Market E-commerce Vietnam is witnessing an unprecedented boom in the history of the digital economy. Choosing the right business platform between the two giants, Lazada and Shopee, is a question that keeps many business owners awake at night. The right decision not only helps optimize operating costs but also determines the survival of the brand. This article will provide an in-depth analysis of the technical, financial, and marketing aspects of each marketplace.

According to the latest statistical data in 2024, the market size E-commerce Vietnam has surpassed the USD 20 billion mark. This growth opens up golden opportunities for SMEs and individual entrepreneurs. However, this “fertile land” also comes with fierce competition in terms of pricing and service quality.

At DPS.MEDIA, we have witnessed many businesses fail simply because they chose the wrong initial access channel. The experts at DPS.MEDIA always recommend that clients take a comprehensive view before investing in a storefront. Understanding the algorithms and user behavior on each platform E-commerce is the key.

Below is a comprehensive analysis to help you make the most accurate decision. We will delve into comparing marketplace fees, logistics systems, and growth potential across both platforms.

1. Overview of the E-commerce Market and Trends 2024-2025

The Rise of the Shoppertainment Model in E-commerce

The trend of combining shopping with entertainment (Shoppertainment) is reshaping the landscape of E-commerce Southeast Asia. Consumers no longer go online merely to passively search for products. They want to interact, watch livestreams, and participate in games directly within shopping apps.

Both Shopee and Lazada are investing millions of USD in developing livestream and short-video features. This forces sellers to shift their mindset from simply listing products to creating digital content. If you do not adapt, your store will quickly be forgotten by the algorithm.

Market E-commerce modern times require sellers to become true content creators. Product review videos and prime-time sales livestreams are indispensable tools for increasing conversion rates.

Market Share and User Habits on E-commerce Marketplaces

Shopee currently has a major advantage in web and app traffic in Vietnam. According to market reports, Shopee frequently leads in the number of monthly active users. This creates a massive pool of traffic that any seller E-commerce would crave.

However, Lazada has its own strength in having a customer base with higher incomes and more rational shopping behavior. Lazada users often care more about brand credibility and the quality of genuine services (LazMall). This is an important factor if you position your products in the mid-range and premium segments.

Understanding your target customer base is the first step to choosing a E-commerce suitable marketplace. You cannot sell high-value products to customers who only hunt for 1K deals. Conversely, selling low-priced goods on a premium platform will make it difficult to compete on visibility costs.

The Impact of AI Technology on E-commerce Operations

Artificial intelligence (AI) is being extensively applied by both marketplaces to distribute product visibility. The marketplace's algorithm E-commerce is becoming increasingly intelligent at personalizing the user experience. It learns from search history, page viewing time, and cart abandonment behavior.

For sellers, optimizing product SEO has become more important than ever. You need to research keywords and optimize images and product descriptions to “communicate” effectively with the marketplace's AI. Only when AI understands your product will it distribute it to the right potential customers.

DPS.MEDIA believes that applying AI to customer service chatbots is also an inevitable trend. Fast, accurate 24/7 responses help increase store credibility scores and retain customers effectively.

Digital Transformation and Cashless Payments

The popularity of e-wallets and digital banking has strongly boosted the E-commerce. ShopeePay and ZaloPay/Momo on Lazada make the payment process smoother. Order cancellation rates decrease significantly for orders that have been prepaid.

Sellers should encourage customers to pay online through discount codes. This helps reduce the risk of cash-on-delivery refusals and increases cash flow for the business. The marketplaces E-commerce also frequently launch incentives for cashless payment methods.

• Integrate diverse payment gateways for buyer convenience.
• Use dedicated discount codes for payments via e-wallets.
• Monitor automatic cash-flow reconciliation to prevent losses.
• Take advantage of marketplace cashback programs to attract customers.
• Minimize COD (cash on delivery) risks in remote areas.

Overview Market Share Comparison Table:

Advice: If you sell fast fashion or low-priced accessories, Shopee is heaven. If you sell electronics or premium home appliances, consider Lazada.

