your identity to gain access to your seller dashboard.

Step 2: Set up shipping

The next step is to set up shipping for your store. Shopee offers sellers the flexibility to choose their preferred shipping method. You can opt for one of two options:

1. Self-fulfilment: You handle the packaging and shipping process yourself.
2. ShopeeXpress: This is Shopee’s own reliable logistics service which streamlines the fulfillment process for the business.

When setting up shipping, consider factors like the weight and dimensions of your products, as well as your location and shipping destinations. This information will help determine accurate shipping fees for your customers. Moreover, to manage customer expectations and ensure a positive shopping experience, set clear delivery time frames for each product. Shoppee also offers 3PL integrations on its platform. Integrating with reliable 3PL logistics solutions like Locad streamlines order fulfillment, ensuring efficient and seamless delivery processes. 

Step 3: Set up your payment

To receive payments for your sales, link your bank account to your Shopee store. This allows Shopee to transfer the funds from successful transactions directly to your account.

Shopee offers various payment methods for customers. These include: 

1. credit/debit cards
2. online banking
3. ShopeePay

Select the payment methods you want to offer to provide customers with a convenient and secure checkout experience. It is essential to keep track of your payment settings and ensure that the payment details are accurate to avoid any delays or complications in receiving your earnings.

Step 4: List your product

Product listings constitute one of the most important parts of online selling. Here are some of the best practices you can employ in order to create product listings that pull in the bulk of customers.

1. Product images: Captivate potential buyers by uploading clear and attractive product images. High-quality images that showcase your offerings from different angles can significantly impact a customer’s purchasing decision.
2. Product Description: Write detailed and accurate product descriptions that provide essential information about your products. Highlight key features, specifications, sizes, colours, impact that the product creates and any other relevant details to inform potential buyers fully.
3. Keyword Usage: Utilise relevant high search intent keywords in your product titles and descriptions to improve discoverability and search engine ranking. Strategic use of keywords will help potential customers find your products more easily when they search for related items.

The 4 Types of Shopee Sellers

As the e-commerce landscape continues to thrive, Shopee accommodates a diverse community of sellers, each with distinct characteristics and opportunities for growth. Here are the four main types of Shopee sellers:

1. Shopee Mall Seller

Shopee Mall Sellers are verified and authorised e-commerce merchants with a strong track record of performance and reliability. These sellers enjoy increased visibility and trust among buyers as they are associated with Shopee’s official Mall section.

Shopee Mall Sellers have the privilege of distributing authentic and licensed products from popular brands in Malaysia and abroad, enhancing their credibility and attracting brand-conscious consumers.

2. Preferred Seller

Preferred Sellers on Shopee are distinguished by their excellent performance and high levels of customer satisfaction. This elite seller tier qualifies for special promotions and rewards, further boosting their exposure and sales potential.

To attain Preferred Seller status, a seller needs to maintain consistently high ratings, conduct a ‘large number’ of successful Shopee transactions, and receive positive customer feedback while delivering top-notch customer service.

3. No Label Seller

No Label Sellers are new entrants who have yet to establish a track record of performance on the platform. While starting at the basic level, they have the opportunity to build credibility through successful transactions and positive customer interactions. As they grow and improve their performance, No Label Sellers can progress to higher seller tiers, unlocking more features and privileges.

4. Overseas Seller

Overseas Sellers are based outside of Malaysia but have the capacity to reach Malaysian customers. These sellers must comply with international shipping and import regulations to ensure seamless cross-border transactions. By expanding their reach to international markets, Overseas Sellers can tap into a broader customer base and access new growth opportunities.

How to become a Shopee preferred seller?

Becoming a Shopee Preferred Seller is a coveted status that grants sellers exclusive benefits and elevated visibility within the platform. Here’s how you can achieve this esteemed seller tier:

1. Maintain a High Level of Product Quality and Excellent Customer Service

Providing top-notch products and exceptional customer service is essential in building a strong foundation as a Shopee seller. Ensure that your products are accurately represented, well-packaged, and delivered promptly to satisfy customer expectations.

2. Achieve a Positive Rating and Receive Good Feedback from Buyers

Positive reviews and feedback from satisfied customers play a crucial role in determining seller performance on Shopee. Encourage buyers to leave reviews and respond promptly to any queries or concerns they may have.

