Marketplace vs Own Website — Detailed Comparison for Vietnamese Businesses
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Marketplace vs own website is the question every Vietnamese business asks when starting online sales. Shopee has millions of daily visitors, Lazada has a strong logistics system, but an owned website gives you complete control over customer data. Each channel has its strengths, and choosing wrong can waste tens of millions of VND in advertising fees every month. This article analyses both channels across 12 criteria — cost, traffic, data, SEO and branding — with a real case study so you can see exactly which channel fits your industry and scale.
Hundreds of thousands of Vietnamese businesses sell on Shopee/Lazada every day, but only a small fraction of them actually own their own website. This gap is not because websites are hard to build — it is because many store owners have not yet understood when a marketplace is enough and when an owned website becomes necessary. This article helps you answer that question with evidence rather than guesswork.
What are Shopee and Lazada? How do marketplace platforms work?
Shopee and Lazada are the two largest online marketplaces in Vietnam, where sellers and buyers meet on the same platform. Shopee belongs to Sea Group (Singapore), Lazada belongs to Alibaba Group (China). Both provide sellers with a free or near-free online storefront, along with integrated payment, logistics and marketing systems.
How it works: seller registers an account → opens a storefront → lists products → customer finds products through search or platform ads → places order → pays via e-wallet or COD → platform logistics delivers. Shopee holds approximately 63% of Vietnam ecommerce market share (2025–2026), Lazada about 22%, Tiki about 8%. Total gross merchandise value on Shopee Vietnam is estimated at over 100 trillion VND per year.
Marketplace platforms are ideal for beginners starting online sales: no programming knowledge required, no website investment needed, storefront opening cost is essentially zero. However, "free" here means you are borrowing someone else's platform — and the real cost lies in commission fees, advertising fees and dependence on platform rules.
Advantages and disadvantages of Shopee/Lazada: Detailed breakdown
To truly and honestly understand whether Shopee/Lazada suits your specific business, you must analyse each dimension carefully and without bias — not just look at the massive traffic but also account for hidden costs that accumulate over time, platform dependence that deepens with every passing year and inherent limitations on customer data that prevent you from building direct, lasting relationships with your buyers. Below is a detailed breakdown of marketplace advantages and disadvantages across 5 critical dimensions, each with a direct and measurable impact on your profit margins, marketing efficiency and long-term business growth potential in the Vietnamese ecommerce market.
Advantage: Massive traffic from day one
The biggest advantage of Shopee/Lazada is built-in traffic. You do not need SEO, you do not need Google Ads, you do not need to build brand awareness from scratch — just list your products and customers will see them. Shopee Vietnam has over 40 million monthly visits (SimilarWeb 2026), Lazada about 15 million monthly visits. These numbers are equivalent to tens of billions of VND in advertising spend if you had to build the same traffic for your own website.
Furthermore, Shopee and Lazada organise flash sales, vouchers and free shipping every week — these campaigns drive enormous traffic for participating sellers. For beginners, this is an opportunity to reach millions of customers without any marketing budget whatsoever.
Advantage: Initial cost is nearly zero
Opening a storefront on Shopee/Lazada is completely free. You do not need to buy hosting, you do not need to hire a website designer, you do not need programming skills — just an ID card to verify your account and you can start listing products immediately. The only costs are commission fees of 1–5% per order and advertising costs if you run campaigns on the platform. This is the main reason over 400,000 active sellers operate on Shopee Vietnam every day.
Disadvantage: Commission and advertising costs keep rising
"Free" on a marketplace is not truly free. Shopee commission fees range from 1–5% depending on product category, sellers bear 10–30k per order in shipping costs, and Shopee Ads average 1,000–3,000 VND per click — and these costs increase every year. In 2024, Shopee commission fees increased by an average of 0.5–1% compared to 2023. If you process 100 orders per month with an average order value of 300k, commission plus advertising fees can consume 8–15% of revenue — equivalent to 2.4–4.5 million VND per month.
Over time, costs on the marketplace increase while order values do not rise proportionally — especially when you depend on platform advertising for customers. Many sellers report that Shopee advertising costs consume 20–30% of revenue after 1–2 years of operation.
