Online business is becoming increasingly difficult as major e-commerce platforms like Shopee and TikTok Shop implement new fee structures. Sellers are forced to raise prices, making products less competitive and impacting consumers.

On her personal Facebook page, Van, the owner of an online home goods store in Hanoi, shared her frustration. Starting April 1, she will have to increase prices on Shopee and has encouraged customers to buy directly from her website or Facebook page, where she can offer shipping discounts.

"I might have to stop selling on Shopee altogether," she said.

Similarly, Thanh, a Shopee seller, complained in an online community, saying, "Fees keep increasing while we have to lower product prices to stay competitive. How are we supposed to make a profit?"

According to Thanh, with rising platform costs, sellers need to increase product prices by at least 30% to remain profitable. For example, an item priced at $20 would cost customers nearly $24 after fees. Even with shipping discounts and vouchers, the final price remains high, pushing buyers to seek cheaper alternatives.

"If I sell just a few dozen orders a day, I will end up losing money," Thanh said. He is now considering shifting his business back to Facebook to cut costs.

E-commerce platforms raise fees, sellers bear the burden

Starting April 1, Shopee will increase its fixed commission rates across several product categories:

Voucher and service fees will rise by 6%

Health products, supplements, and medical supplies will increase by 5.5% (from 4% to 9.5%)

Other key categories will see fee hikes ranging from 4% to 6%

Additionally, Shopee will discontinue its Freeship Xtra program, requiring sellers to cover return shipping costs, further increasing financial pressure.

Similarly, TikTok Shop will implement new commission rates starting April 1:

Regular sellers' commission will rise from an average of 3% to 4%

Shop Mall sellers' commissions will increase significantly, from a maximum of 4.54-5.78% to 6.05-7.7%

Thu Hoai, an online seller on TikTok Shop, explained that sellers already face multiple costs, including platform fees (5%), shipping fees, taxes, advertising costs, affiliate commissions, and promotional expenses. The new commission structure could severely impact profits.

"After these changes, sellers will have to adjust their pricing strategies carefully. If prices go up too much, customers will look for cheaper options elsewhere," Hoai said.

Lazada has also increased its fees since February, raising its fixed commission rate from 3% to 4%. The Freeship package has been reduced to cover only 6% of order value, and sellers no longer receive fixed-cost waivers. As a result, sellers must now allocate 15% of their revenue to the platform, up 2% from before.

E-commerce platforms claim these fee adjustments are necessary to balance the interests of both buyers and sellers. However, online business is becoming increasingly challenging, forcing many sellers to either adapt or shut down.

A growing but competitive market

According to Vu Cong Hoc, an e-commerce business expert, platforms often increase fees once they have secured a large customer and seller base. This is a common industry trend that will likely continue as platforms seek to turn a profit after years of heavy investment.

The Vietnam E-Commerce and Digital Economy Agency (Ministry of Industry and Trade) reported that Vietnam’s e-commerce market reached $25 billion in 2024, a 20% increase from 2023, accounting for 9% of total retail sales.

The four largest platforms - Shopee, TikTok Shop, Lazada, and Tiki - recorded a combined Gross Merchandise Value (GMV) of nearly $14 billion in 2024, a 40% increase from 2023. Analysts from YouNet predict that Vietnam’s e-commerce market will reach $49.9 billion by 2028.

However, Hoc warned that competition is intensifying, with new players entering the market. Many platforms are cutting staff and reducing operational costs to survive in Vietnam’s crowded e-commerce sector.

Additionally, as tax authorities tighten regulations on online sales, sellers will find it even harder to make money. Hoc predicts that with rising platform fees and stricter tax policies, online selling will no longer be as lucrative as before. Sellers may have to commit to a single platform instead of constantly switching between platforms for better deals.

Duy Anh