Ask Shopee and Tiktok shops to report 'exorbitant' fee increases

In response to the increase in commission fees by e-commerce platforms such as Shopee and Tiktok shop, which has upset sellers, the leader of the Department of E-commerce and Digital Economy - Ministry of Industry and Trade affirmed that he will coordinate with relevant agencies to assess the impact of fee adjustments and request platforms to report on the fee collection mechanism to ensure there is no abuse of market position.

Mr. Hoang Ninh - Deputy Director Department of E-commerce and Digital Economy , Ministry of Industry and Trade - believes that e-commerce platforms increase commission fees can bring certain benefits to the platforms, but create no small pressure on sellers on the platforms, especially for sellers who are small businesses, individual businesses or individuals doing business on the platforms.

According to Mr. Ninh, commission fees on e-commerce trading floors are not the same and depend on the business strategy of each floor in each period. If commission fees increase, the price of goods will likely be adjusted to compensate for costs, directly affecting the purchasing power of consumers.

“The increase in commission fees must be based on information transparency, and the fees must be applied consistently to sellers. For example, the fees must be applied to both domestic and foreign sellers and must be announced in advance according to the law before being officially applied,” said Mr. Ninh.

The Deputy Director of the Department of E-commerce and Digital Economy said that according to the provisions of Decree 98, e-commerce platforms are obliged to publicly and transparently disclose policies, including transaction fees, to ensure the rights of sellers and consumers. Acts of changing policies without clear notification, or without prior notification as prescribed are administrative violations, and can be punished according to regulations, with fines ranging from 20-40 million VND.

Shopee announced a fixed fee increase from April 1, making sellers angry.

"The Department will coordinate with relevant agencies such as the National Competition Commission to assess the impact of fee adjustments, requiring exchanges to report on fee collection mechanisms, to ensure there is no abuse of market position.

In case these platforms have behaviors such as providing e-commerce services that are not in accordance with the registration documents and regulations confirmed by competent state management agencies, the Department will request the owners of these platforms to explain and implement administrative sanctions according to regulations," said Mr. Ninh.

The Department of E-commerce and Digital Economy recommends that e-commerce platforms need to fully disclose information about fee increases, consult with the business community when necessary, and strictly comply with regulations on e-commerce, competition, and consumer rights protection to ensure a fair, transparent, and sustainable e-commerce environment.

Previously, according to Shopee's announcement, from April 1, some product categories will increase fixed fees by up to 10%. Specifically, for electronic accessories, watches, suitcases, e-commerce platform This will take a 9% commission on sales, triple the previous rate.

The mother and baby product category also adjusted from 4% to 9.5%, while some other items increased from 4% to 10%. However, the impact is not uniform, because Shopee still maintains lower fixed fees (1.5-7%) for electronics, computers, and mobile phone groups.

Additionally, under the new policy, sellers will be responsible for return shipping costs in two cases: return/refund orders and failed delivery orders.

TikTok Shop increases commission fees from 0.2 - 1.5% on the platform from April 1 for all product categories.

Faced with this fee increase, online sellers say they are suffering huge losses, with all profits being “swallowed” by these platforms. In particular, if this policy is applied in the near future, the Vietnamese e-commerce market will certainly witness the highest rate of online sellers leaving the platform ever.

Source