According to data compiled by Forbes Advisor, global Mobile Commerce sales reached $415 billion in 2022 and are expected to reach $710 billion in 2025. 

In fact, Mobile Commerce dominates the eCommerce industry, accounting for about 73%, and the use of eCommerce app is growing faster than any other type of app on the market, with an annual growth rate of 54%. This shows that eCommerce app contribute significantly to sales on mobile devices and implementing mobile app is considered the right path for every business in the mobile commerce era. 

Boost Brand Awareness

Increasing brand awareness is one of the benefits that eCommerce app bring to businesses. Since most customers spend hours on mobile devices (e.g smartphones), it’s easier for brands to connect with them through eCommerce app. However, to fully leverage the other capabilities of mobile app, brands need to provide a rich and high-quality app experience. As Statista has noted, about 32%-34% of app users will uninstall if the app is difficult to use or has too many unwanted ads. 

Offer Personalized Shopping Experience

eCommerce websites help deliver personalized shopping experiences with algorithms and support tools but eCommerce apps enable businesses to offer personalized special incentives or promotional programs right in the app without having to access the websites via browsers on desktop or mobile. As a result, among various methods, business owners can combine push notifications, and instead of sending the same push notification to all app users, they can send personalized notifications based on user behavior. 

Increase Conversion Rates

As mentioned, customers tend to love and prioritize shopping on eCommerce mobile app instead of eCommerce mobile web. Therefore, the conversion rate of the mobile app will be higher than that of the mobile web. The graph below indicates the different conversion rates between the mobile app and mobile web. 

Mobile app users view products more than 286% and add items to the cart at a higher rate of 85% compared to mobile web users. Moreover, the graph shows that the conversion rate of mobile app is over 130% higher than that of the mobile web. Naturally, when the conversion rate increases, it will lead to an increase in sales revenue and profits.

Increase Average Order Value 

Building an eCommerce app not only boosts brand awareness, enhances customer experience, and improves conversion rate but also increases the average order value (AOV). This is the average dollar amount customers spend each time an order is placed on the app. 

Customers prefer shopping on eCommerce app because it’s convenient for them to browse through products and make purchases. Therefore, they have more opportunities to browse through a wider range of products. This enables businesses to apply cross-selling and upselling techniques, suggesting complementary products to encourage customers to make additional purchases. As a result, the increased AOV drives up revenue and profits. 

Reduce Cart Abandonment

Some data on cart abandonment has been reported by Ruby Garage:

One of the top reasons for that is the long and confusing checkout process. Mobile shopping app will help businesses reduce cart abandonment with the optimized checkout process. When customers buy products, relevant information will be stored in the app’s system, so they don’t have to re-enter their information but complete the purchase with a few taps. In addition, businesses can also shorten the checkout process to improve cart abandonment rates by integrating various payment methods into the shopping app. 

Improve Customer Retention and Loyalty

For every eCommerce business, increasing sales revenue is a valuable achievement. However, it’s crucial to point out how many regular customers contribute to this success. According to the Harvard Business Review, the cost of acquiring a new customer is more expensive than retaining and satisfying an existing one, ranging from 5-25 times higher. But, if the customer retention rate increases by just 5%, profits can increase from 5% to 95%. As a result, businesses need to put their minds to existing customers. 

There is a 50% chance that customers will return to a shopping app within 30 days of their last purchase. In other words, businesses can increase customer retention and loyalty with their mobile app in several ways, including

• Leveraging customer data to provide personalized shopping experiences;
• Using push notifications as a means of communicating with customers;
• Offering exclusive incentives to encourage users to download and use the app;
• Building a loyalty program to encourage people to return to the app, shop, and interact more to earn reward points.

With the incredible benefits of mobile app, businesses are increasingly motivated to quickly build their app to enrich the customer shopping experience while capturing the Mobile Commerce trend.

With years of experience in implementing eCommerce for many businesses in many countries, SECOMM understands the difficulties and obstacles in developing your mobile shopping app.

Contact us today for free advice.

The significant increase in the number of smartphone users has contributed to the rise of Mobile Commerce trends worldwide, including in Vietnam. It’s time for retailers to focus on supporting their customers in searching and shopping through mobile devices, in addition to eCommerce websites.

Many businesses across various sectors, from shopping, healthcare to food, have performed very well in this strategy by becoming pioneers in embracing Mobile Commerce trends in Vietnam. 

SHEIN

The SHEIN app is known as one of the most successful eCommerce apps in the world today, and now it has become the most downloaded mobile app in the shopping category in 2022 with 229 million downloads and installs from both Google Play and the App Store.

In the Vietnamese market, SHEIN is also highly rated by users for their shopping experience on the app. In the latest update, SHEIN added a discount program for some fashion items of up to 70%, as well as fixing some bugs and improving performance to provide users with a better experience. 

• Downloads: +100M
• Reviews: 4.5 ★ (Google Play), 4.4 ★ (App Store)
• Rankings: #4 in the Shopping category

Download the SHEIN app: Google Play | App Store

Uniqlo VN

When entering the Vietnamese market in 2019, Uniqlo quickly captured and responded to the local consumers’ fashion shopping trends, which made the brand very popular. The Uniqlo VN app stands out with many necessary functions for a consistent shopping experience between mobile devices and other channels. In order to attract more users, Uniqlo will offer a 150,000 VND discount voucher for anyone who downloads the app and signs up as a new member. 

Although the Uniqlo VN app is highly rated for user experience, the brand still keeps updating and improving its features. In the latest update, Uniqlo has improved the quality of product image display and adjusted the accurate display of the number of products available in-store.

• Downloads: +500K
• Reviews: 4.7 ★ (Google Play), 4.9 ★ (App Store)
• Rankings: #10 in the Shopping category

Download the Uniqlo VN app: Google Play | App Store

Hasaki

Hasaki not only has nationwide brick-and-mortar stores and an eCommerce website but also develops a mobile app to offer its customers enriched shopping experiences and attractive incentives. 

By using the Hasaki app, customers can conveniently search and purchase products anytime, anywhere, track their order status, and make appointments for spa and clinic services at the store. One thing that makes Hasaki special is the free delivery within 2 hours for all customers, whether shopping at the store, eCommerce website, or mobile app. Despite getting much critical feedback for usage quality, Hasaki is still very receptive, fixing bugs and optimizing performance in the recent updates.

• Downloads: +100K
• Reviews: 3.3 ★ (Google Play), 4.3 ★ (App Store)
• Rankings: #12 in the Shopping category

Download the Hasaki app: Google Play | App Store

Go! & Big C

After rebranding, the Big C supermarket chain has been renamed Go!. As a result, the mobile app of this business is now called Go! & Big C. Customers who shop on the app will enjoy many benefits, including:

• Free shipping for orders over 300,000 VND purchased on the mobile app;
• Daily promotions will be automatically updated;
• Create shopping lists directly on the app;
• Participate in weekly games to win coupons or vouchers;
• Track & accumulate points directly in the app.

The Go! & Big C app is regularly updated to improve the online shopping experience for customers. In the most recent update, the developer has improved the payment function, fixed bugs, optimized performance, and image display capabilities.

• Downloads: +1M
• Reviews: 2.8 ★ (Google Play), 2.4★ (App Store)
• Rankings: #13 in the Shopping category

Download the Go! & Big C: Google Play | App Store

Con Cung

Con Cung is one of the first childcare brands to develop its mobile app to provide customers with a consistent shopping experience across different channels, including physical stores, mobile apps, and eCommerce websites. 

The Con Cung app has received very positive reviews from users on both Google Play and App Store for user experience, product quality, and promotional programs. However, the brand still maintains the practice of testing and improving certain features such as displaying detailed driver’s information when customers place orders for the 1-hour delivery service and fixing bugs related to payment via eWallet.

• Downloads: +1M
• Reviews:  4.7 ★ (Google Play), 4.8 ★ (App Store)
• Rankings: #24 in the Shopping category

Download the Con Cung app: Google Play | App Store

Dien May Xanh

Dien May Xanh is a big player in the Vietnamese home appliance industry that has successfully captured the market trend and quickly developed a mobile app to reach the huge smartphone user base in Vietnam – approximately 69 million users. 

In addition to massive promotional programs on special occasions, Dien May Xanh also provides customers with discounted payment programs using various methods such as Buy Now Pay Later, QR Code, etc. All of these are carried out quickly and easily both on the website and the mobile app. 

• Download: +1M 
• Reviews: 4.0 ★ (Google Play), 2.3 ★ (App Store)
• Rankings: #31 in the Shopping category

Download the app: Google Play | App Store

LixiBox

The Vietnamese mobile commerce market has witnessed the entrance of another famous cosmetics retail brand, LixiBox. Similar to Hasaki, LixiBox also continuously updates its app to enhance the shopping experience of customers.

Moreover, the brand offers many special incentives to attract users such as a 20% discount for the first order placed on the app, a referral program where customers can receive 500,000 VND, a magazine section where users can update the latest beauty trends right on the app, and a LixiBox Feed section where customers can share their experiences on products and services.

• Downloads: +100K
• Reviews:  4.4 ★ (Google Play), 4.4 ★ (App Store)
• Ranking: #113 in the Shopping category

Download the LixiBox app: Google Play | App Store 

Long Chau

When the Long Chau mobile app was launched during the Covid epidemic, it quickly received support from customers everywhere because they could buy medicine and healthcare products online and have them delivered to their door, while also earning reward points for their next purchase. In addition, the app has a call and message feature that allows users to contact pharmacists online for free in-depth advice and support. Furthermore, Long Chau is the first pharmacy to pioneer the Buy Now Pay Later service with 0% interest, helping patients and customers find a new convenient way to make purchases. 

User experience is a particularly important factor that Long Chau focuses on, and the app regularly releases updates. These updates include optimizing the login function, improving the payment function, integrating payment via eWallet, synchronizing order status on the website and app, suggesting reordering, and more.

• Downloads: +1M 
• Reviews: 4.5 ★ (Google Play), 4.8 ★ (App Store)
• Ranking: #1 in the Medical category

Download the Long Chau app: Google Play | App Store

Pharmacity

Pharmacity is a mobile app developed by the convenient pharmacy chain – Pharmacity in 2018. Similar to Long Chau, the Pharmacity app was created to provide customers and patients with a convenient and fast shopping experience, along with online consultation services from a team of highly specialized pharmacists. 

In its latest update, Pharmacity has improved and added some features, including a gift program for first-time users who download the app and sign up as members.

• Downloads: +100K
• Reviews: 2.2 ★ (Google Play), 3.9 ★ (App Store)
• Ranking: #4 in the Medical category

Download the Pharmacity app: Google Play | App Store

The Coffee House

In 2021, the famous beverage brand The Coffee House officially launched its mobile app with the same name, aimed at providing customers with the experience of ordering drinks for delivery or picking up at the store, along with many reward point programs for attractive incentives.

After two years of development, the new version of The Coffee House app features a completely new interface and many special features designed to enhance the customer experience both on the app and at physical stores. 

• Downloads: +500K
• Reviews: 3.7 ★ (Google Play), 4.7 ★ (App Store)
• Ranking: #20 in the Cuisine category

Download the app: Google Play | App Store

​​Mobile eCommerce apps are one of the rising trends in mobile commerce. As a result, developing mobile shopping apps is the first smart move to achieve sustainable growth in the booming era of mobile commerce.

Contact SECOMM now for advice on how to implement and develop the best strategies to dominate the Mobile Commerce market.

The global pandemic has created an unprecedented boost for the eCommerce industry, forcing business leaders to go for digital transformation whether they want to or not. However, there are still many businesses that are hesitant and encounter difficulties while embracing it.

In addition to selecting an eCommerce platform and building a website, they can leverage incredible marketing channels to develop an eCommerce marketing strategy.

What is eCommerce Marketing?

eCommerce Marketing, also known as Electronic Commerce Marketing, is the practice of using various marketing channels such as social media marketing, content marketing, SEO, or email marketing to increase the efficiency of eCommerce operations. To be more specific, eCommerce Marketing does the following:

• Directs traffic to an eCommerce website;
• Helps a brand appear in front of the target audience;
• Makes it easy for people searching for products the company  sells and to discover the company’s website;
• Converts website visitors into new potential customers;
• Encourage existing customers to make repeat purchases;
• Enhances the post-purchase shopping experience to increase customer satisfaction and loyalty. 
• Drive more frequent and larger orders at the eCommerce website.

The purpose of eCommerce Marketing is to enhance brand awareness and boost sales. Therefore, if a business doesn’t have an eCommerce Marketing strategy, then it’s really hard for their eCommerce website to generate conversion despite the beautiful interface and well-built functional system.

Most popular eCommerce Marketing Channels

Social Media Marketing

Currently, most brands and content creators take advantage of the popularity of social media as the first step for connecting and serving their target audience with content that interests them. eCommerce businesses can do the same by using engaging content and images to grab the audience’s attention and direct traffic to their website.

In this case, the eCommerce website interface must have a high level of visual appeal, especially showcasing prominent products to create inspirational shopping. Moreover, businesses can implement social commerce to directly sell products on social media platforms like Facebook, Instagram, TikTok, and so forth.

Content Marketing

This is an effective marketing channel that brings long-term results for eCommerce businesses as well as a sustainable branding tool for their brands. Currently, various types of content are widely used, including

• Blogs;
• Videos;
• Podcasts;
• Educational content;
• User-generated content, such as images, videos, forum discussions, testimonials, etc.

