Tiếng việt
ไทยTwo platforms. 97% of Vietnam’s e-commerce market. Two fundamentally different algorithms that could make or break your brand’s entry strategy .
Vietnam’s e-commerce market reached a staggering 148,600 billion VND in Q1 2026 alone—a 46% increase year-over-year . Shopee maintains its historical dominance (~55-56% market share), but TikTok Shop has surged to capture 41% of the market, with recent data showing it briefly overtook Shopee at 53.5% during the June 2026 mega-sale .
The fundamental difference is not just market share—it’s how each platform creates and captures consumer intent. Understanding these algorithmic differences is the difference between building a sustainable brand and running an expensive campaign on “rented land.”
This article explains both platforms’ algorithms, how Vietnamese consumers actually shop across them, and what foreign brand managers need to know to succeed in 2026 and beyond
The Core Difference: Discovery Commerce vs. Intent Commerce
Shopee’s Intent Commerce Model
Shopee operates on a Search Commerce or “Intent Commerce” model . Users arrive with a clear purchase intention: they search for specific products, compare prices, hunt for vouchers, and read reviews before buying.
Key characteristics:
Users know what they want before they arrive
Search-driven behavior dominates
31% of Vietnamese consumers convert on Shopee
Comparison shopping and price sensitivity are core behaviors
Reviews and ratings heavily influence decisions
Shopee’s AI advantage: Shopee uses Google Gemini to build detailed customer avatars from existing shopper data and expand lookalike audiences—achieving 2x higher reach than other marketing strategies. . For example, Gemini identified that “food trendsetters” who love premium cuisine also care about fitness and sports, an unexpected insight that opened new marketing opportunities
TikTok Shop’s Discovery Commerce Model
TikTok Shop represents Discovery Commerce . Users come for entertainment and leave with purchases, the algorithm creates the intent rather than responding to it.
Key characteristics:
85% of Vietnamese consumers discover products passively while consuming entertainment, not while intending to shop
68% discover products through algorithmic feeds instead of active searching
Users don’t separate social from commerce anymore—entertainment and shopping are fully intertwined
The “scroll-to-purchase” journey has become the new norm
The shoppertainment effect: During 2022-2024, consumers primarily searched for products on e-commerce platforms, with TikTok playing a role in brand awareness. However, in 2025-2026, shopping behavior has fundamentally changed, users are increasingly influenced by content and complete transactions directly on TikTok Sho.
How the TikTok Shop Algorithm Creates and Captures Intent
The Content-First Distribution Model
TikTok’s algorithm distributes content randomly to users’ For You Pages—even to users who don’t follow the creator . The challenge for brands and creators is immediate: in the first 3 seconds, content must answer “Why should I care?” .
Content mechanics that win on TikTok Shop:
Visual hooks: Strong visual effects to stop the scroll
Pain point focus: Address immediate problems with instant solutions
Authenticity: UGC-style videos often outperform polished ads because they feel more relatable
Viral potential: Content needs viral elements to trigger algorithmic distribution
The Customer Journey on TikTok Shop
wareness: Discovery happens through the “For You Page,” short-form videos, KOL collaborations, and viral hashtags .
Consideration: Shoppers don’t just look at product detail pages, they scroll comments, watch livestream demos, and check shop profiles. Real-time Q&A in livestreams has become the new “review section” .
Purchase: One-click checkout inside TikTok simplifies the process. Cash-on-delivery is still common, but e-wallet adoption is rising with cashback incentives. Flash deals and time-limited vouchers trigger strong FOMO .
Post-purchase: Unboxing moments often become new TikTok content, free marketing! Adding small freebies or thank-you notes significantly increases the chance of a 5-star review.
The Trust Paradox in AI Recommendations
Research on Gen Z consumers across Shopee and TikTok Shop reveals two key factors that build trust :
Relevance: When AI recommendations align with actual needs, users perceive the algorithm as competent and accurate .
Inspiration: AI that reveals products users didn’t know they wanted triggers emotional engagement. This is particularly important in fashion, beauty, and lifestyle categories .
However, the “privacy paradox” creates tension: Vietnamese consumers experience discomfort when AI personalization feels too invasive, undermining emotional trust even when cognitive trust remains high . This is amplified in Vietnam’s collective culture, where relationship-based trust matters more than systemic trust .
The Shopee Algorithm: Optimizing for Intent-Driven Buyers
AI-Powered Customer Expansion
Shopee’s marketing team uses AI in three strategic steps :
Step 1 – Reach the right people: Using Google Gemini to build detailed customer avatars from existing shopper data and identify lookalike audiences with similar characteristics .
