With new shopping habits shaped by the covid-19 pandemic, e-commerce is poised to become a powerful sales-driving channel, increasingly attracting users compared to traditional sales methods.
According to the latest forecasts, global e-commerce revenue is expected to grow by 70%(1) in 2025 compared to 2020, contributing 24.5%(2) to global retail revenue, up from 17.8%(3) in 2021. In Asia, the number of consumers using digital channels has exceeded expectations, growing 1.4 times since 2018. it is projected that by 2025, the average digital consumer will spend 3.5 times more than in 2018.
The business-driving role of e-commerce
For business operations, e-commerce brings distinct advantages to enterprises in optimizing operational processes and growing sales channels through several key factors:
Support in reducing operating costs
Cost savings can be considered the greatest benefit of e-commerce for any business.
Traditional retail models often require significant upfront and operational expenses, such as renting and designing physical spaces, hiring staff, purchasing sales equipment, and managing storage facilities in chain retail. Similarly, selling through a distributor system incurs substantial intermediary costs for first-tier agents. In contrast, e-commerce eliminates these expenses, enabling businesses to significantly reduce initial investments and ongoing operational costs.
Collect detailed information about customer data
With the nature of interactions and transactions occurring entirely on online platforms, businesses have a significant advantage over traditional commerce in gathering information about customer needs, habits, preferences, and feedback on products.
This data is considered a goldmine for businesses, enabling them to analyze and make timely adjustments to deliver exceptional customer experiences. As a result, this not only enhances the ability to attract new customers but also increases the loyalty of existing ones.
Reaching new customers
According to several studies, 82% of consumers in the U.S. and 87% of consumers in Denmark search for product information, conduct product checks, and compare services through online channels before making a purchase decision.
This trend enables online retailers to effectively push advertising messages to consumers via search engines and social media channels. Moreover, with the characteristic of being a borderless sales channel, e-commerce allows businesses to reach a vast pool of potential customers regardless of geographical location, thereby increasing opportunities to acquire new customers.
Optimizing sales operations
E-commerce stores are not constrained by opening hours like traditional stores, allowing businesses to maximize profits by extending selling time. This also increases opportunities to reach customers who are too busy to shop during the typical opening hours of traditional stores.
The role of e-commerce in enhancing customer experience
In addition to its role in driving business growth, e-commerce also enhances customer experience by ensuring that customers can find everything they need in the most convenient way without spending time or money on travel. This is perhaps one of the greatest advantages of online shopping. Additionally, other factors that contribute to improving customer experience include:
Simple and convenient operations
E-commerce allows customers to choose a desired product or service from any provider, anywhere, without being restricted by store hours or affected by external factors such as location, weather, or health.
Payments for orders can also be made entirely through fast and convenient online payment methods. This gives customers more options and makes the shopping process simpler and more comfortable compared to shopping at traditional stores.
Save money and shopping time
Products purchased through e-commerce channels are often cheaper than those from physical stores due to savings on space and sales costs. This allows shoppers to save a significant amount through online shopping. Moreover, online shopping enables consumers to easily find products, check information, and purchase items at the time they need without spending time traveling or searching through traditional channels.
Diverse information for product selection
Customers can easily search for product information and compare factors such as price and benefits before making purchase decisions. Product details like shape, color, specifications, and warranty are displayed clearly and intuitively through descriptions, videos, and images.
Price and benefit comparisons are also made simple with the support of e-commerce platforms and specialized websites. This information allows shoppers to thoroughly evaluate conditions before purchasing, minimizing potential disputes to the lowest level.
The Future of E-Commerce in Vietnam
Vietnam is recognized as one of the top three fastest-growing e-commerce markets in Southeast Asia, with the percentage of new online shoppers among total online shoppers reaching 41%, the highest in the region compared to developed countries like Indonesia, Malaysia, Singapore, and Thailand (9).
With this business model, Vietnam continues to hold significant potential in the medium and long term due to its young population, a large proportion of smartphone users, the development of major e-commerce platforms such as Shopee and Lazada, and the increasing prevalence of e-commerce transactions on smartphones.
To capitalize on this trend and enhance competitiveness and operational efficiency, businesses need to focus on building robust business operation platforms and developing strategies to apply digital technologies that support successful e-commerce implementation.
References
- (1)(2)(3)(4)(5) Statista. E-commerce worldwide statista dossier
- (6) Facebook. Business news digital consumers of tomorrow here today
- (7) Statista. Types of research conducted before purchasing a product us
- (8) Statista. Researching products before online purchase in denmark
- (9) Trungtamwto. 2021 E-Commerce Report
