Comparison of the top 3 Vietnam online shopping sites

E-commerce in Vietnam has seen tremendous growth in recent years. With increasing internet and smartphone penetration, more Vietnamese consumers are turning to online shopping for convenience and variety.

The top 3 online shopping sites  - Lazada, Shopee, and Tik Tok Shop - dominate the Vietnamese e-commerce landscape, but they each have unique strengths and weaknesses. This blog post will provide an in-depth comparison of these major players to help you decide which are the best Vietnam online shopping sites to start selling in Vietnam. 

Overview of Vietnam's e-commerce market

Vietnam has one of the fastest-growing e-commerce markets in Southeast Asia. According to recent statistics:

• The e-commerce market is projected to reach US$23 billion by 2025, with an annual growth rate of 18%.
• There are around 50 million online shoppers in Vietnam. Over 60% of the population has shopped online.
• Top product categories purchased online include fashion, cosmetics, baby products, home appliances and electronics.
• Mobile commerce accounted for 45% of Vietnam's e-commerce in 2021. Most shopping is done on apps and mobile sites.
• Social commerce is rising in popularity, with Facebook and Instagram emerging as important online sales channels.

To have a general overview, take a look at the revenues of the top 5 biggest ecommerce sites in the first half of 2023 (data from Metric).

It can be clearly seen from the chart that e-commerce is a big business in Vietnam with more than 92,000 billion VND (~$3,700 million), in only the first 6 months. But with several major players, how do you choose? Let's take a detailed look at the top 3 biggest online shopping sites.

Top 3 popular Vietnam online shopping sites

1. Shopee

Launched in 2015 in Singapore, Shopee rapidly expanded into Vietnam and other Southeast Asian countries. It has become one of the top online retail platforms in the region.

Shopee is the largest e-commerce platform in the region by the end of 2022, with GMV reaching 47.9 billion USD.

Product range

Shopee offers a wide range of products across categories like:

• Electronics - Mobile and accessories, laptops, home appliances
• Fashion - Clothing, sportswear, shoes
• Health & Beauty - Skincare, cosmetics, personal care, supplements
• Home & Living - Furniture, kitchenware, home decor
• Groceries - Food, snacks, beverages
• Mother & Baby - Products for parents and infants
• Automotive accessories, sports equipment, stationery, books

It has a dedicated portal, Shopee Mall, for branded goods. Overall, the product depth is lower than Lazada but covers all key segments.

Prices and promotions

Shopee is focused on affordability. It offers discounted prices, voucher codes and other money-saving promotions:

• Daily ₫1 deals with discounted shipping
• Flash sales with deep discounts
• Coins cashback reward system
• Free shipping vouchers
• Major seasonal sales (4.4, 8.8, 11.11) with additional discounts

Seller base

Shopee has over 500,000 sellers in Vietnam. It operates a pure marketplace model, without any inventory of its own. Most sellers are individuals/SMEs rather than large corporations.

Logistics and fulfillment

Shopee's wide logistics network offers various delivery options based on location:

• Same day delivery in Ho Chi Minh City
• Next day delivery in Hanoi/Danang/Can Tho
• 2-4 days for other towns and provinces

Cash on delivery is available. In-app tracking provides order status updates.

Other features

• In-app social features like product reviews and live streaming.
• Interactive games and contests during sales.
• Strong mobile-first experience.

Summary

Shopee is unmatched when it comes to affordability and promotion campaigns. Its massive seller base offers price competitiveness and variety. The mobile-centric experience creates engagement.

>>> Read more: How to sell in Shopee Vietnam - guide for cross-border sellers

2. Lazada

Lazada is one of the pioneers of e-commerce in Vietnam. Launched in 2012, it was the first major Southeast Asian online marketplace to enter the Vietnamese market. Lazada Vietnam is operated by the Singapore-based Lazada Group, which is majority-owned by Alibaba Group.

Lazada is the second largest e-commerce platform in Southeast Asia by the end of 2022, in terms of gross merchandise value (GMV) reaching 20.1 billion USD, according to a report from Momentum Works.

Recently, Alibaba injected an additional 845.44 million USD into Lazada in the latest capital injection. Previously, in April 2023, Alibaba also poured into Lazada an investment worth 352.9 million USD. Thus, since acquiring Lazada in 2016 until now, Alibaba has poured about 6 billion USD into this e-commerce platform.

Product range

Lazada has the most extensive product range out of the top sites, with over 15 million SKUs across a wide variety of categories:

• Electronics - Phones, laptops, cameras, home appliances
• Fashion - Clothing, shoes, bags, accessories
• Beauty - Skincare, makeup, fragrances
• Home & Living - Furniture, kitchenware, home decor
• Groceries - Food and beverage items
• Sports, books, toys, automotive - All major segments covered

This makes Lazada a one-stop shop for almost any type of product.

