The withdrawal wave of online retailers with the 'sell for fun' mindset

After a boom period due to the pandemic and a strong shift to online shopping, Vietnam's e-commerce market is witnessing an unprecedented wave of withdrawals from small retailers.

To survive on e-commerce platforms, sellers are forced to invest properly and give up the mindset of doing extra work and selling extra for fun - Photo: QUANG DINH

According to the latest report from the smart data platform Metric.vn, in just the first 6 months of 2025, the number of shops generating orders decreased by more than 80,000 compared to the same period last year, and decreased by more than 55,000 compared to the second half of 2024.

It can be said that the Vietnamese e-commerce market is entering an unprecedented "purification" phase. The game is no longer for those who "sell more for fun" or "open a shop to clear inventory", but requires long-term thinking, clear strategy and methodical investment.

Online business is no longer for "newbies"

A quick survey by Tuoi Tre on seller groups Shopee, TikTok Shop, Lazada... shows that many online shop owners are running out of steam, even considering leaving the game.

Posts with content like "too much pressure, probably quitting", "clearing out warehouse to return to old job"... appear more and more.

"In the past, selling online only required eye-catching products and good prices to get orders. Now, to survive, you have to operate like a truly professional business," Mr. Bui Huu Nghia, founder of the fashion brand specializing in selling on the e-commerce platform Vicolas, shared with Tuoi Tre .

According to Mr. Nghia, in the first half of 2025 alone, the total cost of processing an order on Shopee has increased from about 15% to more than 20% of the product value. This fee includes platform fees, fees for participating in promotions, vouchers, advertising costs, shipping...

Not stopping there, sellers also have to face a series of obligations and arising costs such as issuing full output and input invoices, participating in social insurance for employees, providing documents of product origin and fully performing tax responsibilities.

"If you don't carefully calculate each expense, sellers can easily lose money, and the more they sell, the more they lose," said Mr. Nghia.

Along with the pressure of increasing costs, the simultaneous tightening of operating procedures by e-commerce platforms to improve consumer experience has also caused many sellers to face difficulties, forcing them to adapt in order to survive.

"From maintaining a steady amount of traffic, maintaining promotions according to regulations, to responding to customers in a timely manner, avoiding late deliveries or errors in orders... are all "survival skills" that shop owners must know by heart" - Ms. T., a seller on a large e-commerce platform, said.

According to sellers, just a small technical error such as late response, missing delivery or customer complaints can cause the shop's credit score to be deducted, its visibility to be reduced, or even its store to be temporarily locked.

"Even many technical errors do not come from the seller but are due to objective factors such as slow shipping units, system errors, late delivery confirmation by customers, incorrect customer complaints, the damage is still borne by the seller...", another seller lamented.

Customers increasingly value brand and reliability.

Talking to us, Mr. Nguyen Phuong Lam - Director of the e-commerce market research company YouNet ECI - affirmed that customers increasingly value brand, reliability and shopping experience, instead of the low price factor being the main driving force for shopping behavior as before.

Citing data from YouNet's latest report, Mr. Lam said that although the number of sellers with revenue decreased, the average revenue of each seller remaining on the floor increased by 27.6% compared to the same period.

The average value of each product sold also increased slightly by 5.4%. In particular, the Mall Shop group - a group of stalls that are systematically operated and have control over the origin of goods - recorded an impressive revenue growth of 34% compared to the same period last year.

"Online sellers must build long-term reputation, understand consumer behavior and invest properly in operations if they want to survive in the market," Mr. Lam emphasized.

Sharing the same view, Mr. Nguyen Viet Dung - marketing expert, lecturer at Foreign Trade University - said that small sellers need to give up the mindset of "test selling" and "doing extra work" and need to approach e-commerce with a professional mindset from the beginning.

This requires sellers to invest in product quality, image, service, after-sales service and especially clearly define target customer segments.

"Sellers need to focus on exploiting niche segments, areas that large enterprises cannot cover, such as handmade products, regional specialties or trending goods. This is a promised land if you know how to operate properly," said Mr. Dung.

Mr. Dung also recommended that shop owners need to set up a streamlined organization, take advantage of digital tools and artificial intelligence to reduce costs, and master customer data to adjust product strategies, prices and advertising in real time.

E-commerce still has a lot of room for growth

According to the latest report by YouNet ECI, in the first 6 months of 2025, the total transaction value (GMV) on Shopee, TikTok Shop, Lazada and Tiki reached VND 222,100 billion, an increase of 23% over the same period last year - much higher than the 9.3% increase of the retail industry of consumer goods and services (data from the General Statistics Office).

YouNet ECI forecasts that Vietnam's e-commerce will maintain a compound annual growth rate of 35% until 2028, with two main drivers: the "shoppertainment" model and steadily increasing basket size (basket size expansion).

E-commerce platforms use AI to increase interaction with shoppers

Talking about the recent screening of the e-commerce market, Mr. Tran Quoc Bao, Deputy General Director of Kido Group and CEO of E2E e-commerce channel, said that selling on e-commerce platforms requires thorough and professional investment to go the long way.

In 2025, E2E will continue to promote its strengths in technology platforms and leading KOL/KOC networks to accompany the digital transformation process. Accordingly, E2E will start applying AI in organizing content production on E2E-affiliated channels, being a pioneer in applying AI-powered livestream sales on digital platforms.

This also makes a big difference for E2E compared to traditional e-commerce platforms, when it can support building sales campaigns with personalized video content, thereby shortening the consumer journey and increasing conversion rates.

With the support of AI, the E2E platform aims to serve multiple industries, from consumer product manufacturing businesses, to distributors, retailers and organizations in the service industry such as education , health, personal care...

The system can customize the approach, avatar, livestream content and communication message according to each specific business model.

In the coming time, the floor will also use AI to create high-quality advertising content, helping businesses have effective advertising tools at a cost of only 20-30% compared to traditional tools.

Thus, E2E will become an effective marketing and sales solution through AI advertising content and sales through KOL/KOC on platforms.

"E2E also promotes the selection and training of online sales force who are not only knowledgeable about the products but also have the ability to convey accurate information about features and uses, thereby forming a new workforce of the digital economy," said Mr. Bao.

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Source: https://tuoitre.vn/lan-song-rut-lui-cua-cac-nha-ban-le-online-co-tu-duy-ban-cho-vui-20250801230519388.htm