Disadvantage: Customer data belongs to the platform
This is the single biggest weakness of marketplaces. When you sell on Shopee/Lazada, all customer data — names, phone numbers, email addresses, purchase history — belongs to the platform, not to you. You cannot access customer email addresses, you cannot send email marketing, you cannot run remarketing on Google/Facebook, you cannot build your own loyalty programme.
This means: every time you want to reach past customers again, you must pay the platform through advertising — instead of sending free emails as you would with your own website. In the long run, this is the largest cost that most sellers fail to anticipate.
Disadvantage: Extremely fierce competition on the same platform
On Shopee/Lazada, hundreds of sellers compete for the same search keywords. A search for "áo thun nam" (men's t-shirt) on Shopee returns tens of thousands of results — and customers only view the top 3–5 products. Advertising costs for popular Shopee keywords keep rising because too many sellers are bidding simultaneously.
You have no choice but to reduce prices, increase vouchers or pay higher advertising fees — all of which compress your profit margins. This is why many Shopee/Lazada sellers feel "busy but not profitable" — despite high revenue, actual margins are razor thin.
Advantages and disadvantages of an owned website: Detailed breakdown
An owned website is an online sales channel that you fully control — from domain name, design and customer data to SEO content, marketing strategy and every aspect of the customer journey. This is the biggest difference from a marketplace, where you are merely "renting a storefront" on someone else's platform and playing entirely by their rules with no guarantee of long-term stability. An owned website requires a larger initial investment but delivers superior long-term value when leveraged correctly — particularly in customer data ownership, Google SEO and independent branding not dependent on any third-party platform's algorithm or policy decisions.
Advantage: Customer data is 100% yours
An owned website gives you complete ownership of customer data: names, email addresses, phone numbers, browsing history, products viewed, abandoned carts. You can use this data for email marketing, retargeting on Google/Facebook, behaviour analytics and loyalty programmes — all without paying any platform.
Customer data is the most valuable asset of any online business. A list of 10,000 email addresses of past buyers is worth hundreds of millions of VND if you know how to leverage it — and a website is the only tool that lets you build this asset organically.
Advantage: No dependence on algorithms or platform policies
When you sell on Shopee/Lazada, algorithms can change at any time — product rankings can drop, advertising costs can increase, new policies can be enforced without your input. An owned website is not constrained by any algorithm — the SEO you build on Google and the content you create are fixed assets, not subject to third-party decisions.
This matters especially for businesses building long-term brands. A brand entirely dependent on Shopee/Lazada has nearly zero value when the platform changes its policies — and this has happened multiple times in the past five years.
Advantage: Long-term SEO and branding
An owned website lets you rank on Google for hundreds of keywords — and every blog post, every product page is an SEO asset that exists permanently, driving free traffic every day. Shopee/Lazada do not provide Google SEO for your products — all traffic must be paid for or dependent on platform algorithms.
Regarding branding: a professional website with its own domain name (.com, .vn) creates a stronger brand impression than a Shopee storefront buried among thousands of other shops. Customers tend to trust businesses with their own website more — according to a Nielsen survey, 72% of customers trust brands with their own website more than brands that only sell on marketplaces.
Disadvantage: Higher initial cost
An owned ecommerce website costs 5–15 million VND for design, plus hosting 1–5 million/year, domain 250–500k/year and maintenance 1.5–3 million/year. Total first-year cost: 8–20 million VND — significantly more than opening a free Shopee storefront where the initial investment is essentially zero. However, when comparing long-term costs over 3–5 years, an owned website often saves money because you avoid the 1–5% commission on every order, and marketing costs decrease once SEO gains traction and organic traffic grows to replace paid advertising.
Disadvantage: You must build your own traffic
An owned website has no built-in traffic like Shopee/Lazada. You must invest in SEO, Google Ads, content marketing and social media to attract customers — and this process takes 3–6 months for basic SEO results to 1–2 years for clear, stable results that compound over time. If you lack marketing experience, the website may be "quiet" for the first few months — and this is the main reason many people abandon their owned website and return to marketplaces where traffic comes automatically.
