PUTRAJAYA: A mechanism requiring e-commerce platforms to consult the authorities before imposing new charges on sellers is being looked into, says Datuk Armizan Mohd Ali.

The Domestic Trade and Cost of Living Minister also said existing regulations governing the e-commerce sector do not give his ministry regulatory powers.

“Some of these platforms not only impose additional fees in Malaysia, but also in other countries,” he told a press conference before a town hall session with e-commerce industry players here on Thursday (July 17).

“To me, however, this decision (to impose additional charges) is not timely, as there was a review last year. Now there is another review regarding the commission fee.

“It is difficult to stop this fully, but we are looking at how we can get platforms to engage with the authorities before making these decisions.”

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His remarks came after an e-commerce platform introduced a fee for all completed orders.

This fee is directly deducted from each order before the sales proceeds are transferred to the seller’s account balance.

On Friday (July 11), MCA’s economic and SME affairs committee chairman Datuk Lawrence Low said the revised fee structure would affect nearly every stage of a seller’s operations.

While some of the charges may seem small if taken on their own, Low warned that cumulatively they would place a significant financial strain on sellers and ultimately lead to higher prices for consumers.