Online sellers ask DTI to halt soaring e-commerce charges

Online sellers asked the Department of Trade and Industry (DTI) to intervene against what they call crippling, layered fees imposed by major e-commerce platforms, warning that the charges are forcing small entrepreneurs out of business.

The sellers are also appealing to the DTI to stop the rollout of its proposed Trustmark system, arguing the voluntary certification is redundant and places another financial and logistical burden on micro-entrepreneurs.

– Advertisement –

Online Negosyo Empowerment Community (ONEC) president Anna Magkawas said platform charges, which include commissions, transaction fees and promotional costs, have soared, leaving many merchants with barely any profit, especially with a new P5 processing fee per transaction across several platforms.

“First, it was Shopee. Then Lazada followed, and now TikTok has announced a similar add-on fee,” Magkawas said in a briefing Monday.

“It’s becoming too heavy for sellers. There are percentage fees, transaction fees, and now an additional P5 per order. Many small sellers were forced to shut down,” she said.

Magkawas said that while platforms justify the processing fee as infrastructure improvement, the cost is unfairly passed to merchants instead of being covered by the platforms’ investment in service upgrades.

Overall commissions, she said, can reach as high as 20 percent depending on the product category and participation in programs, compounded by fees for visibility, promotional campaigns and paid features like free-shipping or ad placements.

ONEC also is pushing the DTI to abandon the planned Trustmark initiative, which aims to certify legitimate online sellers with an official badge. Magkawas said the requirement would duplicate existing business permits and fail to address the core problem of fake online stores, as scammers can easily present falsified documents.

Othel V. Campos

“Scammers have been here for years. If platforms still can’t purge them, how will a Trustmark fix that? DTI should first clean up the marketplace,” she said, adding that while the DTI insists the Trustmark would be voluntary, small sellers would feel competitive pressure to secure it.

“Only big companies can easily comply. Small sellers cannot. Consumers may assume those without a Trustmark are less legitimate,” she said.

ONEC, formed four months ago and supporting over 800 online sellers, has submitted a position paper to the DTI and other regulators, urging them to control platform-imposed charges and review policies that disproportionately impact micro, small,and medium online entrepreneurs.

“Sellers already pay taxes, permits, and operational costs. We need protection too—not just consumers,” Magkawas said.

“We want the online business environment to stay friendly and inclusive, not a place where small sellers are pushed out,” she said.

– Advertisement –