Tuan Anh, an office worker from Tan Nhut ward in Ho Chi Minh City, sought extra income through online business. He sold bear-printed t-shirts on a major e-commerce platform. However, after 3 months of dismal sales, he had to quit.

"There's too much competition. To sell, you have to spend on advertising. For small-scale sellers like me, with limited investment and thin profit margins, it's not feasible," he said.

As Vietnam's e-commerce market expands, cases like Tuan Anh's are common. Some shops even report no sales for six months. Data from Metric, an e-commerce data platform, shows that the number of shops with orders in the first 6 months of the year decreased by more than 80,000 compared to the same period last year and 55,000 compared to the second half of 2024. This figure includes international shops. "The trend indicates increasingly fierce competition in e-commerce. The market is focusing on larger sellers who can maintain stable orders," Metric observes.

According to YouNet ECI, an e-commerce growth consulting firm, the total gross merchandise value (GMV) of 4 major online retail platforms (Shopee, TikTok Shop, Lazada, and Tiki) reached 222,100 billion VND in the first 6 months of the year, a 23% increase compared to the same period in 2024. However, the total number of active sellers on these 4 platforms is now over 578,700, a decrease of 7,440 shops compared to the same period in 2024, according to YouNet ECI. This is the net decrease, excluding international shops and accounting for both new and exiting sellers.

Nguyen Phuong Lam, Market Analysis Director at YouNet ECI, explains that as consumers buy more essential products, they place greater trust in reputable brands and large retailers. He points out that revenue growth for official stores (shop mall) reached 34% in 6 months.

Analyzing Shopee and TikTok Shop, the two platforms holding over 90% of the market share, Metric reports that shop malls account for only 3.4% of the total number of shops but contribute 28.7% of revenue. "This reflects the increasingly demanding consumer mindset, prioritizing peace of mind when shopping amidst the proliferation of low-quality goods," the report states.

In addition, small retailers are disadvantaged in marketing, as advertising spending is almost essential for generating orders, according to Nguyen Khac Tu, Founder and CEO of Bigshop, specializing in electronics and household appliances.

"Currently, if shops don't run ads on Shopee, very few orders come in. Similarly, livestreaming on TikTok Shop without advertising attracts few viewers, mainly competitors," Tu, with 10 years of experience in online retail, comments.

This is not to mention the platform fees, which have increased across the board in recent months and are "now too high to generate an order," according to Tu. YouNet ECI experts confirm this is also a significant factor. "With the pressure of increasing platform fees, many small, unprofessional, or under-invested sellers will inevitably be forced to leave," Lam says.

The era of quick profits from selling cheap, low-quality goods is fading. International shops are gaining an advantage in the low-price segment. On Shopee, sales of international shops increased by nearly 7% in the first half of the year, with an average product price of only 45,000 VND. In comparison, the average transaction value ranges from over 100,000 to over 300,000 VND, depending on the platform.

Authorities' stricter management of product quality and anti-counterfeiting measures could also lead some non-transparent shops to withdraw. According to the Department of E-commerce and Digital Economy (Ministry of Industry and Trade), in 6 months, platforms removed over 33,000 products and handled over 11,000 violating shops.

So, where are the opportunities for online sellers? Forecasts indicate continued market expansion. Metric expects third-quarter sales to grow by 21.6% compared to the second quarter, with the GMV of the 4 platforms reaching 122,800 billion VND. In the long term, the e-Conomy report by Google, Temasek, and Bain & Company predicts that Vietnam's e-commerce market will reach 63 billion USD by the end of this decade, nearly three times the value of 2024.

However, the market share is shifting towards professional, law-abiding shops with resources. Nguyen Phuong Lam notes that consumers are shopping online year-round, across various product categories, with increasing emphasis on quality. Therefore, online is no longer a channel for sellers to "dump goods".

"Serious investment in brand building, service quality, and financial preparation for the long haul is necessary to compete. Vietnam's e-commerce market no longer has room for short-term thinking," Lam states.

The draft E-commerce Law also proposes regulations to improve quality and promote a healthier market. For example, it increases platform responsibility, requiring the removal of violating goods within 24 hours of detection. Seller identification for traceability is also proposed to prevent "cicada shell shedding" (opening new shops after violations on old ones).

Nguyen Huu Tuan, Director of the E-commerce and Digital Technology Development Center (Ministry of Industry and Trade), says that seller responsibility for products will also be more strictly regulated. Product labels must include complete information as required by law.

"Technological goods with conformity certifications but lacking information or not yet authorized for circulation, especially imported technology goods, will have a harder time surviving. Arbitrary product listings will no longer be tolerated," Tuan says.

Vien Thong