Minh Tuan, from Thao Dien ward, TP HCM, opened a fashion t-shirt shop in early 2025 but closed it after three months. According to his calculations, high platform and advertising fees made his products unprofitable.

"There are too many t-shirt sellers, leading to intense competition. To get orders, one must invest heavily in advertising and hire livestreamers. I intended to earn extra income, but operating a small-scale business is no longer feasible", Tuan said.

This trend extends beyond new, resource-limited shops like Tuan's. Data from Metric indicates that last year, over 48,000 shops on the four major platforms – Shopee, Lazada, TikTok Shop, and Tiki – generated no revenue. Even during the peak business period in Q4/2025, 20,750 shops made no sales, despite recording revenue in the first nine months of the year.

Market data analytics company YouNet ECI reported that the total number of revenue-generating sellers on the four platforms last year decreased by 5,6% year-on-year, to approximately 672,000 shops. However, revenue per seller increased by 33%, "indicating a continued strong filtering process".

"The market is witnessing the departure of small-scale sellers, those with limited capital or dealing in unofficial products", stated the YouNet ECI report.

Tran Lam, an online sales training expert and CEO of Julyhouse, also confirmed that 2025 was a year of significant "purification" for sellers. The primary reason, according to him, is tighter control by regulatory agencies over taxes, origin traceability, and anti-counterfeiting measures.

For instance, the Department of E-commerce and Digital Economy reported that over 13,700 infringing shops on online retail platforms were removed last year. Additionally, numerous cases involving the sale of counterfeit cosmetics, functional foods, and milk were exposed.

Furthermore, compliance costs for new regulations, especially platform fees, have increased significantly. According to Lam's calculations, platform fees rose by an average of 7-10%, a substantial amount for sellers. "When profit margins are already thin, an increase of just a few percentage points can turn a profit into a loss. These two factors weaken the competitiveness of many sellers and lead to a strong wave of purification", Lam observed.

Moreover, the trend of consumers preferring to buy from shop malls (official brand stores) has boosted sales for this group, simultaneously pressuring smaller retailers out of the market.

According to Metric, shop malls account for just over 2% of the total on Shopee and TikTok Shop, yet they captured over 30% of last year's sales. Despite the overall decline in seller numbers, the number of shop malls on these two platforms still increased by 11,81% and 1,14% respectively. Lazada, in particular, enhanced its international official product offerings from Gmarket (South Korea) and TMall (Taobao's official brand store).

"The market is growing but increasingly consolidating into the hands of large sellers, brands, and official distributors", YouNet ECI stated.

The trend of declining shop numbers on online platforms is expected to continue. *Graphics: Vien Thong*

The "purification" wave for online sellers is projected to continue in 2026. Effective 1/7, the E-commerce Law will introduce regulations aimed at fostering a healthier and more transparent market, including seller identification and livestreaming rules.

Concurrently, Vietnam's market is shifting in line with regional trends, as e-commerce enters an era of "trust commerce", with higher expectations for quality and authenticity, according to a report by Cube Asia.

"The era of easy growth by pouring money into advertising has ended", stated Nguyen Phuong Lam, Director of Market Consulting and Analysis at YouNet ECI. According to him, the withdrawal of small sellers presents a golden opportunity for professional brands and sellers to acquire customers, while converting departed sellers into affiliate marketing partners.

"Brands need to focus on synchronizing across channels and continuously monitor industry movements, especially those of competitors or retail chains, to identify real growth opportunities", Phuong Lam advised.

Meanwhile, Julyhouse CEO Tran Lam believes that to survive, shops must fully comply with inbound and outbound invoicing, quality standards, taxes, and goods circulation regulations. To adapt to increasingly high platform fees, sellers must create quality products with good pricing to ensure sufficient profit margins. Concurrently, they need to enhance their operational capabilities on the platform, including optimizing advertising, promotions, and costs.

For new online selling ventures, Lam recommends clearly defining their business model - whether as an individual, a brand builder, or a distributor - to establish appropriate cost control strategies (operations, marketing, promotions...) and revenue expectations.

"The market is still growing, and customers are still there. Opportunities haven't disappeared; they've just become more challenging. Those who are precise and efficient will still thrive", Tran Lam said.