The goal of content marketing is to answer questions, provide information, promote the brand, suggest and guide customers in choosing products, and even entertain them. With optimized content, customers will quickly find out the website and the business can increase the conversion rate. Moreover, the business can leverage that content for the next eCommerce marketing campaigns.

Search Engine Marketing (SEM)

SEM includes both Search Engine Optimization (SEO) and paid advertising. While SEO requires marketers to understand Google’s ranking algorithm to optimize their content to meet Google’s evaluation criteria, SEM relies on various campaigns such as pay-per-click (PPC) campaigns, display campaigns, or product advertising campaigns like Google Shopping Ads. 

On Google, PPC campaigns ensure that potential customers will see the link leading to the brand’s website when they enter search terms that match the selected campaign keywords. That is the reason why eCommerce businesses frequently utilize Google Adwords and run PPC campaigns to advertise their product pages.

This way enhances the chances of searchers clicking on the link and making a purchase decision before leaving the eCommerce website, leading to a notable increase in conversion rates.

Influencer Marketing

A reliable influencer can be a brand’s ‘best friend’. The introduction or endorsement of an influencer can help businesses quickly increase sales, optimize marketing ROI, and raise brand awareness. In addition, Influencer Marketing leverages the trust in an individual’s persuasive abilities and self-confidence to influence and encourage their followers to make purchasing decisions.

Influencer marketing is a highly effective eCommerce marketing channel in that eCommerce brands are more likely to continually find ways to collaborate with influential individuals to drive recognition and emotional shopping for specific products or services

Email Marketing

This is one of the oldest categories of Digital Marketing. Today, in the eCommerce world, email marketing still plays a very special role that enables businesses to automate campaigns toward targeting subscribers from different segments or stages in the customer journey

However, businesses should be careful in selecting and categorizing the target groups in their email list, to send the right content to the right target audience. This way, businesses can maintain the trust of potential customers at a time when privacy and personal data security have become increasingly important to Internet users.

Therefore, they should be cautious in building their email list if email marketing is a part of their eCommerce marketing strategy.   

With all things considered, if there is no eCommerce Marketing, eCommerce websites are virtually unknown. The only way for a website to gain brand recognition, attract more online customers, and generate consistent and regular revenue is to effectively implement target marketing activities. 

With a wealth of experience successfully implementing eCommerce for many customers in various countries in recent years, SECOMM understands the difficulties and obstacles businesses face when undertaking tasks related to eCommerce marketing strategy. 

Contact SECOMM today to receive free support and consultation.

According to the latest data compiled by Statista, as of January 2023, the number of global smartphone users is 6.92B people, increasing by 4.2% annually. In Vietnam alone, this number is around 69 million users, whereas, in the US, Pew Research Center estimates that about three-fourths of Americans own a smartphone. These data demonstrate that smartphones have become common devices, and the demand for owning and using smartphones is significantly increasing. 

In addition, the Internet has long ceased to be a high-end infrastructure for countries. Therefore, people today tend to prioritize using mobile devices like smartphones to browse the web. 

Typically, Brands tend to establish a strong presence in areas with a wide pool of potential customers, so the emergence of Mobile Commerce quickly gained acceptance and became one of the key business strategies of many enterprises. 

Moreover, the appearance of the Covid-19 pandemic in 2020 became a great boost for eCommerce in general and Mobile Commerce, in particular, to explode strongly.

During that period, the smartphone became the shopping companion of users as 79% of users used their smartphones or other mobile devices to shop online, as reported by OuterBox. Despite the eventual end of the pandemic, the Mobile Commerce growth trend is projected to continue as mCommerce retail sales hit $415 billion in 2022, and are predicted to reach $710 billion by 2025.

What is Mobile Commerce?

Mobile Commerce or Mobile eCommerce, abbreviated as m-commerce or mCommerce, is also known as Thương Mại Di Động in Vietnamese. This term was first coined and used by Kevin Duffey at the Global Mobile Commerce Forum in 1997, which means “providing direct eCommerce capabilities to consumers, anywhere, through wireless technology”. 

Simply put, it is a business model in which all online monetary transactions are conducted on mobile devices such as shopping, banking, eWallet transactions, ride-hailing, food delivery, hotel reservations, etc.

mCommerce vs eCommerce 

eCommerce or electronic commerce is a relatively broad concept that refers to the buying and selling of goods and services over the Internet. Meanwhile, Mobile Commerce is a branch of eCommerce or the mobile version of eCommerce, specifically referring to electronic commerce transactions carried out on mobile devices.

Furthermore, the eCommerce shopping experience depends heavily on desktops and websites, making it less mobile-friendly and inconvenient for customers. On the other hand, with Mobile Commerce, customers can easily bring their devices with them anywhere, allowing businesses to provide personalized shopping experiences that help customers make quick purchasing decisions.

Top Mobile Commerce Trends Are On The Rise

Thanks to the popularity of smartphones in every consumer’s life, related trends are on the rise such as mobile shopping, mobile payment, and social commerce.

Mobile Shopping Apps

Mobile shopping apps are becoming more and more popular and are the most prominent trend in mobile commerce. Many retail brands across various industries are investing in building and developing their own eCommerce apps such as the fashion industry, the cosmetic industry, and so forth. This not only helps businesses increase their conversion rates and sales but also makes the shopping experience easier and more convenient for customers, as they will be able to search for products and complete purchases right on the app.

In addition, the outbreak of the Covid pandemic and the establishment of social distancing measures in 2020 marked the beginning of the boom of shopping apps. As stated by the Mobile Shopping Report 2021, global usage of shopping apps increased by 40% in Q1 2021. 

In the effort to develop sustainably amidst the pandemic crisis, the SHEIN app with nearly 15.5 million global users played a significant role in contributing to the company revenue of $9.81 billion in 2020.

As of 2021, SHEIN’s mobile app reached 43.7 million users and became the second most downloaded app in the world after Shopee. In 2022, SHEIN’s user base grew to 74.7 million and officially became the most downloaded mobile app globally in the shopping category with over 229 million downloads and installations from the App Store and Google Play

Mobile Payment Apps

The usefulness of smartphones not only lies in online shopping but also makes transactions and payments more convenient and easy during the peak period of the pandemic. In addition to Mobile Banking applications, users have a special preference for mobile wallet or eWallet applications.

In the Vietnamese market, when it comes to eWallets, people immediately think of MoMo. However, MoMo is not only known as a typical eWallet but also an incredible super application.

To date, MoMo has built a platform that provides about 400 different types of services in many fields such as consumer finance, insurance, money transfer, payment, entertainment, shopping, dining services, and charity donations, etc. The number of MoMo users has increased significantly in recent years, from 10 million users in 2019 to about 31 million users in 2022, and the company’s next target is at least 50 million users.

• Related Reading: Top 5 Prominent eCommerce Super Apps in The Vietnamese Market

Social Commerce

In addition to making their mobile shopping apps, selling on social media platforms is also one of the widely applied strategies. The popularity and large user base of social media are a solid foundation for the development of Social Commerce and a playground for merchants of all sizes. Social Commerce is a form of online selling through social media platforms like Instagram, Facebook, and TikTok.

Selling on social media will help brands reach the existing large user base and utilize influencers for their marketing campaigns. 

For example, the vegan cosmetics brand Cocoon does this through TikTok Shop. Cocoon is known for its environmentally friendly and animal-testing-free products, and they opened a store on TikTok and collaborated with famous beauty vlogger Ha Linh, which brought them a lot of success. It not only boosted their sales but also reached nature-loving, animal-loving, and young customers on TikTok.

• Related Reading: Everything To Know About TikTok Shop
  

Benefits of Using Mobile Commerce

Convenience and Accessibility

As mentioned, the global number of smartphone users is estimated to reach around 6.9 billion by 2023, which is a driving force for the development of Mobile Commerce. Anyone who owns a smartphone has the potential to become a customer. As a result, implementing Mobile Commerce will help businesses reach this enormous user base, nurture and generate conversions. 

In addition, with the mobility of Mobile Commerce, smartphone users with internet access can shop anytime, anywhere, even on the go without being dependent on a fixed location. Especially when visiting a store to shop, instead of paying in cash or by card, customers can now pay through eWallets such as MoMo or VNPay, etc.

Offer Personalized Experience

Currently, businesses are very focused on personalized customer experience, which is particularly important in the Mobile Commerce world. A smartphone is a personal item that each person carries out personal activities throughout the day. Moreover, in the online shopping trend, customers highly value brands that provide them with a personalized experience because it demonstrates the brand’s concern for its customers. As a result, the more businesses focus on details and personalization in their messages and promotional programs, the better. 

For Mobile Commerce, push notifications are an effective solution. Mobile Commerce apps help businesses track and collect user data including personal information, social media accounts, interests, current location, purchase history, viewed products, etc. After that, they can combine and analyze the data to send appropriate messages to the right target audience through push notifications.

Recent studies have shown the effectiveness of push notifications in connecting with customers and notifying them about new products and special incentives. 

• The open rate of push notifications is 90%.
• This open rate is 50% higher than email marketing.
• Up to 55%-60% of mobile app users agree to receive push notifications.
• 70% of them find push notifications useful.
• 52% of users search for related information and promotional programs after receiving and reading push notifications.

Push notifications are one of the strategies implemented to provide personalized shopping experiences and bring satisfaction to customers. The more satisfied customers are with their shopping experiences, the higher the likelihood that businesses will increase customer retention rates and maintain their loyalty. 

Provide Omnichannel Shopping Experience

The demand for a personalized shopping experience is increasing among customers, as well as the need for a consistent shopping experience across multiple channels, from online to offline stores. According to a study by MasterCard, customers who have a multi-channel shopping experience with a specific retailer tend to spend 250% more than the average. The fashion brand Macy’s has stated that the value of multi-channel shoppers is 8 times higher than that of those who only shop on a single channel.

Moreover, smartphone users tend to use their devices while shopping in offline stores for various purposes, as Retail Dive‘s survey has listed in detail: 

• 58% search for product information;
• 54% compare prices;
• 40% collect vouchers or coupons;
• 33% access the mobile app of the business;
• 22% scan QR codes.

Therefore, by implementing Mobile Commerce, businesses can provide customers with a multi-channel shopping experience.

Mobile Commerce is exploding thanks to the boost from the Covid pandemic. Even though the pandemic has passed, the impact of Mobile Commerce on the development of eCommerce businesses is still significant. If businesses plan to approach Mobile Commerce in 2023, it is a wise decision.

Contact SECOMM today to learn more about Mobile Commerce and the best solutions to get started. 

Retails has miraculously recovered from the global pandemic and is expected to make a breakthrough in the years ahead. One of the ways to embrace eCommerce is the O2O model, which combines online and offline operations. 

The benefits of implementing O2O Commerce

Increase Brand Awareness

One of the big challenges of physical stores is how to raise brand awareness among potential customers who are far from the store location. Using online-to-offline marketing strategies can increase the public’s awareness of a business’s brand. That way, businesses will be able to reach an influx of customers and boost their awareness of the brand and its products which then lead to higher sales volume and massive revenue.

Boost Sales

Despite the rapid development of eCommerce, brick-and-mortar stores still maintain stable sales because many customers still prioritize visiting stores to shop. A recent study indicates 46% of responders said they preferred shopping at a brick-and-mortar store because they want to touch, feel and try the products physically before making purchases. Another interesting fact is customers are likely to spend more money while in the store.

For example, a man comes to a bookstore to buy a notebook, then he looks around and decides to buy some more pens. In case he buys the notebook online, he may only buy it. Thus, the O2O Commerce model is a good choice as businesses can not only use online channels to raise brand awareness but also overcome the limitations of offline channels to earn massive revenue.

Enhance Customer Experience

The incredible combination of online and offline channels makes the customer shopping experience more seamless and interesting. Online platforms enable consumers to contact brands easily and immediately. When they want to ask for a product’s details, they can send a message through Facebook Messenger or a chatbot on an eCommerce website and the supporting team will answer their questions instantly.

Based on the customer’s data, businesses can offer product recommendations via online channels or the next time customers visit physical stores. In another case, if businesses run ad campaigns, they can notify their customers via online channels, which will help them to reach a larger audience with their online ad campaigns instead of just informing customers when they walk into the store.

Common strategies in O2O Commerce

BOPIS (Buy Online Pick-Up In-Store)

BOPIS is not a brand-new way to shop but has been around for a while. Merchants that provide this service can attract online shoppers to visit their brick-and-mortar stores. This way, customers will browse the eCommerce website to search for products, buy them and get notifications when the products are ready to pick up in the physical store. It’s convenient for customers to select a specific time to come to check and get their orders at the store. Merchants gain benefits too with amazing cross-sell and up-sell opportunities.

Home Delivery

Although BOPIS is great, it may not be every customer’s choice as not everyone likes to go to the store to pick up the products, instead people prefer home delivery rather than the in-store pick-up option. Sometimes, shopping at the store also causes many inconveniences, for example, finding a parking lot to go to the store in a densely populated area, picking up the goods, and returning to the car, seems time-consuming and annoying for busy people.

To solve this problem, merchants can self-deliver if the store location is close enough and convenient for the delivery process to be fast and efficient. Otherwise, collaborating with delivery companies like Giao Hang Nhanh, Giao Hang Tiet Kiem, and so forth, is a good choice when the business resources need to be increased.

In-store Returns

Suppose a customer bought a product online but when receiving it, he realized it didn’t fit his demand. There was a store nearby, so he decided to return the product he bought there. But when he arrived, the staff there didn’t accept his return request because they had no clues of that purchase in the store’s system.

