Lazada vs Shopee vs TikTok Shop: An updated and comprehensive comparison

Key takeaways:

• Lazada, Shopee, and TikTok Shop dominate Malaysia’s e-commerce landscape, each offering unique strengths for sellers.
• Lazada is ideal for branded goods and premium products, thanks to its strong logistics and brand-focused experience.
• Shopee is the market leader, best suited for mass-market, price-sensitive items with strong promotions and ad tools.
• TikTok Shop excels in lifestyle and trend-driven categories, using content creators and live selling to drive impulse purchases.
• Sellers should consider multi-platform strategies to maximize reach and reduce dependency on a single platform.
• Billplz integrates with all three platforms, offering a unified payment solution with local settlement, transparent fees, and real-time tracking.

Introduction

Malaysia’s e-commerce market continues to thrive in 2025, led by three major players. For years, the market was primarily dominated by Lazada and Shopee. However, the fast-rising emergence of TikTok Shop has dramatically reshaped the competitive dynamics, compelling sellers to reconsider their platform strategy for maximum reach and profitability.

This guide provides an updated, side-by-side comparison of Lazada, Shopee, and TikTok Shop to help Malaysian sellers choose the right platform and develop a winning strategy in 2025 and beyond.

Overview of each platform

Malaysia’s e-commerce scene in 2025 is dominated by three major players — Lazada, Shopee, and the fast-rising TikTok Shop — each with unique strengths, audiences, and seller opportunities.

Here's what you need to know about them:

What is Lazada?

Founded in 2012 and backed by the massive Chinese tech conglomerate Alibaba Group, Lazada is one of Southeast Asia's longest-standing e-commerce marketplaces. It has consistently focused on creating a superior shopping environment, particularly for brand-conscious consumers.

Lazada boasts a strong, integrated logistics ecosystem, Lazada Logistics, which allows for robust fulfillment and reliable delivery, even for bulky items. This strong infrastructure makes it popular with merchants selling mid-to-high range products and established brands.

Categories where Lazada maintains a strong presence include electronics, home appliances, and fashion. The platform emphasizes its LazMall for official brand stores to ensure authenticity.

What is Shopee?

Shopee is currently the largest platform by market share in Malaysia and the wider Southeast Asian region, holding an estimated 52% of the total Gross Merchandise Value (GMV) in Southeast Asia as of 2024 (Source: [New report] Southeast Asia’s Platform E-commerce GMV Reaches US$128.4B)

Known for its flash sales, extensive use of vouchers, and mobile-first experience, Shopee attracts price-sensitive shoppers looking for deals on everything from fashion to groceries. It's ideal for mass-market sellers and SMEs aiming to reach a wide audience.

Its wide reach makes it a default starting point for many Small and Medium-sized Enterprises (SMEs) looking to penetrate the online market. The platform heavily utilizes its own logistics arm, Shopee Xpress, alongside numerous third-party partners.

Also read: Shopify payment gateway in Malaysia with local payment methods

What is TikTok Shop?

A game-changer in recent years, TikTok Shop integrates e-commerce directly within TikTok's entertainment-driven platform. It leverages the "discovery commerce" model, where users discover and purchase products seamlessly while scrolling their 'For You Page' (FYP) or watching livestreams.

In just the first half of 2025, TikTok Shop’s GMV in Malaysia surged by 150%, catapulting it past Lazada to become the second-largest e-commerce player in Southeast Asia (Source: TikTok Shop Doubles Global GMV in 2025).

It enables creators and sellers to promote products via short videos, livestreams, and interactive content. Particularly effective with Gen Z and millennials, it is driving impulse purchases and viral sales in lifestyle, beauty, and fashion categories.

Lazada vs Shopee vs TikTok Shop – Key comparison

Each platform brings its own strengths, target audiences, and selling strategies. Here's how Lazada, Shopee, and TikTok Shop compare at a glance.

Feature	Lazada	Shopee	TikTok Shop
Market Position	Established, strong logistics	Market leader in Malaysia & SEA	Fastest-growing platform, social disruptor
User Base	Mid-income & brand-oriented	Mass market, price-driven	Younger, content-driven shoppers
Fees	Commission + payment fee	Commission + transaction fee	Commission + service fees
Marketing Tools	LazLive, sponsored ads, LazMall branding	Shopee Ads, vouchers, bundles, Shopee Live	TikTok Ads, creator collabs, live commerce
Logistics	Lazada Logistics (integrated, reliable)	Shopee Xpress + partners (Affordable, wide network)	3PL (third-party logistics)+ in-app seller fulfillment (Less mature, but fast)
Product Focus	Electronics, branded goods, home appliances	General marketplace, low-to-mid price items	Fashion, beauty, lifestyle, viral/trend-driven goods
Seller Support	Lazada University	Seller Education Hub	TikTok Shop Academy, Creator Marketplace, analytics

