A new milestone: Vietnam e-commerce report 2020 has reached $11.8 billion USD
Vietnam e-commerce report 2020 has reached $11.8 billion, rising 18% from the previous year and accounting for 5.5 percent of overall retail sales.
This article is collected by Boxme, cited in Vietnam.net
According to a report by the Ministry of Industry and Trade’s Department of E-commerce and Digital Economy, 53% of the population has joined the online retail market, boosting the e-commerce sector’s growth by 18% to $11.8 billion and accounting for 5.5 percent of total retail sales in Vietnam.
>>Read more:The map of Vietnam Ecommerce (statistics from iPrice)
>>Read more:5 critical things to look for in the Vietnam Ecommerce report 2020
In Southeast Asia, Vietnam e-commerce report 2020 is the only country with a double-digit e-commerce growth rate. The COVID-19 pandemic has given e-commerce a significant boost, pushing numerous firms to go online and luring first-time online buyers.
Read more:Vietnam eCommerce is heading for the period 2021 – 2025
>>Read more: Vietnam media landscape 2020; 5 changes to notice
The pandemic, however, continues to have an impact on purchasing power. When compared to the same time last year, the volume of transactions has skyrocketed. Nonetheless, sales growth is slowing as buyers choose lower-cost alternatives. The pandemic also caused a significant decline in internet flight and hotel reservations.
>Read more:[Infographic] Vietnam E-commerce landscape 2020
>Read more:Vietnam media landscape 2020; 5 changes to notice
>>Read more:5 things about eCommerce Vietnam 2020 you may have missed
According to the Vietnam e-Commerce Association, online shopping traffic in Vietnam has increased by 150 percent over the previous year, with daily visits to e-commerce sites reaching 3.5 million (VECOM).
>>Read more:Top 10 popular E-commerce business models in Vietnam in 2021
>>Read more:Vietnam eCommerce is heading for the period 2021 – 2025
According to Google, Temasek, and Bain & Company’s e-Conomy SEA 2020 report, Vietnam e-commerce report 2020 has caused tremendous growth in Vietnam, with a 46 percent increase, as well as robust growth in most industries except travel. Looking ahead to 2025, the total economy is expected to be worth $52 billion, with a compound annual growth rate of roughly 29%.
Vietnam e-commerce report cited in Google and Temasek
According to the Department of E-commerce and Digital Economy, the management unit is rushing to finish regulations and legal documents in order to foster the growth of e-commerce platforms.
Read more:[Infographic] Vietnam E-commerce landscape 2020
>>Read more: The map of Vietnam Ecommerce (statistics from iPrice)
>>Read more:5 things about eCommerce Vietnam 2020 you may have missed
The Ministry of Industry and Trade is now consulting on a draft decree modifying Decree No.52/2013/ND-CP on e-commerce, which is believed to feature a number of adjustments to suit new market trends. The draft decree, however, continues to elicit varied reactions.
>>Read more:Vietnam market updates: Potential Risk of shifting price on E-Commerce marketplaces After Circular 40
Compare marketing strategy of Lazada and Shopee 2021
Shopee, Southeast Asia’s own e-commerce site, is a trailblazer. Shopee now appears to hold the lion’s share of the market.
>>Read more: Why is Shopee successful in the whole SEA region?
>>Read more:The competitive advantage of Shopee in SEA: Shopee supply chain strategy
>>Read more:Entering the Southeast Asia E-commerce market: Why Shopee?
Sea Limited (NYSE: SE), its parent business, is the region’s largest tech corporation, with a market capitalization of almost USD 130 billion.
Shopee seems to exceed Lazada in many terms, especially in the battle of the marketing strategy of Lazada and Shopee. Shopee has outperformed Lazada in recent years to win over the unicorn position of e-commerce marketplaces in SEA.
>>Read more:Shopee trumped Lazada in Southeast Asia E-commerce market: A lesson of localization
Marketing strategy of Lazada and Shopee – What Works Best for Southeast Asian Sellers Parameters to consider choosing
Lazada has a massive client base of 560 million users, and last year’s 11.11 festival was a major success for 350,000 retailers. During the 12.12 sale of 2020, one of Shopee’s top sellers received 75,000 orders in just 24 hours.
