​Sellers struggle as e-commerce platforms increase fees, cut benefits

​Sellers struggle as e-commerce platforms increase fees, cut benefits

E-commerce platforms TikTok Shop and Shopee will officially apply new fees that are two to three times higher than the current rates from April 1. Lazada also raised its fees starting February 1, making it more challenging for sellers on these platforms.

E-commerce platforms’ fee increases will send product prices rising. Photo: Be Hieu

Many sellers have expressed concern that this change could affect their product prices, competitiveness, and future revenue.

In addition to raising fixed fees, e-commerce platforms are reducing promotions and tightening support policies, putting additional pressure on sellers.

Shopee has required higher commissions for various product categories such as computers, laptops, phones, and accessories. Notably, the commissions for fashion, cosmetics, household utensils, healthcare and baby products are ranging from nine to 10 percent, a significant rise compared to before.

Sellers now have to bear delivery costs if orders are not delivered successfully.

Under the new fee policy, sellers on Shopee will pay a fixed fee, payment fee, and fee for the Freeship Extra service, accounting for one to four, five, and six percent of the product prices, respectively, capped at VND50,000 (US$2) per product.

TikTok Shop has also announced an increase in fees. Regular sellers will now pay a fee equivalent to four percent of the product value instead of the previous three percent, while Shop Malls will face a new fee range of 6.05-7.7 percent.

Lazada previously hiked its fixed fee for sellers to four percent from three percent, while reducing the Freeship Max delivery fee to six percent from eight percent of the order value.

Sellers will no longer be exempt from fixed fees when joining the Freeship Max program. As a result, sellers on this platform pay around 15 percent of their revenue to the platform, up two percent from before.

Sellers face hardships

Many sellers have complained about the rise in fixed fees.

Thu Uyen from District 5, Ho Chi Minh City, who has been selling toys on e-commerce platforms for many years, said the fee spikes had put pressure on her.

Vendors have to be subject to higher fixed fees and bear fees when products are not delivered successfully, which makes life harder for them, Uyen added.

Nguyen Kieu Trinh, a clothing seller, said she was pressured by the fee increases.

If she does not raise product prices, it is hard to make a profit. But if she raises prices, it is harder to sell products.

Vo Ha Linh, a top seller through live-stream sessions on e-commerce platforms, said that with the sharp fee jumps from April 1, product prices would also be adjusted accordingly.

After nearly 10 years of working in affiliate marketing, Linh said she had never heard as many complaints from brands as this year. Prices have already climbed since the beginning of the year, including for international products from China.

KOL Diep Le also admitted that prices have been fluctuating recently. While online shopping has become more convenient, it is now more difficult to find products at bargain prices compared to last year.

E-commerce platforms are committed to long-term value

A Shopee representative told Tuoi Tre (Youth) newspaper that the fee adjustments are meant to ensure the platform operates efficiently and in line with market demands and seller needs.

While acknowledging that these changes might impact business operations, Shopee was committed to upgrading the platform and supporting the sustainable development of sellers.

According to Shopee, consumer expectations are growing, requiring sellers to improve their service quality. The fee hike and the free delivery program, effective from April 1, will help foster a healthy business environment, and assist sellers in achieving long-term growth.

TikTok Shop also explained that the fee adjustments will be accompanied by enhanced support for sellers, including continuous platform improvements and subsidies.

Meanwhile, a Lazada Vietnam representative shared that its decision to adjust fees was made after carefully considering factors such as operational costs, and the cost of upgrading technology infrastructure, customer service, and logistics systems, all aimed at providing long-term value for both buyers and sellers.

Along with the fee increase, the platform said it will continue to train sellers, optimize costs, run promotional campaigns like discount vouchers, delivery cost support, and other incentives to help sellers maintain their competitiveness.

According to Nguyen Pham Hoang Huy, head of e-commerce at FPT Polytechnic College in Ho Chi Minh City, e-commerce platforms’ fee increases were anticipated.

In the past, platforms were willing to absorb losses to attract both buyers and sellers, but once they gained a significant market share, they adjusted fees to optimize profits.

Huy added that small businesses, individuals, and household businesses will be most affected. As product prices rise, purchasing power declines, and sellers’ profit margins could shrink from 15 percent to just seven percent.

In this context, sellers must optimize labor costs, source competitively priced suppliers while maintaining quality, and build a competitive edge through unique products and strong after-sales service.

They should also consider targeting higher-end products and avoid relying solely on e-commerce platforms.

Diversifying sales channels, including social media and search platforms, can help expand their reach and sustain growth.

Tuoi Tre News