E-commerce in Q1/2025: TikTok Shop Grows Rapidly, Closes In on Shopee

In the first quarter, TikTok Shop’s revenue increased by nearly 113.8% year-on-year, raising its market share from 23% to 35%.

The data analytics platform Metric.vn released a report on the Q1/2025 online retail market. Specifically, the four e-commerce platforms—Shopee, TikTok Shop, Lazada, and Tiki—recorded a total revenue of VND 101.4 trillion, up 42% compared to last year.

In the first quarter, TikTok Shop’s revenue increased by nearly 113.8% year-on-year, raising its market share from 23% to 35%, showing that consumers are showing a growing preference for video-based shopping entertainment.

Shopee grew by 29.3%, but its market share fell from 68% to 62%, reflecting rising competitive pressure. In contrast, Lazada and Tiki saw revenue decline by 43.5% and 66.6%, respectively, compared to Q1/2024.

Metric indicates that the swift movement of consumers towards content platforms such as TikTok Shop is a crucial indicator for e-commerce platforms in formulating their future development strategies.

The first quarter of the year also showed clear signs of polarization, as major sellers expanded their scale while most small retailers gradually exited the market. Specifically, the number of shops generating orders dropped by over 38,000 compared to last year and decreased from the previous quarter.

In contrast, the number of high-performing shops grew strongly, especially those with revenues over VND 50 billion, which nearly doubled (up 95%) compared to Q1/2024.

In addition, a noticeable shift in consumer behavior is also taking place. According to Metric’s report, consumers are increasingly leaning toward official Mall shops, making this group a key growth driver for e-commerce platforms.

Although they account for only 3% of the total number of shops, Mall shops contribute up to 26.7% of total revenue on Shopee and TikTok Shop. This indicates that consumers are prioritizing official stores to ensure product quality and service reliability.

Revenue growth from Mall shops is high across both platforms, showing a strong shift in shopping behavior toward reputable brands. This reflects a more discerning consumer mindset that values peace of mind in a market flooded with low-quality goods.

“Mall shops are not only leading in sales, but also serve as an indicator of changing consumer behavior on e-commerce platforms,” Metric.vn reported.

According to Metric.vn, domestic warehouses are currently heavily concentrated in terms of revenue in Hanoi and Ho Chi Minh City, accounting for up to 81% of total warehouse sales on the Shopee platform.

However, provinces such as Binh Duong, Da Nang, and Nam Dinh have recorded outstanding growth rates, indicating a trend of expanding supply zones beyond major urban centers. This reflects a shift in sellers’ operational strategies aimed at meeting growing demand and optimizing logistics costs.

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