3. Consistently Meet Shopee’s Performance Standards

Shopee has specific performance metrics in place, such as on-time delivery and order fulfillment rates, that sellers must consistently meet. Strive to maintain high standards in all aspects of your operations to demonstrate reliability and efficiency.

Becoming a Shopee Preferred Seller comes with perks like increased visibility in search results, access to exclusive marketing campaigns, and participation in special promotions, which can significantly boost your sales and overall success on the platform. By prioritising product quality and customer satisfaction, while adhering to Shopee’s performance guidelines, you’ll be well on your way to attaining Preferred Seller status and reaping the rewards it offers.

What does Shopee charge its sellers?

Shopee offers a transparent and competitive fee structure for its sellers, designed to support business growth while providing valuable services. Here’s an overview of the charges that Shopee imposes on sellers:

1. Commission Fee for Each Successful Transaction

Shopee levies a commission fee on each completed transaction, which is a percentage of the total order value. The commission rate may vary depending on the product category and type of seller account (e.g., Preferred, No Label, Overseas).

2. Additional Fees for Marketing Features and Logistics Services

While listing products on Shopee is generally free, additional charges may apply for utilising certain marketing features to boost product visibility, such as sponsored listings and in-app advertisements. Sellers may also opt for Shopee’s logistics services, like ShopeeXpress, which incur separate fees based on the shipping requirements.

It’s crucial for sellers to factor these fees into their pricing strategy and business model to ensure profitability while remaining competitive in the marketplace. Shopee’s fee structure is outlined clearly to help sellers make informed decisions and optimise their selling experience on the platform. As sellers grow and achieve higher seller tiers, they may unlock more benefits and potential fee discounts, incentivising further growth and success on Shopee.

Tips to increase sales

We have looked at all the components required to set up shop on Shopee. But in the competitive world of e-commerce, how can sellers on Shopee employ strategic tactics to boost sales and stand out amidst the crowd? Here are some effective tips to increase your sales on Shopee:

1. Join Flash Sales

​​Flash sales are time-limited promotions that create a sense of urgency among buyers, encouraging them to make swift purchase decisions. Participating in flash sales allows you to offer discounts on selected products, attracting more buyers and increasing sales volume. Capitalise on Shopee’s built-in flash sales, like the double-day sale events or create your flash sales to boost visibility and entice shoppers to seize the limited-time offers.

2. Create Vouchers

Offer special vouchers with discounts or freebies to entice potential buyers and consider providing exclusive vouchers to returning customers as a token of appreciation. Periodically refresh your voucher offerings to keep customers engaged and draw them back to your store for repeat purchases.

3. Participate in campaigns

Shopee frequently runs marketing campaigns and events to celebrate various occasions or festive seasons, drawing a surge of traffic to the platform. Participating in these campaigns can increase your store’s exposure and attract more potential customers who are eager to leverage exclusive deals and promotions. Moreover, align your product offerings with the theme of the campaigns to maximise relevance and appeal to targeted customer segments.

Broadcast on Shopee Live

Shopee Live is a powerful feature that allows you to engage with potential buyers through live streaming. This interactive platform can be used to showcase your products, provide live demonstrations, and answer customer questions in real-time, creating a personalised shopping experience. So, promote your upcoming Shopee Live sessions in advance on social media to build anticipation and attract more viewers, increasing the chances of conversions.

Run Facebook Ads for your store

Social media advertising, particularly on Facebook, can help expand your reach beyond Shopee’s platform. Run targeted ads to reach a broader audience of potential buyers who might not be actively searching on Shopee but are interested in your product offerings. To start, use engaging visuals and compelling ad copy. This can help capture the attention of social media users and bring them to your Shopee store.

Conclusion

Selling on Shopee Malaysia presents lucrative opportunities for both individuals and businesses to thrive in the dynamic online market. By following the steps to create an account and implementing effective sales strategies, sellers can elevate their visibility, drive sales, and achieve success on the platform. 

So embrace the power of Shopee Malaysia to tap into a vast customer base, elevate your brand presence, and unlock growth in a burgeoning e-commerce landscape.