Market E-commerce in 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 headaches many business owners. The right decision not only helps optimize operating costs but also determines the survival of the brand. This article will deeply analyze the technical, financial, and marketing aspects of each platform.

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

At DPS.MEDIA, we have witnessed many businesses fail just because they chose the wrong initial approach channel. DPS.MEDIA experts always recommend that customers have a comprehensive view before “investing money” in store setup. 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 platform fees, logistics systems, and growth potential on both platforms.

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

The rise of the Shoppertainment model in E-commerce

The entertainment-integrated shopping trend (Shoppertainment) is reshaping the map E-commerce of Southeast Asia. Consumers no longer just go online to passively search for products. They want to interact, watch livestreams, and participate in games right on the shopping app.

Both Shopee and Lazada are pouring millions of USD into developing livestream and short video features. This forces sellers to change their mindset from just posting products to creating digital content. If you don't adapt, your store will quickly be forgotten by the algorithm.

Market E-commerce modernity requires sellers to become true content creators. Product review videos and prime-time sales livestreams are indispensable tools to increase conversion rates.

Market share and user habits on e-commerce platforms

Shopee currently dominates in web and app traffic in Vietnam. According to market reports, Shopee consistently leads in monthly active users. This creates a massive traffic pool that any seller E-commerce desires.

However, Lazada has its own strengths in higher-income customer segments and more rational shopping behaviors. Lazada users often care more about brand reputation and authentic product quality (LazMall). This is an important factor if you position your products in mid-to-high-end segments.

Understanding the target customer profile is the first step to choosing the right platform E-commerce suitable. You can't sell high-value products to customers who only hunt 1K deals. Conversely, selling cheap products on a premium platform will be hard to compete on display costs.

The impact of AI technology on e-commerce operations

Artificial Intelligence (AI) is being thoroughly applied by both platforms in product display distribution. The platform's algorithms E-commerce are increasingly smart in personalizing user experiences. It learns from search history, page view time, and cart abandonment behavior.

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

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

Digital transformation and cashless payments

The popularity of e-wallets and digital banking has strongly boosted the industry E-commerce. ShopeePay and ZaloPay/Momo on Lazada make the payment process smoother. The order cancellation rate decreases significantly for pre-paid orders.

Sellers should encourage customers to pay online through discount codes. This reduces the risk of order bombing and increases cash flow for the business. The platforms E-commerce also frequently offer promotions for cashless payment methods.

• Integrate diverse payment gateways for buyer convenience.
• Use separate discount codes for e-wallet payments.
• Monitor automatic cash flow reconciliation to avoid losses.
• Leverage platform cashback programs to attract customers.
• Minimize COD risks (payment on delivery) in remote areas.

Market share overview comparison table:

Advice: If you sell fast fashion, cheap accessories, Shopee is paradise. If you do business in electronics, high-end appliances, consider Lazada.

2. Comparing Selling Costs on E-commerce Platforms

Payment fees and fixed fees

Costs are a matter of survival when doing business on platforms E-commerce. Shopee applies escalating payment and fixed fees year by year. Currently, these fees can account for 5-8% of order value, not including service fees if participating in Freeship Xtra packages.

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

Don't forget that platform fees E-commerce do not include packaging, personnel, and marketing costs. A common mistake is setting prices too low to compete while forgetting these hidden fees, leading to “selling a lot but losing heavily”.

In-platform marketing costs (Ads)

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

Lazada Sponsored Solutions provides sponsored display and product solutions. Lazada's mechanism is often based on target ROI (return on investment), helping sellers control effectiveness more easily. However, natural search traffic on Lazada is lower than Shopee, so reliance on Ads is also higher.

Based on real-world experience from DPS.MEDIA, ad costs on Shopee can easily “burn money” if not continuously optimized. Meanwhile, Lazada requires patience for machine learning to optimize customer segments.

Hidden fees in e-commerce operations

In addition to publicly disclosed fees, doing business E-commerce also has many hidden costs. Return shipping fees are a pain for many shop owners. When customers don't receive or return goods, you lose outbound and inbound shipping fees plus packaging costs.

Costs for participating in platform Flash Sales are also significant. Sometimes the platform requires deep discounts and an additional 1% commission cut to get homepage display slots. If not calculated carefully, you might sell at a loss just to get traffic.

Inaccurate inventory management also leads to opportunity costs. Overstocked goods will tie up capital and warehouse space. Multi-channel sales management tools are necessary solutions to control this issue.