Therefore, he had to return his order to the carrier and wait a long time before receiving his refund. That will make consumers wonder whether they should keep shopping with that merchant next time. Thus, in-store return has become a fantastic offerable solution for customers to avoid the hassle of returning goods. This method simplifies the return process for shoppers and merchants because returns and refunds are processed simultaneously, which means better customer service and a much faster return to stock.

Loyalty Program

Loyalty Program is another great way to encourage customers to engage with the O2O shopping experience. 

Reward Points

This is one of the popular types of loyalty programs. Every business can assign points to any items or user activities. While purchasing or joining any engaging program, customers will easily earn points afterward for later exchanging gift cards, vouchers, and even actual money which then encourages them to go back to spend more in order to get benefits from the gifts. As a result, reward points will boost sales and increase brand loyalty. 

Gift Cards/Gift Voucher

Gift cards can be used not just as gifting options but also as a powerful tool to get customers to spend in their outlet. Customers can use gift cards immediately or save for later purchases, or even give it to relatives and friends. As a result, relatives and friends are likely to become potential customers of the brand soon.

How to implement O2O Commerce in business

Identify Objectives

The first thing to do is identify the main objectives. If businesses haven’t built their online presence, they should do it immediately due to the rise of online shopping. If businesses already have their online presence (eCommerce website, mobile app, marketplace), it’s important to adjust their O2O Commerce strategy to increase sales online, offline, or both. They should also consider using some measurable metrics to ensure these objectives are appropriate and achievable.

Brainstorm Strategies

Next is working with a team to raise ideas for the O2O Commerce strategy. Here are a few suggestions:

• Use performance analysis software to find out customer challenges in the purchasing process.
• Use social media to connect the brand’s eCommerce store to its physical store.
• Implement the BOPIS process.
• Provide home delivery for some or all items for both online and in-store purchases.

Then use these data to decide which strategies to try.

Measure Outcomes

Once deciding on strategies to deploy O2O Commerce, businesses will use collected data to measure the success of those strategies and make the next business decisions. Looking back on the initial objectives when evaluating and adjusting the O2O marketing and business strategy, then considering the additional objectives if the original ones have been achieved.

O2O Commerce solution at SECOMM

Founded in 2014, SECOMM is specialized in providing O2O Commerce solutions. Over the years, SECOMM owns a massive fortune of O2O commercial projects with major domestic and international customers such as, Annam Gourmet, Trentham Estate, etc.

In particular, SECOMM provides a variety of services to support businesses to improve their competitiveness and dominate the retail market in the digital age including Solution Consulting, Core-team Building, and O2O System Development, including: 

Business System

• eCommerce system: websites, mobile apps
• POS system

Administration System

• Enterprise Resource Planning (ERP)
• Customer Relationship Management (CRM)
• Product Information Management (PIM)

Customer Experience Management System

• Mobile Apps
• Loyalty Program
• Omnichannel Commerce

Data system

• Analyzing and Tracking business data 
• Business Intelligence 

Want to learn more about O2O Commerce as well as the best solutions to win the retail industry? Contact SECOMM now for a free consultation.

Despite the significant impact of Covid-19, the fashion industry is still on a roll, with the potential to reach $1 trillion globally by 2025 (according to Statista) thanks to eCommerce.

According to the IDEA 2022 research, the fashion eCommerce business in Vietnam is a highly competitive area, with up to 69 consumers using the eCommerce channel for every 100 fashion shoppers.

With the high potential of this commerce business, developing an eCommerce website is a must for success, necessitating the search for a platform on which to build a specialised eCommerce website for the fashion industry.

Businesses can use the following platforms to deploy fashion websites: Big Cartel, Haravan, Shopify, Woocommerce, and Magento.

Characteristics of fashion eCommerce 

Eye-catching UI/UX design

UI/UX is a criterion that businesses frequently establish when creating an eCommerce website in order to develop a comfortable interface for a group of users who are passionate about fashion and maximise the capacity to engage with customers.

Comprehensive functional system

To meet the eCommerce business demands of fashion enterprises, organizations require a comprehensive functional system ranging from basic to complex, which includes:

• Catalog Management: Manage properties, pricing systems, inventory, photos, and videos to keep them running
• Content Management: Content development for CMS pages, image hosting, theme customization, and website design
• Customer Management: Control information, behavior, and consumption habits to build strategies for each specific customer group
• Sales Management: Set up and operate sales, order, payment, and shipping processes
• Marketing Management: Implement and optimize programs to attract potential customers with built-in support tools
• System Management: Seamless supply chain response with shipping navigation and automation management tools
• Store Management: Navigate and maintain your eCommerce business from online to offline
• Cart & Checkout: Manage shopping carts and process the next payment steps for customers
• Analytics and Reports: Monitor and measure eCommerce performance to give detailed reports to improve business efficiency

• Omnichannel sales allows business to follow customers across all channels, including eCommerce platforms, social networks, and social commerce websites.
• Multi-layer menu displaying a range of product categories
• Experiment using a variety of marketing strategies: Loyalty programmes, livestreaming, shopper entertainment, and affiliate marketing all assist to broaden methods of reaching out to potential consumers.
• Huge traffic to deal with enormous traffic volumes during “selling seasons”

Integration with a range of third-party services

To provide clients with a comprehensive shopping experience, fashion enterprises may frequently combine a number of payment options, shipping services, management software, and business analysis tools to enhance the e-commerce business system.

Numerous common payment options available today must be integrated into the website, including:

• Card payment: Domestic card, VISA, Mastercard, etc
  E-wallets: MOMO, Zalopay, etc
  Payment gateway: OnePay, VNPay, PayPal, etc
  COD (Cash on Delivery)

Possibility to expand in the future

Often, firms at the start of a fashion business will not focus on the capacity to develop eCommerce websites in the future since platforms that enable this function are typically scarce. But, in terms of strategy, investing in a platform that supports this function can help organisations gain a competitive advantage over competitors in the market.

Top 5 fashion eCommerce platforms to build website 

Haravan

Haravan is a well-known SaaS eCommerce platform in the Vietnamese industry, offering a variety of options for both enterprises and individuals. Haravan is used by a variety of websites, including Juno, Biti’s, Maison, and others.

Platform review

Pro:

• A repository of readily available and diversified interfaces for the fashion industry
• A diverse feature, ranging from basic to complex, for starting an e-commerce business

Cons:

• The layout of existing templates causes duplicating, and it’s challenging to alter themes or create your own interface because doing so will have an adverse effect on the entire system
• The system of specific functions for the fashion sector is still limited
• Only integrated with services/utilities located in Haravan’s ecosystem
• Because it is a SaaS platform, it will be difficult for Haravan to expand the website in the future

→ Rating: 2/4

Haravan is suitable for start-up furniture businesses or SMEs (small and medium-sized enterprises) with operations mainly in Vietnam.

Pricing

Haravan is considered to have a reasonably low and diverse eCommerce website implementation cost for various businesses:

• Standard: 200.000 VND/month for personal sellers
• Pro: 600.000 VND/month for businesses that want to deploy Omnichannel
• Grow: 1.500.000 VND/month with the advantage of automating programs to take care and resell customers
• Scale: 3.000.000 VND/month for building loyal customers

Tuy nhiên, doanh nghiệp nên suy xét khi sử dụng Haravan trong dài hạn vì chi phí giấy phép sử dụng và các tiện ích mở rộng sẽ ngày càng tăng theo thời gian sử dụng. 

Deployment time

However, businesses should consider when using Haravan in the long term because the cost of licenses and extensions will increase over time.

Shopify

Shopify is a SaaS ecommerce platform favored by the international ecommerce business community because of its fast implementation time and reasonable starting cost.

Platform review

Pro:

• Having a large selection of templates ideal for the fashion industry
• Functional system from basic to advanced, supporting eCommerce business

Cons:

• The layout of existing templates causes duplicating, and it’s challenging to alter themes or create your own interface because doing so will have an adverse effect on the entire system.
• The system of specific functions for the fashion sector is still limited.
• More third-party services than Haravan, although still only integrated with services available in Shopify’s app store.
• Because it is a SaaS platform, it will be difficult for Shopify to expand the website in the future

→ Rating: 2/4

Shopify is considered suitable for start-ups or SMEs with global operations.

Pricing

Starting an eCommerce business using Shopify is quite inexpensive at beginning, with several options:

• Basic Shopify: $29/month appropriate for start-ups with limited sales volume
• Shopify: $79/month suitable for growing internet companies
• Advanced Shopify: $299/month ideal for growing enterprises that require comprehensive reporting and analytical capabilities
• Shopify Lite: $9/month perfect for companies who wish to add sales and payment buttons to their current website or blog.
• Shopify Plus: $2000/month provides advanced eCommerce solutions for large businesses that need to process large volumes of orders

Nevertheless, the long-term cost of utilising Shopify will rise owing to rising costs for extensions, yearly usage fees, and % per transaction on the system.

Deployment time

The typical time to develop an e-commerce website is 1-7 days or more, depending on the system’s complexity.

Big Cartel

Big Cartel is a platform that assists in the creation of specialised eCommerce websites for the fashion industry or for art goods such as ceramics, paintings, and photographs. Big Cartel is used by several websites such as Atakontu, Indikidual, and others.

Platform review

Pro:

• Wide variety of themes for the arts, including the fashion industry
• Comprehensive functional system: basic, advanced, specific

Cons:

• Only services accessible in Big Cartel’s app store are incorporated.
• Because it is a SaaS platform, future expansion of the website will be tough to plan.

→ Rating: 2.5/4

Big Cartel will be appropriate for startups, SMEs, or new e-commerce participants that need to handle the complicated “issue” of fashion eCommerce.

Pricing

Website setup expenses are modest, with few possibilities for solution packages such as Haravan or Shopify:

• Package 1: Free for businesses that need to experience
• Package 2: $9.99/month suitable for businesses with a limit of 50 products
• Package 3: $19.99/month suitable for businesses with a limit of 500 products

Deployment time

Big Cartel allows you to develop a fashion e-commerce website in as little as 1-2 weeks, depending on the system’s complexity.

WooCommerce

WooCommerce is an open source platform, as a WordPress plug-in introduced in 2011 and allows businesses to use completely free. Popular websites using WooCommerce in Vietnam include Hai Trieu, Orchard, etc.

Platform review

Pro:

• There are several free and paid themes for the fashion industry available from the WordPress and WooCommerce community that are simple to adapt or develop.
• eCommerce functional system ranging from basic to sophisticated
• Simple connection with a wide range of third-party services
• Businesses may plan to extend their website in the future because it is a source code platform

Cons:

• The functional system is still restricted in terms of fashion-specific elements.
• Scalability is not very great in comparison to other open source systems like as Open Cart, Magento, and others.

→ Rating: 3/4

WooCommerce is suitable for fashion businesses who are used to WordPress before and are in need of developing an eCommerce system.

Pricing

Because it is an open source platform, fashion firms can use it for free; nevertheless, businesses must pay development costs while utilising the platform, such as:

• Domain: $15/year
• Hosting: $120/year
• SSL Certificate: $50 – $300/year
• Website development: $1,000 – $3,000 depending on the complexity of the system
• Extensions: $10/utilities
• Website maintenance and upgrade costs: $200/year, depending on the cooperation unit

Deployment time

An eCommerce website will take longer to create than the previous three platforms since it must be constructed from the ground up, which will take at least 1-3 months.

Magento

Magento is an open source platform with 2 versions: Magento Open Source (free) and Magento Commerce (paid). Some websites are using Magento such as Canifa, Hoang Phuc International, OnOff, etc.

Platform review

Pro:

• Numerous fashion-specific themes are available from the worldwide developer community, marketplace, and Magento website developers, allowing businesses to use current themes or quickly alter them to meet their unique needs. Create your own user interface.
• Complete functional system: fundamental, advanced, and specific
• Simple connection with a wide range of third-party services
• Excellent scalability: multi-language, currency, and easy feature development in the future

Cons:

• There is no theme repository from Magento to support businesses

→ Rating: 4/4

Magento is appropriate for a wide range of fashion business types, including B2B, B2C, and B2B2C, as well as a wide range of business sizes, including startups, SMEs, and huge corporations. Nevertheless, because the cost of deploying Magento is sometimes very high, Magento is favoured by major organisations.

Pricing

Magento Open Source, like WooCommerce, is an open source platform, therefore it is free to use; nonetheless, businesses must consider the following costs:

• Domain: $15/year
• Hosting: $120/year
• SSL Certificate: $50 – $300/year
• Website development: $1.800 – $10.000 depending on the complexity of the system
• Extensions: $60 – $600/utilities
• Website maintenance and upgrade costs: $200/year, depending on the partner

Businesses will be working directly with Magento’s development team for Magento Commerce, thus they will have to pay licence fees as well as certain additional charges such as:

• Licenses: $22.000 – $125.000/year
• Domain: $15 – $400/year
• Hosting: $500 – $6.500/year
• SSL Certificate: $50 – $300/year
• Website development: $10.000+
• Extensions: $60 – $600/utilities

Deployment time

A complete Magento project typically requires 3 to 6 months of deployment time, with some projects requiring up to a year. The reason for this is the complicated functioning structure and the lack of Magento experts.

Summary

In the world of eCommerce, customer loyalty plays an important role in the success of businesses amidst fierce competition. There are many ways to build and maintain customer loyalty, but one of the most prominent is to enhance the customer experience through loyalty programs. 