Fees and commission structure

• Lazada: Charges a category-based commission fee plus a payment fee. For example, some Lazada Marketplace commission rates are around 8.0% (SST inclusive) for fashion accessories, on top of payment processing fees.
• Shopee: Imposes a commission fee and a transaction fee. While base rates might appear moderate, Shopee’s reliance on competitive pricing and its in-app ads means sellers often allocate a significant portion of their revenue to paid ads for visibility to compete in its vast marketplace.
• TikTok Shop: Initially offered lower commission rates to rapidly attract sellers, but has significantly revised its commission and transaction fees (e.g., transaction fee increased to 3.78% (SST inclusive) in late 2024 for Malaysia) (Source: TikTok Shop Announces Changes to Commission and Transaction Fees Effective on 5th September 2024). While the initial commission may be competitive, ad spend for "discovery commerce" is often required to scale sales.

Marketing & seller tools

• Lazada: Focuses on brand exposure with LazMall, targeted marketing through Sponsored Discovery Ads, and engaging live selling via LazLive. Its affiliate program also encourages external promotion.
• Shopee: Excels at in-app mechanisms like vouchers, bundle deals, and Flash Sales that leverage its large, engaged user base. Shopee Ads are essential for visibility.
• TikTok Shop: Its key strength is content-driven sales. Sellers thrive by running TikTok Ads, collaborating with content creators/influencers, and utilizing live streaming sessions to generate viral, impulse purchases.

Logistics & fulfillment

• Lazada: Lazada Logistics provides a strong, integrated system with a high degree of control over the delivery process. This integrated model makes it particularly reliable for handling bulky or higher-value items.
• Shopee: Utilizes Shopee Xpress (SPX Express) along with a wide network of third-party logistics (3PL) partners. This hybrid approach allows for an affordable and extensive network, handling the large volume of smaller parcels typical of its mass-market sales.
• TikTok Shop: Primarily relies on third-party logistics partners for fulfillment. While delivery speed is fast and the network is growing, its logistics ecosystem is less mature than the established integrated systems of Lazada and Shopee, requiring sellers to manage fulfillment surges from live commerce more actively.

Seller experience

All three platforms provide extensive resources to help sellers succeed. Lazada University and Shopee’s Seller Education Hub are robust training portals offering courses on everything from listing optimization to campaign participation.

TikTok Shop Academy focuses heavily on mastering content creation, live streaming, and utilizing the Creator Marketplace for partnerships.

Seller dashboards and reporting tools are available on all three, though the focus varies: Lazada emphasizes brand performance, Shopee focuses on volume/promotions, and TikTok Shop prioritizes content and audience analytics.

Buyer experience

The shopping journey is vastly different across the three platforms.

• Lazada: Offers a strong, streamlined experience preferred for branded goods, focusing on product authenticity via LazMall and reliable delivery.
• Shopee: Known for heavy promotions, daily vouchers, and "gamification" (like Shopee Games) that make shopping entertaining and price-competitive.
• TikTok Shop: Provides an entertaining, discovery-first shopping experience, where the purchase decision is often driven by captivating short videos and live streams rather than a deliberate product search

Which is better for sellers in Malaysia?

There is no single "best" platform; the ideal choice depends entirely on your product, brand, and selling style.

Best For	Lazada	Shopee	TikTok Shop
Product Types	Electronics, branded goods, home & living, premium products	General items, budget-friendly goods, daily necessities, high-volume items	Lifestyle, fashion, beauty, viral gadgets, and content-driven impulse buys
Seller Profile	Established brands, high-ticket sellers, or sellers with strong supply chains	SMEs, mass-market sellers, merchants focused on volume/price	New sellers, content creators, and brands targeting young consumers
Audience	Mid-to-high income, brand-loyal shoppers	Price-sensitive mass market	Younger (Gen Z, Millennials), highly engaged, discovery-led shoppers

Based on the market dynamics, here is a quick guide to choosing your primary focus:

• Choose Lazada if you sell branded, higher-ticket, or electronics/home goods. Your priority is maintaining a premium brand image, assuring quality, and leveraging integrated logistics for reliable delivery. Lazada rewards trust and a high average order value.
• Choose Shopee if you seek mass-market reach and thrive in competitive, price-sensitive categories. Your strength lies in managing high sales volume efficiently through aggressive promotions, competitive pricing, and extensive ad spending to secure visibility.  
• Choose TikTok Shop if your products are highly visual—such as fashion, beauty, or lifestyle items—and you are prepared to leverage short videos and content creators to drive sales through virality and impulse buying. TikTok Shop is the channel for trend-setters and discovery.

