Indonesia’s largest streaming platform, Vidio, has announced a partnership with Southeast Asian e-commerce giant Shopee to launch “Vidio Affiliate Shopping Ads,” becoming the first OTT platform in Indonesia to integrate e-commerce affiliate shopping. Analysts note that this collaboration marks a significant step for Shopee in strengthening its digital ecosystem and creating more engaging, context-driven shopping experiences for customers.
Born in Singapore, Shopee has dominated Southeast Asia’s e-commerce market over the past decade. Yet its reign faces growing challenges.
Recently, Shopee announced that starting July 20 local time, its Indonesian platform will charge sellers an order handling fee of 1,250 Indonesian rupiah (approx. RMB 0.56) per completed transaction. The company stated this aims to fund more attractive promotional activities and support seller growth.
New Policies “Filter” Sellers
With Shopee’s latest fee policy, Indonesian e-commerce sellers face another cut to their profits.
Shopee explained that the new order handling fee applies to all merchants on the platform. The fee is charged per order, meaning sellers pay less per item when a single transaction includes multiple products. For example, if a buyer purchases five items in one order, the handling fee per item drops to 250 rupiah.
Notably, the policy offers partial exemptions for new sellers. Shopee Indonesia stipulates that new sellers and those without a Star seller rating will be exempt from the handling fee for their first 50 orders—a move designed to ease operational burdens during their initial phase and encourage more sellers to join the platform.
At first glance, the fee per order seems minimal. But for high-volume sellers, it adds up. “Our profits were already squeezed thin by various costs. Now platform fees keep rising, making business harder every day,” complained one local Shopee merchant.
An e-commerce insider told the 21st Century Business Herald that Indonesia’s market relies heavily on low prices and high cost-performance ratios, with consumers favoring unbranded daily necessities and novelty items. The new fee policy means sellers will likely absorb this extra cost without raising prices or switching sales channels.
The decision to risk seller attrition stems from Shopee’s financial pressures. Zhang Yi, CEO and Chief Analyst at iiMedia Research, explained that logistics costs are the core issue: “Indonesia is an archipelago nation where transportation challenges drive logistics expenses to about 17% of total merchandise value. In Q1, parent company Sea Limited’s capital expenditure surged 127% year-on-year, mainly for logistics infrastructure. Shopee needs to adjust seller fees to balance its cash flow.”
Experts widely view this policy as a “filter” for quality merchants.
“For sellers relying on ultra-low prices to attract users, long-term fees will pressure their thin margins,” said Zhu Qiucheng, CEO of Ningbo New Oriental Industrial & Trading Co., Ltd. “Many will need to transform, while some competing solely on price may be forced out. Alibaba has a similar tiered seller system.”
Zhang Yi added that exempting new sellers’ first 50 orders targets attracting higher-quality merchants while weeding out low-quality ones who previously “exploited loopholes.”
Historically, e-commerce giants competed in Southeast Asia by burning cash for market share. But since 2024, observers note a shift toward rationality—Shopee began reducing subsidies and optimizing costs in 2023.
In November 2023, Liu Jianghong, General Manager of Shopee’s Cross-Border Business, told media that Shopee set a goal in 2022 to achieve “self-sufficiency.” “As a commercial company, Shopee wanted to prove it could turn a profit. After doing so, pleasant surprises followed,” he said. Despite cost optimizations, user loyalty remained strong, reflecting strategic pivots suited to different phases.
Clearly, Shopee is transitioning from “cash-burning expansion” to “profit-first.” Zhang Zhouping, Executive Dean of Benthink Tank and Deputy Director of Zhejiang Cross-Border E-commerce Industry Alliance Expert Think Tank, stated: “Shopee’s fee hike reflects the industry’s broader shift from subsidies-for-growth to profit-driven models. Leading platforms leverage scale to optimize financial performance.”
Fierce Battle for Indonesia’s E-Commerce Market
Singapore-based consultancy Momentum Work recently released its *2025 Southeast Asia E-commerce Report*. It shows Shopee remains the region’s dominant player, with Lazada and TikTok Shop close behind—together commanding over 80% market share.
“Win Indonesia, win Southeast Asia” is the industry’s golden rule. Zhang Yi isn’t surprised giants are scrambling for Indonesia: it represents ~40% of Southeast Asia’s e-commerce market. Its potential is clear: a growing, young population driving trend consumption; 185 million internet users (66.5% penetration); rapid e-commerce growth; and strong government support for digital payments, logistics, and the digital economy—aiming for 18% GDP share within five years.
In this must-win market, Shopee faces unprecedented challenges. The report ranks Shopee first in Indonesia with 46% share, followed by local platform Tokopedia (23%), TikTok Shop (11%), and Lazada (10%).
Notably, TikTok acquired a 75.01% stake in Tokopedia from GoTo for $840 million in early 2024. Merging their shares under “Shop Tokopedia” gives TikTok a combined 34% stake—posing a major threat to Shopee.
Zhang Yi believes a “duopoly structure” has emerged between Shopee and TikTok Shop in Indonesia. Both benefit from subsidies, strong capital operations, and government policies like strict foreign platform restrictions (e.g., local warehousing rules, cross-border category limits). High logistics costs also favor deeply localized players.
Platform strategies play key roles. Zhang Zhouping noted Shopee’s focus: scaling back overseas markets while raising fees/ads, using tech for efficiency; Lazada’s brand-building with high-value sellers; TikTok Shop’s zero-commission model and tight control of low-cost supply chains; Tokopedia’s local payment and offline ecosystem integration. Shopee’s cost-cutting proved effective—its 2024 GMV surpassed $100 billion, up 28% YoY.
“Shopee weathered losses and layoffs but has climbed out of the trough,” said Zhu Qiucheng. Key wins include monetization acceleration (new fees, higher commissions/ads), logistics optimization, and content operations to counter TikTok’s livestreaming surge.
However, insiders reveal only ~20% of Shopee Live’s GMV is content-driven—the rest relies on coupon incentives. This contrasts sharply with TikTok Shop’s content strength. Zhu noted TikTok Shop excels at blending social commerce with hyper-localized content that resonates with Southeast Asia’s youth, while Shopee remains fundamentally a traditional “shelf-style” platform. Tokopedia’s acquisition also boosted TikTok’s market share and local operations.
Shopee’s Indonesian legacy includes dethroning local unicorn Bukalapak and dominating Southeast Asia via stable supply chains. But its once impregnable position now faces TikTok’s fierce assault.
Data shows TikTok Shop Indonesia’s “mall”-certified sellers grew over 4x YoY by mid-2025. Official distributors and brand sellers saw post-certification transaction volumes surge 15x compared to H2 2024.
For Shopee, Indonesia is a tough defense. Zhu warned: “Its longtime low-price strategy has hit a ceiling—sustained growth through price wars is nearly impossible. Meanwhile, Indonesia’s tightening regulations—antitrust probes, compliance reviews, data localization—raise costs and legal uncertainties.”
With rivals closing in, Shopee fights to hold its ground.