5 ECOMMERCE PLATFORMS FOR THE WINE INDUSTRY BUSINESSES

Author: Bửu Châu
Publish date: 26/12/2022
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The electronic commerce market in the liquor industry is currently experiencing robust development and has become a dominant trend in many different countries. In 2021 alone, the number of alcohol consumers increased by 10–20%, and those following the trend saw a growth of 40–50%, indicating significant progress in eCommerce for the alcohol industry in recent times (according to Wine Intelligent).

Not only limited to user growth, the global eCommerce market for wine is expected to grow by 7.7% annually (according to Statista) and reach a value of 1.68 trillion by 2025 (according to Cision). This presents both an opportunity and a challenge for liquor businesses to grasp and develop a business model suitable for the changing market in the digital era.

To embark on an online liquor business, the selection of an eCommerce platform needs careful consideration and precise decision-making. Choosing the right platform aligned with the budget and objectives helps businesses save time in construction, utilise human resources efficiently, and save costs in building and developing the system. Simultaneously, it assists businesses in reaching a large customer base, boosting sales, and seizing sustainable development opportunities in the future.

Currently, there are primarily two types of eCommerce platforms on the market: open-source and service-based. Each type of platform has certain advantages and disadvantages, and businesses need to carefully weigh criteria that align with their business model to choose a suitable platform.

Criteria for Choosing an eCommerce Platform in the Liquor Industry

Suitable Interface for the eCommerce System in the Liquor Industry

Wine products belong to the premium segment in modern life. Therefore, customers always prioritize high-quality visuals, and eye-catching, user-friendly interfaces in the eCommerce system that are easy to use and navigate.

Businesses in the liquor industry need to focus on conveying the product’s value message not only through a well-designed and user-friendly interface but also one that has high aesthetic appeal, with distinctive features to communicate the brand and product values to the specific target customers of the industry. This approach ensures a comprehensive user experience when using the eCommerce system.

Diverse eCommerce Feature System, from Basic to Advanced to Specialized

eCommerce platforms should have a diverse range of features, from basic to advanced, and even specialized features tailored for the liquor industry. This facilitates the efficient and sustainable development of the eCommerce system for businesses. Basic features include management, storefronts, sales, information management, statistics, revenue control, customer lists, invoices, shopping carts, and checkout, as well as reporting and analysis.

Advanced features related to themes, products, marketing, optimized payment solutions, discounts, and shipping cater to the operational and developmental needs of sustainable eCommerce for businesses. Specialized features for the liquor industry may include product allocation, inventory control, membership management (Wine club memberships management), implementing customer loyalty programmes, and product-specific discounts based on business needs.

Read more: SaaS eCommerce platforms vs Open-Source eCommerce platforms

High Integration Capability

For a seamless online business system in the liquor industry, businesses often integrate eCommerce platforms with other software and technology platforms they currently use, such as payment systems, shipping, ERP, POS, CRM, marketing management, etc.

This requires the eCommerce platform to have flexible, seamless, and effective integration capabilities with this software without compromising the execution of each system. This integration not only helps businesses overcome manual operational limitations but also increases automation for both back-office management and sales processes, ensuring high accuracy and operational efficiency for the business’s development.

Payment and Delivery Software

In addition to supporting Cash On Delivery (COD), platforms need to integrate various payment software, including local and international card options, payment gateways (Paypal, Stripe, One Pay, etc.), and digital wallets (Momo, ZaloPay, etc.). The chosen eCommerce platform should have the ability to seamlessly integrate this payment software with high security, safety, and efficiency.

For delivery and logistics, businesses can integrate service providers and popular transportation tracking applications, optimizing and streamlining delivery processes. Businesses can customize and develop delivery modes suitable for customers, ensuring a comfortable and convenient buying and receiving experience for users. Integrating payment and delivery software helps shorten the purchasing journey, optimize the user experience, and prompt customers to make decisions quickly.

Enterprise Resource Planning (ERP), Customer Relationship Management (CRM) Software

Businesses can fully integrate third-party enterprise management software such as ERP, CRM, POS, etc., with the eCommerce system to support efficient and seamless multi-channel eCommerce operations. This synchronizes data on products, categories, orders, and user information across systems, simplifying and automating the back-office management and sales processes, ensuring high accuracy and operational efficiency for sustainable development.

Marketing Management Software

In addition to the marketing tools available on the eCommerce platform, businesses can integrate additional marketing tools such as email marketing software (MailChimp, Drip, etc.), marketing analysis software (Google Analytics, Google Adwords Keywords, etc.), and social media management software (Buffer, Hootsuite, etc.). Marketing management software helps businesses deploy marketing campaigns, attract customers, and increase conversion rates, maximizing both eCommerce and overall business revenue.

Maximum Scalability

Choosing an eCommerce platform in the liquor industry with high scalability is crucial for businesses to grow sustainably. The platform should seamlessly accompany the business through various business models, from entering eCommerce for the first time to expanding the business system. It should support diverse business models such as B2B, B2C, D2C, and B2B2C.

Furthermore, the platform should assist businesses in operating and expanding by supporting the management of multiple websites, catering to multiple countries, and handling various currencies, all within a unified system. Beyond that, platforms with high scalability not only support expansion but also ensure stable system operation even when the website experiences gradual increases in traffic over time or experiences sudden spikes in traffic during promotional campaigns.

Top 5 Specialized eCommerce Platforms in the Wine Industry

VineSpring

VineSpring is an eCommerce platform created by experts with in-depth knowledge of the wine industry’s operations. As a result, businesses will have an online eCommerce system with specialized features for the wine industry.

5 eCommerce Platforms for the Wine Industry Businesses-VineSpring
VineSpring

Evaluation based on criteria

Interface Criteria
  • Industry-specific Interface Design:

VineSpring offers a rich interface library, collaborating with various unique website designers specifically for the online wine industry. This allows businesses to easily build their brand without needing extensive technological knowledge.

  • Multimedia Experience:

Understanding the present needs of businesses, VineSpring has developed and optimized its platform to operate flexibly on various media, from desktops and tablets to personal mobile devices. This ensures businesses have a multimedia online presence and provides the best shopping experience.

  • Prominent CMS System:

With a CMS system on the VineSpring platform, businesses can fine-tune content and essential product information, brand details, and success stories tailored to their business development needs. This enables businesses to have a highly interactive website and a friendlier user experience.

Integration Capability Criteria
  • Shipping Software Integration:

The platform also supports businesses in terms of product shipping. VineSpring can integrate additional shipping software (ShipCompliant and ShipStation), assisting businesses in controlling information and making order tracking easy for customers on the website.

  • Management Software Integration:

VineSpring directly integrates with Square POS software through an available technical team. The VineSpring POS system has a “tap, chip, and swipe” feature, enabling businesses to process orders quickly and conveniently. Additionally, VineSpring can integrate CRM software (Salesforce) to provide efficient solutions for management, sales, and customer care.

  • Marketing Management Software Integration:

VineSpring supports businesses in marketing through the integration of email marketing software (Mailchimp) for list management and the creation of email marketing campaigns, increasing automation in operations.

eCommerce Feature System Criteria
  • Basic and Advanced Features:

Vinspring has a system of basic and some advanced features sufficient for businesses to operate at a basic level. Especially, Vinespring has optimized inventory management features to save time, allowing businesses to access production history details, including information on bottling times, prices, and shipping units.

  • Specialized Features:

Vinespring is an ideal solution for developing a business’s recurring revenue model in the eCommerce wine industry. The platform provides businesses with specialized features, such as wine allocation management and wine club member management.

In addition to the mentioned advantages, Vinespring also has a dedicated customer care team. As a Software as a Service (SaaS) eCommerce platform, VineSpring places a strong emphasis on customer service through 24/7 online chat with experts and telephone support anywhere, anytime. Therefore, businesses will receive the best and fastest support to resolve technical issues, as well as applications, features, and the most convenient and suitable solutions.

Cost

VineSpring is a Software as a Service (SaaS) platform, so businesses need to pay a fixed monthly fee ranging from $99 to $399, depending on the service package, and may be higher based on business needs:

  • VineSpring Starter – $99/month: Provides businesses with a store system that includes hosting, payment software from VineSpring, and free direct support.
  • VineSpring Standard – $199/month: Businesses have control over inventory, allocation management, custom store interface plugins, and integration with the ShipCompliant shipping feature.
  • VineSpring Professional – $399/month: Businesses receive all essential features from the VineSpring Standard package, along with integration with Square POS software and the MailChimp marketing tool.
  • VineSpring Enterprise: Ideal for large-scale wine businesses with high sales volume. The price for this package varies depending on the scale of the business.

User Target

The VineSpring platform (SaaS) is suitable for wine businesses with limited experience in building eCommerce systems. However, the usage fees for this platform are relatively high for small and medium-sized businesses.

WineDirect

WineDirect is a Software as a Service (SaaS) platform designed for wine businesses with no experience in eCommerce platforms, helping manage every aspect of online sales and simplifying the business process.

5 eCommerce Platforms for the Wine Industry Businesses-WineDirect
WineDirect

Evaluation based on criteria

Criteria for Interface

The WineDirect platform provides an intuitive, user-friendly interface tailored for businesses. Additionally, WineDirect offers a diverse range of free interface templates and features, facilitating easy development of the eCommerce system with just basic website development knowledge and skills.