>>Read more:How Shopee’s marketing strategy steps up in the SEA sales event 2020
>>Read more:Why is Shopee successful in the whole SEA region?
Let’s look into some more interesting figures.
Sourced by Statista
Ads, Entertainment, and AI
- Google Ads with Shopee is a benefit for Shopee merchants that Lazada sellers lust over. It’s one of the most effective methods for boosting sales. Furthermore, it is the biggest difference in marketing strategy of Lazada and Shopee
- Shopee vendors can use it to market products to customers who are most likely to buy them. As a result, the store’s visibility among potential buyers will improve. It allows vendors to put their goods in front of the appropriate people at the right moment.
- Even during the pandemic, Shopee kept its consumers entertained. Another difference in marketing strategy of Lazada and Shopee . They collaborated with celebrities, singers, KOLs, and dancers to create material that buyers enjoyed and valued. As a result, they are skilled at influencing customer purchasing decisions by exceeding expectations.
- Lazada uses AI-assisted search recommendations and AI-assisted translations. As a result, there is a robust strategy in place to offer a tailored purchasing experience. This method, from the seller’s perspective, highlights the goods to the most suited buyers. As a result, the conversion rate has risen to new heights.
Finance, Payment, Categories, and Age Group
- For Lazada clients, financial reconciliation for damaged and missing in transit merchandise is faster and easier than for Shopee customers.
- In terms of payment, Shopee outperforms Lazada by reducing the time it takes for merchants to get payment by 2-3 days. Shopee, on the other hand, costs $0.20 for each withdrawal.
- Shopee has the distinction of being the most downloaded shopping app in the second quarter of 2020. Shopee, the most popular app among shoppers, has seen an increase in time spent on its mobile app.
- Do you intend to market to customers aged 18 to 34? It would be better if you avoided Shopee entirely. On Shopee, this age group accounts for 80% of all purchases.
- Try Lazada if you’re interested in fresh food. The discrepancy of marketing strategy of Lazada and Shopee that Lazada can outrage Shopee is the feature of LazMall (launched by Lazada during covid-19), you can use the fresh food category to attract a large number of potential customers.
Shopee vs Lazada: Payment, Shipment, and Buyer’s Protection
On either platform, there are a plethora of payment methods. Lazada, on the other hand, falls short when it comes to collecting payments via over-the-counter bank deposits, coins.ph, remittance centers, and payment centers.
Lazada takes over Shopee in the marketing strategy of Lazada and Shopee in terms of speedy delivery, with delivery periods as little as 24 hours. Customers on Shopee, on the other hand, are dissatisfied after waiting 7 to 15 days for their orders to arrive. Shopee’s unique logistics partners are to blame for the long delays.
Lazada’s quick delivery comes at the cost of a very expensive shipping fee (upto 4X than Shopee for the same product). Customers, on the other hand, will not be resentful of paying a premium if the item can be delivered in as little as one day.
Buyer protection is a crucial factor to consider when selecting whether or not to purchase a product. Shopee’s Shopee Guarantee program offers additional protection. Customers will never receive counterfeit goods and will be more likely to trust the store as a result. Payment protection is available on Lazada to ensure secure purchases. As a result, shoppers will opt to shop on Shopee rather than Lazada for pricey items.
Shopee vs Lazada: Who is more courteous and helpful to customers?
The marketing strategy of Lazada and Shopee in luring shoppers keep coming back to the site is a great to focus on customer service
>>Read more:HOW TO IMPROVE THE CUSTOMER RETENTION RATE IN E-COMMERCE
>>Read more:Seize the opportunity and shift of customer’s needs of Malaysia in 2021
The number of channels via which consumers may reach you without issue and the speed with which a solution can be supplied are both important factors in providing excellent customer service. Every day, Lazada provides 15 hours of chat help (6 a.m. to 9 p.m.). The Lazada staff is also ready to answer quickly on Twitter.
On weekdays and weekends, Shopee’s phone support window is open for 12 hours and 9 hours, respectively. Customers of Shopee can communicate with one another via chat at any time. Another alternative is to ask questions over Facebook Messenger, which has a very high response rate.
Shopee has a little advantage over Lazada in terms of responsiveness.