Prices and promotions

Lazada runs regular sales and has daily discounts and voucher codes available. Prices are generally competitive, especially for electronics. Big annual sales like 9.9 or 11.11 have the steepest discounts.

Seller base

It has over 20,000 local and international sellers. Lazada operates a hybrid model - it sells its own inventory alongside third-party sellers.

Logistics and fulfillment

Lazada has a wide logistics network in Vietnam. It offers same-day delivery in Ho Chi Minh City and next-day delivery in many major cities. Pick-up and return services available.

Other features

• Live streaming shopping launched in 2020.
• "Shoppertainment" features like games and prizes when shopping.
• Strong focus on mobile apps.

Summary

With its extensive product selection, competitive pricing and promotions, Lazada is a great one-stop shop for diverse shopping needs. It offers a customer experience tailored for Vietnamese users.

3. Tik Tok Shop

TikTok Shop originated from the inspiration drawn from the global phenomenon known as TikTok, the short-form video platform that has taken the world by storm. This vibrant online marketplace was launched in 2021 to provide a seamless shopping experience for the ever-growing community of TikTok users.

At the same time Alibaba poured money into Lazada, TikTok was no less competitive. Mr. Shou Zi Chew, CEO of TikTok confirmed that TikTok plans to invest billions of dollars in the Southeast Asian market - one of the fastest growing regions with TikTok Shop.

“TikTok is spending a staggering amount of money to incentivize buyers and sellers,” said Jonathan Woo, senior analyst at Phillip Securities Research. It is estimated that the incentives that TikTok offers cost 600 - 800 million USD/year."

Product range

TikTok Sho has a selective range of products in these categories:

• Fashion: Trendy clothing inspired by TikTok trends.
• Beauty: Skincare, cosmetics, and beauty products.
• Home decor: Stylish decor items and furniture.
• Electronics: Gadgets and tech accessories.
• Jewelry: Necklaces, earrings, and accessories.
• Health: Fitness gear and wellness products.
• Toys: Fidget toys, board games, and collectibles.
• Pet supplies: Toys and essentials for pets.
• Novelty items: Quirky and unique products.
• Custom merchandise: Products from TikTok creators.

Prices and promotions

Tiki generally has competitive pricing for electronics, home appliances and books. It runs frequent discount campaigns:

• Affordable pricing: TikTok Shop offers competitive and affordable prices on a wide range of products.
• Flash sales: Enjoy limited-time flash sales and discounts on popular items, allowing you to grab your favorite products at a lower cost.
• Coupon codes: Look out for special coupon codes and discounts that can be applied during checkout to reduce the final purchase price.
• Bundled deals: Some products may be available in bundled packages, allowing you to save when you purchase multiple items together.
• Free shipping: Enjoy free shipping on orders over a certain amount, making it even more cost-effective to shop at TikTok Shop.

Logistics and fulfillment

Owning much of its logistics allows quick delivery:

• Next day delivery in Ho Chi Minh City and Hanoi
• 2 day delivery in other major cities
• 3-5 days for other locations

Cash on delivery available nationally.

Summary

With its creative marketplace model, Tiktok offers great prices for various hot-trend products and fast delivery. 

Comparison of top 3 popular Vietnam online shopping sites

As the table shows, each platform has unique strengths:

• Lazada - One-stop-shop with the widest range and local focus
• Shopee - Affordability through deals, engagement through social features
• Tiki - Hot-trend products and buy in the live-streaming

The choice comes down to your product priorities and preference for marketplace model vs. hybrid retail/marketplace.

Conclusion

Vietnam's e-commerce industry has grown exponentially, with Lazada, Shopee and Tiki leading the way. All three have their individual strengths and are popular with Vietnamese online shoppers.

Lazada is best for variety and extensive range. Shopee excels with affordability and promotions. Tiki focuses on quality and speed in select categories.

Hope you can find the most suitable shopping sites to start your e-commerce business in Vietnam.

If you don't know where to start, let Ezbuy Japan help you. Ezbuy Japan is an e-commerce enabler that helps foreign businesses start selling in Vietnam. We assist sellers at every step, from creating selling accounts on e-commerce sites, setting up online stores, creating product listings, marketing, and fulfillment. Especially, when using our services, merchants will receive OMS software for free to effectively manage all orders on all sales channels, including Shopee, Lazada, TikTok Shop,... Merchants only need to focus on your product, we will handle the rest!

Don't hesitate to contact Ezbuy Japan for consultation via [email protected].