Huan Pham: The purge of e-commerce sellers has just begun.

Hello Mr. Huan Pham! Recently, we have noticed many big changes on e-commerce platforms, especially the increase in fees from April 1, 2025. What do you think about this move?

Hello. Actually, the increase in fees of e-commerce platforms is not too surprising. In previous years, we witnessed the race of “burning money” of platforms to attract both sellers and buyers with free or discounted programs. However, when the market began to saturate, they were forced to adjust their policies to maintain and develop, while improving the quality of service. Therefore, the increase in fees, as well as tightening regulations for sellers, is completely predictable.

Many small retailers on Shopee or TiktokShop said they were having trouble breathing due to the series of changes and felt their profits had decreased significantly. How do you think this will affect the market?

It is true that in the beginning, when the platforms tighten their policies and increase fees, sellers will immediately feel the decline in profits. For those who are already operating poorly and have unstable revenue, this will be a huge shock. However, I think this is just the beginning of a large-scale purge. These changes force sellers to review their strategies, from product quality, customer service to cost optimization. Those who are not capable or not willing to adapt will probably be gradually eliminated.

You mentioned a “purge” of sellers. How severe will it be? And who will survive this storm?

In my opinion, only about 20% of sellers who have a brand mindset, have resources to invest in business processes and take care of customers systematically will be able to survive. The rest, mostly small retailers, who import goods according to short-term trends without a long-term strategy, will find it difficult to survive.

It is important to understand that even e-commerce platforms want to build a professional environment, providing quality products and services to consumers. They will continue to implement policies to “filter” sellers, prioritizing those with serious business models and clear competitive advantages.

So, it can be understood that the e-commerce market will become increasingly “difficult” for small businesses. What advice do you have for them, or for those who want to enter this field?

If they still want to stay or participate in e-commerce, retailers must change their mindset, considering online sales as a professional job - not just "selling more" or "test selling". They need to invest more in building brands, taking care of customers, and strictly managing cash flow and inventory. At the same time, they must also constantly update requirements from the floor, clarify the origin of products, commit to quality and after-sales policies.

Furthermore, leveraging data to better understand customer shopping behavior and building effective marketing channels (such as quality livestreams and social media integration) are also key factors. All of these require a serious investment of time and resources.

Some opinions say that when the “playground” is gradually reserved for large brands and companies, competition will decrease and consumers may suffer. What do you think about this concern?

In fact, competition is not decreasing but becoming more fierce, but on a different scale. Big brands not only compete on price, but also have to ensure experience and product quality. The emergence of potential sellers will require businesses in the same industry to upgrade themselves to maintain competitiveness. In return, consumers will also benefit from professional services and clearer product quality.

Of course, not all small retailers will be eliminated; if they know how to take advantage of niche markets, build unique products and provide good experiences, there is still room for growth. But the “quick fix” mindset will surely gradually disappear.

Thank you for your very practical sharing. In such a volatile context, what do you predict for the Vietnamese e-commerce market in the near future?

I believe that this “screening” has just begun and will last at least until the end of 2025. From 2026 onwards, the e-commerce playground in Vietnam will be much more professional. Instead of being flooded with small retail shops, consumers will access products from brands that have invested, have prestige and want to create long-term value. This also helps the market become more stable and transparent, and that is an inevitable trend.

A conversation with Mr. Huan Pham reveals a very different picture of the tightening of policies and increasing fees by e-commerce platforms: this is not just a matter of decreasing costs or profits, but also the beginning of a deep restructuring. Although the “playing field” will be harsher, sellers also need to see this as an opportunity to reshape, improve competitiveness and elevate their brands. And in this purge, those who dare to change – or have real potential – will continue to stand firm and develop.

Source: https://baoquocte.vn/huan-pham-cuoc-thanh-loc-nha-ban-hang-san-tmdt-moi-chi-vua-bat-dau-308683.html