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Online Retailers Face Challenges Due to Increasing Fees

by Mich M.
04/03/2025
in Importing & Exporting, Industry

HCM CITY — Online retailers in Việt Nam are encountering difficulties as e-commerce platforms implement fee increases starting in April. In response, many sellers are either adjusting their pricing strategies or discontinuing online sales to manage rising costs.

Several business owners have reported that these fee adjustments, combined with broader economic challenges, are significantly impacting their operations. Some sellers estimate that after the fee increases take effect, payments to e-commerce platforms could account for more than 30 percent of their product costs. As a result, businesses are considering raising prices on new products while striving to maintain stable pricing on existing items.

Retailers operating in various sectors, including fashion and office supplies, are facing similar issues. Some have indicated that previous profit margins, which allowed for modest price markups, are no longer sustainable under the new fee structures. Consequently, sellers have had to substantially increase their pricing to cover costs associated with platform fees, operational expenses, and additional charges such as return shipping fees and advertising costs.

Fee Adjustments and Service Enhancements
Several major e-commerce platforms have announced changes to their fee structures. Shopee and TikTok Shop are introducing adjustments effective April 1, while Lazada raised its commission rates in February. According to estimates from the e-commerce data analysis firm Metric, nearly half a million online stores will be affected by these changes.

Shopee has stated that its revised fee structure aims to enhance service quality and improve the overall user experience. In early March, the platform introduced a streamlined commission fee structure for non-Shopee Mall sellers as part of a broader policy update. The company has indicated that these changes are intended to create a more transparent and predictable cost model for sellers.

As part of the new structure, effective April 1, 2025, Shopee’s commission fees will now include shipping service fees. To mitigate potential cost increases for sellers, the platform is launching a promotion offering free shipping vouchers worth up to VNĐ500,000 ($20) to all sellers. Prior to this adjustment, more than 90 percent of orders placed on Shopee already included free shipping vouchers.

Internal data from Shopee suggests that participation in the Freeship Xtra program, which carries a service fee of up to 6 percent capped at VNĐ50,000 ($2) per product, has led to significant increases in revenue and order volume for sellers. As a result, a majority of sellers are expected to experience only minimal increases in fixed fees or no change at all.

By integrating the shipping service fee into the commission fee, Shopee aims to maintain free shipping across transactions, ensuring a seamless and cost-effective shopping experience for buyers. The platform has emphasized that its expanded free shipping program is intended to balance out fee increases, minimizing the overall impact on sellers. — VNS

Discover top stories in supply chain logistics news on The Supply Chain Report. For free tools related to international trade, visit ADAMftd.com .

VietnamRetail #EcommerceChallenges #FeeIncreases #OnlineRetailers #ShopeeTikTokLazada #RetailPricing #EcommerceFees #VietnamBusiness #OnlineSales #PlatformChanges

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