Sellers argue that these charges are exorbitant and that these platforms are shifting the risks of returned goods onto them.
Fee increases of up to 10 percent, removal of shipping subsidies
According to Shopee's announcement, from April 1, specific product categories will see fixed commission fees rise to as much as 10 percent. Specifically, commissions on electronic accessories, watches, and suitcases will increase to 9 percent of revenue, three times higher than before.
The commission on mother and baby products will rise from 4-9.5 percent, while rates in other categories will climb from 4-10 percent. However, the impact will not be uniform, as Shopee will still maintain lower commission rates (1.5–7 percent) for electronic goods, computers, and mobile phones.
Additionally, under the new policy, sellers will bear the cost of return shipping in two cases, including refund/return orders and failed deliveries.
Previously, e-commerce platforms covered these costs if the issue was not due to the product or the seller. However, under the new rules, sellers must fully bear these expenses unless they subscribe to PiShip, a service Shopee promotes as a cost-reducing solution, at a fee of VND2,300 per order. This service provides free return shipping for orders valued up to VND500,000.
TikTok Shop will also increase commission fees across multiple categories starting on April 1. For electronics, the commission for regular sellers will rise by 1 percent, while for mall sellers, rates will increase by 0.2-1.5 percent.
Similarly, commission fees for categories such as fashion, groceries, health and beauty, mother and baby, home, and lifestyle products will rise by 1-1.5 percent.
Unfair practices
Many online sellers are outraged by Shopee and TikTok Shop's simultaneous fee hikes. They argue that the new policies put them at a significant disadvantage, with any potential profits swallowed up by these platforms.
Le Thi Van, a 34-year-old online seller in Hanoi with over five years of experience, stated that Shopee's new policy, in particular, shifts all risks of order cancellations, returns, and refunds onto sellers.
According to Van, e-commerce platforms initially introduced subsidies to attract both sellers and buyers. Now that they have established a steady customer base and entrenched shopping habits, they are cutting these benefits.
"This is unfair and forces sellers to increase prices to maintain profitability, which could impact consumer demand and put sellers in a difficult position," Van remarked.
Tran Thi Thuy, a fashion shop owner on Shopee, believes that if this policy is implemented, Vietnam's e-commerce market could witness the highest rate of seller withdrawals ever.
"In the fashion industry, the cost of goods accounts for 50-60 percent of revenue. Labour, rental, storage, photography, and video production costs are rising and already exceed 20 percent. The burden is too high, with Shopee taking up to 10 percent of the commission. Moreover, tax authorities are tightening regulations on online sellers. These exorbitant commissions will push many shops to the brink of financial collapse," Thuy warned.
She added that unless she can optimise operational and staffing costs, she might have no choice but to leave Shopee or seek alternative sales channels to avoid excessive fees.
Recently, in its feedback on the draft E-commerce Law, the Vietnam Chamber of Commerce and Industry (VCCI) noted that most sellers on e-commerce platforms are small business owners. They are vulnerable to unfavourable policies, abrupt changes in terms, suspensions, or bans without clear justification, and limited access to data.
These practices could disadvantage small businesses, leaving them powerless and gradually eroding their enthusiasm for entrepreneurship.
VCCI emphasised the need for policies to balance stakeholder interests, including regulations to protect small business owners on e-commerce platforms. Such measures would promote competition, encourage small enterprises to enter and remain in the digital economy and drive overall growth in Vietnam's e-commerce sector.
Statistics indicate that in 2024, 650,000 active online stores on e-commerce platforms generated sales. Last year, the total revenue of Vietnam's five most popular e-commerce marketplaces reached VND 318.9 trillion (USD 12.75 billion).