12-criteria comparison: Shopee/Lazada vs own website
To give you a comprehensive overview, the table below compares Shopee/Lazada and an owned website across 12 key criteria simultaneously. The table is based on Vietnam market data from 2025–2026 and RiverLee's hands-on experience implementing sales systems for hundreds of Vietnamese businesses. This comparison helps you see exactly where each channel excels — enabling you to make the most informed decision for your product category, scale and business goals.
| Criteria | Shopee/Lazada | Own website |
|---|---|---|
| Initial cost | Nearly zero | 5–15 million VND |
| Monthly cost | 1–5% commission + advertising | 1–5 million VND hosting + maintenance |
| Built-in traffic | Yes — 40 million visits/month (Shopee) | No — must build yourself |
| Customer data | Belongs to platform — inaccessible | 100% yours |
| Google SEO | Not available | Yes — long-term free traffic |
| Email marketing | Not possible | Possible — low cost |
| Branding | Weak — storefront among thousands | Strong — own domain, custom design |
| Competition | Extremely fierce — same keywords, dozens of shops | Lower — less SEO competition |
| Platform dependence | High — algorithms change anytime | Low — fixed assets |
| Time to start | 1–3 days | 15–30 days |
| Scalability | Limited — dependent on platform policies | Unlimited — you are in control |
| Best suited for | Beginners, tight budgets, quick sales | Businesses building long-term brands |
8 factors that decide whether you should choose Shopee/Lazada or your own website
Every industry, every business scale has its own answer to the question "marketplace or website" — there is no one-size-fits-all solution that works for everyone regardless of context. Below are 8 factors that help you evaluate objectively and systematically — rather than choosing by intuition or following advice from someone who does not understand your specific industry, target audience or growth ambitions. These factors are ranked by decreasing importance: the first factor is the decisive one, and the remaining factors add additional perspective. If 3–4 of the top factors point to one channel, that is usually the right answer for your specific situation.
1. Initial budget and cost tolerance during the first 6 months
If your budget is under 5 million VND, Shopee/Lazada is the only practical option — an owned website requires a minimum of 8–12 million for the first year. However, if your budget is 15–25 million VND, an owned website is the more cost-effective long-term investment — because you avoid the 1–5% commission on every order.
Calculate the first 6 months: on Shopee, if you sell 100 orders/month × 300k value × 3% commission = 900k/month in platform fees. On an owned website, first-year costs are hosting 250k/month + maintenance 250k/month = 500k/month — but you must add marketing costs of 1–3 million/month to generate traffic.
2. Product category and target customer
Some product categories are extremely well-suited to marketplaces: fashion, cosmetics, household goods, phone accessories — products where customers easily compare prices, buy on impulse and need minimal consultation. Conversely, some categories require an owned website: real estate, consulting services, premium products, B2B services — where customers need to research carefully, view portfolios and read case studies before deciding.
Ask yourself: "How do my customers buy?" If they compare prices on Shopee and choose the cheapest shop → marketplace. If they search Google, read articles, review portfolios and then contact you for consultation → owned website.
3. Short-term vs long-term business goals
If the goal is making sales in the first month, Shopee/Lazada is up to 10 times faster — you can have orders within 1–3 days. If the goal is building a brand over 1–3 years, an owned website is the only channel that lets you control customer experience and own your data.
Many successful businesses choose both channels simultaneously: Shopee/Lazada for quick sales and cash flow, owned website for brand building and data ownership. This is often the optimal strategy for small and medium businesses.
4. Technical management capability
If you know nothing about technology, Shopee/Lazada is much simpler — register an account, list products, start selling. An owned website requires basic knowledge of hosting, domains, WordPress or Shopify — or you need to hire someone to manage it on your behalf.
However, many agencies now offer full website management services for 2–5 million VND/month — you just focus on selling while they handle all technical maintenance, updates and security. This is a practical and cost-effective solution for businesses without dedicated technical staff.