Shopee vs Lazada: How Shoppe Aided Sellers in Surviving the Pandemic
The Seller Support Package by Shopee, which covered 300,000 small and medium-sized businesses developing an online presence, was a major sigh of relief in the pandemic. Shopee’s Seller Education Hub was a well-received project for the following reasons: It allowed 6000 sellers to gain a solid understanding of the fundamentals.
>>Read more: Top e-commerce trends in Thailand post Covid-19 ( 2021 edition)
>>Read more:What is Shopee business model: new initiatives in 2021
>>Read more: Uncover Shopee pricing strategy for retailers 2021
Advanced topics, such as
- live streaming, were covered in the Shopee Masterclass.
- Low operating costs.
- Excellent support for marketing and sales
How Lazada Helped Sellers Recover and Rise After the Pandemic
Lazada, which was not far behind in the race, offered stimulus initiatives to help 150,000 Southeast Asian SMEs.
>>Read more:Become a Top Seller on Lazada: Tips and Tricks
Its Bounce Back Together program, which included various campaigns, aided 7000 merchants in their post-pandemic business rehabilitation. As a result, retailers saw a 5X boost in sales compared to before the Covid era.
Their Bounce Back Sale aims to restore normalcy to micro, small, and medium-sized companies in the Philippines following COVIID-19.
More readings?
>>Read more:Shopee trumped Lazada in Southeast Asia E-commerce market: A lesson of localization
>Read more:Shopee’s marketing mix strategy helps change the game;
>>Read more:What is Shopee business model: new initiatives in 2021
What is Shopee business model: new initiatives in 2021
In the third quarter of 2020, Shopee, a Singapore-based tech company, garnered 62 million monthly visits in Vietnam, rising more than 80 percent from the previous quarter.
>>Read more: Why is Shopee successful in the whole SEA region?
>>Read more: Entering the Southeast Asia E-commerce market: Why Shopee?
The aggressive expansion of Shopee in Vietnam is part of a new era in Southeast Asia’s $100 billion digital economies. E-commerce will be the cornerstone of a new spectrum of alliances in the post-COVID age, and competitors are rushing to create entire ecosystems to satisfy as many customers’ needs as possible.
>>Read more: Vietnam enters in the top 10 of emerging logistics market 2021
>>Read more: Vietnam market updates: Potential Risk of shifting price on E-Commerce marketplaces After Circular 40
So what is the Shopee business model that enhances the wide coverage and success of Shopee in the whole SEA region?
Shopee constantly gets updated with the new initiatives and changes to adapt and cater to the constant changing of customer’s requirements. Recently, Shopee, unveiled a series of new initiatives and features for Shopee Mall, at the inaugural Shopee Brands Summit 2021, held at Andaz Singapore.
Shopee’s brand summit 2021
Let’s find out more what is Shopee business model in 2021
New programs to help high-performing brands scale new heights
Shopee announced the launch of two new programs at the summit, aimed at assisting top-performing firms in realizing their online development potential. The Regional Champion Businesses Programme, for example, is a by-invitation-only initiative in which 16 brands will receive priority Shopee support in the areas of marketing, innovation, and insights. Exclusive access to Shopee’s campaigns and new feature releases will be provided to these brands, as well as personalized support to help them expand their businesses.
> Read more: Shopee’s marketing mix strategy helps change the game
>>Read more: The competitive advantage of Shopee in SEA: Shopee supply chain strategy
The ‘100 Million Dollar Club,’ which encourages brands to reach USD100 million in Gross Merchandise Value (GMV) in a single year, is the second initiative. The first ten brands to achieve this goal will be awarded with exclusive business insights, improved campaign exposure, media support, and other benefits.
>Read more: The competitive advantage of Shopee in SEA: Shopee supply chain strategy
>>Read more:Entering the Southeast Asia E-commerce market: Why Shopee?
What is Shopee business model – Shopee Mart’s Enlargement
Shopee also wants to expand its grocery delivery platform, Shopee Mart, by bringing on more fast-moving consumer goods (FMCG) merchants. In Southeast Asia, grocery delivery is becoming a strongly fought industry, with newcomers like Grab, Foodpanda, and Deliveroo investing considerably in their skills in the face of the pandemic.