2. Comparing Selling Costs on E-commerce Platforms

Payment Fees and Fixed Fees

Costs are a critical factor when doing business on the platform E-commerce. Shopee applies payment and fixed fees that increase gradually each year. Currently, the total of these fees can account for 5% to 8% of the order value, excluding service fees if participating in Freeship Xtra packages.

Lazada has a similar fee structure but often offers preferential policies for new sellers. Fixed fees on Lazada for Mall stores are usually higher but come with better visibility benefits. You need to carefully calculate your gross profit margin before setting your selling price.

Do not forget that marketplace fees E-commerce do not include packaging, staffing, and marketing costs. A common mistake is pricing too low to compete while forgetting these hidden costs, resulting in “selling a lot but suffering heavy losses”.

On-platform Marketing Costs (Ads)

Running on-platform ads is the fastest way to get orders on E-commerce. Shopee Ads has a highly competitive and detailed keyword bidding system. Bids for hot keywords can be pushed very high on major sale days (Double Day).

Lazada Sponsored Solutions provides sponsored display and product solutions. Lazada's mechanism is often based on a target ROI (return on investment), making it easier for sellers to control effectiveness. However, organic search traffic on Lazada is lower than on Shopee, so dependence on Ads is also higher.

Based on DPS.MEDIA's hands-on experience, Shopee Ads costs can easily “burn money” without continuous optimization. Meanwhile, Lazada requires patience for machine learning to optimize the customer base.

Hidden Costs in E-commerce Operations

Besides publicly disclosed fees, doing business E-commerce also involves many hidden costs. Return shipping fees are a pain point for many shop owners. When customers refuse or return goods, you lose the cost of outbound shipping, return shipping, and packaging.

The cost of participating in marketplace Flash Sale programs is also significant. Sometimes the marketplace requires you to offer deep discounts and cut an additional % commission to secure a homepage visibility slot. If you do not calculate carefully, you may sell at a loss just to acquire traffic.

Inaccurate inventory management also leads to opportunity costs. Excessively long-held inventory ties up capital and warehouse space. Multichannel sales management tools are essential for controlling this issue.

Tax and Legal Policies

Currently, tax authorities are tightening the management of income from business activities E-commerce. Both Shopee and Lazada are required to provide seller data to tax authorities. Businesses need to prepare complete import documents, invoices, and supporting documents for explanations when necessary.

Registering as a household business or company is mandatory for sustainable operations. Legal compliance costs must also be included in the financial calculation. Do not let earned profits “disappear” because of tax penalties and arrears later.

List of Fees to Pay Attention To:

• Payment Fee: ~2-4% depending on the marketplace.
• Fixed Fee (Commission Fee): Applies to Mall or Preferred Shops.
• Service Fee: Freeship Xtra, Coin Cashback Xtra.
• Shipping Fee: The portion subsidized by the seller for customers.
• Packaging Costs: Carton boxes, bubble wrap, tape.
• Personal/Corporate Income Tax: 1.5% of revenue (household business).
• Operating staff and chat support costs.

Estimated Cost Comparison Table:

Advice: Use an Excel file to calculate the break-even point for each SKU before listing it for sale.

3. Analyzing Logistics and Store Operations

Shipping and Warehousing System

Logistics is the backbone of every business operation E-commerce. Shopee operates strongly through Shopee Express (SPX) and partners such as GHTK and GHN. SPX's network of post offices is extensive, making pickup and delivery fast, especially in major cities.

Lazada Logistics (LEL), on the other hand, is highly regarded for its professional handling processes and ability to handle bulky goods. The Fulfillment by Lazada (FBL) warehouse system allows sellers to consign inventory, reducing the burden of packaging and operations. Lazada's delivery speed is generally stable and less prone to overload during major sales events.

Choosing between self-operation and marketplace fulfillment depends on the scale of the business. If you are just starting, self-operation helps save costs. As the scale grows, FBL or Shopee Fulfillment can help optimize staffing.