The Importance of Customer Loyalty for eCommerce Businesses

Sometimes businesses focus too much on finding new customers and forget the value of their existing customers. The following statistics show how valuable it is to maintain customer loyalty:

• The probability of selling to an existing customer is 60%-70%, whereas, the probability of getting a prospective customer to buy products from you for the first time is only 5% to 20%. 
• 65% of sales come from existing customers.
• Compared to new and prospective customers, existing customers are 50% more likely to try out new products.
• 80% of future profits will come from just 20% of your existing customers. 
• Loyal customers spend an average of 31% more than new customers.
• 32% of executives worldwide said customer retention is their top priority.
• Increasing customer retention by even 2% has the same impact on profitability as cutting costs by 10%.
• 75% of loyal customers will recommend the brand to friends and family.

Existing customers are the best customers and the most valuable asset of an eCommerce business. These customers contribute greatly to the business profit and help businesses save time and money to acquire new customers.

What affects Customer Loyalty?

89% of eCommerce businesses around the world agree that the customer shopping experience affects customer retention. A high customer retention rate indicates that customers are happy and satisfied which leads to increased loyalty and repeated purchases.

Retaining customers plays an important role in eCommerce businesses because the cost of attracting new customers is five times higher than maintaining existing ones. Moreover, increasing customer retention by even 5% can increase business profits by up to 95%. This is because satisfied customers are likely to refer the brand to others.

Therefore, businesses need to focus their time, money, and energy on enriching the customer experience, persuading them to come back to shop more often, and recommending the brand to friends and family.

Among the various strategies for maintaining customer loyalty, Loyalty Program is one of the most effective factors for eCommerce success.

What is an eCommerce Loyalty Program?

A loyalty program is a marketing strategy designed to encourage customers to continue to shop at or use the service of a business associated with the program. Simply put, eCommerce businesses build loyalty programs to reward customers for their purchases and engagement for a long time.

The reward can be any free product, discount code, or special offer to represent the appreciation of the business for its customers, who tend to spend more because of the benefits they receive when participating in loyalty programs.

According to Yotpo, nearly 68% of customers said they would be willing to join the loyalty program and special incentives motivates them to buy more products.

Loyalty programs not only enrich the shopping experience and keep customers engaged with the brand but also from a business perspective, the benefits they bring to eCommerce businesses exceed the initial expectation. 

The Benefits of Using eCommerce Loyalty Programs

Increase Customer Retention

The development of eCommerce helps customers shop more conveniently. That means their expectations for the shopping experience are higher. Today’s customers make their purchasing decisions not only based on price but also other factors such as service experience or emotional connection with the brand, etc.

According to HuffPost, 66% of customers tend to switch brands for shopping if the service is not good enough. Loyalty programs help enhance the shopping experience. The more shopping satisfaction, the more customer retention and loyalty. 

Increase Customer Lifetime Value

Customer Lifetime Value or CLV is a key metric that indicates the total revenue an eCommerce business can reasonably expect from a single customer account throughout the business relationship. Most business owners will always find ways to increase the CLV index in order to maximize their profit.

According to Harvard Business Review, the cost of acquiring a new customer is more expensive, ranging from 5 to 25 times, compared to retaining an existing customer. As a result, high lifetime value customers become priceless assets for a business, as their purchases will not require acquisition costs. In other words, a business doesn’t have to incur acquisition costs for loyal customers. 

On the other hand, the business has to spend acquisition costs to convince potential customers to buy its products. Thus, even if a new customer spends the same amount on a product as an existing customer, it may not bring in equivalent profits because of acquisition costs. 

Encourage Brand Advocates

In most cases, existing customers are also the most incredible advocates. When customers are satisfied with the shopping experience, they are more likely to share it with their family, friends, or colleagues, and the business will gain more potential customers naturally. 

Compared to brand messages, recommendations from existing customers are even more effective. According to Nielsen, 77% of consumers trust recommendations from people they know more than any other source. As a result, before making a purchase, they will seek advice from people they trust. Plus, 64% of marketing experts believe that word-of-mouth marketing is one of the most effective forms of marketing. 

With the development of the Internet and social media platforms, recommendations from existing customers come in various ways, including posts, comments on social media or review videos, etc. This helps reduce acquisition costs so that every eCommerce business needs to focus on enhancing their existing customer shopping experience and new customers will end up rolling in for free. 

Types of eCommerce Loyalty Programs

Point-based Loyalty Programs

This is one of the most popular eCommerce loyalty programs since it is easy to set up and manage. By joining this type of program, customers can earn reward points after each purchase. They can then redeem their accumulated points for rewards such as gifts, discount codes, and other special offers. They also can earn reward points in many other ways besides making purchases, such as sharing product pages on social media, writing product reviews, completing surveys, filling out personal profiles, and so forth. 

Although this type of program is relatively simple to implement, businesses still need to ensure that the points customers earn have enough value to encourage them to continue shopping. Plus,  the time it takes to redeem points for rewards should be short enough because if customers have to wait for several months or even years to redeem points for a valuable reward, the attractiveness of the points-based program will decrease.

SHEIN, a popular fashion brand founded in 2008, has created a great SHEIN Bonus Point Program reward system on its mobile app. This program allows customers to earn points by registering an account, making purchases, reviewing products, and participating in special online events held by the brand. 

Each activity equals a specific reward point. Then, customers can use their reward points to receive discounts ranging from 15% to 25%, and even up to 70% for their next purchase. Additionally, reward points can also be used to exchange vouchers or other special offers when customers participate in SHEIN events or play games on the mobile app.

Tier-based Loyalty Programs

Another popular loyalty program is the tiered-based one. It encourages customers to strive to move up higher tiers to receive more valuable benefits and rewards. The more customers spend on shopping, the more benefits they receive. 

This program helps to foster customer loyalty to the brand. To maintain or move up in rank, customers have invested a lot of time and money, and they will not easily give up the huge benefits they are receiving to participate in another brand’s loyalty program.

The famous shoe brand Aldo, with over 1,000 stores in 65 countries, focused on 3 main markets – the US, the UK, and Canada – when building their loyalty program. Known as Aldo Crew, the program offers customers three levels of membership: Crew, Plus, and VIP. All customers are initially enrolled as Crew level members. To advance to the Plus or VIP levels, customers must spend between $150-299/month for the Plus level and over $300/month for the VIP level. Depending on the level, each customer receives corresponding rewards, and VIP-level customers receive all the special perks offered by the Aldo Crew program.

Subscription-based Loyalty Programs

eCommerce loyalty programs are very attractive because, from the customer’s perspective, they get benefits for free. However, in reality, customers have to make a purchase or perform a specific action to earn those “free” benefits. 

Many world-renowned brands have created incentive programs based on subscriptions to provide incredible services and charge customers for participation. Amazon Prime, eBay Plus, and Walmart+ are some examples.

To participate and receive truly valuable benefits, customers are required to pay a fee. Since customers have to pay a fee, their commitment to engaging with the brand is also higher than in other loyalty programs. Also, because businesses charge customers when they register as members, this loyalty program type usually has a trial period for businesses to convince customers that the benefits they receive are worth the money they spend.

In 2020, the famous American retail chain Walmart launched a subscription-based loyalty program called Walmart+. The program is integrated into the Walmart app and offers many special benefits to customers both in-store and online, including:

• Free delivery and same-day pickup
• Free delivery with no minimum order value
• The same prices for products purchased online and in-store
• Scheduling delivery options
• 10-cent discount on gasoline at over 14,000 Walmart branches
• Scan-and-go checkout option
• Special member-only deals and promotions during holidays and events, etc.

To join the program and enjoy these benefits, customers have to sign up and pay a specific membership fee of $12.95/month or $98/year. Customers can try the program for 30 days before committing to a membership. 

The loyalty program strategy plays an important role in customer experience which leads to their loyalty to the brand. The success of SHEIN, Aldo, and Walmart has become an inspiration for other eCommerce businesses to jump into the game. 

To learn more and develop the best loyalty program strategy, contact SECOMM now for a free consultation.

Along with the development of technologies, social platforms like Facebook, Instagram, and Twitter have been around to satisfy the demand for online interaction for over two decades. However, the change in consumer behavior makes TikTok the new favorite. 

By the end of 2022, TikTok was reported to reach 1B users globally, becoming the fastest-growing social platform ever. Having a large user base amid the rise of online shopping is an advantage, which contributes to TikTok’s ongoing transition into a Social Commerce platform. 

Recently, the social media platform has added a new buying and selling feature called TikTok Shop. It is a new solution for businesses of all sizes to boost customer engagement, brand awareness, and sales. 

What makes TikTok special?

The content of TikTok consists of vertically arranged videos that are compatible with smartphones and users only need to swipe up to watch a series of videos that are only a few seconds to one minute long. Creating content on TikTok is also easy and simple, users only need to upload the original video and add a few effects, then they will have an interesting and fun short video. With over 1 billion videos viewed on TikTok every day, it has opened up marketing opportunities for many brands. 

The majority of TikTok users are Millennials and GenZ, and it now expands to even younger users. They are a driving force behind the increasing expectation of digital experiences. Over 55% of GenZ in Vietnam are using TikTok, in the US, 62% of people between the ages of 10 – 29 are using this social network. The attention span of Millennials is about 12 seconds and for GenZ it’s around 8 seconds. Therefore, TikTok’s short-length videos are particularly popular with these generations because of their easily consumable content.

When compared to Reels (a feature of Instagram) and Short (a feature of Youtube), TikTok even has the upper hand. As The Graygency has noted, the monthly user base of IG Reels is in the lead with 2 billion users, followed by Youtube Shorts with 1.5 billion, and finally TikTok with 1.2 billion. The Reels feature was launched in 2020 and immediately became popular due to Facebook and Instagram’s enormous existing user base. The same is true for Youtube Shorts.

Meanwhile, TikTok was launched in 2016 but has reached 1 billion users in just 5 years. For Instagram and Youtube, this number took 8 years. A new player like TikTok when compared to the 2 major social platforms with a not-so-significant difference in user base, makes TikTok incredibly special. Plus, when considering other criteria like Engagement Rate, Female Users, Male Users, etc, TikTok even has higher rates than IG Reels and Youtube Shorts.

Another thing that makes TikTok special lies in its algorithm. When opening the app, users will see the “For You” page where TikTok displays videos that users may be interested in and immediately capture their attention. However, these videos don’t come from creators or brands that the user is already following but from the users’ interactivities on the videos, which is completely different from other social media platforms. 

The “For You” page is the most successful feature of the app as it creates content every second specifically tailored to each user’s personal preferences. These successes have led to a new step for the social platform – TikTok Shop

What is TikTok Shop?

TikTok explained in its launch statement:

“TikTok Shopping is a suite of solutions, features, and advertising tools that give businesses the opportunity to capture the full power of TikTok’s influence on purchase decisions”

Simply put, TikTok Shop is a new feature that allows TikTok users to buy products right on the app. Also, it provides businesses a way to display, promote and sell their products to a huge user base on TikTok. 

After setting up the TikTok Shop feature, a dedicated shopping tab will appear on the brand’s profile. That way, customers can browse through and purchase within the TikTok app or be transferred to the brand’s eCommerce website for checkout.

TikTok Shop Live

Besides the TikTok Shop feature, TikTok Shop Live is also a great resource to take advantage of. Brands can integrate their products from TikTok Shop into their live stream to encourage customers to interact with the brand and whenever they see a product they like, they can buy it during the live shopping stream. 

Let’s see the key TikTok Live Shopping stats:

• 50% of TikTok users have bought something after watching TikTok Live;
• Users on TikTok are 50% more interested in branded Live content than non-TikTok users;
• 1 in 5 users watch TikTok Live and of that group 62% watch it every day
• TikTok users are two times more likely (compared to non-TikTok users) to say the live stream is the most trustworthy to use when shopping.

Ha Linh, a female beauty vlogger in Vietnam, is widely recognized by everyone in the Vietnamese beauty community for her genuine product review videos. She fearlessly provides critical feedback on any brand, and her reputation precedes her. Recently, Ha Linh held her first live stream on TikTok, which incredibly got 11 million hearts and 80K views. To everyone’s surprise, within an hour, all the products from the three factories of the brands she collaborated with were sold out. This case highlights the effectiveness of influencer marketing campaigns in conjunction with TikTok Live Shopping for brands targeting young customer demographics.

Why brands need to embrace TikTok Shop?

Keep up with Social Commerce

According to research, 87% of customers make their purchasing decisions through information provided on social media, 90% discover brands through social media, and the average spent per day on social media is over 2 hours. This is a new great boost for Social Commerce globally. In 2022, global Social Commerce sales reached $992B and are estimated to exceed $3 trillion in 2026. 

With a massive user base of over 1 billion, TikTok has the potential to become the leading platform in global Social Commerce, and the TikTok Shop feature has been launched to achieve that goal. TikTok Shop is currently available in Europe, North America, and 7 Asian markets, including Vietnam.

The short videos on TikTok are already very appealing, and when combined with cleverly integrated advertising content, they can attract users’ attention. This not only entertains and engages users, but also motivates them to make purchases from the advertised shoppable content. According to data compiled by TikTok, 67% of users have purchased after watching a video even if they didn’t intend to do so beforehand. 

Thus, TikTok has created an infinite loop of shoppertainment that combines shopping and entertainment within the app. As TikTok prioritizes user-generated content and 83% of its users have created videos on the platform, after purchasing, they are more likely to share their experience with other people on the app. This ultimately creates an endless loop of shopping, discovery, consideration, purchasing, reviewing, and engaging that repeats itself.

