E-commerce is a young industry in Vietnam, currently experiencing ideal development. The past 2 years of the COVID pandemic have transformed most consumers’ shopping habits from in-person to online shopping. This has been one of the key factors driving the remarkable growth figures in Vietnam’s e-commerce industry in recent years.
I. THE PACE OF DEVELOPMENT OF THE E-COMMERCE MARKET IN VIETNAM
The years 2020 and 2021 were marked by the COVID-19 pandemic, severely affecting the national economy. According to the Department of E-commerce and Digital Economy (Ministry of Industry and Trade), most industries experienced significant declines in growth rates compared to previous years. Summing up the entire year of 2021, Vietnam’s economic growth was the lowest in the past 30 years, at only 2.58%.
However, in contrast to the overall situation of other industries, Vietnam’s e-commerce sector maintained a stable growth rate. In 2018, the revenue of Vietnam’s B2C e-commerce was around 8 billion USD, and by 2019, it surpassed the 10 billion USD mark (reaching 10.8 billion USD). The revenue continued to increase to 11.8 billion USD in 2020. The retail e-commerce revenue (B2C) reached 16.4 billion USD in 2022, accounting for 7.5% of the total retail revenue for goods and consumer services in the country.
Estimates suggest that with a revenue of 20.5 billion USD in 2023, the share of B2C e-commerce revenue would account for approximately 7.8-8% of the total retail sales and consumer service revenue in the country.
|Estimated number of consumers shopping online (millions of people)||39,9||44,8||49,3||54,6||57,0||59-62|
|The estimated value of one’s online shopping (USD)||202||225||240||251||288||300-320|
|The proportion of B2C E-commerce revenue compared to the total retail sales of goods and services for the whole country||4,2%||4,9%||5,5%||7%||7,5%||7,8% – 8%|
|Percentage of people using the Internet||60%||66%||70%||73%||73,2%||74%|
II. VIETNAM’S E-COMMERCE MARKET SHARE
The four e-commerce platforms with the largest market share in Vietnam are Shopee, Lazada, Tiki, and Sendo, respectively.
III. WHAT IS AN OFFICIAL STORE?
Official Stores are the official shops of a brand or business. An Official Store confirms the supply of genuine brand products, ensuring the provision of authentic items.
IV. REQUIREMENTS TO OPEN AN OFFICIAL STORE
Sellers are eligible to open an Official Store when:
- The Seller is the Brand Owner/Manufacturer and registers to open a store on the Shopee & Lazada platform.
- The Seller is a Level 1 Distributor, authorized by the Brand Owner/Manufacturer to use the distribution rights and open an Official Store in Vietnam.
- The Official Store exclusively deals with a single brand in accordance with the Seller’s owned Brand or authorized distribution rights.
- The Official Store is not permitted to sell OEM products. If such products are listed for sale, the ‘Official’ label will be removed from the store.
V. WHY SHOULD YOUR STORE BECOME AN OFFICIAL STORE ON SHOPEE OR LAZADA?
In the competitive landscape of e-commerce, attracting attention and trust is crucial for achieving success. In the context of online marketplaces continuing to dominate the retail market, becoming an official store on Shopee or Lazada can be a strategic and advantageous decision for your business. By joining the ranks of certified sellers on these top platforms, you gain access to numerous benefits that enhance your brand reputation, boost sales figures, and expand your business scope in Vietnam. Let’s explore the compelling reasons why international stores should consider becoming official stores on Shopee or Lazada.
1) Building Trust & Credibility
Becoming an official store on Shopee or Lazada translates to positioning your brand as a reputable and trustworthy seller in the eyes of Vietnamese customers.
Besides, the shop and its products will be tagged as ‘Mall’ to differentiate them from regular shops. This draws more attention from visitors compared to normal products.
These platforms have stringent seller verification processes in place, ensuring that only reputable and high-quality businesses receive the official store designation. This reliability not only enhances customer trust but also leads to a significant increase in in-store traffic and sales volume.
2) Priority Display & Customer Attraction
Official stores often receive priority placement in search results and product listing pages on Shopee and Lazada.