Step 2 – Reach them at the right moment: Using AI Max search capability to capture users at the “intent discovery” stage, linking informational searches to product listings .
Step 3 – Measure results: Precise measurement tools to understand the value of each customer touchpoint .
Campaign Surge Optimization
During major sale campaigns, Shopee’s AI automatically :
Increases bids up to 50% when conversion likelihood is high
Auto-increases budgets 20% for performing campaigns (up to 5x daily)
Lowers ROAS targets up to 30% during campaigns to capture more traffic
Shopee’s Platform Strengths
Intent-driven audience: Users arrive ready to buy
Logistics infrastructure: Extensive fulfillment and delivery network
Review ecosystem: Consumers trust 4.5+ star products for rational purchase decisions
Established shopping habits: Clear return policies and extensive voucher strategy
Shopee’s ad targeting options: Brands can target audiences through Homepage Display Services with three options :
Full reach: Banner shows to all users (maximum impressions)
Custom reach: Target based on demographics (age, gender) and product categories
Advanced reach: Auto-target users with interest in your shop or similar shops (higher CTR expected)
Cross-Platform Consumer Behavior in Vietnam
The 67% Cross-Platform Shopping Journey
Vietnamese consumers don’t stay on one platform :
67% cross platforms: Discover on TikTok, check reviews on Facebook, buy on Shopee
Facebook leads discovery (94% penetration) but converts less (19%)
Trust, convenience, and authentic content decide every click
Cashless Payment Adoption
63% of purchases are cashless, primarily via MoMo and ZaloPay
81% expect real-time delivery tracking
74% demand free shipping
Convenience now drives retention more than promotions
Audience Demographics
Gen Z and Millennials make up 72.5% of Vietnam’s workforce
Gen Z contributes over 50% of weekly shopping transactions
Vietnam is the 3rd largest e-commerce market in Southeast Asia
TikTok Shop has attracted over 226,000 sellers in Vietnam, including 2,400 Mall shops (authentic brands/distributors)
The Role of KOLs and KOCs in Vietnam’s Social Commerce Ecosystem
Why KOL/KOC Marketing Works
KOLs and KOCs (Key Opinion Consumers) are central to success on both platforms, but their roles differ fundamentally based on the platform’s commerce model .
TikTok – Discovery Commerce: “Sell what customers don’t know they need”
Challenge for KOCs: In the first 3 seconds, answer “Why should I care?” .
Content tactics:
Focus on pain points and immediate solutions
Use strong visual hooks
Example: A KOC spills water on a shirt to demonstrate waterproofing, shocking to retain attention
Content must have viral potential to trigger algorithmic distribution .
Shopee – Search Commerce: “Sell what customers are searching for”
Challenge for KOCs: Answer “Why should I buy from this shop and not another?” .
Content tactics:
Focus on USP and promotions
Emphasize discounts, freeship, free gifts
Example: A KOC holds two products side-by-side, zooming in on authenticity labels—proving credibility to close the sale
Content must be informative to retain price-conscious buyers .
The Smart Approach: One Shoot, Two Edits
Smart agencies now shoot content once and edit into two versions :
| Element | TikTok Version | Shopee Version |
|---|---|---|
| Music | Fast-paced, trending | Light background |
| Editing | Quick cuts, dynamic | Detailed voice-over |
| Caption | Curiosity-driven | SEO keywords included |
This optimizes production costs while maximizing reach across both platforms.
Strategic Recommendations for Foreign Brand Managers
Platform Strategy
Don’t choose sides, build on both platforms .
| Platform | Primary Role | Secondary Role |
|---|---|---|
| TikTok Shop | Awareness + impulse purchases (discovery-driven) | Content testing |
| Shopee | Conversion + repeat purchases (intent-driven) | Volume sales through campaigns |
The “Rented Land” Warning
When you sell on Shopee or TikTok Shop, you are a tenant in their ecosystem . They can:
Change commissions at any time—Shopee has increased fees multiple times
Change ranking algorithms—your product can drop from #1 to #50 overnight
Prioritize competitors—platforms always favor brands that pay the most for ads
Change policies overnight without your input
The numbers tell a sobering story: Algorithm changes in 2023 caused 40-60% organic reach loss for Vietnamese brands within 6 weeks . Vietnam’s e-commerce repeat purchase rate is only 20-30%—70% of acquired customers will never return .