Tax and legal policies

Currently, tax authorities are tightening income management from business E-commerce. Both Shopee and Lazada must provide seller data to tax authorities. Businesses need to prepare full import documents and invoices for explanation when necessary.

Registering as an individual business household or company is mandatory for sustainable operations. Legal compliance costs also need to be included in the financial equation. Don't let earned profits “evaporate” due to retrospective tax penalties later.

List of fees to note:

• Payment Fee: ~2-4% depending on platform.
• Commission Fee: Applies to Mall or Favorite Shops.
• Service Fee: Freeship Xtra, Xtra Coin Refund.
• Shipping Fee: Seller's share for customers.
• Packaging costs: Cardboard boxes, bubble wrap, tape.
• Personal/business income tax: 1.5% on revenue (for business households).
• Operating and chat staffing costs.

Estimated cost comparison table:

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

3. Analyzing Logistics and Store Operations

Transportation and warehouse systems

Logistics is the backbone of all business operations E-commerce. Shopee operates strongly through Shopee Express (SPX) and partners like GHTK, GHN. SPX's post office network covers densely, enabling quick pick-up and delivery, especially in major cities.

Lazada Logistics (LEL) is highly rated for professional handling processes and bulky item management. The Fulfillment by Lazada (FBL) warehouse system allows sellers to consign goods, reducing packaging and operational pressures. Lazada's delivery speed is usually stable and less overloaded during major sales.

Choosing self-operated or platform warehouse consignment depends on business scale. If you're just starting, self-operation saves costs. As scale grows, FBL or Shopee Fulfillment will optimize staffing.

Order processing and return procedures

Shopee has very strict regulations on preparation time (SLA). If you deliver late to the carrier, the shop will be penalized (Penalty Star). High penalty points will reduce visibility and lose Favorite Shop privileges.

Shopee's current return/refund policy is heavily tilted toward buyers (allows returns within 15 days for Shopee Mall). This creates significant pressure on sellers E-commerce regarding return/cancellation rates. Lazada also has buyer protection policies, but the seller complaint process is often rated as slightly fairer.

To minimize return rates, you need careful packaging and honest product descriptions. Packaging videos are the most important evidence in disputes with the platform or customers.

Seller management interface (Seller Center)

Shopee's seller channel is designed intuitively and easy for beginners. Marketing and sales analysis features are scientifically arranged. The Shopee seller app is very convenient for chatting and managing orders anytime, anywhere.

Lazada Seller Center is more complex with many menus and in-depth features. However, once familiar, you'll find Lazada's reporting system very detailed. Lazada's store decoration tools allow high customization, helping build better brand identity.

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

Customer care and Chat

Message response speed is an important evaluation criterion on both platforms. Shopee strictly evaluates chat response rates. Shopee customers also have a habit of chatting a lot before buying. Therefore, you need staff to monitor the page regularly.

On Lazada, Chat is also important, but customers tend to read information and order themselves more. However, Lazada's bulk messaging feature (CEM) is an extremely powerful CRM tool for nurturing old customers, which Shopee lacks.

• Set up auto-greeting messages and FAQ responses.
• Use Chat Broadcast tools to send discount codes to old customers.
• Always maintain a polite, professional attitude even with difficult customers.
• Monitor daily chat response metrics to avoid penalties.
• Leverage chat for upsell (additional sales) of related products.

Logistics comparison table:

Advice: Activate all possible carriers so customers have more shipping fee options.

4. Marketing Strategy and Customer Approach

In-app Marketing Tools

Platforms E-commerce provide many free and paid marketing tools. Shopee stands out with shop Flash Sales, Buy-with-shock deals, and Promo Combos. These tools are extremely effective for increasing average order value (AOV).

Lazada also has similar tools like flexible Combos, Max Free Shipping. Notably, Lazada invests heavily in Mega Sale campaigns with big KOL participation. Registering through the platform's promo portal is the best way to access massive natural traffic during shopping festivals.

Experts at DPS.MEDIA advise not to overuse direct discounts. Instead, use bundled gifts or conditional discount codes to protect profit margins and enhance customer experience.

Affiliate Marketing

Affiliate Marketing is the secret weapon of E-commerce modernity. Shopee has a huge KOC/KOL network ready to review your products for commissions. You can set marketing commission rates for each product to encourage publishers to promote your shop.

