A research conducted by Q&Me points out that the 3 most common channels for Vietnamese online shoppers are E-commerce platforms (used by 91% of respondents), social media (43%) and brand websites (20%). With Boxme, let’s dig deeper into these sales channels and figure out which one fits your business the most.
1. E-commerce platforms
|2||The Gioi Di Dong||29,277,320|
|6||Dien May Xanh||10,556,735|
|9||Dien May Cho Lon||4,813,362|
|10||Hoang Ha Mobile||4,171,398|
Vietnam: Top 10 most visited E-commerce sites in 2019 (Source: Iprice Group)
6 out of 10 most visited sites are company websites, while the remaining 4 are E-commerce platforms: Shopee, Sendo, Tiki, Lazada. Shopee, with more than 33 million web traffic, leaves other competitors behind by a significant gap. Their dominance remains in the mobile application section, as shown in the graph below.
All top mobile apps are from E-commerce platforms, signaling strong demand for product variety. Top 4’s rankings remain unchanged throughout the whole year with Shopee as the undefeated, meaning consumers stay loyal to their preferred shopping apps.
Another Q&Me report reveals that each platform has its own strengths. While Shopee is famous for fashion and beauty products, Tiki is the trusted place when shopping for technologies.
The report also suggests that there are characteristics that people associate with different E-commerce sites. Consumers believe that Shopee provides the best product variation, with great prices and an easy-to-use interface. The brand is also identified with an exciting and youthful image. On the other hand, Tiki is seen as a premium and trustworthy brand with high-quality products and good customer service.
2. Social media
Social media remains a prominent shopping channel for customers due to its convenience. 89% of Vietnamese internet users actively engaged in social media, and the average time spent on these platforms is 2 hours 22 minutes out of the total 6 hours 30 minutes spent on the Internet.
Facebook, Youtube, Zalo and Instagram remains the most popular social media networks (Messenger is a part of Facebook). However, Youtube can’t be used as a selling platform, as designated to be a video sharing website without direct message function.
While Instagram is popular among the younger generation, Facebook and Zalo are widely used across the country, thus being the two most common sales channels.
As seen in the report, people prefer social media to E-commerce platforms when shopping for fashion products. Other social commerce products are cosmetics, food & beverages and tech gadgets. The reasons why customers shop on social media are the ease in the ordering process, brand loyalty, instant delivery and the ability to contact sellers directly.
Selling via your own website is also a viable option. However, there are pros and cons about setting up a website that you should be aware of:
- Cost: There is little to no cost for setting up a store on E-commerce platforms or social media. You are likely to be charged a percentage if the price on each sale you make. On the other hand, there are upfront costs in keeping a website up and running: domain name, hosting, design, etc.
- Exposure: You have to build up traffic for your website from zero while E-commerce sites and social media occupy millions of users. However, you can run advertisements on these channels as well as others that lead directly to your website.
- Competition: The competition is fierce on public channels, you have to compete with hundreds of sellers with similar products and maybe, better prices. Having your own website makes your offerings more exclusive, thus more appealing to potential customers.
- Flexibility: You have to comply with the rules & regulations of the third-party platforms. Meanwhile, on your own website, you are the one who makes the rules.
- Data: This is a case of short-term versus long-term goals. All data including the information of your store and the customers belong to third-party sites, who in the future will reap the benefits. If you sell on your own site, the information will be yours only.
- Credibility: It’s easier to build trust on E-commerce sites and social media based on their existing reputation, plus E-commerce sites have strict regulations to protect their customers. Therefore, it’s recommended to sell cross-channel to gain customer trust for your site from other sources.
Boxme is the premier cross-border e-Commerce fulfillment network in Southeast Asia, enabling world-wide merchants to sell online into this region without needing to establish a local presence. We deliver our services by aggregating and operating a one-stop value chain of logistic professions including: International shipping, customs clearance, warehousing, connection to local marketplaces, pick and pack, last-mile delivery, local payment collection and oversea remittance.