5. Product scale and catalogue
If you sell fewer than 20 products, both an owned website and marketplace are suitable — but the website is cheaper long-term. If you sell hundreds of products, the marketplace has an advantage because its built-in filtering and search help customers find products faster — while an owned website needs investment in advanced product filtering systems.
However, if your product catalogue requires detailed presentation (user guides, video demos, comparison tables), an owned website performs better than marketplaces — because Shopee/Lazada restrict product display formats.
6. Logistics and shipping costs
Shopee has Shopee Express with preferential shipping rates for sellers, while an owned website must partner independently with logistics providers (Giao Hang Nhanh, Viettel Post, GHN...). Shopee shipping costs are typically 15–30% cheaper than market rates — a significant advantage for categories with small, heavy orders that ship frequently.
However, if you sell high-value, bulky products (furniture, equipment), logistics costs do not differ much between channels — and an owned website gives you better control over the delivery experience and customer communication during transit.
7. Remarketing and email marketing capability
If you want to send promotional emails, retarget customers who viewed products on Google or Facebook, or build a loyalty programme — only an owned website enables this. Shopee/Lazada do not allow you to access customer email addresses or run remarketing campaigns outside their platforms.
For businesses wanting to increase customer lifetime value and reduce acquisition costs over time, this is the most important factor — because re-engaging past customers is 5–7 times cheaper than acquiring new ones through paid advertising.
8. Your 3–5 year plan
If you want to sell online for 3–5 years and build a sustainable brand, an owned website is the only suitable channel. Marketplaces can change policies, raise fees or even shut down (as happened with Deca, Zalora, Adayroi) — an owned website is a fixed asset unaffected by third-party decisions.
Imagine: after 3 years, your website has 500 SEO blog posts, 10,000 email subscribers and thousands of organic daily visitors — all valuable assets. After 3 years on Shopee, what do you have? A storefront completely dependent on platform algorithms and policies.
Real case study: Selling on Shopee with an own website — What happened?
Cosmetics Shop A (Da Nang) started selling on Shopee in March 2024, specialising in Korean lip products and skincare. First-month revenue: 15 million VND, mostly from Shopee flash sales. By June 2024, revenue grew to 45 million/month, but profit was only 6 million — because Shopee Ads consumed 28% of revenue (12.6 million/month), commission was 3% (1.35 million), and shipping at 10k/order × 150 orders = 1.5 million. Total platform costs: 15.45 million/month.
In September 2024, the shop decided to build an owned website alongside Shopee. Cost: 8 million VND for website design (Shopify + theme), 500k/month hosting, 1 million/month for basic SEO. Total website cost: 1.5 million/month (excluding initial design fee).
Results after 6 months (March 2025): the owned website accounted for 35% of revenue (22 million/month), mostly from organic SEO traffic (product review blog posts + landing pages). Shopee accounted for 65% (41 million/month), but platform costs had dropped to 18% of revenue because the shop reduced ad spend on the platform.
Lesson: an owned website does not replace Shopee — it supplements it with a free traffic channel (SEO) and reduces dependence on platform advertising. After one year, total profit increased 40% compared to Shopee-only sales — despite revenue increasing only 25%. This is a typical result when combining both channels effectively.
7-step implementation process for running Shopee/Lazada + owned website in parallel
Step 1: Analysis and planning (weeks 1–2). Define your product category, target customers, first 6 months' budget and revenue goals. Decide the allocation ratio between Shopee and website — typically 60:40 or 70:30 during the first 6 months.
Step 2: Open Shopee/Lazada storefront (weeks 2–3). Register an account, verify your business licence, list your first 20–50 products, set up shipping and return policies. Start running Shopee Ads with a small budget (200–500k/day) to test the market.
Step 3: Design and develop your website (weeks 3–6). Hire an agency to design your ecommerce website (5–15 million VND), integrate online payment (VNPAY, MOMO), logistics providers (Giao Hang Nhanh, Viettel Post) and order management systems. Prepare 10–20 SEO blog articles.