Lazada is also pushing this area with LazAffiliates. Collaborating with Influencers helps your brand reach the right target customers most naturally. Affiliate costs are usually CPA (Cost Per Action), meaning you only pay when there's a successful order.

This is a safe and cost-effective marketing channel. However, you need tight control to avoid partners violating keyword policies or spamming links that affect brand reputation.

Livestream and Shoppertainment

As mentioned, Livestream is an irreversible trend of E-commerce. Shopee Live has huge viewership during prime hours. The platform frequently releases exclusive Live-only discount codes, creating strong order-closing motivation.

Lazada's LazLive is well-invested in technology, allowing smooth interactions and sharp images. Lazada often hosts music performances combined with sales (Super Show) attracting millions of views. If you have speaking skills or budget to hire a Host, this is the fastest channel to explode sales.

For effective Livestream, you need a clear script, shock deals, and continuous interaction. Don't have dead time in the live session; keep high energy to retain viewers.

External Traffic Pulling

Don't rely only on in-platform traffic. You need to pull customers from Facebook, TikTok, YouTube to your store E-commerce of yours. This helps you own your customer base and not be completely dependent on the platform's algorithm.

Using Facebook Ads or TikTok Ads pointing to Shopee/Lazada is a common strategy. However, note conversion measurement. Use platform marketing tools to create tracking links to know the effectiveness of each ad channel.

• Build Fanpage and community Groups to nurture customers.
• Use TikTok for short review videos with Bio links.
• Send Email Marketing or Zalo OA to old customers.
• Collaborate with niche product Bloggers/Reviewers.
• Run CPAS (Collaborative Ads) on Facebook.

Marketing tools comparison table:

Advice: Combining multi-channels is a smart strategy. Use TikTok for funnel creation, Shopee for order closing, and Facebook for re-nurturing.

5. Which Choice for Your Business?

Suitable for beginners

If you are a newbie just stepping into the industry E-commerce, Shopee may be an easier starting point. Friendly interface, massive user base helps you easily get your first orders. Quick store registration process, not requiring too many complex documents for regular shops.

However, this ease means high competition. You'll face fierce price wars. Prepare for thin profits in the early stage to build sales volume and 5-star ratings.

Suitable for brands

If you own your own brand or are an official distributor, Lazada Mall is a premium playground. Lazada emphasizes intellectual property protection and anti-counterfeiting. Mall stores on Lazada elevate brand credibility and reach spending customers.

Shopee Mall is also strong, but Shopee's overall environment is diluted by too many cheap grocery shops. Lazada creates a more “Premium” feel for fashion, cosmetics, and authentic electronics brands.

Omnichannel strategy

Why choose one when you can do both? Multi-platform strategy is the goal of every sustainable business E-commerce . You can use Shopee to push inventory, cheap funnel products, and use Lazada to sell high-end lines with high margins.

Operating multi-platforms is now much simpler thanks to centralized sales management software. You can sync inventory and process orders from all platforms on a single interface. This maximizes revenue and minimizes risks when one platform changes policies.

Steps to start today

Don't hesitate anymore; the market E-commerce changes daily. Start by researching competitors on both platforms. See what they sell, prices, images, and customer reviews. Learning from competitors is the fastest way to avoid mistakes.

Next, prepare resources for goods and images. Beautiful images account for 50% of success on platforms. Invest in professional product photography, write SEO-standard descriptions with relevant keywords.

Finally, prepare a marketing budget. Whether small or large, you need a budget for ads or booking KOCs in the initial phase (launching). Without traffic, even the most beautiful store is meaningless.

Conclusion

Choosing between Lazada or Shopee to start business E-commerce depends entirely on your resources, products, and strategy. Shopee brings massive traffic and quick order generation for everyday products. Meanwhile, Lazada is a safe and sustainable harbor for brands wanting to build long-term credibility and loyal customers.

However, the market never stands still. To succeed, you need to continuously update algorithm and policy changes from the platforms. Flexibility and adaptability are the keys to survival in the digital era.

According to data from Vietnam E-commerce Association, the multi-channel trend will continue to dominate in the coming years. Don't put all eggs in one basket; leverage the strengths of both platforms to optimize your revenue stream.

• Clearly define customer portrait and product segment.
• Carefully calculate cost structure (Platform fees + Ads + Operations).
• Seriously invest in images and SEO-standard content.
• Maximize free platform Marketing tools.
• Build professional operational processes and customer care.
• Always have contingency plans for cash flow and inventory risks.

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