Criteria for eCommerce System Features
  • Basic Features:

WineDirect provides fundamental features such as website analytics, sales tools, and options for business event registrations to boost customer engagement. This allows businesses to save time and unnecessary costs associated with other software.

  • Advanced Features:

Businesses can possess essential information for creating customized offers and discounts tailored to each customer category, based on statistics gathered through integrated tools. Consequently, businesses can develop personalized shopping experiences and drive higher sales volumes, achieving outstanding results and meeting development needs.

  • Special Features:

The platform has leveraged and optimized the WineDirect application, specially designed for mobile devices and is highly flexible for the wine industry. Through the application, businesses can manage products, eCommerce systems, advertising campaigns on the website, and customer information.

Integration Criteria
  • Payment and Shipping Integration:

WineDirect provides integrated payment solutions on the platform, enabling businesses to have a seamless experience across two payment software, such as WineDirect Payments for businesses in the US and Canada, and eWay Payments for businesses in Australia.

With payment software, businesses are supported in processing orders through the website or in-store. Regarding shipping, the WineDirect platform can integrate with various shipping services (UPS, FedEx, Gliding Eagle, etc.), assisting businesses with detailed shipping information for each order and enhancing automation in the shipping process.

  • Management Software Integration:

The WineDirect platform can integrate with ERP software, as well as the POS of the business (WineDirect POS, Napa Valley, Oztera, etc.), aiming to synchronize data between the POS system and the eCommerce system, including orders, inventory, wine club members, customer information, helping businesses increase automation in the operational process and manage information effectively.

  • Marketing Tool Integration:

WineDirect has integrated available marketing tools on the platform to help businesses save time in system development. This includes providing businesses with access to real-time sales reports, allowing them to send emails based on customer groups depending on marketing campaigns.

Cost

The WineDirect platform is a SaaS (Software as a Service) eCommerce platform with three main pricing plans as follows:

  • DTC Starter – $79 + 2% of monthly sales: Businesses integrate marketing tools, payment software, and Ship Compliant shipping, with free hosting included.
  • DTC Pro starting from $199 + 1% of monthly sales: Businesses receive all the essential features from the DTC Starter package, as well as customer loyalty programs, reports, and automatic credit card updates.
  • DTC Advanced: Businesses get all the features from the DTC Pro package, along with custom benefits to fit the scale and needs of the business. The usage cost for this service package varies based on the business’s requirements and scale.

User Target

Similar to VineSpring, the WineDirect platform (SaaS) is suitable for businesses of various models and sizes that lack extensive experience in building eCommerce systems and technology. However, one platform limitation is its high usage cost, which increases with the business’s monthly sales volume. 

Beyond the high usage cost, operational tools on the platform may be unstable, occasionally displaying errors on the system, such as payment statuses showing as ‘pending processing’ on the business side but appearing as ‘paid’ on the customer side. Despite this, WineDirect has a dedicated customer support team that efficiently addresses business issues, making it a preferred choice for many businesses.

Shopify

Shopify is a well-known giant in the field of building eCommerce systems as a Software as a Service (SaaS). The Shopify platform is favoured in the market for its user-friendly nature, quick system-building time, and low initial costs, making it suitable for a wide range of businesses.

5 eCommerce Platforms for the Wine Industry Businesses-Shopify
Shopify

Evaluation based on criteria

Criteria for Interface

In terms of interface, Shopify provides many beautiful themes that are well-compatible across various devices. Businesses in the wine industry can choose from several specialized templates designed and offered specifically for online wine businesses by the Shopify platform. Additionally, businesses have the freedom to customize the interface by accessing HTML and CSS code to enhance the brand’s uniqueness. Therefore, businesses can deliver a seamless experience across different devices without affecting the user’s shopping process.

Criteria for eCommerce System Features

Basic and Advanced Features:

In addition to basic features related to orders, products, categories, and product management, the Shopify eCommerce platform allows businesses in the wine industry to access profiles and purchase histories to gather customer information. This enables businesses to personalize the shopping experience, from personalized content and product displays to the entire eCommerce journey.

This key aspect helps businesses make a positive impression on consumers and fosters a stronger relationship between both parties. Furthermore, with the mobile application developed by Shopify, businesses can control every aspect of the online store anytime, anywhere, including effective sales management, order fulfilment, and inventory management.

Integration Criteria
  • Integration of Payment and Shipping Software:

In addition to supporting direct payment features from the platform itself (Shopify Payment), Shopify also assists businesses in integrating other payment software such as Paypal, Stripe, SagePay, AliPay Global, etc. Regarding shipping software, Shopify collaborates directly with various major shipping service providers like USPS, UPS, and DHL to streamline the process and ensure more convenient shipping for businesses.

  • Integration of Enterprise Resource Planning (ERP) Software:

Shopify’s Global ERP Program provides businesses with a system that connects multiple eCommerce platforms with critical business databases such as finance and inventory to optimize operations and business processes. This program includes partnerships with leading global ERP providers such as Microsoft Dynamics 365, Business Central, Oracle NetSuite, Infor, Acumatica, and Brightpearl.

  • Automatic Integration of Marketing Tools:

Shopify supports businesses in marketing through integrated software within the system. Examples include email software (MailChimp), sales channels (Facebook, Instagram), advertising (Google Ads), etc. Through these integrated marketing tools, businesses have the opportunity to increase sales, automate email marketing, and develop marketing campaigns tailored to specific customer groups.

Cost

Shopify has developed various service plans suitable for businesses to choose from based on their capabilities and scale:

  • Basic Shopify – $29/month: Suitable for new businesses with modest sales volume.
  • Shopify – $79/month: Suitable for growing online businesses experiencing increased sales.
  • Advanced Shopify – $299/month: Suitable for businesses with the need to expand scale and require advanced reporting and analytics tools.

In addition, Shopify has introduced other service plans to cater to diverse business needs:

  • Shopify Lite – $9/month: Suitable for businesses wanting to add a buy button and payment services to an existing website or blog.
  • Shopify Plus – $2000/month: Provides an advanced eCommerce solution for large enterprises handling a substantial volume of orders.

User Target

Originally an industry giant in the Software as a Service (SaaS) eCommerce sector with characteristics of rapid system development time, as well as a startup cost suitable for many businesses and easy usability, this platform is suitable for small and medium-sized enterprises with limited experience in information technology.

However, in addition to the monthly fees for using additional utilities, Shopify also has limitations in terms of advanced features, unique features, and customization. Businesses must accept that certain features may not be available on the current website and may need to switch platforms when aiming to build a specialized system that aligns with their specific needs and ensures sustainable development in the future.

Read more: 

WooCommerce 

WooCommerce is an open-source Content Management System (CMS) known as a plugin for WordPress, introduced in 2011. It is completely free and allows businesses to turn their WordPress website into an online store. Therefore, in addition to being suitable for customizing the interface, WooCommerce is also an ideal platform for businesses to have a website with a flexible blog section, high interactivity, and a more user-friendly experience.

5 eCommerce Platforms for the Wine Industry Businesses-WooCommerce
WooCommerce

Evaluation based on criteria

Criteria for Interface
  • The rich and customizable form library:

WooCommerce possesses and provides businesses with a rich library of forms designed for the wine industry, carefully crafted and user-friendly. Therefore, businesses can conveniently design and build an eCommerce system right from the beginning without needing in-depth technical knowledge

  • User-friendly interface with Product Table:

With the WooCommerce platform, businesses can integrate tools from management systems to features specific to the wine industry. For instance, the platform can integrate with Product Table, a tool that allows wine businesses to have an interface displaying product attributes and numerous high-quality product images, as well as filtering features.

Criteria for eCommerce System Features

WooCommerce allows and supports basic features such as inventory management, order processing, inventory optimization, SEO tools, discounts, price reductions, sales statistics reports, and easy integration with payment and shipping providers. In terms of advanced features, the WooCommerce platform supports businesses in the wine industry with opportunities for wholesale orders and discounts, boosting sales through the eCommerce system. However, the platform has some limitations in terms of specialized features for the wine industry, as making certain edits can potentially cause instability in the system.

Integration Criteria
  • Payment and Shipping Software:

For payments, businesses can use plugins to integrate payment gateways such as Stripe, PayPal, Apple Pay, and Square into the system, ensuring high security and safety.

Regarding shipping, businesses can integrate with various shipping providers that collaborate with WooCommerce, such as FedEx, UPS, and USPS, enabling efficient processing and optimization of the shipping process to provide the best shopping experience for consumers.

  • Business Management Software:

The WooCommerce platform allows and supports businesses with integrable business management software, typical examples being Odoo, Square POS, and WP ERP. This enables businesses to save time, and costs, improve business efficiency, and automate management processes.

  • Marketing Management Software:

Businesses can integrate marketing management software to support their operations, such as email marketing (MailChimp), advertising (Google Listings, Google Ads, Facebook), and analytics software (Google Analytics). This helps businesses increase traffic, promote repeat shopping, and optimize personalization for consumers.

Cost

The WooCommerce platform is an open-source platform, and thus, the platform itself is entirely free to use. However, businesses may incur development costs when utilizing the platform, such as domain registration fees ($15), hosting fees ($120/year), and system development costs (ranging from $3,000 to $10,000 depending on the complexity of the system).

User Target

WooCommerce is a suitable platform for wine businesses already familiar with WordPress and looking to expand their eCommerce systems, offering numerous basic features built with high availability from developers in the strong global community. However, WooCommerce is not perfect for businesses with a large number of products, as the system tends to be unstable with more than 2,000 SKUs. 

