What are the real pitfalls of selling on TikTok Shop compared to Shopee in Malaysia?

Question

I've been selling home-baked cookies and some imported gadgets on Shopee for a year, decent but sales flat. Everyone says TikTok Shop is where the money is now with live selling. Before I jump in and start doing live at 11pm every night, I want the honest downside from people who actually sell on both. What are the traps, the fees, and is it really better?

Relationship Kak Yasmin · Accepted Answer

I sell skincare on both since 2023, and the honest truth is TikTok Shop can explode your sales but it eats your time and margin differently. On TikTok you basically must do LIVE or affiliate to move volume, my best live did RM4k in two hours but I was talking non-stop from 9pm to midnight. The commission plus affiliate cut can hit 15-20% versus Shopee's roughly 6-8% after all their fees, so your margin must be fat enough. Returns and 'COD reject' are worse on TikTok because impulse buyers change their mind, and Cash on Delivery reject rate wrecked my cashflow. My verdict, use Shopee for steady search-based sales and TikTok for hype products you can demo live, don't abandon one for the other.

Uncle Kopitiam Ah Seng · Answer

Real talk on cost, don't forget the 'free shipping' is partly funded by you through platform vouchers and campaigns you get pressured to join. Both platforms play this game but TikTok pushes flash campaigns hard and if you don't join, your reach drops. I keep a simple Excel: product cost, platform commission, affiliate cut, shipping subsidy, packaging, then only the leftover is real profit. Many new sellers think they're making money but after all cuts they're basically working for free. Price your items assuming 20-25% goes to the platform ecosystem.

Uncle Civil Servant Rahman · Answer

Nobody warns you about the platform penalty system on TikTok Shop, it's stricter and faster to whack you. I got points deducted for late shipment during a flu week and my whole shop's visibility dropped like a stone. On Shopee I could recover, on TikTok the algorithm just buried me. Also the content moderation is touchy, my caption got flagged for 'exaggerated claims' selling slimming tea, which honestly fair enough, but you must learn their rules. Treat TikTok like a job with a strict boss, not a chill side hustle.

Makcik Kedai Runcit Zaiton · Answer

The affiliate system is TikTok's real weapon, not your own live. I gave 20% commission and let creators sell for me, one small creator with 8k followers moved 300 units of my phone holder in a week, something Shopee could never do organically. But quality control is a nightmare, some affiliates over-promise and you get the returns and bad reviews. Also TikTok holds your money longer, settlement felt slower than Shopee's, so plan your cashflow. If you hate being on camera, lean on affiliates instead of forcing yourself to live.

Tech Girl Xin Yi · Answer

For food like your cookies, TikTok can actually be gold because people buy with emotion when they see the gooey close-up. I sell brownies and my short videos of cutting them do way better than any Shopee listing photo. But logistics is the killer, live orders spike suddenly and you must have stock and packaging ready, I've had nights where I got 80 orders and cried packing until 3am. Shopee's flow is more predictable so you can bake to order. Start TikTok slow with pre-order live sessions so you don't overcommit.

Property Agent Farhan · Answer

I tried TikTok live for three months and honestly quit and went back to Shopee, so here's the anti-hype view. The late-night lives destroyed my sleep and my day job performance suffered, RM4k sales sound nice but per hour of my life it wasn't worth it for me. If you're a solo seller with no team to help pack and go live, you'll burn out fast. Shopee lets me list and sleep. Decide based on whether you can build a small team or you'll be doing everything alone.

What are the real pitfalls of selling on TikTok Shop compared to Shopee in Malaysia?

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