>>Read more[ Infographic] Vietnam retail sales surge ahead of Lunar New Year 2021
>>Read more:Interesting facts about Thai food and beverages market in SEA
>>Read more:Online Grocery Rising Trend Amidst COVID-19 in Malaysia
This puts them in direct rivalry with more established businesses such as RedMart, NTUC FairPrice, and Amazon Fresh, which are all owned by Lazada.
Mr Zhou stated that in order to expand Shopee Mart, Shopee will need to improve its fulfillment capabilities in areas such as warehousing and distribution centers (known as S-Mart in Singapore). In most markets, the platform offers users in capital cities next-day delivery.
“It could be a combination of us stocking the items ourselves, or having certain brands or partners, on a consignment basis, put items in a warehouse and we do the fulfillment for them,” said Mr. Zhou.
>>Read more: How automated fulfillment is changing E-commerce around the world
>>Read more: The increase in logistics demand tripled the growth of e-commerce
>>Read more: Vietnam enters in the top 10 of emerging logistics market 2021
Warehouse expansion
In 2021, more than 10 new warehouses will open across the region, and brand partners will ship three times more items from Shopee’s warehouses than they did a year ago.
Shopee Xpress, the company’s in-house last-mile delivery service, will be expanded to more tier two and tier three cities in markets including Thailand, Indonesia, and the Philippines.
>>Read more: Shopee Malaysia Rolls Out Next-Day Delivery Service
>>Read more: How logistics companies worldwide tackle last-mile delivery
The company had tremendous growth in the third quarter of 2020, which ended on September 30, 2020, as a result of regional stay-at-home policies. E-commerce revenue climbed 173.3 percent to US$618.7 million, while gross merchandise value (GMV) increased 102.7 percent to US$9.3 billion, according to the parent company’s figures.
Shopee Mall
GMV totaled US$23.5 billion from Q1 to Q3 2020, with gross orders reaching 1.78 billion. On the marketplace, there were roughly 10 million active vendors.
>>Read more:Why is Shopee successful in the whole SEA region?
>Read more: 3 key factors that contribute to Shopee’s success
>>Read more: Entering the Southeast Asia E-commerce market: Why Shopee?
According to Mr Zhou, Shopee Mall, a platform dedicated to real brand owners and approved distributors, played a role in the company’s success.
>>Read more:Reveal the best methods in 2021 on how to improve sales on Shopee
>>Read more: The competitive advantage of Shopee in SEA: Shopee supply chain strategy
Orders on Shopee Mall have increased tenfold since its inception in 2017, exceeding the entire platform growth. In 2020, there were 2 times as many brands on Shopee Mall as there was the year before. The feature now has over 20,000 brands on it.
Shopee Brands Awards 2021
Shopee also presented ten brands with awards for their excellent marketing and commercial performance to commemorate their milestones and achievements.
At the event’s conclusion, Ian Ho, Shopee’s Regional Managing Director and Head of Regional Brand Partnerships, reaffirmed the company’s commitment to brands, saying, “We’ve all gathered here today because we all share the same goal and commitment: to provide our users and customers with the best shopping experience possible. Shopee is confident in pushing businesses to the next level in an increasingly digital-first world thanks to our strong and devoted employees in each of our markets.”
More readings?
>>Read more: Why is Shopee successful in the whole SEA region?
>Read more: Shopee’s marketing mix strategy helps change the game
>>Read more: The competitive advantage of Shopee in SEA: Shopee supply chain strategy
Reveal the best methods in 2021 on how to improve sales on Shopee
How to improve sales on Shopee
Selling on Shopee is one of the ways to boost revenue without having to go through several steps. However, not everyone understands how to improve sales on Shopee with high efficacy. Many people have put a lot of effort into becoming a beloved shop on Shopee and drastically increasing orders. This article will serve as a resource for you to learn how to speed up the process of becoming a favorite store and a destination for many people.
>>Read more: Shopee Tips & Tricks; How to boost sales in Shopee (Updated 2020)
>>Read more: How to increase sales in Shopee with these 3 features
>>Read more: How to Identify Hot Keywords with keyword tool Shopee
How to improve sales on Shopee with Shopee Mall tag
1. What is Shopee Mall?
Shopee Mall has been put into operation by Shopee since October 10, 2017, this store is operated for the purpose of awarding titles to owner partners, or authorized to distribute Shopee’s genuine brands.