The platform also has limitations in terms of customization and fine-tuning specific features because intervening adjustments can easily lead to system instability, and there is a high likelihood that the built-in features are not compatible with this platform. Additionally, to customize the system based on the available feature set, businesses may encounter significant difficulties and time-consuming efforts.

Magento – The best all-around platform for the wine industry

Magento is an open-source eCommerce platform known as one of the leading eCommerce platforms today, with many outstanding advantages such as high flexibility, a diverse ecosystem, and optimal security. Currently, Magento has two versions: Magento Open Source (free) and Magento Commerce (paid).

5 eCommerce Platforms for the Wine Industry Businesses-Magento
Magento

Evaluation based on criteria

Criteria for Interface

With the Magento open-source eCommerce platform, businesses may not have access to an extensive theme library as other eCommerce platforms do. However, businesses can fully customize the interface for a specialized eCommerce system, providing a comfortable user experience. To achieve this, businesses need an experienced technical team and careful investment.

Criteria for eCommerce System Features

The Magento eCommerce platform offers a highly diverse and advanced feature system, from basic to advanced, making it easy for wine industry businesses to quickly build and develop their systems in the short term and sustainably in the long term.

  • Basic features:

A variety of features ranging from Category Management, Content Management, Customer Management, Marketing Management, Order Management, Store Management, System Management, Cart and Checkout, to Reporting & Analytics.

  • Advanced features:

Magento is known for its superiorly developed advanced features and extensions to meet the rapid development of the eCommerce market and the specialized requirements of each business. Thousands of advanced functions related to themes, products, marketing, optimal payment solutions, shipping, etc., have been built with flexibility and high availability, delivering outstanding results when integrated into the system, and meeting every operational and sustainable eCommerce development need of businesses.

  • Specialized features:

Businesses can completely modify system functions, develop new specialized features to meet business needs, and quickly adapt to market changes. In addition, businesses can comfortably expand the scale of their business with the open-source Magento platform.

Integration Criteria
  • Payment and Shipping Software:

Regarding payments, wine industry businesses using the Magento eCommerce platform can integrate the most common payment methods such as card payments (ATM, Visa, Master…), e-wallets (Momo, Zalo Pay…), and payment gateways (OnePay, VNPay, PayPal, etc.), helping diversify the shopping payment experience.

For shipping, businesses can easily integrate with various shipping providers and popular shipment tracking applications on the market to optimize shipping and delivery processes. Additionally, wine industry businesses can develop shipping and delivery features tailored to their needs and customers to provide a convenient and fast delivery experience.

  • Business Management Software:

Magento is praised for its highly effective operation with most POS (Square…), CRM (Salesforce…), and ERP (SAP, Oracle, Odoo) systems. Through efficient integration of these software solutions, businesses can overcome manual operation limitations and increase automation for both back-office management and sales, ensuring high accuracy and operational efficiency for sustainable development.

  • Marketing Management Software:

For marketing management software, businesses can integrate various management software solutions, including email marketing (Mailchimp…), and advertising (Facebook, Google…), to support planning marketing programs, strategy setting, as well as handling and controlling data, seamless eCommerce business processes, and optimizing online business.

Additionally, Magento provides Magento BI tools or allows businesses to integrate with other Business Intelligence (BI) tools such as Power BI, Tableau, Looker, etc., to optimize business efficiency, easily consolidate and leverage data from the Magento system and other software for quick, efficient analysis and reporting, and to improve business strategy and growth optimization for the enterprise.

Criteria for scalability

Inheriting the high scalability of the open-source platform, Magento can accompany businesses with every sustainable development business model, from newly established enterprises to expanded business systems, covering various business models such as B2B, B2C, D2C, and B2B2C.

Magento can support businesses to operate and expand into multiple websites, countries, and multiple currencies, and manage all within one system. Not only that, Magento also supports stable system operation even when the website experiences gradual or sudden increases in traffic over time or during peak periods in promotional campaigns, with the ability to handle up to 500,000 products and thousands of transactions per hour.

Cost

Magento is an ideal platform for any business venturing into the wine industry and implementing eCommerce. However, the cost issue is a significant obstacle, preventing most small and medium-sized wine businesses from choosing the Magento platform to build an eCommerce system.

According to estimates, a fully functional system developed on the Magento eCommerce platform typically incurs deployment and development costs ranging from $10,000 to $100,000 or more. In addition to the complex and advanced feature set, a crucial factor contributing to the higher deployment costs of Magento compared to other platforms is the requirement for an experienced and specialized team.

User Target

Magento is often the platform of choice for large businesses in the wine industry, whether B2B, B2C, or D2C, that already have an existing customer base and a long-term need for developing an eCommerce system. With this platform, businesses can continually develop components within the eCommerce system to ensure optimal operational efficiency and sustainable growth.

The high development costs, as well as the development timeline, which can range from 2-3 months to sometimes up to a year, are barriers that make it challenging for small and medium-sized businesses to comfortably choose Magento.

Choosing an eCommerce Platform for the Wine Industry

Choosing the right eCommerce platform is crucial in building an eCommerce system for businesses in the wine industry. This decision not only minimizes investment costs and shortens the time to build an eCommerce system but also helps businesses gain a competitive advantage in the industry and achieve sustainable growth.

On the other hand, an inappropriate platform choice can lead to significant time and cost investments for migration and platform conversion. Therefore, businesses need to consider their goals, and issues in the current model to choose the most suitable platform.

For small and medium-sized businesses, newcomers to the eCommerce market, or large businesses without the need to build a specialized eCommerce system, they can choose Software as a Service (SaaS) eCommerce platforms such as VineSpring, Winedirect, Shopify, or the open-source platform WooCommerce.

If businesses focus on industry-specific features such as developing a subscription revenue model and managing wine clubs, VineSpring and Wine Direct are suitable choices. WooCommerce is convenient for businesses that emphasize adjusting the interface. Shopify is suitable for businesses that want to quickly develop an eCommerce website with low initial costs.

For large businesses or those wanting to build a specialized eCommerce system tailored to the characteristics of their products, business model, or a platform that can accompany the sustainable development of the business, choosing comprehensive open-source platforms like Magento is necessary. With open-source platforms like Magento, businesses can develop special features, design interfaces freely, and not worry too much about the operating system.

5 eCommerce Platforms for the Wine Industry Businesses
5 eCommerce Platforms for the Wine Industry Businesses

SECOMM confidently accompanies wine businesses on the path of deploying and developing sustainable eCommerce, with successful implementation experience for many wine businesses in various countries such as Singapore, the United States, Australia, Japan, and Vietnam. 

Contact SECOMM for detailed advice on the development journey of the eCommerce system for your wine business!

Ready to Maximize Your eCommerce Potential? Let’s talk

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Top 10 Best Must-Have Magento Extensions in 2024 (Free & Paid)
Top 10 Best Must-Have Magento Extensions in 2024 (Free & Paid)

Using Magento extensions isn’t just a trend; it’s a critical factor for the success of an eCommerce website. With the ever-growing market, delivering an optimized online shopping experience has become a must for attracting and retaining customers.

In this context, integrating best-suited Magento extensions into the website system will enhance performance, streamline management, and enrich customer engagement. Let’s explore the top 10 Magento extensions worth integrating to ensure your eCommerce website stands strong amidst fierce competition.

1. What are Magento extensions?

Before delving into the list of top Magento extensions, let’s gain a deeper understanding of this concept. Magento extensions are simply additional software integrated into the Magento platform to extend the functionality and capabilities of Magento websites. These extensions can provide new features, enhance user experience, optimize management, and upgrade core functions such as marketing, payments, shipping, and more.

These extensions are developed by the Magento community, including software development companies and eCommerce service providers. Most of them are available in both free and paid versions. While the free versions typically offer basic features, the paid versions often include advanced features and deeper support services.

2. Benefits of using Magento extensions

Choosing the right Magento extensions is a crucial part of building and managing a successful eCommerce website on the Magento platform. Let’s explore four benefits that using Magento extensions brings:

2.1 Extend functionality

Extensions help expand the functionality of Magento websites by adding new features and capabilities that the core system doesn’t provide. For example, businesses can integrate advanced search features to make it easier for customers to find products, add filters for customers to sort products based on various criteria, or integrate social features to encourage sharing and interaction on social media. As a result, Magento websites can offer a more engaging shopping experience, retaining and attracting more customers.

2.2 Optimize management

One of the significant challenges of managing eCommerce websites in general and Magento websites in particular is efficiently managing inventory, orders, and customer information. Magento extensions provide smart inventory management tools, user-friendly order management interfaces, and integration with customer relationship management (CRM) systems. Thus, businesses can save time and effort in managing daily business operations and focus on more critical development goals.

2.3 Enhance customer engagement

eCommerce websites are not just places for online shopping but also forums where customers can interact with each other and with the brand. Magento extensions offer interaction features such as product review and rating systems, loyalty points programs for loyal customers, and CRM software, helping businesses create a rich and engaging online shopping space.

2.4 Boost conversion rates

Lastly, using Magento extensions helps improve business performance by enhancing conversion rates, increasing sales revenue, and optimizing marketing strategies. Thanks to the flexibility and diversity of these extensions, businesses can customize and adjust their business strategies to meet market needs and achieve sustainable growth.

