E-commerce 2024: Comprehensive solution for Vietnamese businesses

The online retail market is growing and continues to expand year by year in the Vietnamese market. Why is the demand for e-commerce increasing so much?

This article will talk about the growth trend of Vietnam e-commerce market 2024. Why the online retail market is expanding and online business solutions for businesses that want to expand their scale.

Online Retail Q1/2024: Breakthrough Growth of 78.69% of E-commerce in 2024 in Vietnam

E-commerce has become an indispensable part of every business's business strategies today. Especially in the era of artificial intelligence (AI). According to the latest report, the online retail industry in the Vietnamese market witnessed a breakthrough growth of up to 78.69% in the first quarter of 2024 compared to the same period in 2023.

The number of sellers increased, reflecting a recovery after many difficult quarters. Growth is no longer limited to large cities but has expanded to provinces, with revenue and sales volume in areas outside the top 10 increasing by over 50%. According to Mordor Intelligence , the size of Vietnam's e-commerce market is estimated to reach 14.7 billion USD in 2024 and is expected to reach 23.77 billion USD in 2029.

This growth not only reflects the growing demands of consumers, but also represents an ideal time for businesses to invest in e-commerce and strengthen their position in the market. In order to avoid being left behind, businesses need to constantly update their knowledge and online business strategies, while preparing for challenges such as supply chain fluctuations and fierce competition from both domestic and international rivals.

What is e-commerce?

What is e-commerce?

Electronic commerce (e-commerce) is a system of conducting commercial transactions via the Internet. It allows businesses and consumers to buy and sell products and services online, using digital platforms and tools to optimize business processes.

Main forms of e-commerce

B2B (Business to Business): is a transaction model between businesses.

B2C (Business to Consumer) : Transactions between businesses and end consumers.

C2C (Consumer to Consumer): Transactions between consumers.

The Difference Between “EC” and “Online Store”

Many similar terms like “e-commerce”, “EC” and “online store” are often used interchangeably, leading to confusion about what the words mean or whether they are the same. However, there are small but important differences between them:

• Electronic Commerce (E-commerce): Often abbreviated as e-commerce or EC, this is a broad term that encompasses all commercial transactions conducted electronically. “Electronic” is not limited to the Internet but also includes private lines (VPNs) with business partners. Ordering and placing orders using EDI is also considered e-commerce.

• Online Store : This is a branch of e-commerce that focuses on selling goods and services through a specific website. An online store is a platform where customers can select, purchase and pay for products or services through a business website.

Understanding the difference between the terms “e-commerce”, “EC” and “online store” will help businesses and consumers have a clearer view of the different aspects of e-commerce transactions. From there, know the business situation so as not to miss out on future opportunities.

For businesses that want to use e-commerce in their business operations, Meowcart will present the outstanding advantages and points to note to help businesses avoid common problems when entering the world of e-commerce.

Benefits of applying e-commerce

1. Expand global sales reach

E-commerce helps businesses expand their sales globally, overcoming all geographical barriers. In this way, businesses can easily access many new markets, not only increasing revenue but also improving competitiveness in the market. This is especially important for businesses aiming to expand to international markets.

2. Convenient for users

From the perspective of today's consumers, they can shop anytime, 24/7, without having to go to the store directly. In addition, this flexibility not only brings maximum convenience to buyers but also suits the busy lifestyle of many people today. Thanks to e-commerce, consumers can easily make shopping transactions from anywhere, at any time, helping to reduce time and effort when choosing and buying products.

3. Respond quickly to user needs

Businesses can easily provide products and services that match the needs of customers thanks to quick updates and feedback via e-commerce platforms. This not only improves the shopping experience but also makes customers feel more satisfied. When businesses respond quickly and accurately, customers will feel more cared for and comfortable shopping online, thereby increasing satisfaction and creating brand loyalty.

4. Reduce the risk and hassle of physical stores

For businesses whose business models or sectors do not require investment in physical premises, e-commerce is the optimal solution. E-commerce helps businesses reduce the risks and hassles associated with managing physical stores. Instead of worrying about renting premises, decorating stores, protecting assets, and security issues, businesses can focus on building and managing sales websites along with handling warehouses and logistics. As a result, businesses save time and costs, while simplifying operational processes and improving business efficiency.

5. Reduce operating costs

If your business chooses e-commerce, you can save costs related to premises, personnel, or other operating costs compared to maintaining a traditional store. In addition, this savings will help increase profits and create opportunities to invest in other business activities.

