THE HANOI TIMES — With the looming rise in transaction fees on e-commerce platforms, regulators are facing calls to act and ensure the sustainable development of online markets, sellers, and buyers.
A snapshot of the Shopee platform. Photo: Pham Hung/The Hanoi Times
Shopee has revealed that from April 1, they will be increasing fees from 0.5% to 6% across various categories, with some even reaching 10%.
Similarly, TikTok Shop will be raising its commission fees. Regular sellers will see an increase from an average of 3% to 4%, while those in the Shop Mall segment will face a rise from the current maximum of 4.54% – 5.78% to a new rate of 6.05% – 7.7%.
On top of these fixed fee hikes, platforms are also reducing incentives and tightening support policies, further adding to the financial burden on sellers.
According to a report by Metric, a research firm, the combined revenue of Vietnam’s top five e-commerce platforms (Shopee, Lazada, TikTok Shop, Tiki, and Sendo) grew by 37% year-on-year, reaching almost VND320 trillion ($12.5 billion). However, the number of active shops decreased by 20.25%, indicating that approximately 165,000 shops left these platforms.
Tran My Hanh, a cosmetics seller in Hanoi’s Ha Dong District, shared that the fee increases put her business under significant pressure. Previously, products sold online were priced lower than in physical stores, but with the new fees, online prices are often higher.
Nguyen Hai Anh, who sells household goods, is now faced with a difficult choice: accept lower profits or raise prices. After April 1, fixed and payment fees are expected to increase to about 12-15% per order, making it harder for merchants to maintain their current pricing without reducing profits.
Nguyen Anh Tuan, a seller of mother and baby products, expressed concern about the impact of rising fees on his business. He already spends over 18% of his income on various fees, and with the additional costs of advertising, shipping, and withdrawals, his total expenses are even higher. He fears that increasing prices to compensate for these fees may drive customers away.
Vu Ngoc Quan, a Shopee seller, shared his alternative approach: “Selling on Facebook helps me save costs, bypass reporting to the platform, and interact directly with buyers. Other costs like operations and shipping are still within manageable limits for sellers.”
However, this approach also requires sellers to invest in packaging, product design, and advertising, and they must accept a certain level of risk when running their own sales sites.
Nguyen Hoa Binh, founder and chairman of NextTech Group, had predicted years ago that platforms would eventually need to raise fees and tighten policies to optimize profits. According to him, this is an inevitable trend as platforms shift their focus from rapid growth to profit optimization and sustainable development, which includes maximizing revenue from sellers.
Hoang Trung Dung, an expert in e-commerce sales strategy and management training, warned that if fees continue to rise without corresponding benefits, sellers will seek alternative platforms with better incentives to streamline their operating costs. He suggested that sellers could explore direct-to-consumer (D2C) transactions through websites, social media, and physical stores, rather than solely relying on e-commerce platforms.
Regulators Step In
The Department of E-Commerce and Digital Economy under the Ministry of Industry and Trade is taking action by requiring platforms to report on transaction fee increases, as stated by Deputy Director Hoang Ninh.
E-commerce platform Sendo showcases its portfolio. Photo: Hoai Nam/The Hanoi Times
While fee increases benefit platforms, they put considerable pressure on sellers, especially small businesses and individual sellers. Transaction fees vary across e-commerce platforms, and if commission fees continue to rise, product prices may need to be adjusted, directly impacting consumers’ purchasing power.
Ninh emphasized that any increases in commissions must be based on transparent information and applied uniformly to sellers, with advance notice provided before the changes take effect, as required by law. He also noted that Decree 98 mandates e-commerce platforms to publish and clarify their policies, including transaction fees.
Failure to communicate policy changes in advance will be considered an administrative violation, subject to fines ranging from VND20 million to VND40 million ($781 to $1,560). The department is working with relevant agencies to assess the impact of fee adjustments and prevent market abuse, while also encouraging e-commerce platforms to disclose information on fee increases and consult with the business community.
Nguyen Minh Phong, formerly of the Institute for Socio-Economic Development Studies in Hanoi, acknowledged that service costs in the market are dynamic and must adjust to market conditions. He suggested that if fee increases are accompanied by improved services and a better shopping experience, the negative impact may be mitigated. “Increasing fees and improving service quality should go hand in hand to ensure balanced benefits for all parties,” he added.
For sustainable development, e-commerce platforms must carefully consider their fee structures while providing appropriate support to maintain a stable and fair ecosystem for both shoppers and merchants, Phong concluded.
Shopping online, a new trend amid COVID-19 pandemic
Online shopping has been increasingly welcomed by Vietnamese consumers since the outbreak of COVID-19. Even though the pandemic has now been largely brought under control, many have continued with this way of shopping due to its convenience.