3. Top 10 leading Magento extensions

At the time of writing, the Magento platform offers over 4000 eCommerce extensions across a range of functions including marketing, payment processing, shipping, reporting, and analytics. Here are the top 10 most powerful extensions to consider adding to your Magento website:

3.1 KlaviyoKlaviyo

Klaviyo is a powerful tool for email and SMS marketing. With Klaviyo, businesses can create custom and automated email campaigns based on customer behavior, track performance, and interactions to optimize conversion rates and establish closer customer relationships.

Key features:

  • Seamless integration with 300+ third-party systems. Top integrations with Klaviyo include Facebook, Trustpilot, Zendesk, Ordergroove, Stamped, and many more.
  • Provides an easy-to-use email and SMS builder with customizable templates, allowing personalized form customization for each customer segment.
  • Real-time data synchronization with Magento websites, including order data, cancellations, refunds, and order fulfillment for all customer segments

Pricing:

  • Free version available
  • Paid version: starts from $20/month depending on the number of email contacts.

3.2 HubSpot Contact SyncHubSpot Contact Sync

This extension integrates Magento with HubSpot CRM, allowing businesses to automatically synchronize customer information between the two platforms. This facilitates more efficient tracking and management of customer information and enables optimized marketing campaigns.

Key features:

  • Synchronize new customer data registered on the Magento website to HubSpot
  • Synchronize newsletter subscriber data from the Magento website to HubSpot
  • Synchronize previously existing data to the HubSpot system
  • Be compatible with Magento Open Source and Magento Commerce

Pricing: Free to use

3.3 LiveChatLiveChat

LiveChat is a powerful online customer care solution for Magento. LiveChat helps businesses enhance interaction and provide quick and professional support. This helps businesses improve the shopping experience for customers and increase conversion rates.

Key features:

  • Ability to send personalized messages to website visitors on Magento
  • Enable cart tracking while chatting with customers.
  • Improve the efficiency of customer service by conducting multiple chat sessions simultaneously
  • Seamless integration with third-party systems: Zendesk, Messenger, HubSpot CRM, WhatsApp, Mailchimp, Salesforce, etc.

Pricing:

  • Free version: allows for a 14-day free trial
  • Paid version: starts from $20/month

3.4 eDeskeDesk

eDesk is a preferred centralized customer service and support management platform by many Magento businesses. This tool helps efficiently manage and respond to customer inquiries in an automated manner. This improves the efficiency of customer service teams and enhances customer satisfaction.

Key features:

  • Providing a unified inbox and allowing centralized management of all support channels
  • Segmenting customers based on products, order history, and lifetime value
  • Integrating automated response features
  • Responding to customers faster with pre-made templates
  • Personalizing customer service with a 360° view feature

Pricing:

  • Free version available
  • Paid version: starts from $69/month

3.5 Payment servicesPayment services

This is an Adobe Commerce extension that simplifies the payment process for businesses and allows customers to pay for orders the way they prefer. This extension ensures security for payment data and transactions, allowing admins to manage orders and payments in one central location while still providing a seamless payment experience.

Key features:

  • Deployment of multiple payment methods including debit cards, credit cards, PayPal, Venmo, Apple Pay, and Buy Now Pay Later
  • Provides an integrated payment experience, where all transaction and payment data can be easily accessed in the Adobe Commerce admin interface
  • Offers comprehensive reports on orders and payments on the Magento website, including detailed information on processed orders, payment balances, and transaction-level reports for financial reconciliation

Pricing: Free to use

3.6 Stripe paymentsStripe-payments

Stripe Payments is a prominent extension of the Magento platform, allowing for easy and secure online payment integration via Stripe, one of the leading payment gateways in the market. Stripe enables businesses to accept various forms of payment, providing convenience and flexibility for both customers and businesses.

Key features:

  • Increase conversion rates by automatically adding payment information and shipping addresses.
  • Automatically convert to the appropriate language, currency, and payment methods for each customer segment. As of the time of writing, Stripe supports over 25 languages, more than 135 currencies, and over 20 payment methods.
  • Allow selling subscription packages on a weekly, monthly, or yearly basis, while supporting promotions and free trials to encourage subscription purchases.
  • Handle refund processes, returns directly within the Magento Admin interface.

Pricing:

  • No free version available
  • Pricing structured for every business scale: 2.9% + 30¢ per successful transaction with local debit/credit cards.

3.7 Smart One-Step Checkout Subscription

Smart One Step Checkout Subscription

This extension provides a quick and convenient payment experience for customers, helping to reduce the time and steps required to complete an order. This contributes to increasing order completion rates and reducing cart abandonment rates.

Key features:

  • Allows for one-page checkout deployment
  • Enables configuration of the checkout page based on the specific needs of each business
  • Provides in-depth reports on the performance of the checkout page

Price:

  • No free version available
  • Free version: $13.99/month

3.8 ShipStationShipStation

ShipStation is an integrated shipping platform that helps businesses easily manage and ship orders from various sources. By automatically integrating with leading carriers, businesses can save time and effort in processing and shipping orders.

Key features:

  • Automated synchronization and centralized management of order data from various sales channels: Magento website, offline stores, Amazon, eBay, Walmart, and Alibaba.com
  • Streamlines the order fulfillment process, automating the selection of shipping service providers
  • Supports integration with a variety of carriers
  • Allows printing of hundreds of shipping labels with just a few clicks
  • Provides marketing tools such as branded order tracking pages, custom confirmation emails, branded stickers, and custom packing slips to enhance the customer experience.

Pricing:

  • No free version available
  • Paid version: starts from $9.99/month

3.9 Google Tag Manager & AnalyticsGoogle-Tag-Manager-_-Analytics

One of the noteworthy Magento extensions to consider integrating is Google Tag Manager & Analytics. This is a Google management and analytics tool that seamlessly integrates with the Magento website system, allowing businesses to track and analyze customer behavior on the website more effectively. With this extension, businesses can easily manage tags and track the performance of marketing campaigns.

Key features:

  • Simplifying the tag management process
  • Supporting remarketing strategies
  • Seamless integration with Google Analytics. Providing detailed reports on purchase behavior, payment behavior, sales performance, etc.
  • Seamless integration with Facebook Pixel, allowing businesses to track conversion rates to enhance sales funnel and marketing strategies.

Pricing:

  • No free version available
  • Paid version: $149 one-time payment

3.10 Reward PointsReward Points

This extension allows businesses to create attractive reward point programs on the Magento website. This contributes to encouraging customer loyalty and increasing conversion rates. By providing rewards for every shopping action, customers are incentivized to return and shop more frequently.

Key features:

  • Allowing the setup of rules and conditions for the point system
  • Providing advanced options to efficiently manage loyalty programs
  • Personalizing programs for specific customer segments
  • Using CSV files to transfer reward point data between stores

Pricing:

  • No free version available
  • Paid version: $199 one-time payment

Final Words

Above are the 10 best Magento extensions, ranging from free options to paid solutions. Using extensions provides many opportunities to improve business performance and create the best shopping experience for customers.

Need advice on choosing the best-suited extensions for your Magento store? Contact SECOMM today!

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Top 10 largest eCommerce websites in Singapore 2024
Top 10 Largest eCommerce Websites in Singapore 2024

Online shopping has become an indispensable trend in Singapore. Therefore, consumers in this city have set higher demands for their online shopping experience, driving businesses to strive for optimizing their eCommerce websites to provide a unique and best shopping experience for customers.

Below are 10 brands heavily investing in the online shopping experience in Singapore, as collected by SECOMM from BuiltWith, AfterShip, and Similarweb.

1. Charles & KeithCK

Charles & Keith, a leading fashion brand in Singapore, was founded in 1996 by two brothers Charles and Keith Wong. Focusing on footwear, handbags, and fashion accessories, Charles & Keith quickly gained attention in the market for its modern, youthful fashion style at affordable prices.

Charles & Keith has chosen Salesforce Commerce Cloud to build its website. Thus, Charles & Keith’s website features a range of functions to create the most convenient and comfortable online shopping experience for users. These include advanced search with filtering and sorting, detailed product views with high-quality images and customer ratings, secure shopping cart and payment, along with order tracking and purchase history. Additionally, customers can enjoy loyalty rewards, seek customer support, read fashion blogs, and connect on social media to stay updated on the latest trends. With this diversity and convenience, Charles & Keith’s eCommerce website in Singapore has provided an excellent online shopping experience for users.

  • Website: https://www.charleskeith.com/
  • Industry: Fashion
  • Platform: Salesforce Commerce Cloud
  • Traffic: 2.412M/month
  • Ranking: #18,543 (Singapore) & #24,487 (Global)

2. FortyTwoForty Two

FortyTwo is a furniture and home accessories brand established in Singapore in 2007. FortyTwo offers a range of products from bedroom furniture, living room, kitchen to household items and interior decoration. The brand is known for providing quality products at competitive prices with fast delivery and attentive customer service. FortyTwo regularly updates and expands its product portfolio to meet diverse customer needs.

FortyTwo’s website is built on the Magento Open Source platform (Adobe Commerce free version). With this website, users can easily search and filter products, explore a variety of product categories from furniture to household items. Additionally, the website offers the ability to integrate attractive promotional campaigns and customer support, along with fast and secure delivery services.

  • Website: https://www.fortytwo.sg/
  • Industry: Furniture
  • Platform: Magento Open Source
  • Traffic: 625,855/month
  • Ranking: #493 (Singapore) & #107,563 (Global)

3. COURTSCOURTS

COURTS is a leading electronics retailer in Singapore, Malaysia, and Indonesia. With over 40 years of experience, COURTS offers customers a wide range of product choices, convenient services, and competitive prices.