Reach out to a large user base on TikTok

The majority of TikTok users are in the age range of 18-34. According to Statista, as of January 2023:

Bên cạnh đó, những danh mục nội dung phổ biến nhất trên TikTok bao gồm giải trí, thể thao/fitness, nấu ăn, mỹ phẩm, thời trang,…

Do đó, nếu các doanh nghiệp đang kinh doanh trong những lĩnh vực này và hướng đến phân khúc khách hàng trẻ tuổi thì xây dựng hiện diện nhanh chóng trên nền tảng TikTok và tận dụng tính năng TikTok Shop là điều cấp thiết phải triển khai, như cách mà Kylie Cosmetics đã làm.

Moreover, the most popular content categories on TikTok include entertainment, sports/fitness, cooking, cosmetics, fashion, etc. Therefore, for businesses operating in these fields and targeting younger customer segments, building a quick presence on TikTok and leveraging the TikTok Shop feature is crucial to implement, as Kylie Cosmetics has done. 

As soon as TikTok Shop was launched in the US market, Kylie Cosmetics was one of the first brands to get involved. To date, the brand’s TikTok account has over 3.5 million followers. Kylie Jenner once explained: “I built my business on social media; it’s where my fans go first to look for what’s new from Kylie Cosmetics. I have so much fun creating TikTok videos, and I love sharing posts of my fans using the products. That’s why I’m excited for Kylie Cosmetics to be one of the first to let customers shop directly on our TikTok!”.

Take advantage of TikTok Influencer Marketing

If Influencer Marketing plays a crucial role in the brand’s success on other social platforms, TikTok is no exception. This strategy is primarily used to increase brand awareness, run promotional campaigns, and boost sales. TikTok is a place for creative and engaging short videos, so TikTok users have a special love and interest in creators with their unique style and creativity that attracts users’ attention. 

TikTok Influencer Marketing is where business brands and personal brands are closely linked. Thus, some experts advise that in order to successfully implement TikTok Influencer Marketing, businesses should let their partners freely create promotional content as long as it meets ethical and cultural standards. This is because if TikTok videos are too focused on advertising, it will make users or potential customers “turn away”. 

Walmart, the American retail chain, recently sponsored a dance challenge called “SavingsShuffle”, which required players to show how to save money while shopping at Walmart with their creative fun dance moves, and then post the recorded video on TikTok. Six influencers were chosen to promote this campaign, including Trinity, AdamW, Sam Hurley, Bdash, Kidrl, and Ajani.

Selling on TikTok VS eCommerce Marketplace

• eCommerce marketplace: Brands and merchants have to rely heavily on the policies of eCommerce marketplaces, prices, products must be competitive, storefronts must be high-rated, etc.
• TikTok: This is a fair playing field for all brands and merchants. By creating attractive content and cleverly incorporating promotional elements, they can increase sales and their followers. However, participating in the high-level sales race on TikTok requires brands and merchants to invest more in creativity. 

With many years of experience in successfully implementing eCommerce for many customers in many countries, SECOMM understands the difficulties and challenges of implementing eCommerce. Talk to our expert to get free advice on eCommerce implementation.

ChatGPT is a new popular AI-powered tool. With the ability to generate human-like text, ChatGPT has a variety of applications in healthcare, education, entertainment, and even in the eCommerce world.

In this article, we will share the top 5 use cases of ChatGPT that business owners can leverage to accelerate their eCommerce.

What is ChatGPT?

ChatGPT (Chat Generative Pre-training Transformer) is a large-scale language generation model developed by an AI company called Open AI, which was formed in 2015. ChatGPT is regarded as one of the most advanced language models available today since it can produce human-like text. It can be used for a variety of tasks, including answering questions, creating essays, emails, poems, and even programming. 

You can simply use ChatGPT by visiting OpenAI’s website to create an account. Once you’ve logged into your OpenAI account, on the ChatGPT side of the website, you need to read through and accept ChatGPT terms. Then, you can start your conversation with it by asking questions. 

Because it is still in the research and feedback-collection stage, it is free to use. But as of February 1, 2023, the OpenAI company launched a new version of ChatGPT Plus in the US for $20/month, while keeping the free version.

How does ChatGPT work?

ChatGPT runs in a language modeling architecture called Generative Pre-training Transformer (GPT), specifically GPT-3. This type of AI model is trained on vast amounts of information from the Internet, including websites, books, articles, and so forth. 

It is fine-tuned using reinforcement learning. Meaning that ChatGPT “learns” from information found on the Internet as well as the user input. Due to Reinforcement Learning from Human Feedback (RLHF), ChatGPT is unique. 

RLHF enables human AI trainers to build conversation models in which humans act as both users and AI assistants, according to OpenAI. That helps ChatGPT learn new information rapidly and grow more intelligent. 

The key differences between ChatGPT and Search Engines

ChatGPT is a language model to generate conversation with the end users, whereas Search Engines index web pages on the Internet to help users find what they desire. ChatGPT can understand and respond to input information quickly. But, it does not search on the Internet for the information, instead, it uses the training data to generate a response. 

Another difference is that ChatGPT’s information update speed is still slower than that of search engines. Some search engines like Google can access the latest information but ChatGPT can only access data up to September 2021. Thus if you ask ChatGPT who is Miss Vietnam 2022, it would not be able to answer while Google could give you an immediate answer in just 0.6 seconds.

5 ways for using ChatGPT in eCommerce

Using ChatGPT helps increase revenue and enhance eCommerce business operational effectiveness. Here are 5 great ways to use ChatGPT in eCommerce.

Create product description

Because an eCommerce website has different product categories, writing a unique description for each product takes a lot of time and resources. ChatGPT can be used to automatically generate compelling product descriptions. This can save time and effort for business owners while still providing customers with high-quality information about the products. Moreover, this language model can create SEO-optimized descriptions that improve product visuality. 

For example, a fashion retail brand has launched a new sportswear collection. ChatGPT will generate descriptions focused on moisture-wicking, comfortable fit, and the full range of motion and flexibility. It not only informs customers about the technical aspect of the product but also encourages them to shop with compelling and persuasive words.

Create product recommendations

ChatGPT còn được các doanh nghiệp thương mại điện tử sử dụng trong việc đưa ra đề xuất cá nhân hoá sản phẩm. Bằng cách sử dụng dữ liệu khách hàng và lịch sử duyệt web, ChatGPT có thể đưa ra các đề xuất sản phẩm phù hợp cho từng khách hàng cụ thể. 

Ví dụ: Gần đây có một khách hàng tên Mỹ đã mua một chiếc áo thun thể thao tại cửa hàng, doanh nghiệp có thể sử dụng ChatGPT để đưa ra đề xuất sản phẩm tương tự mà khách hàng này có thể quan tâm. Từ việc gợi ý sản phẩm phù hợp và cá nhân hoá có thể giúp tăng mức độ tương tác và doanh số bán hàng.

Generate social media content

Another way to use ChatGPT is to generate engaging social media content. 

For example, a company can use ChatGPT to generate promotional posts on social media platforms to introduce features and benefits of products engagingly and excitingly. Posts can include a caption, image, or video to highlight the advantages of that product. By leveraging the power of ChatGPT, businesses can promote their products and reach new customers on social networking sites effectively.

 Generate email marketing campaigns

Running email marketing campaigns enables eCommerce businesses to build relationships with their customers, advertise their products and boost sales. By sending personalized ideal emails to customers and prospective customers, businesses can earn customer loyalty and encourage repeat purchases. 

ChatGPT can be used in your email marketing campaigns targeting specific customer segments to achieve the desired results.

Example: Jennifer is a regular customer of a sports fashion company. Now the company launches eco-friendly sneakers with a minimalist design. The company uses ChatGPT to compose content for email marketing campaigns to introduce Jennifer to new products and ideal incentives for loyal customers.

Enhance customer service

eCommerce business owners can use ChatGPT to handle customer requests in a personalized way. It could be responding to inquiries about order status, product availability, shipping fee, or return concerns. By providing ChatGPT demographic information such as age, gender, and interest, it will immediately generate text for a specific customer in a specific case. That helps increase customer engagement and conversion rate. Businesses will free up time and workload for the team to focus on more important tasks. 

For example, if a customer named Jennifer asks for a return process, ChatGPT can generate a response with detailed information including requirements and time for return. 

The downsides of using ChatGPTin eCommerce

Like every AI-powered tool, ChatGPT has its downsides when used in eCommerce. 

Firstly, although ChatGPT helps generate content for marketing campaigns quickly and automatically, it still can’t compete with the original writing by humans. If people depend too much on ChatGPT, their writing will become robotic and clunky which might affect their marketing campaigns the most. 

In addition, as mentioned above, ChatGPT is trained by reinforced learning. This leaves room for issues since the information ChatGPT “learned” might not be accurate, hence generating wrong answers for users.

Last but not least, businesses should use ChatGPT with caution. They might want to clarify the information given by ChatGPT carefully before using or publishing their content, which could harm the businesses’ reputation when incorrect or misleading information is used. 

Every business owner today can use the five most effective ways to use ChatGPT in eCommerce to stand out from the crowd. Yet, it’s not easy to use it properly and make it an important factor of eCommerce business without being dependent. 

Talk to SECOMM now to get started.

According to Research and Markets, the global gamification market was valued at over 10 million USD in 2020 and is expected to reach more than 38 million USD by 2026. 

Gamification is a creative marketing strategy that has recently grabbed the attention of eCommerce business owners who are looking for ways to enhance customer engagement and achieve sales targets. In this article, we will discuss the ways Gamification empowers eCommerce. 

What is Gamification?

Gamification hay trò chơi điện tử ứng dụng hoá, gọi tắt là Game hoá là thuật ngữ chỉ việc lồng ghép khéo léo cơ chế của trò chơi điện tử vào hoạt động marketing một cách sáng tạo, ấn tượng nhằm đạt được mục tiêu marketing đã đề ra.

Gamification is the application of typical elements of game playing to other areas of activity to help businesses achieve their marketing goals. 

Gamification emphasizes entertainment, making it a fantastic tactic for boosting brand loyalty and encouraging engagement with products or services. In recent years, eCommerce businesses have been accelerating the use of Gamification in the online shopping experience. Because customers today have more options, they also have higher expectations for their purchasing experiences. If an online store offers unique and enjoyable shopping experiences, customers are more likely to make a purchase quickly. Gamification will help eCommerce businesses stand out from the crowd.

Why apply eCommerce Gamification?

Increase Customer Engagement

Businesses can increase engagement by integrating Gamification into eCommerce websites and making shopping fun and interactive. Recent studies show that the eCommerce Gamification strategy will increase customer engagement by 47%. 

Games usually ask players to complete tasks to earn reward points or to win the game (e.g sharing the game on social networks, inviting friends, browsing products, and adding to carts). If the game has some discount codes or vouchers, it will attract more players. That way, an eCommerce business can deliver its brand messaging directly to customers without pressuring or urging them into buying. An enjoyable shopping experience leads to an increased conversion rate. 

Boost Sales

eCommerce Gamification strategy will help businesses boost sales if used effectively. When customers are engaged with the game, they are more likely to win discount codes and use them for later purchases which will make sales increase significantly.

In 2021, Domino’s Pizza,  one of the world’s leading pizza brands, increased its sales revenue by 30% with the help of Gamification. This company developed a game called Pizza Hero, in which users will make their pizzas on mobile devices. They can then click “Make an order” to order their pizza creation at a discounted price.

Enhance Brand Loyalty

For brands, retaining customers and turning them into loyal customers is important. Gamification can help enhance brand loyalty by creating interesting experiences that encourage repeat visits. If a brand offers points or badges for reaching milestones, customers excited about earning rewards will be more likely to come back and play again. Whenever customers have shopping needs, they will recall and choose that brand.

The drawbacks of Gamification

Although Gamification helps increase customer engagement, boost sales, and enhance brand loyalty, it still has potential drawbacks that eCommerce businesses should keep in mind before implementing it. 

Developing amazing games requires creativity. Basic games like Quiz or Spin The Wheel are easy to create. These game experiences are too common among users so it’s unlikely to generate conversion. Hence, every business needs to get professional advice from creative agencies to design and develop engaging games that catch the eyes of users. However, it costs a lot of time and budget. 

For example, creating a game with a variety of sound effects, images, videos, or personalized animated elements that enrich the user experience will increase the cost of implementation. 

Most successful Gamification campaigns

Starbucks

Among brands that have had success using Gamification, Starbucks would be the first one mentioned. Coffee brands usually offer vouchers or loyalty cards to encourage customers to return next time. Breaking out of the old rut, Starbucks developed a special game for its customers – “Flip the Cup”, in which the player chooses his favorite drink and could use one hand to flip the Starbucks cup. Each time, the player has 10 flips and each successful flip gets 10 points. Then, with the points achieved, the player can choose to play again or download vouchers. This exciting experience boosted engagement by 90% and the number of downloaded vouchers exceeded the targets by 110%.

Domino’s Pizza

As mentioned above, Domino’s Pizza first entered the market in 2012, and that same year the company also launched Pizza Hero, the first game that gave pizza lovers a new way to order. In case they don’t know what to order, they can shake their mobile devices to ask the app for suggestions. Especially, users can customize their pizzas, find coupons, place orders at a nearby store, and track order progress right on their devices. 