Order Processing and Returns

Shopee has very strict regulations on preparation time (SLA). If you hand orders over to the carrier late, the shop will receive penalty points (Penalty Stars). High penalty points will reduce visibility and result in the loss of Preferred Shop privileges.

Shopee's current return/refund policy is strongly buyer-oriented (allowing returns within 15 days for Shopee Mall). This puts significant pressure on sellers E-commerce regarding return and cancellation rates. Lazada also has buyer protection policies, but its seller dispute process is generally considered somewhat fairer.

To minimize return rates, you need to package products carefully and describe them honestly. A packaging video is the most important evidence when a dispute with the marketplace or customer occurs.

Seller Management Interface (Seller Center)

Shopee's seller channel is designed to be intuitive and easy to use for beginners. Marketing and Sales Analytics features are arranged systematically. The Shopee seller app is also very convenient for chatting and managing orders anytime, anywhere.

Lazada Seller Center is somewhat more complex, with many menus and advanced features. However, once you get familiar with it, you will find Lazada's reporting system very detailed. Lazada's store decoration tools allow extensive customization, helping build a stronger brand identity.

A smooth operational experience helps you save time and focus on business strategy. Take the time to thoroughly learn the features in both marketplaces' Seller Centers E-commerce this.

Customer Service and Chat

Message response speed is an important evaluation criterion on both marketplaces. Shopee evaluates chat response rates very strictly. Shopee customers also tend to chat extensively before purchasing. Therefore, you need staff regularly monitoring the page.

On Lazada, Chat is also important, but customers tend to read information and place orders on their own more often. However, Lazada's bulk messaging (CEM) feature is an extremely powerful CRM tool for nurturing existing customers, something Shopee still lacks.

• Set up automated greeting messages and replies to frequently asked questions.
• Use the Chat Broadcast tool to send discount codes to existing customers.
• Always maintain a polite and professional attitude, even with difficult customers.
• Monitor daily chat response metrics to avoid penalties.
• Use chat to upsell related products.

Logistics Comparison Table:

Advice: Activate all available shipping providers so customers have more choices regarding shipping fees.

4. Marketing Strategy and Customer Approach

On-platform Marketing Tools (In-app Tools)

The marketplace E-commerce provides many free and paid marketing tools. Shopee stands out with Shop Flash Sale, Add-on Deals, and Promotional Combos. These tools are highly effective for increasing average order value (AOV).

Lazada also has similar tools such as Flexible Combo and Max Free Shipping. In particular, Lazada invests heavily in Mega Sale campaigns featuring major KOLs. Joining the marketplace's promotion registration portal is the best way to reach massive organic traffic during shopping festivals.

DPS.MEDIA experts advise that you should not overuse direct discounts. Instead, use gifts or conditional discount codes to protect profit margins and improve the customer experience.

Affiliate Marketing

Affiliate Marketing is the secret weapon of E-commerce modern e-commerce. Shopee has a huge KOC/KOL network ready to review your products in exchange for commissions. You can set affiliate commission rates for individual products to encourage publishers to promote your shop.

Lazada is also expanding this area with LazAffiliates. Collaborating with Influencers helps your brand reach the right target audience in the most natural way. Affiliate costs are usually CPA (Cost Per Action), meaning you only pay when a successful order is generated.

This is a cost-effective and safe marketing channel. However, you need to closely control it to prevent Affiliate partners from violating keyword policies or spamming links that could damage your brand reputation.

Livestream and Shoppertainment

As mentioned, Livestream is an irreversible trend of E-commerce. Shopee Live has a huge number of viewers during prime time. The marketplace frequently offers exclusive discount codes available only on Live, creating strong incentives to close sales.

LazLive by Lazada is heavily invested in technologically, allowing smooth interaction and sharp visuals. Lazada often organizes music shows combined with shopping (Super Show) that attract millions of views. If you are good at speaking or have the budget to hire a Host, this is the fastest explosive sales channel.

To livestream effectively, you need a clear script, irresistible deals, and continuous interaction. Do not allow dead time during the live session; maintain high energy to retain viewers.