>>Read more: Business Solutions: Shopee boost product, store analysis tools, and more
>>Read more: Guides on how to build a successful Shopee business model in 6 steps
Partners who own or are allowed to distribute authentic Shopee trademarks are referred to as Shopee Mall. Becoming a Shopee Mall entitles the store to preferential treatment and attractive support policies throughout the Shopee sales period.
2. Benefits associated with Shopee Mall tag
Becoming a Shopee Mall entitles the store to a variety of privileges and appealing support policies throughout the Shopee sales season, including:
- Sellers are given first priority for participation in Shopee’s major promotions, including Discount Codes or subsidized prices.
- The prominent Mall term on a red background with white lettering would immediately identify the seller’s products as belonging to Shopee Mall.
- For orders over 150K, buyers are eligible for a shipping fee of up to 25K.
>>Read more: How Shopee’s marketing strategy steps up in the SEA sales event 2020
>>Read more: 3 key factors that contribute to Shopee’s success
3. Terms and condition to become Shopee Mall
According to Shopee’s terms on joining Mall, the seller must meet the required conditions to participate in Shopee Mall. Shopee Mall sellers must, in particular:
- Adhere to the 100% genuine and authentic goods policy.
- All buyers must adhere to the 7-day return/refund policy.
- Buyers will have more time to enjoy their items, which is a fantastic opportunity to improve the service experience. There will be enough time to complete the proper return/refund procedures if the goods have a technical defect.
In addition, to become a Shopee Mall Seller, you need to meet the following minimum conditions:
Criteria and conditions to become Shopee Mall
Các tiêu chí và điều kiện để trở thành Shopee Mall
How to improve sales on Shopee by become favorite Shop on Shopee
1.What is the “Favorite Shop”?
Another effective proven method on how to improve sales is to become a Favorite Shop. So what is the definition of Favorite Shop on Shopee?
Favorite shops on Shopee are those that have met Shopee’s requirements (which change monthly) for being a favorite shop, such as having good sales, a high customer response rate, quick order delivery, and so on.
>>Read more: Boost Your Sales On Shopee With 16 Following Tips (Part 1)
>>Read more: Boost your sales on Shopee with 16 following tips (Part 2)
Criteria to become a favorite shop and keep the title of the favorite shop (updated until June 2020) include:
2. Benefits of becoming favorite shop on Shopee
Firstly, Let’s take a look at the benefits sellers receive when becoming a Shopee favorite shop:
Benefits on becoming the ” Favorite Shop” on Shopee
Quyền lợi shop yêu thích trên shopee
- The free shipping policy is applied. This will assist in attracting more clients to your business.
- Boost customer satisfaction. Customers always know that their favorite Shopee stores are respectable stores that Shopee has examined and guaranteed.
- Add a Favorite icon to every product on Shopee that is for sale.
- When customers use shopee coins to purchase things at the shop, they receive a discount. Which is a type of shopee “money” that each client accumulates during the purchasing process.
- Favorite stores can enhance product display rates, assist shop owners in selling more efficiently on Shopee, and place more orders.
More readings?
>>Read more:How to Identify Hot Keywords with keyword tool Shopee
>>Read more: Uncover Shopee pricing strategy for retailers 2021
>>Read more: The competitive advantage of Shopee in SEA: Shopee supply chain strategy
>>Read more: Boost Your Sales On Shopee With 16 Following Tips (Part 1)
>>Read more: Boost your sales on Shopee with 16 following tips (Part 2)
How to Identify Hot Keywords with keyword tool Shopee
Without a doubt, since 2005 Shopee has been one of the fastest-growing and most used e-commerce marketplaces in Vietnam.
>>Read more: Entering the Southeast Asia E-commerce market: Why Shopee?
>>Read more:Why is Shopee successful in the whole SEA region?
>>Read more: How Shopee’s marketing strategy steps up in the SEA sales event 2020
That’s why the online marketplace is becoming more and more competitive. Therefore, choosing keyword tool Shopee to optimize SEO for products is extremely important. In this article, Boxme will share with you how to a tool specialize in pushing your keywords to a higher position on the page- Keyword tool Shopee.
>>Read more:Shopee keyword tools; How to get to Shopee top keyword ranking
>>Read more:Business Solutions: Shopee boost product, store analysis tools, and more
What is Keyword tool Shopee?