By using this strategy, Domino’s was able to boost online sales by 30% and achieve $1 billion in the US market alone. Pizza Hero received 140,000 downloads in the first two weeks after its debut, propelling it into the top 15 Lifestyle ranking on Google Play and the iTunes Store. Moreover, Pizza Hero and Domino’s Pizza both won the praise of Forbes, the most prestigious magazine in the world.

Gucci

Gucci has taken eCommerce Gamification to a new level. Gucci Arcade is one of the fashion giant’s Gamification strategies to attract the attention of Generation Z. It offers customers amazing games to engage with such as Gucci Bee and Gucci Ace. This experience helps Guccis reach a wide pool of potential Gen-Z customers.

Gamification is a strategy that strengthens the development of eCommerce. It has become popular in the world as well as in Vietnam. Every business owner needs to seriously recognize its potential and plan for rapid implementation. 

Talk to SECOMM today to get expert advice on eCommerce Gamification.

​​​​​​According to CommonThread, the global cosmetics eCommerce market size is valued at 483 billion USD in 2020 and grew to 511 billion USD in 2021 at a compound annual growth rate (CAGR) of 4.75%. The market size is anticipated to surpass 716 billion USD by 2025 and reach 784.6 billion USD by 2027.

The amazing growth rate of the online cosmetics sector demonstrates both the industry’s enormous potential to grow and its significant contribution to the global economy. Cosmetic companies must encourage the development of eCommerce websites to enter the market rapidly and take control of it in order to keep up with the economic trend as a whole.

It takes time to develop an online store for cosmetics, and SECOMM has detailed and analyzed the two key stages of the process.

Stage 1: Basic cosmetics eCommerce website development

Targeting

The first important thing a cosmetic business needs to do is to set goals and prioritize those goals in the short and long term. 

In the short term, promotional activities, monitoring, analyzing, and measuring the effectiveness of marketing campaigns, especially user experience should be the top goals that need to be promoted.

In the long term, cosmetics eCommerce businesses should focus on increasing brand recognition and online business capabilities of their products.

At this stage, businesses do not have much data to analyze and evaluate for the whole process, so they can listen to a lot of advice from specialized eCommerce implementation consulting units with a lot of experience in long-term consulting to get the right list and priority of goals for both this period and beyond.

Platforms selection

In today’s market, there are two types of platforms that are dedicated to building eCommerce websites, including SaaS platforms and Open Source platforms.

SaaS platforms

Service as a Software (SaaS) is a service-based software application distribution model for eCommerce business purposes.

In other words, the provider creates and maintains software to help build an eCommerce website and the business will pay a certain cost to use this service.

With SaaS, the entire website system is hosted on the provider’s server, so ownership and control of the source code and data will belong to the provider.

This means the SaaS service provider will be responsible for handling and fixing technical problems arising during the cosmetic eCommerce implementation. 

• Pros: Easy to use, fast deployment time, good security, 24/7 customer service.
• Cons: The cost of building an eCommerce website increases over time, businesses cannot own the source code and data, and the functions and capabilities of customization and expansion are limited.

Some of the popular SaaS platforms today are: Shopify, BigCommerce, Salesforce Commerce Cloud, etc

Open-Source platforms

An Open Source platform or an open source platform is software with a widely released source code that allows users to download, modify and upgrade necessary features for eCommerce business purposes.

The platform is often developed by a community of developers rather than a single company.

Moreover, this will be the ideal platform for implementing complex eCommerce website systems, specific to many fields including cosmetics thanks to in-depth customization functions.

This means that businesses need to cooperate with professional eCommerce website builders or develop a team of highly qualified internal staff to operate the website effectively.

• Pros: Customizability, flexible extension, diverse features, and add-ons, businesses own the source code and website data. 
• Cons: The cost of building an eCommerce website is high, the implementation time is long and it is not easy to use.

The most prominent Open Source platforms on the market today: Magento, OpenCart, WooCommerce (WordPress Plugin), etc. 

At this stage, businesses should choose a SaaS platform to start with to familiarize themselves with the eCommerce business as well as save budget for more important investments such as marketing,…

Then, when entering the second stage, the business scale has now grown and expanded, and switching to the Open Source platform is now necessary and reasonable to achieve the goal of eCommerce growth.

Web interface design

After choosing a platform to build a cosmetic eCommerce website, the business will design the website interface so that the standards of UI/UX are met in order to optimize the website, showing the characteristics of the brand and cosmetics industry.

​​So, businesses can choose one of the following three ways to design an eCommerce website interface:

• Using the available interface: This way helps businesses save interface costs compared to the other two ways. Both SaaS and Open Source platforms provide a variety of UI/UX interfaces with prices ranging from $300 to $500.
• Customizing based on the available interface: Almost the same as the first way, but businesses will customize the interface to suit the needs of brand development.
• ​​Using a self-designed interface: Companies can start thinking about designing their own website interface right immediately to develop a brand image that is unique and more creative than rivals. Even while this is more expensive for businesses than adopting an already-existing interface, the “tailor-made” design interface will match the industry-specific requirements and expectations of the company during the eCommerce deployment phase

Usually, in stage 1, businesses should only use the available interface or customize based on the available interface because the basic functionality system needed, most of the interfaces provided are already there.

Functional system development

In the first stage, businesses should prioritize developing the basic functional system needed for a complete cosmetic eCommerce website, specifically including: 

• Category management: Manage product categories, functions, prices, images/videos to optimize business operations.
• Sales management: Manage order information, understand and analyze customers’ shopping behavior effectively.
• Marketing management: Integrating features such as URLs, meta tags, and internal links to optimize SEO, combined with effective marketing campaigns to achieve sales goals.
• Content management: Build and optimize content for the CMS system from text, images, banners, widgets, and templates to brand content, blogs, etc.
• Customer management: Store, manage and analyze customer information and customer groups, thereby improving marketing effectiveness to optimize the online shopping experience.
• System management: Manage and decentralize administrators to operate, secure and maintain the eCommerce website system.
• Store management: Use inventory management tools at branches, stores, and warehouses to ensure a continuous and efficient supply process.
• Cart and checkout management: Manage customer shopping cart and payment information.
• Analysis and reporting: Analyze and measure the performance of the eCommerce website system, thereby giving the next business strategy.

Functional system development

Legal procedures finalizing

The final step of building a basic eCommerce website is completing the necessary legal procedures for the website to be allowed to operate legally.

Businesses can follow the simple registration steps as instructed at the eCommerce Management Portal.

This is a mandatory requirement of the Ministry of Industry and Trade for every individual or organization that owns an eCommerce website to sell goods and to perform the registration/notification obligation on time.

Stage 2: Advanced cosmetics eCommerce website development

Re-targeting

Along the business development journey that comes with the constant change of consumer behavior, business goals, and strategies need to be adjusted and re-established to match the current context of the eCommerce market. In addition, at this stage, businesses also have problems, data, and insights about online users, so setting goals will be easy.

In the short term, businesses can prioritize finding and attracting potential customers and growing online sales with effective marketing.

In the long term, a cosmetic business can consider the goal of expanding the market segment by identifying the target market segment and making a marketing strategy in accordance with the product characteristics and the direction of the business in the second stage. 

In addition to short-term and long-term goals, businesses need to focus on considering the time and cost of investing in the cosmetic eCommerce website system because, at this stage, the cost and investment budget will often be large. much more than the basic construction phase above.

eCommerce platform switching

In the beginning, cosmetics businesses are advised to develop their initial eCommerce websites using SaaS platforms. However, the restricted capability and customizability of SaaS won’t be able to satisfy that expectation given the second phase’s objectives of growth and scalability.

To create more specialized cosmetic eCommerce websites at this moment, companies can think about moving to Open Source platforms with respected names like Magento, WooCommerce, etc.

Some suggested criteria to consider when choosing an Open Source platform:

• ​​Support to design eCommerce website interface based on UI/UX standards.
• Provide functional systems from basic to advanced and specific to the cosmetic industry.
• Flexible customization, high extensibility, integration with third-party services, and a variety of add-ons.
• High security.

Besides that, businesses should be aware of the costs associated with switching from a SaaS platform to an Open Source platform, the time required for staff to learn on the new platform, the danger of data loss, and any issues that may occur.

Resources selection

Unlike the basic eCommerce website building stage, in the second stage of the implementation process, businesses need to choose resources for development. Businesses can build an internal team or seek support from a specialized developer.

The business will hire and train skilled and specialized IT people on the chosen platform for internal team growth. In this case, it will require a lot of time and money from the company, but it will aid in better resource management, control, and active adjustment to develop the eCommerce website system in accordance with the original aim.

Businesses frequently work with a variety of firms to find “true love” in their collaboration with eCommerce website developers. As a result, businesses will receive the eCommerce websites they need as expected, the collaboration process will go smoothly, and businesses will gain more expert knowledge and website development experience from a partner, which will point them in the right direction in terms of the cosmetic eCommerce industry’s development trends.

These are the criteria that businesses should consider when choosing: In-depth knowledge and experience in eCommerce and the cosmetics industry; professional working team; clear and detailed working process; ability to quickly handle problems that arise during website development.

Web interface re-design

Businesses are not required to update the website interface while switching platforms. Redesigning the website interface to work with the Open Source platform, however, is today recognized as a wise company development approach that was introduced simultaneously with the deployment of advanced eCommerce websites.

Similar to the previous period, businesses have three options for designing e-commerce website interfaces, including using the available themes, customizing based on the available themes, and designing their own interface.

Usually, at this step, businesses should choose method 2 or 3 to design the interface to ensure the uniqueness of the brand and the specificity of the cosmetic eCommerce industry.

Upgrade the system with advanced and industry-specific functions

In addition to the basic functions that have been built for the eCommerce website system in stage 1, businesses should concentrate on developing a system of advanced and specific functions for the cosmetic industry in the later stages. 

Today, several well-known cosmetic brands embrace AR (Augmented Reality) technology to improve the customer experience. Customers can now download the AR software, activate the camera, and sample the goods online rather than going physically trying it on in the store to see whether it will fit their face.

The Kylie Virtual World application, for instance, offers users an engaging product experience. Users of the newly released Kylie Cosmetics items, such as eye cream, foundation, and lipstick, can sample the product out in 360 degrees by using their phones to scan the QR code.

eCommerce website system maintenance

A sophisticated eCommerce website system demands a great deal of experience and effort to operate and maintain. This is the procedure of continuously maintaining, updating, and upgrading the entire system to aid firms in foreseeing and resolving problems (for example, sudden increase in traffic from the promotions that stimulate shopping).

That supports sustained and persistent online sales growth, which is important for eCommerce businesses in general and furniture eCommerce in particular as they compete for a market share of this “pie,” which is “delicious” but can be challenging to consume.

eCommerce acceleration

Furniture eCommerce enterprises readily accomplish growth above and beyond expectations by putting into practice efficient business and marketing strategies.

Therefore, the entire process—from planning through implementation—must be structured with effective, practical solutions that have been demonstrated to work. Implementing Omnichannel, eCommerce Marketing, and SEO optimization are some suggested methods for eCommerce enterprises to accelerate growth.

eCommerce business optimization

​​The journey of developing an eCommerce website ends with measuring, analyzing, and optimizing eCommerce business activities.

Businesses can use analytics tools such as Google Analytics, Google Tag Manager, Facebook Pixel, etc., to track, update and measure website performance metrics as well as the effectiveness of marketing campaigns.

From there, the eCommerce business strategy for the next stage of development will be carefully and methodically planned thanks to clear and detailed reports & analysis.

The journey of building a cosmetic eCommerce website with two stages from basic to advanced has been outlined in detail with meticulously analyzed implementation steps. Businesses in the industry can refer to it to draw their own development journey in this potential field.

With many years of experience in successfully implementing eCommerce for many customers in many countries in recent years, SECOMM understands the difficulties and challenges in the process of implementing an interior eCommerce website.

Contact SECOMM today for free support and advice.

After Covid, eCommerce is on the rise and is expected to continue to thrive stronger and more resilient than ever. Global retail eCommerce sales reached $4.9 trillion in 2021, as stated by Statista. By 2025, this figure is projected to increase by 50% to approximately $7.4 trillion and there is no sign that the growth of online shopping will slow down anytime soon.

The expansion of eCommerce has raised concerns among physical store owners and urged them to embrace eCommerce quickly to avoid being left behind. It’s simple for businesses with a large budget, but other small and medium-sized businesses will not be able to move their entire operations online. Thus, the O2O Commerce model is the solution worth considering. Its popularity has been raised since 2021 and is expected to reach retailers soon. 

What is O2O Commerce?

O2O or Online-to-Offline Commerce Model is a business strategy that draws potential customers from online channels to make purchases in brick-and-mortar stores. This model aims to create a seamless shopping experience at all stages: before, during, and after purchasing.

How does O2O Commerce work?

O2O Commerce combines online and offline business models. Its objective is to increase product awareness online, allowing customers to search for what they need before visiting a physical store to make a purchase. There are some O2O strategies that businesses can try including Buy Online Pick-up In-store (BOPIS), In-store Returns, Home Delivery, etc

For example: 

• A man wants to buy a shirt from a particular fashion brand;
• He searches for it online and goes to the web store that sells the product he is interested in;
• Then, he chooses the shirt’s size and color, applies a discount code, and makes a purchase;
• He goes to a local store and picks up the shirt by providing his information;
• He tries on the shirt he ordered in the store to check its quality, size, and comfort. If he is not satisfied with the product, he can return it and get a refund.

That way, the customer can both take advantage of the discount code for the shirt, and try it on at the nearest store without having to wait for delivery. Moreover, he can completely return the shirt immediately and go to another store if he is not satisfied.