Multi-platform strategy: Can you sell on Shopee, Lazada, and TikTok Shop at the same time?

Yes, absolutely. Many successful Malaysian sellers adopt a multi-platform strategy to maximize their reach and de-risk their business. This approach is highly recommended in 2025:

• Use TikTok Shop for awareness + content-driven sales: Leverage its algorithm to make products go viral and drive impulsive sales, especially among the younger demographic.
• Use Shopee for mass market penetration: Use its sheer volume and promotional power to capture the bulk of the price-sensitive market.
• Use Lazada for premium/bulkier items: Utilize its robust logistics for higher-ticket, branded items where buyer trust and reliable delivery are paramount.

How do I choose the best e-commerce platform for my products?

To make the final decision, consider these 3–4 decision factors:

1. Product type & price point: Does your product suit high-volume, low-margin, high-value, branded, or trend-driven, visual appeal?
2. Marketing ability: Are you excellent at running ads and managing promotions, or are you skilled/willing to invest in creating video content and collaborating with creators?
3. Logistics needs: Do you require robust, integrated fulfillment for bulky/delicate items, or are standard, affordable courier services sufficient for small parcels?
4. Target audience: Are you selling to price-sensitive families, brand-conscious adults, or young, trend-following shoppers?

Your choice of marketplace defines where you sell, but the speed, security, and efficiency of payments define how smoothly you profit.

Regardless of the platform you choose, ensuring a seamless transaction is absolutely crucial for customer satisfaction and successful order fulfillment.

This is where a unified, reliable payment solution becomes invaluable. Dealing with different settlement cycles, withdrawal fees, and reconciliation processes across multiple platforms can quickly turn into an administrative nightmare.

Billplz offers a powerful solution to this complexity. Billplz integrates seamlessly with all three major platforms — Shopee, Lazada, and TikTok Shop. It offers consistent, secure, and hassle-free local payment solutions to manage your sales efficiently.

This allows you to focus less on administrative payment headaches and more on scaling your sales volume across Malaysia's thriving e-commerce channels.

Also read: Toyyibpay vs Billplz: Which payment gateway should you choose?

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FAQ

Which is more profitable for sellers: Lazada or Shopee?

It depends on your niche. Lazada may offer better margins for branded products, while Shopee provides higher sales volume for fast-moving or budget-friendly items.

Is TikTok Shop reliable in Malaysia?

Yes. TikTok Shop has rapidly scaled with growing user trust. It's effective for impulse buying and trending products, especially for fashion and beauty.

Can I use the same inventory across Lazada, Shopee, and TikTok Shop?

Yes, but you’ll need to manage it carefully. Manual syncing or using a third-party inventory management system is recommended to avoid stock inconsistencies and overselling.

How can I manage payments across multiple platforms?

Use a centralized payment solution like Billplz to reconcile payments from Lazada, Shopee, and TikTok Shop in one place. You get local bank settlement, transparent fees, and FPX support — all through a single dashboard.

Which has faster delivery, Shopee or Lazada?

Both offer competitive delivery times, but they vary by product type and location. Shopee tends to be faster for smaller parcels via Shopee Xpress, while Lazada’s logistics are more reliable for bulkier or premium items through Lazada Logistics.

Is Lazada or Shopee better in Malaysia?

Shopee dominates in user base and promotional reach, making it ideal for mass-market sellers. Lazada appeals more to mid-to-high-income customers and is better suited for branded goods and electronics.

Is it better to sell on TikTok or Shopee?

It depends on your marketing strengths. TikTok Shop is great for visual, trend-driven products and works well if you can leverage content creators. Shopee is better for high-volume sales and traditional product listings.

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Conclusion

The Malaysian e-commerce landscape in 2025 is a dynamic triangle. There is no single “best” platform; the winning strategy depends on your products, budget, and target audience.

Smart sellers should leverage the strengths of each platform: utilizing TikTok Shop for brand discovery and impulse buys, Shopee for mass market penetration, and Lazada for branded premium sales.

Billplz helps you manage payments across platforms with seamless, local payment solutions, ensuring that as you expand your multi-platform strategy, your transaction process remains unified, secure, and efficient.

Enable Billplz today and streamline your multichannel e-commerce payments. New merchants receive MYR 25.00 in starter credit with code GROWTHPRO (valid until 31 December 2025).