Shopee and TikTok Shop Fee Increases Put Pressure on Vendors’ Profits – What Can We Do to Optimize Costs and Increase Margins?
- Hieu Do
- Mar 21
- 4 min read
Starting next month, Shopee and TikTok Shop will implement higher platform fees, forcing small vendors to raise prices to sustain their businesses.
TikTok Shop, the Chinese social commerce giant known for its live-stream sales, will increase its commission for regular shops from 1-3% to 1-4% beginning April 1. For mall shops, which represent well-known brands, fees will rise from 1-5.78% to 1.21-7.7%.
Meanwhile, Shopee, the leading e-commerce platform in Vietnam, will raise its platform fees from 4% to as high as 10%. Vendors selling smartphone accessories, sportswear, camping gear, watches, and suitcases will see their fees jump from 3% to 9%.
Electronics seller Minh Tuan in Hanoi, who currently pays 1-4% on Shopee, will face an increase of up to 9.5% next month, with a 4% fee on TikTok Shop. "This is a shock for those who rely solely on e-commerce platforms, especially Shopee vendors," he commented.
In Ho Chi Minh City, Huyen Tran, a household and lifestyle goods seller, is considering shutting down her e-commerce business due to the government’s focus on e-commerce tax collection combined with these fee hikes. She will now have to pay up to 9.5% on Shopee and 4% on TikTok Shop.
Fashion sellers like Gia Bao are facing the steepest increases—up to 10% in platform fees. For every shirt he sells, he will incur a 16.5% deduction in fees and taxes.
Though TikTok Shop’s 4% fee for clothing is more competitive, Bao noted that the high costs of running live-stream sales on the platform also pose financial challenges.
These fee hikes will impact an estimated 500,000 vendors on both platforms. By the end of last year, 204,000 sellers operated on TikTok Shop and 276,000 on Shopee, according to data from Metric. The rising costs may push many small vendors out of the market—last year, 88,000 sellers left Shopee, while 15,500 quit TikTok Shop.
Experts predict that these changes will favor large brands, especially on Shopee, which had 16,000 official brand stores in 2024, an increase of 2,000 compared to the previous year.
Le Si Dung, CEO of Fixecom, an e-commerce solutions provider, stated that Shopee has now become the most expensive platform for sellers. Vendors are expected to pay between 6.5% and 15% per order, and when additional costs such as salaries, advertising, and logistics are factored in, total overhead could reach 50% of the selling price.
“The e-commerce landscape is shifting,” said Dung. “Big vendors, official brands, and manufacturers selling their own products will have an advantage, while intermediary shops will face growing difficulties.”
With Shopee holding a 67% market share and TikTok Shop at 27%, their calculated fee increases seem aimed at reshaping Vietnam’s online retail sector. Lazada and Tiki together account for just 6% of the market.
A Shopee spokesperson explained that the fee adjustments followed a comprehensive market analysis, considering buyer demand, industry trends, and vendor feedback. The company emphasized that enhancing product quality and services remains a key priority.
(Source: VNExpress)
What Can We Do to Optimize Costs and Increase Margins?
Recent fee increases on Shopee and TikTok Shop are cutting deeper into vendors' profits, making it more challenging to stay competitive. With rising platform commissions, transaction fees, and advertising costs, sellers must find new ways to optimize costs while maintaining sales volume.
At SOSP Consulting Group, we help FDI SME eCommerce businesses cut unnecessary expenses and improve profitability. Here’s how you can adapt to these changes:
1. Reduce Dependency on Paid Ads
Platform ad costs are skyrocketing, and bidding wars drive CPC even higher. Shift your strategy towards organic traffic by leveraging SEO-driven product listings, influencer partnerships, and social commerce (Facebook, Instagram, Zalo, Tiktok, Threads) to maintain visibility without overspending.
2. Improve Pricing and Bundling Strategies
Instead of competing on price alone, offer bundles, limited-time deals, and exclusive perks to increase average order value (AOV). This helps counterbalance higher fees while enhancing customer retention.
3. Optimize Fulfillment and Logistics
Shipping costs add up fast, especially with platform fee hikes. Compare third-party logistics (3PL) providers, negotiate better rates, or use a mix of self-fulfillment and platform fulfillment to lower costs while maintaining delivery speed.
4. Automate Order and Inventory Management
Manual processes lead to errors, wasted inventory, and high operating costs. Automate stock tracking, sync multiple sales channels, and leverage demand forecasting tools to minimize overstocking and stockouts.
5. Strengthen Customer Retention & Repeat Purchases
With platform fees increasing, acquiring new customers is costlier than ever. Focus on customer loyalty programs, personalized email marketing, and post-purchase engagement to drive repeat sales at lower costs.
Let’s Optimize Your eCommerce Business for Profitability!
And when additional costs such as salaries, advertising, and logistics are factored in, sellers must rethink cost structures to stay profitable.
At SOSP Consulting Group, we help eCommerce brands adapt, optimize, and scale profitably despite increasing platform fees.
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