Driving External Traffic

Do not depend solely on on-platform traffic. You need to bring customers from Facebook, TikTok, and YouTube to your store E-commerce . This helps you own your customer base and avoid becoming completely dependent on the marketplace algorithm.

Using Facebook Ads or TikTok Ads directing users to Shopee/Lazada is a popular strategy. However, pay attention to conversion measurement. Use the marketplace's marketing tools to create tracking links so you can understand the effectiveness of each advertising channel.

• Build a Fanpage and community Group to nurture customers.
• Use TikTok to create short review videos with a Bio link.
• Send Email Marketing or Zalo OA messages to existing customers.
• Collaborate with Bloggers/Reviewers in your product niche.
• Run CPAS (Collaborative Ads) on Facebook.

Marketing Tools Comparison Table:

Advice: Combining multiple channels is a smart strategy. Use TikTok to build the funnel, Shopee to close orders, and Facebook to retarget and nurture customers.

5. Which Choice for Your Business?

Suitable for Beginners

If you are a newcomer just stepping into the industry E-commerce, Shopee may be an easier starting point. Its friendly interface and huge user base make it easier to get your first orders. The store registration process is quick and does not require too many complicated documents for regular shops.

However, this ease also means high competition. You will face a fierce price war. Be prepared for thin margins during the initial stage to build sales volume and 5-star reviews.

Suitable for Brands

If you own your own brand or are an authorized distributor, Lazada Mall is a premium playing field. Lazada places great emphasis on protecting intellectual property rights and combating counterfeit goods. A Lazada Mall store elevates brand credibility and reaches customers with greater spending power.

Shopee Mall is also very strong, but the overall Shopee environment is diluted by too many low-priced general merchandise shops. Lazada creates a more “Premium” feel for fashion, cosmetics, and genuine electronics brands.

Omnichannel Strategy

Why choose one when you can do both? An omnichannel strategy is the destination for every sustainable business E-commerce . You can use Shopee to move inventory, sell low-priced funnel products, and use Lazada to sell premium product lines with high profit margins.

Multichannel operations are now much simpler thanks to centralized sales management software. You can synchronize inventory and process orders from all marketplaces through a single interface. This helps maximize revenue and minimize risks when one marketplace changes its policies.

Steps to Get Started Today

Do not hesitate any longer; the market E-commerce changes every day. Start by researching competitors on both marketplaces. See what they sell, how much they charge, what their images look like, and what customers say in reviews. Learning from competitors is the fastest way to avoid mistakes.

Next, prepare your inventory and visual resources. High-quality images account for 50% of the success rate on marketplaces. Invest in professional product photography and write SEO-optimized descriptions containing relevant keywords.

Finally, prepare a marketing budget. Whether large or small, you need a budget to run ads or book KOCs during the initial launching phase. Without traffic, even the most beautiful store is meaningless.

Conclusion

Choosing between Lazada and Shopee to start a business E-commerce depends entirely on your resources, products, and strategy. Shopee provides massive traffic and the ability to generate orders quickly for mainstream products. Meanwhile, Lazada is a safer and more sustainable destination for brands that want to build long-term credibility and a loyal customer base.

However, the market never stands still. To succeed, you need to continuously update yourself on changes to marketplace algorithms and policies. Flexibility and adaptability are the keys to surviving in the digital era.

According to data from Vietnam E-commerce Association, the multichannel trend will continue to dominate in the coming years. Do not put all your eggs in one basket; leverage the strengths of both platforms to optimize your revenue streams.

• Clearly define your customer personas and product segments.
• Carefully calculate the cost structure (Marketplace Fees + Ads + Operations).
• Invest seriously in professional images and SEO-optimized content.
• Maximize the use of the marketplaces' free Marketing tools.
• Build professional operating and customer service processes.
• Always have a contingency plan for cash-flow and inventory risks.

If you are looking for a reliable partner to advise on strategy and optimize operations, DPS.MEDIA is always ready to accompany you. With extensive hands-on experience, we will help you shorten the path to success in this highly promising e-commerce market.