This advantage helps your products stand out compared to those of regular sellers and captures more attention from potential customers in Vietnam. Furthermore, this priority display can drive organic traffic to your store without additional cost, enhancing the effectiveness of your sales efforts.
3) Approaching The Large Market
Shopee and Lazada are two leading e-commerce platforms in Vietnam with a large and diverse user base. By becoming an official store, foreign brands can access this extensive market and bring their products to millions of potential customers. This allows you to reach new target audiences and significantly expand the scale of your business
4) Quality Customer Support
Shopee and Lazada provide excellent customer support services. As an official store, foreign brands have the privilege to access special customer support services and a team of professional customer care representatives.
This helps alleviate the burden of handling customer inquiries and ensures a positive shopping experience, fostering brand loyalty from your Vietnamese customers
5) Participation in Promotional Programs and Events
Official stores are often given priority to participate in promotional programs, events, and marketing campaigns organized by Shopee and Lazada. This provides you with the opportunity to leverage special occasions, discount seasons, and holidays to boost higher transaction volumes and significantly increase sales.
VI. HOW TO OPTIMIZE YOUR SALES FOR SALES
1) Keyword Research Using the Keyword Research Tool
As an example, the Shopee platform allows you to research and find the monthly search volume, helping you identify high-ranking keywords that potential customers are interested in.
In cases where there is limited search data on the platform or no data available, you should utilize the Google Keyword Planner tool to gather comprehensive keyword statistics.
2) Optimizing Product Titles
An effective SEO strategy for e-commerce platforms that businesses should keep in mind is to include relevant keywords in the product titles. Similar to website SEO, placing keywords at the beginning of the title improves the display position on the platform.
Additionally, you should include standout features to showcase the product’s advantages.
A formula for naming products when optimizing for e-commerce platforms can be applied as follows:
PRODUCT NAME + BRAND + PRODUCT FEATURES
3) Product Description on E-commerce Platforms
Similar to website SEO, product description content holds significant importance on e-commerce platforms.
Remember, in this description section, details should be presented clearly, highlighting advantages, prominent features, and the product’s utility to impress your customers in Vietnam. International brands should evenly distribute the predefined keywords and add a clear Call to Action (CTA) to enhance engagement.
Furthermore, an easily implementable SEO optimization technique for e-commerce platforms is to ensure complete contact information (address, phone number, chat hours, regular promotion updates, etc.) is updated for maximum engagement
4) Rich Content Element
The ‘Core Value’ element lies within content, images, videos, etc. Focus on posting plenty of images and videos to enhance purchasing possibilities.
General guidelines for optimized image size on Shopee’s e-commerce platform are 720×720 px with image files under 1MB. Different platforms may have distinct regulations concerning image dimensions.
For optimizing e-commerce SEO, particularly in the image section on Shopee, it’s best to name images using product keywords, without spaces, and separated by hyphens.
Shopee Highly Regards the Golden Ratio:
- Post a full set of images (8-9 images)
- Include 1 video (20-30%)
- Shopee allows mobile phone video posting
5) Quantity of Customer Reviews for Purchased Products
After customers receive their orders, you can send them messages encouraging them to review the product, offering incentives for their next purchase. Implementing this approach will help your store garner more positive and authentic reviews, which can attract and retain new customers.
Moreover, if the reviews contain relevant keywords, it will certainly be a great advantage for improving your product’s ranking.
6) Implementing Promotional Programs for Platform Optimization
You should introduce multiple promotional campaigns to pique customer curiosity and consequently boost sales during promotional periods.
In your promotional banners, consider incorporating layouts like Free Shipping, Extra Refunds, or Sale Prices to create an impactful impression, enticing customers to click on your products and store.
In summary, as the e-commerce sector maintains its expansion, these platforms are aptly poised to uphold their supremacy and consistently offer advantages to both consumers and enterprises. Despite numerous challenges in establishing official stores on e-commerce platforms in Vietnam as a foreign brand, the potential benefits are also quite significant. By adopting a strategic approach and making appropriate investments, international brands can successfully access the burgeoning Vietnamese e-commerce market, effectively reaching a broad spectrum of customers across the nation.
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