When it comes to product selection, many new e-commerce sellers in Malaysia are tempted to chase cheap trending products. After all, if an item is affordable and in high demand, it should sell easily, right?

But here’s the catch: high sales volume doesn’t always mean high profits. To grow a sustainable online business, you need to understand the balance between profit margin and sales volume.
 

Profit Margin: The “Hidden” Bottom Line

At first glance, it’s easy to think that profit is simply:

Selling Price – Cost Price = Profit.

But in e-commerce, that’s only the starting point. What really matters is your profit margin after all hidden costs are taken into account. These costs usually include:

• Platform commissions and transaction fees – Shopee, Lazada, and TikTok Shop charge sellers a percentage of every sale. This means part of your revenue is automatically deducted before it even reaches you.

• Advertising and promotional spend – Running ads or joining platform campaigns costs money. Sometimes, sellers spend more on ads than they actually make in profit.

• Shipping and packaging – Even if buyers pay part of the shipping fee, sellers often cover subsidies, special packaging, or returns.

• Taxes (SST and service charges) – Since July 2025, Malaysia’s SST rate has increased to 8% and applies to more services, which can affect your ad costs, logistics, and software subscriptions.

When you add these together, your “true” profit margin often looks very different from what you first expected.

For example:

• If you sell a RM10 item, and total costs add up to RM8, you only keep RM2 profit per order. To earn RM200 profit, you would need to sell 100 units.

• With a RM100 item, your costs may be higher in absolute numbers (ads, fees, etc.), but you could still keep RM20–30 profit per order. That means you only need to sell 10 units to reach the same RM200 profit.

This is why sellers are often surprised, sometimes the “cheap and trending” product that sells a lot actually brings in less profit than a slower-selling, higher-priced product.
 

Sales Volume: Why “More Orders” Isn’t Always Better

Many new sellers fall into the trap of chasing high order volume, thinking that more sales automatically mean more profit. But in reality, it’s not always the case.

Selling low-cost products can bring in a flood of orders. On the surface, this looks exciting like lots of notifications and many parcels going out each day. But if each order only gives you a tiny profit margin, you’ll need to sell hundreds of units just to match the profit of a few sales of a higher-priced product.

For example:

• Low-cost item – 200 sales at RM2 profit each = RM400 profit.

• Higher-priced item – 20 sales at RM20 profit each = RM400 profit.

Both scenarios earn you the same amount, but the effort required is very different.

And that’s the hidden cost of high volume:

• More inventory to manage – You’ll need to keep stock moving quickly, or risk running out.

• More packing and shipping work – Every order needs to be prepared and sent.

• More customer service – A high number of buyers means more questions, complaints, and refund requests to handle.

• More risk of returns – Cheap items bought on impulse are often returned or disputed, which eats further into profits.

For small sellers, this workload can quickly become overwhelming. Instead of focusing on chasing the most orders, it’s often smarter to balance volume with profitability, so your effort pays off in real income, not just “busy work.”
 

Striking the Right Balance

There’s no universal rule for whether you should focus on low-margin, high-volume products or high-margin, low-volume products. The “right” choice depends on your resources, selling style, and long-term goals.

Low-margin, high-volume works if:

• You have efficient systems in place such as WMS tools, automated inventory syncing, or outsourced fulfillment.

• You can negotiate lower supplier costs and shipping rates to keep margins from shrinking.

• You’re confident in competing on price while still maintaining customer service quality.

This strategy is common among sellers of fast-moving consumer goods, daily-use items, or impulse buys.

High-margin, low-volume works if:

• You’re building a brand identity around quality, trust, and value.

• You focus on niche or specialty products where buyers are willing to pay more.

• You can highlight product differentiation through strong content, branding, and customer experience.

This approach suits sellers of fashion, beauty, electronics accessories, or unique lifestyle products.

In reality, most successful sellers don’t pick just one side. They strike a balance:

• Use trending, low-cost products to attract traffic and get visibility on platforms.

• Rely on higher-margin products to secure stable profits and sustain the business in the long run.

By understanding where each strategy fits, you can avoid the trap of “just selling what’s popular” and instead design a product mix that supports both growth and sustainability.

Profit, Volume, and Smarter Selling in Malaysia

Finding the right balance between profit margin and sales volume is key to building a sustainable e-commerce business in Malaysia. Low-margin, high-volume products can drive traffic and visibility, while high-margin, low-volume items provide stable profits. Smart sellers carefully calculate true costs, test products before scaling, diversify their offerings, and plan for long-term growth to avoid burnout and losses.

With BigSeller, Malaysian sellers can see estimated profits for Shopee, Lazada, and TikTok orders at a glance. Negative or zero-profit orders are highlighted in red, giving you the chance to review and adjust before processing. This practical insight helps you manage costs, protect your margins, and focus on strategic growth rather than getting bogged down in routine tasks.
 

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