COURTS uses Magento Open Source to build its eCommerce website. This website provides diverse and convenient online shopping experiences for users with functions such as product categories, specific product search, store information, and order tracking on the website. COURTS also provides support services and information about promotional programs and product news.

  • Website: https://www.courts.com.sg/
  • Industry: Electronics
  • Platform: Magento Open Source
  • Traffic: 510,240/month
  • Ranking: #502 (Singapore) & #105,498 (Global)

4. Guardian SingaporeGuardian

Guardian is a retail chain specializing in health care, cosmetics, and other consumer products. Guardian has a presence in many countries and regions around the world, including Singapore, with a range of products from famous and reliable brands.

Guardian’s website is built on the SAP Commerce Cloud platform, offering many useful features for users. Customers can easily search and purchase products, manage their shopping carts, and make convenient payments. At the same time, the website offers promotions and online support services to help customers have a comfortable and safe online shopping experience. Moreover, customers can also rate and provide feedback on products, providing useful information for other users.

  • Website: https://www.guardian.com.sg/
  • Industry: Cosmetics
  • Platform: SAP Commerce Cloud
  • Traffic: 429,041/month
  • Ranking: #462 (Singapore) & #110,350 (Global)

5. Sephora SingaporeSephora

Similar to Guardian, Sephora is a global retail chain of cosmetics and beauty products, known for offering a range of cosmetics, skincare, and beauty products from leading brands worldwide. Currently, Sephora has a presence in the Singapore market with physical stores in major shopping centers and an eCommerce system, including a website and app for customers. Sephora is favored for its product diversity, customer care services, and innovation in the online cosmetics shopping experience.

Sephora’s eCommerce system in Singapore is built on the Vue.js and Nuxt.js programming languages. With this system, Sephora customers can quickly search and explore products through smart search and various filters. The online shopping experience is optimized with detailed product information, sharp images, and customer reviews.

Sephora’s app is also highly rated, making shopping easier for customers with features like “Virtual Artist” and receiving notifications about promotions. In general, Sephora offers a range of features and services to meet customers’ cosmetics shopping needs, creating a professional and convenient online shopping experience.

  • Website: https://www.sephora.sg/
  • Industry: Cosmetics
  • Programming Languages: Vue.js, Nuxt.js
  • Traffic: 396,282/month
  • Ranking: #714 (Singapore) & #136,020 (Global)

6. Pet Lovers CentrePet Lovers Centre

Pet Lovers Centre is a leading pet products and services retailer in Asia. Established in 1973 in Singapore, Pet Lovers Centre now has over 160 stores in 5 countries: Singapore, Malaysia, Thailand, the Philippines, and Vietnam. Pet Lovers Centre is committed to providing quality products and services from reputable brands at competitive prices.

The Pet Lovers Centre website is built using PHP programming language and has outstanding features to provide users with a convenient online shopping experience. Users can search for products based on various criteria and use filters to select suitable products. The multi-layered product categories are classified by pet type, ensuring diversity and richness. The VIP Member program brings benefits to customer loyalty strategies. Integrating customer reviews on Google Maps helps users evaluate the quality of products and services provided by Pet Lovers Centre. Additionally, the website builds a quick shopping function to save time, customer management feature, and reorder support to efficiently manage customer information and orders.

7. HipVanHipVan

HipVan is an online retail website specializing in furniture and home decor, headquartered in Singapore. The brand was founded in 2013 with the aim of providing customers with high-quality furniture products at affordable prices, along with a convenient shopping experience and excellent customer service.

HipVan’s website is built using the Ruby on Rails and React framework, with Ruby being the primary programming language. Its notable features include building a community for sharing interior design ideas, image-based product search, and allowing customers to upload images of desired products. Particularly, the augmented reality (AR) feature enables customers to view products in their real-life space before making a purchase. Additionally, HipVan offers free interior planning services to help customers conveniently plan and design their living space.

  • Website: https://www.hipvan.com/
  • Industry: Furniture
  • Frameworks: Ruby on Rails, React
  • Traffic: 215,919/month
  • Ranking: #1,034 (Singapore) & #225,419 (Global)

8. The Hour GlassThe Hour Glass

The Hour Glass is a premium watch retailer in Singapore founded in 1974. Currently, The Hour Glass has over 50 stores worldwide and is an authorized distributor for many leading watch brands such as Rolex, Patek Philippe, Audemars Piguet, Omega, Cartier, and more.

The Hour Glass’s online store is built on the WooCommerce platform and CMS WordPress, providing a convenient platform for customers to explore and purchase watches from renowned brands like Rolex, Patek Philippe, Audemars Piguet, and other luxury brands. In addition to product offerings, the website also provides detailed information about the services offered by The Hour Glass, including repairs, maintenance, and polishing of watches, to help customers maintain and preserve their products effectively. Furthermore, the website continuously updates the latest news in the watch industry along with special events organized by The Hour Glass, creating a comprehensive and immersive experience for users.

  • Website: https://www.thehourglass.com/
  • Industry: Watches
  • Platform: WooCommerce
  • Traffic: 206,204/month
  • Ranking: #3,305 (Singapore) & #201,956 (Global)

9. MegafurnitureMegafurniture

Megafurniture is a furniture retail company in Singapore, specializing in providing a range of furniture products for living rooms, bedrooms, dining rooms, and various other spaces in homes. Megafurniture is known for offering affordable and high-quality products, attracting the interest of many consumers. Additionally, the furniture brand is also renowned for its early investment in the online store, allowing customers to conveniently shop for furniture online.

Megafurniture’s website is built on the leading Shopify Plus platform, with basic and advanced features optimized for the furniture industry. The purchasing process is designed to be simple and straightforward, providing a convenient online shopping experience for customers. Secure online payment support through various methods increases flexibility for consumers. Megafurniture also offers multiple delivery and installation options to meet customer needs. Moreover, features like quick product view and product comparison assist users in making smart and efficient purchasing decisions. This, combined with fast checkout features, significantly enhances the online shopping experience.

  • Website: https://megafurniture.sg/
  • Industry: Furniture
  • Platform: Shopify Plus
  • Traffic: 145,329/month
  • Ranking: #3,630 (Singapore) & #382,030 (Global)

10. Skin IncSkin Inc

Skin Inc is a skincare brand specializing in manufacturing and distributing high-quality skincare products. The company focuses on providing skincare solutions, including brightening, moisturizing, anti-aging, and treating various skin concerns.

Skin Inc transitioned from the Magento platform to Shopify Plus in 2019, aiming to enhance the customer experience by deploying multiple website versions for different markets and customer segments. Using the LaunchPad feature, Skin Inc employees can create sales events without developer assistance. Additionally, Shopify Plus seamlessly integrates with marketing tools and loyalty programs, enabling personalized communication and data-driven marketing strategies.

Conclusion

The above is a list of the top 10 eCommerce websites in Singapore. By implementing leading platforms such as Magento Open Source, Shopify Plus, and various others, these brands provide optimized online shopping experiences, attracting the interest of customers both domestically and internationally.

During its development process, SECOMM has collaborated with numerous clients from Singapore to create notable eCommerce websites, with the most prominent being the project to develop an online liquor supply system at Changi Airport.

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Top 10 Reasons to Choose Magento for B2B Commerce
TOP 10 REASONS TO CHOOSE MAGENTO FOR B2B COMMERCE

Over the past decade, Magento has solidified its position as one of the leading eCommerce platforms in the market. With its robust capabilities, the platform serves not only B2C businesses but is also a popular choice for enterprises.

By combining Magento’s strength with the specific requirements of B2B Commerce, you can leverage this platform’s powerful benefits. In the following part of the article, let’s explore 10 reasons why Magento is the ideal choice for deploying this great business model.

What is B2B Commerce?

Business-to-business commerce (B2B Commerce) refers to the buying and selling of goods or services between businesses rather than between a business and end consumers (B2C). In the B2B environment, transactions often occur on a large scale and involve large orders, long-term contracts, and strategic partnerships.

This business model has distinct characteristics and requirements compared to B2C Commerce. In the B2B world, businesses typically have more complex demands regarding product management, order management, customer management, and compatibility with enterprise resource planning (ERP), customer relationship management (CRM), and other systems.

Additionally, the business model often requires features such as order confirmation, complex payment processes, batch ordering, and wholesale pricing. For B2B enterprises, choosing a suitable eCommerce platform is crucial to ensuring business efficiency and delivering the best user experience for their partners and customers.

What is Magento?

Magento is a powerful and flexible eCommerce platform developed by Magento Inc., a subsidiary of Adobe. Launched in 2008, it quickly became one of the top choices for you looking to build and operate professional online stores.

It allows you to create custom eCommerce websites. This platform provides a range of features, including product management, order management, payment integration, customer management, and many others, enabling you to easily manage and operate your online stores efficiently.

It is built on open-source code, meaning that you can access and customize the platform’s source code based on specific technical requirements.

Ten reasons why you should choose Magento for B2B Commerce

Reason 1: Customization and scalability

Top 10 Reasons to Choose Magento for B2B Commerce
Customization & Scalability

Magento’s open-source platform characteristic enables businesses to easily and effectively expand their business scale. This is particularly important as businesses grow and must enhance the system’s scalability.

Additionally, the platform provides high customization capabilities, allowing businesses to adjust to their specific business needs flexibly. This also means that the shopping experience can be customized to become unique and tailored to the target customers.

