The channel with the most orders tends to get the attention. Check what those orders leave behind before giving it more budget.
It is tempting to rank sales channels by revenue. The biggest number feels like the strongest performer, particularly when the team has worked hard to get there. But channels charge differently, attract different baskets and require different amounts of work. Revenue alone cannot settle the comparison.
Make the comparison fair first
Use the same period and the same definition of sales. Compare a complete month with a complete month, not a settled payout on one channel with live orders on another. Account for cancellations and refunds consistently. A channel that reports an order immediately should not look better simply because another source takes longer to update.
Then separate costs you can reasonably attribute to the channel. These might include product costs, commissions, payment fees, fulfilment costs you bear and channel-specific advertising. Keep shared overhead outside this first comparison, unless you have a documented allocation method you can apply consistently.
| Measure | Direct store | Marketplace |
|---|---|---|
| Net sales | RM100,000 | RM150,000 |
| COGS | RM30,000 | RM45,000 |
| Selling costs | RM25,000 | RM60,000 |
| Contribution | RM45,000 · 45% | RM45,000 · 30% |
The marketplace sells RM50,000 more, but leaves the same RM45,000 contribution before shared overhead in this example. Its lower percentage does not automatically make it a bad channel. Its larger sales total does not automatically make it better either. Check capacity, repeat purchases and the cost of the next campaign before deciding where to invest.
Ask what caused the difference
Start with product mix, vouchers and advertising. A marketplace selling discounted entry products will look different from a direct store selling bundles to returning customers. Check who funds the vouchers too. A discount paid by your business belongs in your comparison; a platform-funded offer needs to be treated according to the settlement records.
If a seller-funded voucher is already deducted in net sales, do not subtract it again as an expense. For live selling, track affiliate commission and campaign spend as well as platform fees. Record the country, seller programme and effective date of the fee schedule; a Malaysian rate is not a regional rate.
Product mix is particularly easy to miss. If one channel sells premium bundles and another sells heavily discounted entry products, an overall margin comparison combines the effect of the channel with the effect of the products. Compare the same product across channels where possible, then look at the overall mix separately.
Give shared costs an honest label
A warehouse team might pack orders for every channel. Dividing its cost by revenue is simple, but it may not reflect the work. A small, complicated order can take longer to pack than a larger, straightforward one. You do not need a perfect allocation to start; you do need to explain the rule.
Keep channel contribution separate from the result after allocated overhead. If you change how warehouse costs are divided, note it beside the comparison. A channel might suddenly look better because it was assigned less overhead, even though sales, fees and packing work stayed the same.
Compare the next ringgit, too
Last month's average is useful, but it is not a promise about next month's spend. Increasing advertising may reach a more expensive audience. Expanding a marketplace promotion may require a deeper discount. The next RM1,000 can behave differently from the previous RM1,000.
Make a small change with a clear question. For example, can this channel add orders while holding contribution per order above a threshold you choose? Record the baseline and review a complete period. Do not declare a winner after one unusually strong day.
Sources: TikTok Shop Malaysia settlements · Seller fee guidance. Checked 10 October 2026. Refer to your own channel and seller programme.