G
TRƯỜNG ĐẠI HỌC THƯƠNG MẠI
KHOA LUẬT
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DISCUSSION
Topic: Online market - A case study in Vietnam: Shopee
Lecturer: Nguyễn Thị Lan Phương
Class: 251_ENTI3311_24
Group: 08
Ha Noi, 2025
CONTENTS
I. Introduction...................................................................................................1
1. Introduction of online markets.................................................................1
2. History of online markets..........................................................................1
3. Advantages of online markets...................................................................1
4. Disadvantages of online markets..............................................................2
II. Body................................................................................................................2
1. Shopee.........................................................................................................2
2. Strengths of Shopee....................................................................................2
3. Weaknesses of Shopee................................................................................3
4. Opportunities of Shopee............................................................................4
5. Threats of Shopee.......................................................................................5
III. Conclusion..................................................................................................6
Recommendations for Shopee........................................................................6
GROUP DISCUSSION
Topic: Online market - A case study in Vietnam: Shopee
Group: 08 Class: 251_ENTI3311_24
Lecturer: Nguyễn Thị Lan Phương
Preparation assessment: list of students
NO Full name Duties Comments Mark
. (for
teacher
only)
1. Nguyễn Lan Phương Body: Opportunities
2. Bùi Thu Quỳnh Body: Threats
3. Đặng Thu Quỳnh Body: Recommendations
4. Đỗ Thị Quỳnh Body: Strengths
5. Nguyễn Thị Như Quỳnh Body: Weaknesses
6. Hoàng Minh Qúy Introduction + Word
I. Introduction
1. Introduction of online markets
Definition of the online market: A marketplace where items or products and
services are bought and sold through internet platforms. It is called e-commerce
platform.
2. History of online markets
E-commerce actually goes back to the 1960s, when companies used an
electronic system called the Electronic Data Interchange to facilitate the transfer of
documents. It wasn't until 1994 that the very first transaction took place. This
involved the sale of a CD between friends through an online retail website called
NetMarket.
The industry has evolved rapidly since then, with companies
like Alibaba and Amazon becoming household names around the world. The
introduction of free shipping, which, at least on the surface, reduces costs for
consumers, has also helped increase the popularity of the e-commerce industry.
After the Covid-19 pandemic, it becomes more and more popular.
3. Advantages of online markets
a. Convenience and Accessibility
E-commerce can happen 24 hours a day, seven days a week. Consumers can
buy at their convenience, while allowing business owners to generate revenue
continuously.
b. Competitive prices and Discounts
Many shops sell the same products, so the prices are often different, higher or
lower. Consumers can completely choose products which are suitable for their
budget. Moreover, flash sales and promotional offers are usually created by
platform or business owners.
c. Potentially lower start-up costs
E-commerce companies may require a warehouse or manufacturing site, but
they usually don't need a physical storefront. The cost to operate digitally is often
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less expensive than needing to pay rent, insurance, building maintenance, and
property taxes.
4. Disadvantages of online markets
a. No physical inspection of products
Online images do not necessarily convey the whole story about an item, and e-
commerce purchases can be disappointing when the items don't live up to the
buyer's expectations.
b. Lack of instant gratification
Delivery may take some days or even weeks, especially for international or
rural areas. Furthermore, delivery is affected by the climate change.
c. The online scam
Some business owners may be fake so they can sell counterfeit products and
steal payment information of consumers.
II. Body
1. Shopee
Shopee was established in February 2015 as a mobile-focused marketplace that
enables users to browse shop and sell products. The founder is Forrest Li. The
main headquarters in Singapore has address: 5 Science Park Drive, Shopee
Building, Singapore.
Business model:
B2C: Business to Consumer
C2C: Consumer to Consumer
B2B: Business to Business
At first, Shopee is started with the main model business C2C and then it is
expanded to B2C and B2B.
2. Strengths of Shopee
a. Strong financial backing
Shopee has many strengths which help the platform have built a solid
foundation for success in the highly competitive e-commerce industry. One of the
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most significant advantages is that Shopee has strong financial backing. As a
subsidiary of SEA Group, one of Southeast Asia’s leading technology companies,
Shopee continuously receives substantial investments from this company. This
financial support enables Shopee to maintain operations, expand aggressively, and
withstand losses while securing long-term growth.
b. Communication and marketing strategy
Another strength is that this platform has a powerful communication and
marketing strategy. Shopee is well known for launching creative and trend-
catching campaigns that quickly capture public attention, often featuring famous
celebrities such as Son Tung MTP, Bao Anh, or Blackpink. These campaigns,
combined with frequent promotions and discounts, have helped strengthen its
brand recognition and customer loyalty.
c. Dominates the Vietnamese e-commerce market
Moreover, Shopee was among the first e-commerce platforms to adopt affiliate
marketing, allowing partners to earn commissions while helping the company cut
marketing expenses and reach new customer segments effectively. Most
importantly, Shopee dominates the Vietnamese e-commerce market with over 84
million monthly visits, making it the largest platform both in Vietnam and across
Southeast Asia. In conclusion, these strengths not only help Shopee’s competitive
edge but also position it as a leader capable of sustaining growth and expanding
globally.