Reason 2: The Comprehensive B2B platform

TOP 10 REASONS TO CHOOSE MAGENTO FOR B2B COMMERCE
Reason 2

In addition to offering built-in Magento B2B features, the platform allows businesses to seamlessly and quickly integrate with many third-party applications and systems, thereby creating a comprehensive and automated eCommerce system. Some integrated systems may include:

  • Enterprise Resource Planning (ERP) systems
  • Customer Relationship Management (CRM) systems
  • Product Information Management (PIM) systems
  • Point of Sale (POS) systems, and so on.

Reason 3: Order management

Top 10 Reasons to Choose Magento for B2B Commerce
Order management

Magento B2B provides a variety of order management features, from creating and editing orders to tracking and processing orders efficiently. This helps B2B businesses easily monitor and manage their orders accurately and consistently.

Additionally, it offers tools and features that allow tracking and analysing their orders’ performance. From generating overview reports to tracking order history and purchasing trends, the eCommerce model deployed, you can better understand your activities and make informed strategic decisions.

Reason 4: Payment and shipping options

Top 10 Reasons to Choose Magento for B2B Commerce
Payment & shipping options

Implementing Magento B2B allows you to offer more payment methods to customers, from online payments through electronic payment gateways to cash on delivery (COD).

Additionally, you can integrate various payment gateways through Magento, such as PayPal, Stripe, Authorize.Net, and many more. This ensures security and convenience in the payment process for both businesses and customers.

Reason 5: Segmentation

Top 10 Reasons to Choose Magento for B2B Commerce
Segmentation

Magento B2B provides features and tools to implement customer segmentation strategies effectively. Among these, the most notable is the Advanced Reporting feature, which provides a dashboard for tracking and analyzing sales data.

With this feature, businesses can segment customers and customize experiences based on web browsing behavior, purchase history, and various other criteria.

Reason 6: Custom user roles and permissions

Top 10 Reasons to Choose Magento for B2B Commerce
Custom user roles

Customizing user roles and permissions is an important part of optimizing the B2B purchasing process. This feature allows B2B customers to create multiple accounts with different contact details for purchasing, ordering, quoting, negotiating, and payment. Additionally, Magento B2B allows sellers to create and assign admin accounts to manage specific customers.

Reason 7: Manage pricing through shared catalogs

Top 10 Reasons to Choose Magento for B2B Commerce
Manage pricing

In B2B Commerce, Magento helps manage quotations through shared catalogs, which effectively provides product information and prices to B2B partners and customers. These catalogs can be created based on criteria such as product type, product group, or other suitable business needs.

Within each shared catalog, administrators can define prices and special conditions for each product or product group. This helps create customized quotations that meet the specific requirements of each customer.

Reason 8: Advanced inventory management

Top 10 Reasons to Choose Magento for B2B Commerce
Advanced inventory management

Inventory management is a challenging task for businesses implementing B2B Commerce. The eCommerce platform provides advanced features to effectively manage and control your inventory levels. These features allow administrators to track inventory quantities and forecast future inventory needs.

Additionally, Magento B2B helps manage special types of inventory such as damaged goods, special inventory items, or batch inventory.

Reason 9: Enhanced security

Top 10 Reasons to Choose Magento for B2B Commerce
Enhanced security

Security is an important issue when building and developing online stores in general. Magento provides many advanced features to help B2B businesses to secure their eCommerce systems. Among these, PCI Compliance, 2FA, WAF, DDoS protection, and preventing CSRF and XSS attacks are notable.

Reason 10: Technical support

Top 10 Reasons to Choose Magento for B2B Commerce
Technical support

Technical support plays a crucial role in maintaining and operating an efficient online store. Magento B2B provides tools and support services to help users address technical issues and optimize the performance of their eCommerce websites.

This includes expert support via phone, email, or online. Additionally, Magento has a large and vibrant community of developers, experts, and end-users. You can search and ask questions on the forum to receive assistance from the community.

Build your first Magento B2B site today!

In the context of the increasingly developing and fiercely competitive eCommerce market, using a powerful eCommerce platform is extremely important to ensure the success. With its unique features and superior flexibility, Magento has proven to be a top choice for building and developing B2B stores.

Need more deep advice? Contact SECOMM or call (+84)28 7108 9908 now!

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IT Outsourcing in Vietnam Benefits and Challenges
IT Outsourcing in Vietnam: Benefits and Challenges

IT outsourcing has become a prevalent strategy in today’s business landscape, offering several advantages such as cost savings, access to specialized expertise, and operational agility. For years, Vietnam has stood out as a prime destination for IT outsourcing due to its favorable business ecosystem, competitive labor costs, and government support.

In this blog post, SECOMM explores why Vietnam is an ideal choice for businesses seeking to outsource their IT requirements. We’ll delve into the country’s strengths and potential drawbacks, providing valuable insights for decision-makers.

1. Overview of Vietnam’s IT Outsourcing SectorOverview of Vietnam’s IT Outsourcing Sector

Vietnam’s dedication to advancing science and technology has led to a flourishing ICT market, valued at $7.7 billion in 2021, with ongoing growth fueled by digital adoption in both the public and private sectors.

Macroeconomic Influence: Vietnam has emerged as one of the fastest-growing economies globally, buoyed by a stable political environment and government support for the IT industry. Furthermore, rising investments in cutting-edge technology and startup funding fuel the market’s expansion.

Strategic Focus: According to the International Trade Administration, the Vietnamese government recognizes Information and Communication Technology (ICT) as a pivotal industry and a driver of socio-economic progress. Additionally, Vietnam’s commitment to core tech advancements is evident through significant investments in AI and cloud computing by the government and major companies.

Due to the above elements, the IT outsourcing industry in Vietnam is growing rapidly with an impressive annual growth rate of 16.38% from 2024 to 2028, resulting in a substantial market volume of US$1,282.00 million by 2028.

2. Evaluating Opportunities and Challenges

A. Opportunities in Vietnam’s IT Outsourcing LandscapeOpportunities in Vietnam's IT Outsourcing Landscape

The Majority Of Developers Are Young And Tech-Savvy

Around 56% of developers fall within the 20 – 29 years age group, this number is expected to form about one-third of Vietnam’s workforce by 2025.

There are approximately 50,000 to 57,000 students who graduate in university IT programs annually. Due to this, Vietnam was ranked among the top 10 globally for IT graduates and the top 6 for quality software services. TopDev’s 2023 report highlights that Vietnam’s robust community of around 530,000 tech professionals is well-suited to meet the varied demands of international businesses.

Moreover, the Ministry of Education and Training manages IT education in Vietnam. Recent changes have allowed more flexibility in higher education institutions to encourage innovation. For instance, separate entrance exams for each institution have been eliminated, resulting in improved admission rates.

Rising Cutting-Edge Technologies

Cloud computing in Vietnam has grown at a 30% CAGR recently, driven by robust IT infrastructure and data centers. This progress aligns with Vietnam’s digital transformation agenda. Moreover, with the aim of data security, many Vietnamese companies prefer “make in Vietnam” cloud computing services to foreign ones.

Vietnam has also made strides in artificial intelligence readiness, moving from 55th to 39th globally. It ranks 9th in East Asia and 5th in ASEAN, with an AI readiness score of 54.48.

Cost-Effectiveness

In 2023, the average monthly salary for developers with fresher-level salaries at $514 and for director-level salaries at $2,680. Overall, the annual salary of a Vietnamese IT developer is $7,173, which is incredibly low, it only amounts to nearly 25% of Chinese wages ($29.840) and around 35% of Indian wages ($20.464). These cost benefits, coupled with a commitment to high-quality workflows, are making Vietnam an increasingly popular choice for international organizations seeking dependable and affordable IT services.

B. The Challenges Coming From The WorkforceThe Challenges Coming From The Workforce

English Efficiency Level Is Not High Among Developers

The IT sector’s language requirements are becoming stricter, with over 9% of foreign companies seeking IT staff with professional English skills. The demand for English proficiency has shifted from a nice-to-have to a must-have. Although Vietnamese tech professionals have strong technical abilities and can communicate effectively, their English-speaking skills may not be as advanced as those in other ASEAN countries.

In 2022, only 5% of Vietnam’s workforce was fluent in English, which is less than the fluency rates in Indonesia (10%), Malaysia (21%), and Thailand (27%). This has caused a challenge in the recruitment process for IT outsourcing that many skilled developers are getting denied due to their English level.

The Lack Of Additional Skills Among Young Developers

Additionally, the new generation of developers, mainly Gen Z, is experiencing a growing skills gap because of the fast-paced technological changes. Yet, an impressive 72% of them are keen to learn digital skills, which is higher than the global average of 52%. This enthusiasm is a positive sign for the future, showing they understand the challenges and are ready to tackle them.

Upon engaging with SECOMM, you will gain access to a dedicated IT team that meets standards in English proficiency and technical competency. Book your FREE consultation with SECOMM’s experts today.

Explore SECOMM’s project: Assembling a Specialized Vietnamese IT Team for LandNow’s Website Development.

3. To Sum Up!

Vietnam’s IT outsourcing market has seen consistent growth, thanks to significant investments from both the government and foreign companies. If you’re seeking an IT team provider in Vietnam, consider SECOMM. Their exceptional talent can drive innovation and elevate your business objectives. Reach out to SECOMM at (+84) 28 7108 9908 to explore a partnership.

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IT Outsourcing Destination China India Or Vietnam
IT Outsourcing Destination: China, India Or Vietnam?

