High trading fees, narrowing profit margins, and unsecured benefits make business on e-commerce platforms increasingly precarious.
Cost burden on sellers
Recently, many large e-commerce platforms such as Shopee and TikTok Shop announced that they will adjust their platform fee policy starting from April 1, increasing from 0.5% to 6% depending on the product category, while TikTok Shop also increased its commission fee by 1%, pushing the total fixed fee to about 9 – 13%. This created strong waves in the seller community.
Many people believe that the fee increase policy has put sellers in a passive position, forcing them to accept the terms of the platform even though they do not want to. With increasingly high fees, the business model on e-commerce platforms becomes more precarious, especially for small businesses that have little room to maneuver.
Ms. Nguyen Hai Anh, a small trader selling household appliances on an e-commerce platform, said she is facing two choices: cutting profits or increasing prices.
“After April 1, fixed fees and payment fees will increase to about 12-15% per order, compared to the current 9%. When fees increase, sellers will either have to cut profits or increase prices. But even before the price increase, customers will consider a lot when shopping,” Ms. Hai Anh shared.
Not only increasing fees, the return policy of e-commerce platforms also causes difficulties for many sellers. The return period of up to 15 days has created a loophole for buyers to take advantage of, sending back goods after use or affecting the quality of the product. This causes sellers to suffer losses but does not have the right to respond or complain effectively.
Mr. Thanh Trung, the owner of a fashion stall, also expressed his concern: “Customers buy products to try and then return them because they are not satisfied. But in reality, the products have been worn out or have had their components replaced. The seller has to bear the loss, while the platform always sides with the buyer without a mechanism to protect the seller. If this situation continues, many small retailers will not be able to survive.”
In fact, the increase in fees of e-commerce platforms has been predicted by many experts as an inevitable trend in their business strategy. These platforms are shifting from a hot growth model to profit optimization and sustainable development. This means that they will no longer spend money on subsidies as before but will find ways to maximize revenue from sellers.
Some experts also commented that, in addition to the direct impact on sellers, the policy of increasing floor fees also significantly affects consumers. Promotional programs and subsidies from the floor may be cut, forcing buyers to look for real value from the product instead of just relying on incentives.
Trend of reducing dependence on the floor
Speaking with VTV Times reporter, Mr. Hoang Trung Dung, an expert in the field of training in strategy and sales management on e-commerce platforms, said that increasing platform fees could also change the landscape of the e-commerce industry.
“If the fees are too high without corresponding benefits, many sellers will look for other platforms with more preferential policies to optimize operating costs. Many models such as D2C (Direct-to-Consumer) – that is, selling directly to customers via websites, social networks, physical stores, etc. instead of relying entirely on e-commerce platforms,” Mr. Dung analyzed.
The trend of multi-channel business (Omnichannel) is becoming an increasingly popular choice. When dependence on an e-commerce platform has many potential risks, combining multiple sales channels will help businesses increase coverage and reach customers better.
According to Mr. Dung, businesses should focus on developing their own brands, optimizing operating costs, and exploiting various platforms to maintain competitive advantages. Artificial intelligence (AI) and personalization technology will also play an important role in improving sales performance and optimizing the shopping experience.
Ensure benefits for sellers
In this situation, management agencies need to make adjustments to ensure a balance between the interests of the parties involved in the e-commerce ecosystem. Mr. Dung proposed that there should be a mechanism to monitor the fee collection policies of the platforms, avoiding the abuse of position to pressure sellers. At the same time, there should be policies to support small and medium enterprises, helping them access e-commerce sustainably through training programs, financial support or tax incentives.
According to Mr. Pham Van Hung, expert of the Legal Department, Vietnam Federation of Commerce and Industry (VCCI), it is proposed to add policies on protecting the rights of sellers on e-commerce platforms in the Draft Law on E-commerce being implemented by the Ministry of Industry and Trade to soon have appropriate practical solutions.
“Sellers do not have a complaint mechanism but must accept the floor’s decision as a final decision, for example, if they discover that the buyer has used the goods but still have to accept a refund. We propose a third-party complaint mechanism if the seller does not accept the floor’s decision,” said Mr. Hung.
With an e-commerce market size of over 25 billion USD in 2024, hundreds of thousands of online businesses need to be considered important entities that need to be protected in e-commerce activities.
According to the Department of E-commerce and Digital Economy (Ministry of Industry and Trade), 61% of Internet users said that e-commerce platforms are their preferred online shopping channel.
In 2024, there will be 650,000 online stores generating orders on e-commerce. Sales of the 5 most popular online sales platforms will reach 318,900 billion VND.