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Domestic online shipping fees are expensive.

Báo Công thươngBáo Công thương13/08/2023


Promoting the listing of Vietnamese agricultural products on Chinese e-commerce platforms: Policies and laws need to be improved to promote the development of cross-border e-commerce.

E-commerce shoppers are paying higher shipping fees for domestic orders compared to ordering directly from China. This seemingly paradoxical situation has persisted for years, while Vietnamese shipping and delivery companies have yet to find a solution to reverse it.

The advantage of "free shipping"

Ms. Minh Nhien, residing in District 8, Ho Chi Minh City, recently purchased some kitchenware on a domestic e-commerce platform. The total value of the products was only 202,000 VND, but she ended up paying a total of 265,000 VND because the three items were delivered from three different suppliers, with shipping fees ranging from 14,000 to 25,000 VND per order. Previously, she had ordered an item from China on Shopee for 380,000 VND and received free shipping.

" They offer free shipping for orders over 150,000 VND and deliver very quickly. Meanwhile, most sellers in Vietnam only offer free shipping during promotions or for orders over 400,000 - 500,000 VND, and the delivery time is... sometimes fast, sometimes slow, " said Ms. Minh Nhien.

Phí vận chuyển hàng online trong nước đắt đỏ - Ảnh 1.
Online shoppers always appreciate fast delivery and low shipping costs. (Photo: Hoang Trieu)

Mr. Manh Hung, residing in Binh Chanh District, Ho Chi Minh City, also frequently buys electronics and household goods online from Chinese shops because buying from China via Lazada usually results in very fast home delivery, free shipping, or a shipping fee of only 14,000 - 20,000 VND.

" For the same items, if purchased domestically, the shipping fee would be as much as 22,800 - 45,000 VND or higher. With such a significant difference in cost, buyers will certainly choose the most economical option, " Mr. Hung analyzed.

Nowadays, buying goods online from abroad, especially from China to Vietnam through channels like Lazada, Shopee, TikTok, etc., is very easy. The wide variety of goods, fast delivery, and low shipping fees are major advantages that make customers, especially young people, prefer to order goods from China.

Struggling to find a solution

Explaining this phenomenon, the founder and operator of a small-scale e-commerce platform said that many domestic e-commerce sites are now directly linking with fashion and household goods stores abroad. Goods from overseas are shipped to Ho Chi Minh City or Hanoi in large quantities without intermediaries. Depending on the customer's address, overseas sellers can coordinate the shipment to the nearest destination to minimize shipping costs. The shipping cost is divided into many smaller individual shipments.

Furthermore, because there is no intermediary importer in Vietnam, the goods reach the buyer at a price that is always lower than the selling price of Vietnamese distributors and traders.

Sharing the same view, Le Thanh Dung, founder of the e-commerce platform Mua Express, said that the Chinese are very good at selling. "They produce on a large scale and sell to Vietnam in large quantities, so when they calculate that they have enough profit, they reduce or waive shipping fees to attract customers."

"Besides that, they also have a great advantage due to strong government support, modern and robust logistics, almost complete automation, multi-channel sales organization, and many warehouses near the Vietnamese border… so the journey of goods to Vietnam is very fast and very cheap," Mr. Dung said.

According to freight forwarding companies, shipping fees are affected by many factors, the most important of which is logistics costs. Domestic transportation in Vietnam is mainly by road, and the dense network of toll stations stretching from North to South is one of the reasons driving up freight transportation costs.

Mr. Pham Van Hoang, founder and director of Fastship (which owns nearly 200 franchised post offices nationwide), said that currently, Vietnamese logistics businesses are accelerating the shipping process, but the supply of goods is still scattered, lacking warehouses or sorting centers. Therefore, delivery times are extended, driving up costs.

"Domestic logistics businesses that want to increase competitiveness and speed up delivery must cooperate with each other through 'shared shipping' and consolidation of goods to save costs for businesses, transport goods faster, and thereby reduce costs for customers," Mr. Hoang suggested as a solution.

Many challenges exist in managing cross-border e-commerce.

At the seminar "Customs Reform, Promoting Cross-Border E-commerce Development" organized by the Customs Magazine on August 11th in Ho Chi Minh City, many opinions from state management agencies and experts in the fields of e-commerce and logistics suggested that managing cross-border e-commerce is facing many challenges.

According to experts, the emergence of many new business models and methods in various regions and industries within e-commerce poses significant challenges to the adaptability of the legal framework. In recent times, the National Assembly, the Government, and the Ministry of Industry and Trade have made considerable efforts in developing, amending, and supplementing documents to unify the legal system for e-commerce. However, managing cross-border e-commerce activities still faces some difficulties and obstacles. "It is necessary to innovate management policies and customs procedures for import and export goods traded through e-commerce. The Prime Minister has approved a plan for managing e-commerce activities for import and export goods. Currently, the draft plan has been submitted by the Ministry of Finance to the Government for signing and promulgation," said Mr. Nguyen Bac Hai, Deputy Director of the Customs Supervision and Management Department (General Department of Customs).



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