3. Weaknesses of Shopee
a. High Competition
Shopee operates in a hyper-competitive e-commerce environment, especially in
Southeast Asia, where numerous local and international platforms are fighting for
market share. Key rivals include Lazada, Tiki (in Vietnam), and more recently,
TikTok Shop, which has rapidly gained traction through social commerce. These
competitors often offer similar services, price points, and delivery options, making
it difficult for Shopee to maintain user loyalty.
b. Inconsistent Product Quality
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A major challenge for Shopee is ensuring consistent product quality across
millions of sellers. Due to the open marketplace model, any seller can list a
product, which opens the door to counterfeit items, misleading descriptions, poor
packaging, or low quality goods. Customers frequently report receiving items that
do not match their online listings or are defective. These issues damage the
platform’s reputation and can lead to loss of customer trust, especially in high-
value categories such as electronics, health and beauty, and branded fashion.
c. Manipulated Review System
Shopee’s review system is meant to help users make informed purchasing
decisions. However, it has been criticized for fake, incentivized, or coerced
reviews. Some sellers offer discounts or gifts in exchange for positive ratings,
while others pressure customers to delete negative feedback. As a result, product
ratings are often inflated and unreliable, leading to a mismatch between
expectations and reality. This erodes trust in the platform and reduces the
effectiveness of the review system as a quality control mechanism.
4. Opportunities of Shopee
a. Rapid Growth of E-commerce
Online shopping has become a daily habit for many consumers, especially after
the Covid-19 pandemic, which creates a big chance for Shopee to expand its
market share.
b. High Internet and Smartphone Usage
With a large number of internet users and smartphone owners in Vietnam,
Shopee can easily reach more potential customers and increase its user base.
c. Development of Cashless Payment
The rise of e-wallets, digital banking, and other cashless payment methods
makes transactions faster and more convenient, encouraging more people to shop
online.
d. Government Support
The Vietnamese government promotes digital transformation and the growth of
the digital economy, which provides a favorable environment for e-commerce
platforms like Shopee.
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e. Expansion of Services and Partnerships
Shopee can cooperate with international brands, diversify its product categories,
and develop related services such as ShopeeFood and ShopeePay to attract more
users
5. Threats of Shopee
a. The emergence of competitors
The Vietnamese e-commerce market is growing with the presence of many
competing platforms such as Lazada, Tiki, Sendo... This high competition can
cause Shopee to face great pressure in retaining customers and strengthening
marketing strategies.
b. Changing user shopping habits
With the development of other e-commerce platforms, users may switch from
Shopee to other platforms if they are not satisfied or find a more suitable product.
This can negatively affect Shopee's sales.
User consumption trends are changing rapidly, such as the increasing demand
for online shopping, the demand for high-end products, etc. This requires Shopee
to constantly innovate to meet user needs.
c. Shipping and payment issues
Shipping and payment issues could also pose a major threat to Shopee, as
resolving issues with products or payments could impact customer confidence.
d. Government regulations
The Vietnamese government is issuing many new regulations on e-commerce,
such as regulations on consumer protection and regulations on import goods
management. This may impact Shopee's operations. To face this challenge, Shopee
needs to comply with government regulations and continuously update new
regulations.
III. Conclusion
Recommendations for Shopee
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To maintain its leading position in the e-commerce industry, Shopee needs to
prioritize enhancing customer experience. The platform should continue
improving its interface and overall shopping journey so that it becomes more
intuitive, convenient, and secure for users. At the same time, strengthening
customer support through the integration of AI-powered chatbots combined with
24/7 human assistance will help increase customer satisfaction and loyalty.
Another important recommendation lies in seller management. Shopee must
enforce stricter regulations to prevent counterfeit and low-quality products, which
often undermine consumer trust. Alongside this, the platform should provide
sellers - particularly small and medium-sized businesses - with training programs
and digital tools that can improve their operations, marketing, and logistics
efficiency. By supporting sellers more actively, Shopee will foster a healthier
marketplace.
In addition, payment and logistics solutions should be further expanded and
diversified. Offering secure and flexible payment options such as digital wallets,
installment plans, or even cross-border payment methods will enhance customer
convenience. On the logistics side, Shopee should invest in last-mile delivery
systems that are not only faster but also more eco-friendly, thereby improving both
efficiency and sustainability.
Sustainability is becoming an essential factor in modern business strategies.
Shopee can take the lead in this aspect by encouraging sellers to adopt
environmentally friendly packaging and by gradually integrating green logistics
solutions into its delivery process. Such practices will not only reduce
environmental impact but also strengthen Shopee’s brand image as a responsible
business.
Finally, the use of advanced technologies such as big data and artificial
intelligence can bring significant advantages. By analyzing consumer behavior,
Shopee can offer more personalized product recommendations, predict demand
trends, and identify fraudulent activities more effectively. In the long term, Shopee
should also focus on regional and global expansion, tailoring its approach to the
preferences of local markets while forming partnerships with reliable local
businesses to enhance credibility and accessibility.
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In conclusion, e-commerce platforms as a whole, with Shopee serving as a
representative case play a crucial role in shaping the digital retail landscape across
the regions it serves. Despite challenges such as intense competition and
profitability pressures, Shopee continues to innovate and expand its reach to serve
for everyone.