The keyword tool Shopee is a tool that Shopee makes available to its channel partners. The tool’s goal is to allow vendors to bid on keywords in order to display advertising on search results pages, similar to how CPC works on Google. The tool will supply us with keywords that customers frequently search for in relation to the product for which you plan to run adverts.
>>Read more:How to increase sales in Shopee with these 3 features
>>Read more: Shopee Tips & Tricks; How to boost sales in Shopee (Updated 2020)
You must have a seller account (connected with your Shopee shopping account) in order to utilize this tool, and it is sufficient that you are selling something.
Steps to determine hot keyword
Step 1: Google search keyword
Simply go to Google, input a term regarding the product that you believe others will look for, and Google will recommend a number of other keywords at the bottom of the results page. For all new sellers, this is the most typical method. When you search, you’ll pick up a number of keywords, which can help you build a mental picture of the thing you’re selling.
>Read more: Boost Your Sales On Shopee With 16 Following Tips (Part 1)
>>Read more: Boost your sales on Shopee with 16 following tips (Part 2)
Step 2: Filter and choose top searched products on Shopee
The products with the biggest sales in a certain category will be highlighted on the App Shopee homepage each month. These are also products with a significant volume of searches.
Step 3: Keyword tool Shopee Keywordtool.io
Keywordtool.io is the most widely used keyword search engine nowadays. This tool will allow you to determine the exact search volume for a certain keyword over the course of a month.
Note that with the free edition, you may only monitor a limited number of keywords, not Search Volume (total search volume) or other indicators like Trend (search level), CPC (price), and Competition.
Keywordtool.io free version can’t check specific metrics
Keywordtool.io pro version checks exactly the necessary metrics
Step 4: Use Shopee’s search engine
When you paste a term into the product “search bar” on the Shopee homepage, the website will recommend related keywords – these are the keywords that consumers frequently search for.
Quick search by any keyword, the website will suggest related keywords
Step 5: Check directly with Shope’s keyword suggestion tool at Seller channel
After you’ve gone through the first four phases, you should be able to determine the important keywords and keyword clusters. Those keywords are entered into the Add keywords area of specific programs. When you enter a keyword and click search, the shopee system will examine the keyword search rate in 30 days for you, as well as the reference bid. Your duty is to incorporate the keyword into the ad as soon as possible.
Shopee’s keyword checker tool is very simple and easy to use
>>Read more: Shopee keyword tools; How to get to Shopee top keyword ranking
>>Read more:Business Solutions: Shopee boost product, store analysis tools, and more
How to create keywords with Shopee keyword tool
Step 1: Access Search Ads section
On Shopee, go to the Seller Channel section and follow the steps below to access it: Shopee Ads > Search Ads > Home > Marketing Channels > Shopee Ads > Search Ads
Go to the Search Ads section of the Keyword Bidding section
Go to the Search Ads section of the Keyword Bidding section
Scroll down to get a list of your products that are now running advertising. Here, detailed metrics on advertising performance and progress will be given. This field will be blank if you’ve never run an ad.
Advertising statistics on Shopee
Advertising statistics on Shopee
Step 2: Access to keyword Tool Shopee
Click on any product to obtain full product data if you’ve already run an ad. This is the section where we will select keywords to use in our product advertisements. It’s similar to using Google Keywork Planner to find keywords for Ads.
Step 3: Save keyword
You select “Confirm and add keywords” after adding all of the ideas, and an interface with all of the stored keywords appears. You copy all of the keywords and manually paste them into the excel file. So you’ve already created a list of Shopee-specific SEO keywords?
More readings?
>>Read more: Uncover Shopee pricing strategy for retailers 2021
>>Read more: Shopee keyword tools; How to get to Shopee top keyword ranking
>>Read more: Business Solutions: Shopee boost product, store analysis tools, and m
Top 10 popular E-commerce business models in Vietnam in 2021
E-commerce is a rising star in the Vietnam market, with an expected growth of US$9 billion by 2025 by Vietnam Briefing. Which represents significant growth and opportunities for both domestics and foreign investors.
>>Read more: The map of Vietnam Ecommerce (statistics from iPrice)
>>Read more: Vietnam eCommerce is heading for the period 2021 – 2025
>Read more: 5 things about eCommerce Vietnam 2020 you may have missed
Vietnam’s flourishing digital economy and its vibrant e-commerce space make it a conducive place to tap into new business opportunities.