Home Delivery is also another popular strategy in the O2O world. It will take a few hours or a day. So, the man can buy his shirt online, select the home-delivery option and wait to get it. In another case, when going to the store to pick up the shirt, he sees and likes a jacket but needs help finding the right size or favorite color. He simply places an order online while in store and that desired jacket will be delivered to his door.  

The differences between O2O and Omnichannel

The example above may confuse the O2O commerce model and the Omnichannel commerce model. Although they both facilitate a more seamless shopping experience among channels, their main goals are quite different. While Omnichannel aims to integrate all sales channels in one ecosystem, O2O aims to bring potential online customers to physical stores to make purchases. Both strategies are designed to bridge the gap between online and offline sales, but O2O prioritizes a specific buying journey instead of multiple touchpoints in Omnichannel commerce.

Case studies

Topshop

One of the brands that understand what they are doing to connect in-store shopping with online shopping in a tight way is Topshop. By partnering with eCommerce website ShangPin to open retail stores in malls, with giant iPhones decorated in Topshop style, customers can access “The Mobile Adventure” by scanning a QR code to view and try on virtual Topshop fashion products in the store. Then they share their look on social media and place an order.

Tommy Hilfiger

When it comes to fashion, Tommy Hilfiger has shown his agility when deploying the O2O model. In 2015, the brand launched digital showrooms, pioneering the fashion industry’s digital revolution. In 2016 they launched a chatbot through Facebook Messenger and in 2017 they launched the Hilfiger Club app with a loyalty program of personalized special offers and invitations to the brand’s events. All of that gives customers a good reason to come to the store. 

99 Ranch Market and WeChat’s Shake

In recognition of the significance of an O2O commerce strategy, WeChat introduced a “Shake” feature that enables mobile users to connect to a nearby local business by shaking their phones. The retailer’s unique offers are then all accessible, encouraging customers to engage in the in-store buying experience.

Soon after, the 99 Ranch Market, a chain of Chinese-American supermarkets, benefited from the popularity of WeChat’s “Shake” feature and the rise of O2O among the Chinese community in the US. Customers can play a “beacon shake” game the company has created, which is activated by in-store beacons and gives them the chance to win a variety of prizes and coupons for their subsequent purchases. 

The O2O Commerce model is an incredible idea with great potential to change both online and offline sales in the eCommerce era. While customers can shop both in-store and online, brands can optimize engagement, conversion rates, and average order value.

Today, when customers’ expectations for online shopping are similar to offline shopping, one condition for physical stores to survive is to build their online presence quickly. The O2O strategy is about leveraging both online and offline channels, thereby enhancing brand loyalty, and providing a seamless Online-to-Offline shopping experience at all stages: before, during, and after purchases. 

Want to know more? Contact our experts to learn more about O2O Commerce and how to implement it in your business. 

We are living in a world where the younger generation has taken the lead in setting ever-rising standards for digital experience. So, it’s important for businesses to quickly adapt to new trends for sustainable development to keep up with the shift.

Especially during a global pandemic, eCommerce has become one of the top priorities of every business owner. In order to thrive in a rapidly changing market and keep customers loyal, brick-and-mortar businesses have had to build an online presence and increase their eCommerce capabilities. 

The term “Omnichannel Commerce” is defined as a “trend” that helps businesses achieve the aforementioned objectives and this trend is expected to continue to accelerate in the coming years. 

What is Omnichannel Commerce?

Omnichannel Commerce is a multichannel approach that focuses on offering a seamless shopping experience by marketing and selling across all channels where potential customers are present including mobile devices, social networks, eCommerce websites, and brick-and-mortar stores.

The main differences between Single Channel, Multichannel, and Omnichannel

Single-channel Commerce 

When a company sells its products or services only through one channel, that approach is known as single-channel commerce. It could be a physical store, an eCommerce website, or a marketplace like Shopee, Lazada, Tiki, etc. 

Selling through a single channel could initially be quite successful, but if businesses desire to provide their customers with a richer shopping experience and increase brand awareness, they need to add multiple channels to showcase and sell their products or services. 

Multichannel Commerce 

When it comes to the Multichannel Commerce strategy, businesses will interact with customers and sell their products through both online and offline channels. This strategy makes use of touchpoints where customers can perform the same action at any available channel. These touchpoints, however, are independent and barely or not at all connected among channels. For example, a physical store with an eCommerce website has no inventory-sharing function.

Omnichannel Commerce 

Similar to Multichannel Commerce, Omnichannel Commerce enables a company’s marketing and sales efforts to be spread across numerous channels. The main distinction is that Omnichannel Commerce prioritizes the customer, connects all touchpoints, and creates a unified buying experience. But, Multichannel Commerce aims to reach as many channels as possible, with unique content for each and customers will interact with brands through their preferred channels.

How does Omnichannel Commerce work?

An effective Omnichannel Commerce strategy includes effective operations of each sales channel that will be integrated in a seamless and consistent manner. Touchpoints should provide a unique but connected experience based on previous interactions. That experience takes customers to the end of the customer journey to get the business’s objectives.

Imagine a man who wanted to buy a new washing machine. After seeing an attractive TVC with the merchant’s information, he used his laptop to begin searching on the Internet. He discovered the merchant’s eCommerce website, and his desired product is offered at a local physical store. He decided to add that product to his shopping cart after chatting with the customer service team. 

He downloaded the merchant’s app, signed into his account, and accessed his cart before heading to the store because he wanted to see and check that washing machine in person before making a purchase. He checked the app to ensure the item is still in stock, its quantity, the best payment method, and any associated special offers. 

When he arrived, he checked the product’s quality and checked out with the QR Code. The transaction is finished. Under the CRM system, his information and data would be saved for upcoming marketing campaigns and post-sale efforts.

What are the benefits of Omnichannel Commerce?

Nowadays, consumers receive a ton of offers and messages from many brands day after day. This brings up many considerations when choosing a brand to engage with. Developing an Omnichannel strategy to connect with customers in a seamless manner across multiple channels will set a brand apart from the competition. 

Omnichannel Commerce is a customer-centric model, connecting touchpoints and providing personalized experiences. This contributes to the company’s revenue increase as expected with cross-sell and up-sell opportunities. 

Also, the branding strategy will be effective and successful, enhancing customer loyalty as well as the brand message will reach the right target audience thanks to the consistency of the Omnichannel Commerce model. It’s not only useful for increasing customer engagement but also for customer data evaluation. 

Thus, businesses will have a bigger picture of the customer journey, the times and channels customers usually interact with, as well as the most effective and valuable marketing campaigns. All this data needs to be meticulously analyzed and reused in the next marketing campaigns.

3 examples of Omnichannel Commerce in the real world

Nordstrom

Omnichannel Commerce has long been a strength for Nordstrom. They created the Pincode feature that allows customers to use their smartphone to scan and access Pinterest to get a $100 Nordstrom giveaway while in the store. The brand also showcases in the store Pinterest’s best-selling products as an interesting suggestion. 

In addition to Pinterest, it uses Youtube to create video tutorials for matching outfits and suggests its customers go to the physical store to meet a professional. At the store, they will receive valuable advice that may lead to a purchase decision. 

Recently, Nordstrom has leveraged Instagram’s shoppable posts to inspire shopping and encourage customers to make quick decisions.

Sephora

Sephora is one of the major brands in the beauty industry that is successful with Omnichannel Commerce. The company has established a strong connection between online and offline shopping experiences. Customers can access Sephora Beauty Bag’s personal account by using available tablets in its brick-and-mortar stores.

This account allows them to look up details of the items they are interested in and try them out using virtual reality. Additionally, Sephora’s benefits, like its in-store makeup tutorials and personalized gifts, have encouraged customers to make larger purchases.

Starbucks

The world-famous beverage brand – Starbucks has launched the Starbucks Rewards App which is considered the pinnacle of Omnichannel Commerce. After creating an account, Starbucks fans can find a list of local stores, order drinks, and pay in advance so they don’t have to wait in line.

The app also regularly makes personalized recommendations for each customer based on previous orders, loyalty programs, weather, holiday seasons, or local store inventory.

Keeping up with the ever-changing business world is not easy. In fact, many big brands in the world have implemented Omnichannel Commerce early and have achieved great success. Plus, many other businesses are tending to gradually shift from Single-channel or Multichannel to Omnichannel and recognize this model as a bridge connecting customer experience between online and offline channels in a seamless way. 

With many years of experience in successfully implementing eCommerce for many customers in many countries, SECOMM understands the difficulties when doing an Omnichannel Commerce strategy. 

Contact our expert now to get a free consultation. 

The eCommerce industry has a sizable market share in the Vietnamese economy and has shown impressive growth over the past two years due to the effects of the worldwide pandemic and social isolation.

After a year of society adjusting to the “new normal”, customers have started to buy at traditional stores again but the established trend of eCommerce consumption and the push from the wave of global digital transformation have encouraged businesses to change in order to suit the way the digital economy works.

Therefore, recognizing and anticipating the eCommerce trend of 2023 is extremely necessary for businesses’ New Year’s Marketing strategies to be implemented effectively and successfully.

Below is a list of 10 eCommerce trends that are forecast to “storm” the market in the next year.

Omnichannel

Omnichannel is an omnichannel sales model that helps businesses reach customers through many channels such as eCommerce websites, social networks, eCommerce platforms, chain stores, and distribution agents but operating in just one management system. 

Additionally, there is a second type of sales model called “Multi-channel” that differs from Omnichannel in that it allows for discrete marketing content, unlinked data, and independent channel operation.

When purchasing across numerous channels, continuous and seamless updates result in a heterogeneous and seamless customer experience.

Due to the lifting of social distance restrictions, consumers are beginning to return to in-store buying after two years of online shopping.

However, that doesn’t mean that eCommerce’s growth momentum is stagnant; on the contrary, it keeps exploding.

Businesses there make use of the current rise in popularity of online shopping to encourage the use of Omnichannel to improve the varied and efficient shopping experience.

As researchers have noted:

• An estimated 56% of customers use smartphones to look up products while in a retail store.
• Nearly 75% of users use many different channels such as websites, social networks, and physical stores to shop.
• Around 73% of eCommerce consumers say they take an Omnichannel approach throughout the experience journey. For example, after shopping at a store, shoppers continue to follow the brand’s website, social networking sites, and eCommerce platforms.

As a result, 2023 will still be recognized as a strong year for omnichannel in eCommerce.

Mobile Commerce

Mobile Commerce or mCommerce is a business model that allows companies and individuals to deliver goods and services directly to consumers through handheld wireless devices such as smartphones and tablets.

According to Bankmycell, the number of smartphone users worldwide in 2022 is 6.648 billion, equivalent to 83.07% of the world population owning a smartphone.

Moreover, it is predicted that this number will increase to 7,516 billion by 2026. In addition, the percentage of global users participating in online shopping in 2022 accounts for 58.4%.

In Vietnam alone, interesting figures are listed in the Vietnam eCommerce White Book in 2022:

• 88% of people’s means of accessing the Internet are mobile phones, while this rate will only reach 57% in 2021.
• The percentage of Internet users participating in online shopping is 74.8%.
• 91% of the electronic means commonly used to order online are mobile phones.
• Among online shopping channels, 47% of users make purchases through mobile shopping applications.

In upcoming years, the percentage of global people and Vietnamese people as well who own mobile devices and use them for online shopping is high and predicted to increase significantly. 

Social Commerce

Social commerce refers to the method through which companies advertise and sell goods and services online using social networking sites like Facebook, Instagram, TikTok, Youtube, Zalo, etc. In other words, this type of business combines eCommerce and social media.

The impact of social networks has grown significantly in recent years. Over 59% of the world’s population uses social media, it is not surprising that this percentage will continue to rise. 

While in the past businesses used social media to raise brand awareness and draw in new customers, today eCommerce businesses boost sales by offering goods and services to clients online via social media.

As a result, it’s incredibly handy for customers to interact, exchange information, and search and shop online all in one location.

According to Statista, global social commerce sales will reach $992 billion in 2022 and are projected to reach nearly $3 trillion by 2026.

Thanks to the development of social networks, social commerce has had a strong acceleration and has become a magnet for brands to come to approach and analyze a large number of potential customers, and achieve marketing and sales goals.

As a result, failing to prioritize social commerce in enterprises’ marketing strategies in 2023 is probably to lead to a significant loss of competitive advantages in the eCommerce market.

Headless Commerce

Today, businesses have a lot of choices to build an eCommerce website, but basically, the structure of a website will include the following main parts:

• Frontend: Everything the user sees and interacts with when accessing the website including the interface, content, and functions,… is received from the backend.
• Backend: All the active parts of the website or app that are not visible to the user such as the database system, design tools, management tools, and custom functions.

For websites using a traditional structure, the frontend and backend will be operated on the same platform and from there will be closely connected with each other. Therefore, any changes on the website will be edited in two parts at the same time. However, with Headless Commerce, the backend and frontend will be decoupled from each other and operate independently on two separate systems.

The benefits of deploying Headless Commerce:

• Increase customization
• Increase Scalability
• Increase the page load speed
• Seamless integration
• Multi-channel sales support

By using the Headless structure, Nike has become a brand with a much larger market share than Adidas – a formidable competitor of Nike.

Moreover, Nike’s website recorded more than 60 million pageviews in just 1 month. In addition, the proportion of direct purchases without intermediaries also increased significantly.

From Nike’s Case Study, one of the practical alternatives for companies looking to encourage eCommerce sales growth is Headless Commerce.