The IT Outsourcing market worldwide is projected to grow annually by 10.99%, reaching a market value of US$777.70 billion by 2028.

While India and China have long been the go-to nations for IT dedicated teams, new players like Vietnam are gaining ground. Companies have various choices based on language, cost, culture, and government support.

In this blog, SECOMM will explore the advantages and disadvantages of outsourcing IT functions to India, China, or Vietnam. This analysis will help companies make informed decisions about which country aligns best with their resources and strategic objectives.

1. Key Considerations for Choosing an IT Outsourcing PartnerKey Considerations for Choosing an IT Outsourcing Partner

Before going further into the main points of the three countries, there are some key points that companies should be aware of when choosing an IT outsourcing partner.

1.1 Balancing Cost And Value

Selecting a partner who can provide both quality and competitive pricing is vital for the company’s campaign success. When assessing cost benefits, look beyond immediate savings. Consider the long-term expenses of communication, travel, staff turnover, and management tasks. These factors can impact your financial outcomes over time. For example, a company outsourcing to a country with low English proficiency may lead to communication challenges. To address this, the company might need to employ a local translator to ensure smooth operations.

1.2 Evaluating The Experience And Expertise Of The Outsourcing Units

A Deloitte study reveals that 59% of companies outsource software development for specialized skills and expertise. It’s important to choose partners known for providing skilled IT professionals and delivering projects akin to yours. Experience in similar projects or industries is a plus, as partners with relevant domain knowledge can offer valuable insights and tailored solutions. For example, in Vietnam, SECOMM is one of many companies proud of its ability to handle big projects globally easily due to its past experiences of working with many big names in the eCommerce industry.

1.3 Communication & Cultural Alignment

Cultural alignment and good communication are important but often ignored in outsourcing partnerships. Your partner should have values, work ethics, and communication methods similar to your company’s. Communication should be transparent and frequent throughout the project. Choosing a partner with staff who speak a language that both parties understand is important to avoid language barriers that could slow down progress.

1.4 Quality Assurance & Security Measures

Quality control is vital for software that’s free of bugs. Your outsourcing partner should follow the best practices in data security and software development. Quality assurance tests should be part of the development process to catch and fix issues early. Security is equally important for outsourced DevOps services. Check their security measures, data protection policies, and compliance with industry standards. They must protect sensitive data according to industry regulations and have clear methods for protecting intellectual property and confidential information.

2. Deep Dive into Each Country 

2.1 China

Outsourcing to China is a strategic choice for many Western companies, largely due to the cost-effective services and access to a highly skilled workforce. China’s e-commerce market is the largest globally, and the country offers a stable economic environment, low corporate taxes, and numerous top-tier seaports. Moreover, China boasts one of the world’s largest and most proficient tech talent pools, adding to its appeal as an outsourcing hub.

A. Why Should You Choose China?China

Inexpensive Workforce

Outsourcing IT to China offers clear financial benefits. Chinese developers provide services at competitive rates, which can lead to significant cost savings for businesses. This affordability doesn’t come at the expense of talent, as China has a large pool of skilled developers. The salaries for these developers are generally lower than in the US where Chinese professionals often charge around $50 to $100 an hour, with an average of around $29,840 a year.

Skilled Workforce

Moreover, China is a leading tech hub with one of the largest and most skilled IT dedicated teams in the world. By 2024, the global number of developers is expected to reach 28.7 million, with China contributing significantly to this growth. The country’s developer population is growing at a rate of 6% to 8%. China also prioritizes high-quality education, with 24 of its universities ranked among the top 200 worldwide. The Chinese government is actively launching educational initiatives to enhance technical skills, preparing its citizens for the evolving digital world.

Supportive Government Policies

The government invests in projects and infrastructure to aid these companies and streamline outsourcing. In 2020, China announced a massive $1.4 trillion investment to enhance public digital infrastructure. This investment is a boon for companies considering China for digital outsourcing, as it simplifies the integration of local talent.

B. Issues When Outsourcing To China

Additionally, there are still some issues that companies need to be aware of when contacting the IT dedicated team in China. Firstly, language barriers are significant when outsourcing to China, as not all IT professionals are proficient in English, potentially causing miscommunications and project delays. Cultural variances can also affect how communication is perceived and managed.

Additionally, on the topic of intellectual property, China’s laws may vary from those in other nations, posing a risk to the security of your ideas. Moreover, stringent data privacy and security regulations by the Chinese government can pose operational challenges for foreign IT service providers.

2.2 India

India has consistently been a dominant force in the global IT outsourcing sector, attributed to its extensive talent pool of IT experts and a favorable business ecosystem. The industry is projected to witness a compound annual growth rate (CAGR) of 17.58% between 2024 and 2028, culminating in a projected market value of USD 20.09 billion by 2028.

Clients within India’s IT outsourcing market demand cost-effective, high-caliber services. They seek partnerships with firms that offer comprehensive services, including software development, maintenance, and support, and value providers with industry-specific experience who can deliver solutions tailored to their precise needs. Additionally, India is ideal for businesses seeking experienced developers with strong communication skills for complex projects.

A. Why Should You Choose India?India

Cost-Effective

Local outsourcing providers efficiently manage the entire process, including procurement, installation, and testing, ensuring a cost-effective and seamless experience. For example, establishing a website or developing a mobile application can be expensive, but outsourcing to India can reduce these costs by nearly 50%.

Furthermore, India’s lower living costs result in more affordable labor compared to countries like the United States. To illustrate, the average yearly salary for an IT employee based on Glassdoor in India is around $20,464, starkly contrasting the U.S. average of $109,829.

Large Labour Pool

The country’s diverse population contributes to a workforce that includes programmers, scientists, financial experts, MBAs, journalists, and virtual assistants with exceptional skills.

India’s government-funded higher education system is the third-largest globally, after the US and China. According to Statistica, India has over 6.5 million graduates each year, significantly more than the Philippines, which is a major competitor in the BPO and outsourcing sector.

B. Issues When Outsourcing To India

Communication

While Indians are proficient in English, the accent may sometimes lead to misunderstandings in verbal communication. It’s advisable to conduct most communication in writing, through emails and chats, to reduce miscommunication risks and maintain a written record for reference if needed.

Privacy And Security Legislation

In software development and IT, the risk of intellectual property (IP) being copied is significant. Without proper safeguards, there’s no guarantee of protection, as projects might be resold.

To protect your interests, it’s wise to sign an NDA with your outsourcing partner. Be careful with IP issues and consider getting legal advice for big projects with substantial financial stakes.

2.3 Vietnam 

Vietnam has gained prominence in the IT outsourcing industry over the last ten years. It’s now a significant force globally, with a focus on software development, digital content, and BPO. The growth of Vietnam’s IT outsourcing sector is attributed to its youthful, talented workforce, competitive labor costs, and supportive government policies. Plus, its strategic position in Southeast Asia adds to its appeal as an outsourcing hub for regional and international businesses.

A. Why Should You Choose Vietnam?Vietnam

Cost-Effectiveness

Outsourcing to Vietnam offers a key benefit: access to skilled tech talent at affordable rates. Vietnam, located in one of the world’s most cost-effective regions, has leveraged this to become the 6th top destination for software development. In 2022, Vietnam was rated 99.6/100 for low manufacturing costs by US NEWS and is among the lowest in Asia.

This results in significantly reduced IT outsourcing costs compared to other countries. For instance, the average annual income for a developer in Vietnam is approximately $7, 173, which is the lowest among the three. This represents a cost reduction of up to 94% compared to the US, 65% compared to India, and 76% compared to China.

Qualified IT Human Resources

Vietnam’s pool of highly educated and tech-savvy young professionals, many of whom have studied or worked abroad, makes it an attractive destination for outsourcing. Additionally, Vietnam offers technical training in various programming languages through its universities and technical schools, producing around 400,000 IT engineering graduates and 50,000 IT students annually.

Overall, Vietnam is well-equipped to meet the skilled workforce demands of employers seeking outsourcing opportunities, with a lower turnover rate compared to other countries in the field. Companies in Vietnam experience an IT-related turnover rate of less than 5%, making it an appealing choice for businesses.

Capable Of Working With The Giants

Major multinational companies and tech giants, including Intel and Microsoft, have established a strong presence in Vietnam by outsourcing software development and IT support services. Additionally, other firms like IBM, Cisco, and Bayer are also expanding their IT roles in Vietnam.

Comparison of IT Outsourcing in China, India and Vietnam
                                                                                Comparison of IT Outsourcing in China, India and Vietnam

The involvement of these esteemed organizations serves as a testament to Vietnam’s adeptness in managing substantial outsourced or offshore software development initiatives, despite its status as a relatively small emerging nation in contrast to larger, more developed counterparts such as India and China.

3. Choosing the Right Partner!

Overall, China’s large, albeit aging, labor force and developed infrastructure are offset by rising costs and regulatory concerns. While India shines with its vast, young talent pool, cost-effectiveness, and robust infrastructure, making it a strong contender for scalability and quality. Finally, Vietnam emerges as a compelling choice with its youthful, tech-savvy workforce, competitive costs, and rapidly improving infrastructure.

Read more: IT Outsourcing in Vietnam: Benefits and Challenges

SECOMM stands out with over a decade of experience for organizations seeking a reliable IT-dedicated team in Vietnam. Engaging with SECOMM means your IT projects are in the hands of exceptional talent, driving innovation and advancing your business objectives. To explore a partnership with SECOMM, reach out or dial the hotline at (+84) 28 7108 9908 for a collaboration that can elevate your IT capabilities.