Build Your Own Asset: The Website Strategy
Platforms are rented land. A website is your own asset .
Comparison:
| Factor | Platform (Shopee/TikTok) | Your Website |
|---|---|---|
| Margin | 20-35% of revenue in fees | 10-15% lower total cost |
| Data ownership | No emails, phones, behavioral data | All data is yours—email, phone, history, behavior |
| Customer relationship | Belongs to platform, not brand | Builds brand recall and loyalty |
| Long-term asset value | Stops generating revenue if ad spend stops | SEO authority and email list accumulate over time |
Ideal model: Use platforms to acquire new customers (low-cost traffic), use your website to serve loyal customers (higher margin), build brand equity, and collect first-party data .
Frequently Asked Questions
1. What is the main difference between Shopee and TikTok Shop algorithms in Vietnam?
Shopee operates on an Intent Commerce model, users arrive with purchase intent, search for products, and compare options. TikTok Shop operates on a Discovery Commerce model, the algorithm creates purchase intent by matching entertaining content to user behavior signals. 68% of TikTok Shop users discover products passively through feeds, not active searching . TikTok uses “shoppertainment” to convert viewers into buyers, while Shopee captures buyers who already know what they want.
2. How can foreign brands increase Shopee sales using algorithm updates?
Brands can leverage Shopee’s Campaign Surge Optimization (auto-adjusts bids, increases budgets 20%, and lowers ROAS targets up to 30% during campaign periods) and AI-powered audience expansion tools like Google Gemini integration . The key is understanding that Shopee rewards brands that optimize for high-intent searchers. Also, use Shopee’s Homepage Display Service with advanced targeting for higher engagement—auto-target users interested in your shop or similar shop
3. Why are KOLs and KOCs critical for TikTok Shop success in Vietnam?
On TikTok, content is the storefront . The algorithm rewards engaging, authentic content that drives social proof. Vietnamese consumers trust local KOLs at significantly higher rates than international celebrities . TikTok’s algorithm is optimized for content engagement, making creator partnerships a core channel for organic reach. The platform is fundamentally a content distribution engine before it’s a commerce engine.
4. How do Vietnamese consumers actually shop across platforms?
67% cross platforms: they discover products on TikTok, check reviews on Facebook, and make final purchases on Shopee . Facebook leads discovery at 94% penetration but converts only 19% . Trust, convenience, and authentic content decide every click. This means brands need coordinated presence across platforms, not a single-platform strategy.
5. What are the costs of selling on each platform in 2026?
Shopee: Total seller costs including commissions, shipping fees, advertising (5-15% of GMV to maintain visibility), and mandatory promotions now range from 21.8-33.8% of revenue . Shopee significantly increased fees for cosmetics and health/beauty products by 16-17%, and electronic accessories by about 15% .
TikTok Shop: Commission rates are 12.5% for standard sellers and 14.5% for mall sellers . The platform adjusted fashion industry commissions to 16.1% and mother/baby to 17.8% . Additional costs include advertising, livestreaming, and promotional program fees.
6. How much market share do Shopee and TikTok Shop have in Vietnam?
Shopee maintains the lead with approximately 55-56% market share, while TikTok Shop has grown to 41% . Combined, they control 97-98% of Vietnam’s e-commerce market, leaving Lazada, Tiki, and Sendo far behind . However, recent data shows TikTok Shop briefly overtook Shopee at 53.5% during the June 2026 mega-sale, indicating the market is highly dynamic .
7. What’s the “rented land” risk for brands on these platforms?
If TikTok or Shopee changes its algorithm tomorrow, brands that haven’t built their own customer databases or brand equity lose almost everything . Algorithm changes in 2023 caused 40-60% organic reach loss within 6 weeks. Vietnam’s repeat purchase rate is only 20-30%—70% of acquired customers won’t return without paid re-acquisition. Build a brand, not just a campaign. Invest in your own website as a long-term asset while using platforms for customer acquisition.
8. How is the 2026 Advertising Law affecting KOL/KOC marketing?
Vietnam’s new Advertising Law (effective January 1, 2026) introduces mandatory transparency requirements including advertising labels, product origin verification, legal documentation storage, and identity authentication for KOL/KOC content. Non-compliant brands and creators face legal risk. The Vietnam Advertising Association has established a KOL/KOC Club with a Code of Ethics and free legal training. Partnering with compliant KOL/KOC agencies is now mission-critical for foreign brands to avoid legal risk.