6. Analyze customer data easily

Businesses can collect and analyze customer data on their own websites, and from there your business can improve its business strategies to match the collected data. Information data such as customer return rates, satisfaction levels, and shopping behavior can be used to improve the user experience. By using e-commerce for business models, businesses not only make the most of data but also optimize operational efficiency, while creating new opportunities for sustainable development.

Points to Note When Entering E-Commerce

1. Initial investment problem

Setting up and operating an e-commerce website requires an initial investment of time and money. Businesses need to spend on web design, maintenance, hosting, and other related costs. However, this investment can bring long-term benefits such as expanding reach, increasing revenue, quickly meeting customer needs, and improving competitiveness in today's market. To optimize efficiency, businesses need to carefully consider related factors and make a detailed plan for maintaining and developing a website.

2. About customer experience: Cannot directly view and choose products

Your customers cannot directly view and select the product, which can make it difficult to evaluate the quality and features of the product. Therefore, businesses need to provide detailed information and clear images on their website about the product to help customers make accurate purchasing decisions.

3. Shipping costs

Shipping costs are often separate from the product price, which increases the total cost to the customer. This may reduce the appeal of online shopping. Therefore, businesses should consider e-commerce solutions such as free shipping codes, or discount codes for bulk purchases, or integrating shipping costs into product prices to improve the shopping experience and attract more customers to shop on their website.

4. Risks from the customer side

This section may be a clear departure from the others, as it will address the ethics of each individual. However, in the context of e-commerce, businesses may be at risk from dishonest behavior by some customers, such as inappropriate returns or abuse of return policies to not receive goods. This can result in unexpected costs for the business.

Therefore, to minimize these risks in e-commerce, businesses need to establish clear and fair policies, and at the same time, communicate this information to customers in a transparent manner without affecting their emotions when shopping. When your business is ready to open a separate sales website, building a professional sales website in the field of e-commerce is indispensable. You need a strong and reliable platform to support.

To help you reach a larger and more diverse market, here is a suggestion for a world-leading sales website platform that you cannot ignore.

Shopify - Comprehensive e-commerce solution for businesses

Shopify - Comprehensive e-commerce solution for businesses

Shopify is the world's leading e-commerce platform, providing everything you need to start, manage, and grow your business from A to Z in one system. The platform offers a comprehensive suite of tools and services that help businesses increase their reach and optimize their operations.

Shopify makes it easy for businesses to quickly create, customize, and manage their online store. Shopify also offers a wide range of ready-made themes, making it easy to design a website that matches your brand and looks great on a variety of devices. Product management is made simple with features like inventory management, product categorization, and setting up product variants (like sizes, colors).

Shopify also supports a wide range of payment methods, from credit cards to e-payment services like PayPal, and has a built-in shipping system, helping you manage deliveries efficiently and quickly in an e-commerce environment. In addition, Shopify integrates many marketing features such as SEO, email marketing, and social media advertising, along with powerful analytics tools that help you track your business performance and better understand customer behavior in an e-commerce environment.

In addition, Shopify also allows convenient integration with many third-party services and applications, from customer management software (CRM) to accounting and logistics tools. This helps you create a complete business system and optimize your business operations.

Learn more about Shopify at: What is Shopify? Pros and Cons of Shopify 2024

Meowcart - Providing full website services on Shopify platform

Meowcart E-commerce Logo

Meowcart is proud to be a partner company of Shopify providing the leading website package service in Vietnam . Comprehensive and sophisticated solutions are the top priority that Meowcart sets for online business development. Not only creating beautiful, user-friendly e-commerce websites, the projects are also guaranteed in terms of brand identity, reflecting the true identity and goals of the business.

With over 10 years of service provision, Meowcart is confident in bringing a good experience in terms of quality, creativity, and constant innovation to suit market needs in each period. Meowcart understands that optimizing business operations and promoting online visibility are essential for businesses. Meowcart is the top choice for creating important strategic tools, increasing revenue, and finding solutions suitable for each business in the entire market.

Conclude

E-commerce in Vietnam is proving to be an indispensable element in the business strategies of enterprises today, especially with the boom of online retail in Vietnam. The strong growth of this sector not only opens up new opportunities for businesses but also improves the methods of approaching and serving customers.

E-commerce and e-commerce solutions have become indispensable tools for businesses, helping them expand their scope of operations, improve user experience and optimize costs. Understanding the types of e-commerce and the difference between terms such as "EC" and "online store" will help businesses have a clearer view to effectively take advantage of opportunities from this growing market.