Step 4: Synchronise products (weeks 6–7). List all products on both channels — ensure prices, images and descriptions are consistent. Set up inventory management to avoid selling out on one channel while the other still shows stock.
Step 5: Market on both channels (from week 8 onwards). Shopee: participate in weekly flash sales, run Shopee Ads on popular products. Website: start SEO for product keywords, publish review blog posts, run Google Ads for purchase-intent keywords. Send email marketing to registered website customers.
Step 6: Measure and optimise monthly. Track revenue, costs and profit margins per channel. After 3–6 months, evaluate which channel is performing better and reallocate budget accordingly.
6 frequently asked questions when choosing between Shopee/Lazada and an owned website
Below are the most common questions RiverLee receives from clients when consulting on the most suitable online sales channel — each answer based on real implementation experience across hundreds of businesses in Vietnam.
Is it more profitable to sell on Shopee or an owned website?
There is no universal answer — it depends on your product category, advertising costs and conversion rates. Shopee is more profitable in the short term (built-in traffic), but an owned website is more profitable long-term (no commission, lower marketing costs after 6–12 months). According to RiverLee's experience, an owned website's profit margin is typically 5–10% higher than Shopee's once SEO gains traction.
Does an owned website need SEO?
SEO is mandatory — without it, your website is like "a shop opened in the desert" that nobody finds. SEO includes: optimising site structure, publishing blog articles regularly, building backlinks and submitting to Google Search Console. SEO costs: 1–3 million/month if done yourself, 3–5 million/month if hired out to an agency. SEO results typically appear after 3–6 months — but profits stabilise and grow over time.
Can Shopee replace an owned website?
It cannot completely replace one. Shopee is suitable for starting to sell quickly and testing the market, but it cannot build brand awareness, you do not own customer data, and you depend on platform algorithms that change without notice. An owned website is the only channel that lets you control 100% of the customer experience and own digital assets (data, SEO, content) that retain their value indefinitely regardless of platform policy changes.
How long does it take for an owned website to attract customers?
If you run Google Ads from the start: 1–2 weeks to see traffic and first orders. If relying on organic SEO: 3–6 months for stable Google traffic. The best approach: run ads for immediate customers + SEO in parallel to reduce marketing costs over time. New websites typically take 1–3 months for Google to trust and index them faster — during this period, your paid ads carry the traffic load while SEO builds momentum behind the scenes.
Should small businesses start with which channel?
If your budget is under 10 million VND: start with Shopee/Lazada to generate revenue immediately and accumulate online selling experience. When profitable, invest in an owned website. If your budget is over 15 million VND: build an owned website in parallel with Shopee from the start — higher initial cost but much better long-term profitability. The key is to treat Shopee as a cash-flow engine and the website as a long-term brand asset — they serve different purposes and work best together.
Why do many businesses choose both channels?
Because each channel has unique strengths that complement each other. Shopee/Lazada provides traffic and quick revenue; an owned website provides customer data, long-term SEO and branding. A 60:40 (Shopee:website) allocation in the first 6 months, then adjusting based on results, is the safest approach for most businesses. After 1–2 years, the ratio often reverses (40:60) as the owned website's SEO power takes effect.
Conclusion
Marketplace vs own website does not have an absolute right answer — it depends on your budget, product category and business goals. If you are just starting out with limited budget, Shopee/Lazada is a reasonable first step. If you want to build a brand and own customer data for 3–5 years, an owned website is an essential investment. Remember: marketplace costs increase over time while the value of your owned website compounds as SEO gains traction and your email list grows. The best approach: start both channels simultaneously — Shopee for quick sales and cash flow, website for building a sustainable future. Do not choose one over the other — combine both, and let each channel do what it does best.
Contact RiverLee today for free consultation and a detailed quote for your own ecommerce website — or visit our business website design service page to see how we work. Hotline/Zalo: +84 962 334 807. Official website: https://riverlee.vn/thiet-ke-website-doanh-nghiep
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Marketplace vs own websiteShopee Lazada vs websiteSell on marketplace or own websiteOnline sales channel comparisonEcommerce platform comparisonMarketplace advantages disadvantagesComments
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