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Top 10 IT outsourcing countries
Top 10 IT Outsourcing Countries In 2024

With the economic challenges post-COVID-19, IT outsourcing has become a go-to solution for businesses aiming to use their budgets effectively. They’re partnering with outsourcing companies for IT tasks instead of solely depending on in-house teams.

Meanwhile, the IT sector is rapidly growing, fueled by ongoing tech advancements. Outsourcing is crucial to this growth, which is expected to soar to USD 525.2 billion by 2030, growing at a CAGR of 9.4% from 2023 to 2030. This points to a sustained high demand for IT outsourcing well into the decade.

When considering outsourcing software tasks, it’s crucial to identify the best countries for the job. The ideal locations are those that excel in technological expertise, offer favorable business environments, lead in innovation, and have strong English language proficiency. The following list will highlight the top 10 countries with stand-out IT dedicated teams that could be considered prime choices for IT outsourcing services.

1. IndiaIndia

India has consistently been at the forefront of the outsourcing sector and is renowned for its extensive pool of IT and software development talent. The country’s cost-effective services, proficiency in English, and solid tech infrastructure have established it as a preferred choice for global businesses. With more than 1.5 million IT graduates each year, India ensures a continuous influx of skilled professionals to satisfy the increasing demands of the outsourcing market in Asia.

Moreover, India’s cost structure is generally more affordable than Western countries, making it an attractive option for companies looking to outsource development tasks. For instance, according to Upwork, software developers in India typically charge between $18 and $39 per hour, which is significantly lower than the $50 to $60 per hour rate in the United States or Germany, with the average rate from $150 to $250 per hour. This combination of a large, skilled workforce and competitive pricing positions India favorably against other leading IT outsourcing destinations.

2. ChinaChina

Just like India, China’s massive talent pool and diverse skill set make it one of the best countries for outsourcing, and it has emerged as an IT outsourcing power dominating the labor market. With an education system that promotes Math and Science, China provides some of the world’s best technology and IT services.

In terms of talent pool, China is one of the largest producers of IT graduates worldwide, boasting over 3 million IT graduates a year (this number is quite significant compared to India due to its large population). This vast number of highly educated and skilled individuals further solidifies China’s position as a desirable destination for outsourcing.

Additionally, the Chinese government actively supports IT development and invests in education to build a strong talent base. It focuses on advancing STEM (science, technology, engineering, and mathematics) education, which is essential for the IT sector. This approach improves learning in science and math, which is foundational for IT expertise.

In 2024, China remains a competitive choice for outsourcing, with an average IT outsourcing salary of about $20-$45 an hour, striking a balance between cost-effectiveness and quality output. This affordable rate and the country’s commitment to technological advancement make China an appealing choice for businesses worldwide.

3. PhilippinesPhilippines

The Philippines is a sought-after hub for software development outsourcing and BPO is favored for its cost-effective labor and proficient workforce. English is the official language, simplifying communication and aligning with the country’s strong cultural connections to the US. This understanding of Western work culture is a significant advantage, especially since 94% of the population speaks English.

With around 190,000 developers stationed in key BPO centres like Manila, Cebu, Davao, and Bacolod, the Philippines is recognized as a leading IT outsourcing hub, especially in the healthcare and fintech sectors.

The educational system in the Philippines annually produces approximately 200,000 IT graduates, emphasizing IT and technical skills to create an adaptable and globally competitive workforce. In 2024, the average IT outsourcing salary stood at around $20-$60 an hour, affirming the Philippines’ position as one of the most economical offshore outsourcing destinations.

4. BrazilBrazil

Similar to the Philippines, Brazil shares cultural affinities with the US, which translates into high-quality IT services at competitive rates. This cultural resonance, coupled with its strategic location, makes Brazil a preferred partner for North American IT firms.

Brazil’s commitment to building a skilled tech workforce is reflected in the production of about 150,000 IT graduates each year. The government’s efforts to perfect the technological education infrastructure set Brazil apart as a top destination for offshore software development.

Although Brazil’s outsourcing costs are slightly high, with the average IT outsourcing salary at approximately $20-$50 an hour and an annual software engineer salary of around $12,000, it remains a competitive market. The country’s youthful population, 38% of which are young, positions Brazil as an ideal locale for hiring junior developers, underlining its robust and skilled tech workforce.

5. VietnamVietnam

Vietnam is advancing as a notable destination for IT outsourcing, backed by a vast pool of skilled IT professionals. The country’s educational system, with over 300 IT-focused universities and centres, produces around 57,000 IT graduates each year. The Vietnamese government’s dedication to the IT sector is evident through supportive policies and incentives, contributing to Vietnam’s ranking within the top 50 digital nations.

The IT outsourcing market in Vietnam is forecasted to reach $698.90 million in revenue in 2024, with an anticipated annual growth rate of 16.38%, leading to a market volume of $1,282.00 million by 2028. The enterprise software segment is expected to achieve a market size of $247.3 million by the end of 2024. Moreover, the average spend per IT outsourcing employee is projected to be $11.80 an hour in 2024. These figures highlight a dynamic IT outsourcing market with an outstanding IT dedicated team in Vietnam, with growing employment and increasing value per employee, reflecting the nation’s investment in education and technological infrastructure.

6. PolandPoland

Poland is a standout choice for IT outsourcing within Europe. Its central position in Europe and EU membership and a strong pool of software engineering talent make it an attractive base for businesses looking to grow in the European market.

The country’s IT industry is well-developed and supported by numerous universities that provide computer science education. Recent reports indicate that there are between 63,000 and 78,000 students enrolled in IT and ICT degree programs, with an annual graduation rate of about 10,500 to 13,500.

A significant draw for the IT Outsourcing market in Poland is the cost-effective yet highly skilled workforce, which is more affordable than in many other European nations. The cost for offshore software development services in Poland typically ranges from $40 to $56 per hour, depending on the project. This positions Poland as one of the leading Eastern European countries for cost-efficient programming expertise.

7. MalaysiaMalaysia

Malaysia is gaining traction in the IT outsourcing industry due to its cost-effective solutions and skilled workforce. Over 60% of Malaysians speak English, which, along with strong government support, makes the country an appealing outsourcing destination.

Annually, Malaysia produces around 100,000 IT graduates, reflecting its commitment to digital skills development. The government bolsters this with initiatives like tax incentives and funding for R&D.

In Malaysia’s tech sector, the average monthly salary is about $3,500, with an hourly rate of $14. These rates are lower than in the US or Western Europe. Moreover, a key development in Malaysia’s IT outsourcing is the growth of cloud computing and mobile app development. IT firms are investing in these technologies to offer better and more cost-effective services.

8. ArgentinaArgentina

Argentina’s IT industry is attractive to US and European clients due to English proficiency, cultural similarities, and time zone alignment. Competitive pricing and a highly skilled workforce add to its appeal. Web developers’ costs vary from $20 to $60 per hour, or around $14,100 yearly, based on experience.

With over 115,000 developers, many from top universities, Argentina’s education quality is evident. The country’s 2023 QS World University Rankings featured over 40 renowned computer science programs, 14 of which are in Buenos Aires, ensuring well-educated IT professionals.

9. EgyptEgypt

Egypt’s rise in the IT outsourcing market is attributed to its skilled workforce and cost-competitive services. The country’s low labor costs, combined with a large pool of engineering and development talent, make it a lucrative option for companies seeking IT outsourcing services.

The average hourly rate for IT outsourcing in Egypt in 2024 was between $25 and $50, presenting a budget-friendly choice for businesses. The ITIDA reports that an IT professional’s average annual salary in Egypt is about $10,000, significantly below the global average of $45,000.

Egypt’s educational system contributes around 50,000 IT graduates each year to the industry, ensuring a steady supply of technically skilled professionals. The Egyptian government is proactively enhancing the IT sector by offering incentives and training to expand the talent pool. This initiative is expected to grow the industry significantly.

10. MexicoMexico

Mexico’s IT Outsourcing market is attractive for several reasons, including cost savings, access to a pool of skilled talent, and the ability to quickly scale operations.

In 2024, the average hourly rate for IT outsourcing in Mexico was estimated to be between $20 and $40. While this rate is slightly higher than some other outsourcing destinations, it is balanced by the advantages of geographical closeness, time zone compatibility with the US, and a deep understanding of Western business practices.

Mexico’s higher education system is on par with that of the United States and Europe, contributing to the supply of skilled IT professionals, with approximately 120,000 IT graduates produced annually.

The Mexican IT Outsourcing industry has seen steady growth over the past decade and is currently ranked as the fourth-largest IT outsourcing destination in Latin America. The industry’s expansion is expected to continue, driven by increasing demand for services such as software development, data analytics, and cloud computing.

To Sum Up!

The IT outsourcing market in 2024 is a strategic asset for businesses aiming to innovate and grow. It offers cost-effective access to skilled talent, driving operational efficiency and competitive advantage. Outsourcing is no longer just an option; it’s a strategic necessity that allows companies to focus on core competencies while outsourcing non-core activities to experts worldwide.

At Secomm, we can provide you with the best of our IT dedicated team, who have more than 10 years of experience in the IT sector. Feel free to contact SECOMM or call our hotline at (+84) 28 7108 9908 to ensure that your IT operations are handled by top-tier talent, fostering innovation and propelling your business forward.

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