Vietnam e-commerce always flourish with all types of e-commerce business models. Do you really know all fundamental E-commerce business models? Here are 10 e-commerce business models compiled by Boxme Global
B2C
B2C., is abbreviated for Business to Customers, is the type of direct eCommerce transaction between business and customers, in which services, products are sold directly to customers.
Nowadays, the B2C business model has broadened to new forms of businesses in which retailers sell products on online platforms, e-commerce marketplaces, and online websites. In short, B2C business is not limited to offline stores but in various ways selling their products, service to customers over the internet.
B2B, B2B2C
With a bigger view to maximize business opportunities and achieve extensible development, various B2B businesses decide to expand their network and partnership with dealers, VAR, wholesalers, e-commerce marketplaces,… to sell products and services.
For short, B2B2C is a business model were online, or e-commerce, businesses, and portals reach new markets and customers by partnering with consumer-oriented product and service businesses.
A business developing a product, service, or solution partners with another business to use a particular service, such as an e-commerce website, portal, or blog. The two businesses combine forces and promote mutually beneficial products, services, and/or solutions.
C2C
Customer to customer (C2C) is a business model through which 2 individuals can rade, buy, and sell items in an online environment such as websites, e-commerce marketplaces with a small commission paid to the site.
Affiliate – e-commerce business models
The affiliate revenue model is based on commissions. This model applies when individuals, influencers, celebrities, or any customers recommend products or services from a business to new customers and then reward each new one to the business.
The way the affiliate revenue model example plays out is through coded affiliate links. When someone enters a site through an affiliate link, these clicks are tracked, as are any leads and/or sales derived from these clicks.
The affiliate revenue model is a popular one because it benefits both the original seller (by extending their reach and generating new sales) and the affiliate (through commissions).
Dropship
Dropshipping is a retail fulfillment method. Furthermore, dropshipping is the most elementary form of e-commerce in which the selling merchant outsources their products to a third party to store, pack and deliver their products to the final customers.
>>Read more: How Much can You Make Dropshipping?; Real Life Stories from Successful Dropshippers
>>Read more: 13 Best Items to Dropship in 2019
>>Read more:Dropshipping Niches to Avoid for your e-Commerce Business
Private label & White – label
Contact brands/companies with products and request to make their own brands on those products and retail through available channels in the market. This e-commerce business model usually suitable for those who have existing customer files and need to Diversify products in the same niche
Subscription
When a business charges a recurring fee for its services and products, it follows a subscription model. This model, based on the idea of selling products to receive regular intervals, focuses much on customer retention over customer acquisition. Essentially, businesses using subscription models put much attention on prolonging customer’s usage of products in the long run rather than one-time off payment.
D2C/ M2C/ F2C
D2C e-commerce is when bringing products directly from the brand to the buyer, bypassing the distribution stages in the middle. Goods, when produced, will be put into the distribution process directly to buyers who have ordered through e-commerce platforms.
POD (Print-on-demand) and Personalization
POD is an e-commerce model that allows you to sell personalized products by printing your own designs such as clothes, mugs, bags, etc. The crucial thing about this model is that products will only be printed when an order is created.
>>Read more:A complete overview of Print On Demand products (Part 1)
>>Read more: A complete overview of Print On Demand products (Part 1)
Therefore, you will not need to store or own any products, not afraid of problems related to storage or inventory. Instead, all you need to do is select and sign up for a platform that allows you to go through the entire process from printing to fulfillment.
E-commerce Enabler
E-commerce enabler is a company that provides end-to-end solutions for brands to do e-commerce business. In a simple way, e-commerce enabler companies assist brands in promoting on online platforms, using digital strategy, platform optimization, order processing & fulfillment.
>>Read more: Beginners’ guide to digital marketing for E-commerce in Vietnam
>Read more: Malaysias Economic Recovery Using E-commerce
Top 10 e-commerce business models complied by Boxme Team
More readings?
>>Read more: The map of Vietnam Ecommerce (statistics from iPrice)
>>Read more: Finding out the most suitable E-commerce model for you
>>Read more: Who is the leading eCommerce platform in Vietnam?
