In the first quarter of 2026, the Vietnamese e-commerce market showed impressive growth. The total turnover of the four largest platforms — Shopee, TikTok Shop, Lazada, and Tiki — reached 148.6 trillion VND, a 47% increase year-on-year. Vietnamese consumers spent an average of 1.65 trillion VND daily, purchasing over 13 million products. This represents not just growth, but a structural shift in consumer behavior and platform strategies.
The Key Development
Starting May 2026, Shopee and TikTok Shop have adopted divergent approaches in their commission policies. Shopee is actively reducing fixed fees for sellers in several key categories, including fast-moving consumer goods (FMCG) and home products, while also expanding benefits for new sellers. For instance, from May 1st, the platform lowered its fixed commission by 1% for certain items in the FMCG and “Home & Living” categories. As of May 23rd, this support extended to five additional product groups: beverages, essential goods, baby care products, hygiene products, and household items. For new sellers, Shopee offers an exemption from fixed commissions for the first 30 days and extended benefits for stores that listed their first product between January 1st and May 31st. Concurrently, Shopee has also increased fixed commissions in some categories by 0.5–3%.
In contrast, TikTok Shop significantly increased its fixed commissions for sellers in Vietnam starting May 9th, 2026. This hike impacts most categories for both Mall and standard sellers, ranging from 0.5% to 3.3%. In some categories, TikTok Shop commissions now reach up to 17.8%. Analysts believe this will create additional pressure on small and medium-sized businesses, considering the already high costs of advertising, operations, and logistics.
What This Truly Means
These divergent strategies indicate that platforms are adapting to a new phase of Vietnamese e-commerce development. Shopee, with its broad seller base and focus on essential goods, aims to lower entry barriers and operational costs to maintain volume and attract new participants. This is particularly relevant for regions outside major cities and industrial zones, where consumers are more price-sensitive.
TikTok Shop, on the other hand, appears to be shifting from a rapid acquisition strategy to monetizing its growing audience and unique 'shoppertainment' model. The increase in commissions, especially in high-margin categories, signals a drive to maximize profit from its established seller base. This could be an attempt to filter out low-margin sellers and focus on those willing to pay for access to TikTok's active and engaged audience.
Operational Insights
From our operational activities at VietSmart, we observe that these changes are already influencing brand decisions. Companies targeting the mass market segment and high inventory turnover are actively reviewing Shopee's updated terms. This is particularly true for new brands or those just entering the Vietnamese market: lower initial commissions on Shopee allow them to break even faster and test hypotheses without significant capital investment.
For brands operating on TikTok Shop, recalculating unit economics has become a priority. We note that sellers with high margins in categories such as "Beauty & Health" or "Electronics" are willing to adapt to the new conditions, as the value of access to TikTok's audience remains high. However, for low-margin sellers or those offering price-sensitive products, TikTok Shop's commission increase could become a critical barrier. The Q2 2026 forecast, which anticipates a 4% decline in overall market revenue despite a 1% increase in sales volume, suggests intensified price competition and a potential decrease in average order value.
Your Next Move
- Recalculate Unit Economics for Each Platform. Do not rely on generalized metrics. Shopee and TikTok Shop commissions now vary too significantly by category and seller type.
- Diversify Your Presence. Do not put all your eggs in one basket. Utilize Shopee for mass reach and new product launches, and TikTok Shop for niche, high-margin items and direct audience engagement through livestreams.
- Leverage Shopee's New Seller Benefits. Do not overlook the 30-day commission exemption and other support programs. This is a window of opportunity for a quick start and testing.
- Optimize Logistics and Advertising Budgets. With rising commissions on TikTok Shop, every dong spent on advertising and delivery must be maximally efficient.
At VietSmart, we provide full-cycle support for launching and scaling businesses on Vietnam's marketplaces. We undertake detailed analysis by category and platform, assist with recalculating unit economics, and develop diversification strategies to ensure your first sales occur within 60-90 days.