Shoppertainment

Shoppertainment is a form of shopping combined with entertainment that is used as a marketing strategy to encourage customer engagement with brands and consequently increase shopping demand. Moreover, it is used and takes over most of the online commerce in the era of digital transformation, when eCommerce is positioned at the forefront of contemporary business trends.

Some common practices of Shoppertainment trends:

• Live selling
• Shoppable video
• Gamification

These three practices all focus on entertainment and interaction. Then, the emotional element is aroused, leading to a series of unwise and unplanned shopping decisions. From a business perspective, this is beneficial for brands. TikTok‘s recent research proves it:

• In Southeast Asia, 82% of consumers purchase goods from companies they hardly ever use.
• 55% of consumers have made unplanned purchases.
• After watching videos on TikTok, 89% of consumers made unplanned purchases.
• Half of TikTok users confess to finding new brands or products while using the app.
• One in three customers desires to purchase and is satisfied with it.
• One in three customers wants to add fun and entertainment to shopping.

The growth of the Shoppertainment trend in recent years demonstrates the extreme demand for social interaction and connection following the period of Covid’s life.

Shoppertainment is the solution that businesses seek. This is a way to make the most of the customer’s biggest weakness – emotions.

When feelings of euphoria and joy are elicited during the shopping process, customers engage more, and purchase more unplanned products, conversion rates are higher, and sales follow.

AI Technology

Artificial intelligence now has a significant impact on eCommerce businesses in providing solutions to optimize the online shopping experience of customers. 

The following statistics demonstrate the incredible influence of AI on the eCommerce market and businesses operating in this field:

• The AI-powered eCommerce market is estimated to reach 16.8 billion USD by 2030 (InsightAce Analytics).
• In the retail eCommerce market, the value of AI is predicted to increase from $1.7 million in 2021 to $36.4 million in 2030 (Precedence Research).
• 78% of brands have used AI for eCommerce websites (Oracle) 
• Chatbot’s market value is predicted to reach 3.99 billion USD by 2030 (Grandview Research).
• It is predicted that eCommerce transactions made through Chatbots will reach 112 billion USD in 2023 (Business Solution).
• The cost of using AI Chatbots for customer care is 30% lower than hiring personnel to do this (Business Solution).
• 79% of eCommerce business owners admit that combining AI with marketing and sales helps increase the company’s revenue (McKinsey).
• 54% of businesses in France think that AI is good for analyzing eCommerce data (Statista).
• 70% of eCommerce business leaders in Europe and North America think that AI technology can help optimize customer experience personalization (Statista).
• 37% of users who click on an AI-driven eCommerce recommendation on their first visit to a website, return the next day (Investp).

Currently, there are two applications of AI technology that are commonly used in eCommerce:

Chatbots

For eCommerce businesses, Chatbots will be like salespeople who can interact directly with customers 24/7. This helps businesses narrow the distance in terms of geography and time zones, helping the sales and customer services process to take place effectively without interruption.

Personalized Advertising Campaigns

By collecting customer data, AI can create tailored content and recommendations for each specific customer. To improve marketing campaigns and personalize the customer experience, AI can also predict purchasing behavior based on a user’s browsing and search history, when the data is legally available.

VR/AR Technology

VR (Virtual Reality) is a modern technology that brings users into a simulated but still very realistic space with only 3D glasses (virtual reality glasses). The virtual world that the user sees is actually set up and controlled by a highly configurable computer system.

AR (Augmented Reality) is a new technology enhanced from VR technology. This technology has the potential to erase the boundary between the real world and the virtual 3D model. That is, users will experience virtual models in real space through smartphones or computers.

With a clear plan and the appropriate approach, Lazada has been in front of the augmented reality trend for a number of years and developed a certain competitive advantage in luring both consumers and sellers.

In particular, the VTO (Virtual Try On) function on Lazada includes a wealth of features to assist customers in freely selecting and trying goods like eyeshadow, eyeliner, foundation, and cushions whenever and wherever they like.

Since its launch, LazMall brand partners in the cosmetics sector have experienced tremendous success with the VTO function, which has helped to boost conversion rates by 3.1x and average order values by up to 11%.

KOL/KOC 

The rapid growth of social networks and eCommerce has given marketing efforts a fresh and original breeze thanks to KOL/KOC. Although KOL and KOC have long existed in some form, they have truly taken off in recent years.

KOL – Key opinion leader, also known as an “influencer”, is an individual or organization with expert product knowledge and influence in their field or industry.

KOC – Key Opinion Consumers are “the most influential consumers in the market”. Their job is to test products and services and make comments and reviews.

KOL will suit mid- to high-end brands, while KOC will suit mid-range brands. If KOL is used to select brand ambassadors, holiday season ambassadors, or product launch campaigns, KOC is used to boost sales in a short time or direct customers to websites or eCommerce platforms.

Some famous KOLs in Vietnam: Helly Tong, Giang Oi, Dino Vu, Co em Trendy, Chau Bui, Khanh Vy, Khoai Lang Thang,…

Some famous KOCs in Vietnam: Ha Linh, Call Me Duy, 1m88, Ong Giao Review, Chau Muoi, Hoang Viet, Pu Met 7,…

BOPIS

BOPIS – Buy Online Pick-up In Store is one of the shopping trends that promise to explode in 2023. Customers won’t have to be concerned about shipping costs, extended delivery times, or the risk of receiving unexpected goods when using BOPIS.

Businesses all around the world are pushing up their BOPIS implementation to meet customer expectations when merging online buying with in-person pickup. This is the ideal approach to boost store visits and close the gap between the offline and online buying experiences.

According to GlobeNewswire, the global BOPIS market is projected to reach $703 billion by 2027 with an estimated CARG of 19.3% between 2021-2027.

In addition, the following BOPIS trend statistics can help businesses consider implementing in 2023:

• In the last 6 months of 2022, 67% of US consumers use BOPIS.
• 49% of BOPIS consumers admit to buying more products while in store to pick up their items.
• 65% of customers choose BOPIS to avoid shipping costs.

The BOPIS model also aids businesses in cutting expenses, expediting deliveries, boosting demand for retail goods, and lowering the risk of product returns.

UGC

User Generated Content, also known as UGC, includes text, photos, video and reviews. Because people are becoming less and less engaged in the brand’s message over the past ten years, UGC has grown in importance.

According to a recent Salesforce survey, 53% of Millennials think user-generated content (UGC) influences their shopping decisions, and 92% of consumers prefer content created by friends and family over that created by brands. The reason for the above numbers is trust.

Therefore, user-generated content (UGC), such as photos, videos, and customer evaluations, is trustworthy social proof and aids in the development of a company’s reputation.

In a nutshell, businesses must quickly adapt to evolving eCommerce and digital technology trends in order to avoid falling behind and being driven out of the market. By reading 10 eCommerce trends that stated and analyzed above, businesses will have an overview to be ready for the new journey.

With many years of experience in successfully implementing eCommerce for many customers in many countries, SECOMM specializes in providing consulting services with comprehensive and professional eCommerce implementation solutions.

Contact SECOMM today for free support and advice.

Over time, the Covid-19 pandemic has greatly damaged the world economy, with significant consequences for investors and business owners across a wide range of sectors, including the wine sector.

Sales of alcoholic beverages have decreased dramatically as a result of the closure of hotels, restaurants, and nightclubs as well as the postponement of big events and festivals.

Despite the global economic issues, eCommerce must be considered among the industries that perform very well. Some companies across multiple areas have enthusiastically embraced eCommerce to weather the downturn.

Also, wine firms follow that wave of change, making eCommerce shine in the new era – the era of digital transformation. 

Why 2023 is the perfect year to deploy wine eCommerce?

Wine eCommerce growth statistic

• Wine eCommerce sales reached $6 billion in 2021, an increase of 131% compared to 2020. In the two years 2021-2022, online wine sales increased by 4%, while in 2020 they only increased by 2%.
•  The online revenue of the wine market reached more than 261 billion USD in 2022 and is expected to grow at 10.51% annually from 2022 to 2025.
• According to IWSR, the global wine eCommerce market value will reach $42 billion by 2024.
• An estimated 1.6% of the total liquor market revenue in 2023 will be generated from online sales.
• The average annual growth rate of wine eCommerce in the US is around 20%.

Key drivers of wine eCommerce growth

Global Pandemic

In the midst of the global pandemic-related crises, the wine business, like many others, saw a breakthrough in the speed of online purchasing.

When the pandemic breakout occurred, 44% of American consumers placed their first-ever online wine and liquor orders.

The year 2020 saw a 42% increase in wine eCommerce as a result. Online wine sales increased from just $1 billion in 2018 to $6 billion by 2021.

Young wine consumer

In the US, according to Avalara, Millennials and the legal drinking age population are steadily increasing.

By 2023, the Millennial generation is estimated to account for nearly 45% of the LDA (Legal Drinking Age) population under the age of 80. By 2030, this number is projected to be 54%.

In Vietnam, Millennials (25–38 years old) and Gen Z (18–24 years old), often known as MillennialZ, currently make up 47% of the population or about 45 million people who are of drinking age. The population structure of the MillennialZ generation is expected to keep growing.

The primary factors influencing the growth of the eCommerce sector as well as the digital economy of Vietnam will also be the young people’s awareness of and keeping up with new trends in digital technology compared to previous generations.

Case study

iShop Changi Wines

The Duty Free Shop Group (DFS) and Changi Airport Group (CAG) collaborated on the iShop Changi Wines eCommerce online project, which offers world-renowned and premium wines and spirits with exclusive discounts to visitors to Changi Airport, particularly those who are CAG members.

The iShop Changi Wines website is cutting-edge and exquisitely styled, showcasing the distinctive qualities of the wine industry as well as the aesthetics from page layout, color, font text, logo, and banner, all of which are guaranteed to optimize the purchasing experience while also, and this is crucial, emphasizing the identity and brand-development elements for both CAG and DFS.

Due to the fact that this is a project of well-known companies, the iShop Changi Wines website has consistently received a lot of traffic, averaging approximately 592 thousand views each month since its introduction.

Therefore, to combat the unexpected surge in traffic and orders during the busiest shopping seasons of the year, the eCommerce system must be continually enhanced and optimized.

The fact that major corporations CAG and DFS both started and developed successful wine eCommerce websites shows the enormous potential of this industry now and in the future.

Previously, the business scope of wine businesses was quite limited, but now that limit has been broken thanks to the dominance of the Internet and the rise of eCommerce.

Moreover, the government’s assistance in lowering legal restrictions has given wine producers the assurance to confidently market their goods to a significant number of potential buyers in several nations across the world.

The Warehouse

The Warehouse, established in 2001, is renowned as a top supplier of wines and spirits in Vietnam, offering more than 16 different varieties of wine from numerous nations.

In addition, along with Annam Gourmet Market, Yves Rocher, and Flormar, this is another well-known retail brand of the Nam Group. Before being formally put on the market, products at The Warehouse are consistently inspected and carefully chosen to fulfill quality criteria.

The company has so far increased the reach of its distribution network across the nation, including Ho Chi Minh City, Hanoi, Da Nang, Nha Trang, Hoi An, Quang Ninh, and Phu Quoc.

The Warehouse achieved its objective of serving the wine market with B2B and B2C business models by utilizing the Magento platform.

This implies that the business will broaden the retail channel to include private customers in addition to distributing wines to restaurants, hotels, resorts, pubs, and lounges.

A series of symbols, logos, and banners created especially to fit the characteristics of the wine industry are combined with Bordeaux red to create a website interface that is focused on UI/UX perfection.

The Warehouse is flexible, secure, and has quick ordering, payment, and delivery options. Therefore, customers can place orders through phone, mobile app, or eCommerce website.

Customers can then pick up their purchases from the store or, in major cities like HCM, Hanoi, and Da Nang, the company will deliver them quickly within 2 to 3 hours. In other places, conventional courier delivery takes 2 to 5 days.

The Warehouse has been successful in raising brand recognition, expanding its customer base, and increasing both offline and online sales as a result of the timely growth of its business model and digital transformation

Trentham Estate

Long-standing Australian company Trentham Estate Winery, founded in 1988, focuses on the manufacture and distribution of wine.

After many years in business, the company is well regarded for its creativity in the wine-making process, which resulted in a variety of wines with different delicious flavors. Also, the brand has received hundreds of medals, titles, and other industry awards.

In the beginning, the business created and ran a WordPress website system for branding purposes.

Trentham Estate, however, has been forced to increase its company scale by making a substantial investment in an entire eCommerce website system due to the growth of eCommerce and the increasingly varied purchasing needs of potential clients.

In the beginning, the business created and ran a WordPress website system for branding purposes. Trentham Estate, however, has been forced to increase its company scale by making a substantial investment in an entire eCommerce website system due to the growth of eCommerce and the increasingly varied purchasing needs of potential clients.

That is what led to the creation of the website trenthamestate.com.au, which has a modern interface while still accurately capturing the distinctive features of the wine industry.

Similar to The Warehouse, Trentham Estate likewise creates an eCommerce website based on the Magento platform with a variety of features that satisfies eCommerce requirements and wine industry specifics.

Therefore, businesses can access and serve a wide range of large customer files not only in Australia and internationally thanks to effective marketing and branding strategies, towards a sustainable business model along with the changes of the digital age. 

​​It would be hard to believe that an industry as sensitive as wine could be traded online so easily and efficiently. In that efficiency and convenience, there is a great contribution of the trend of eCommerce and the comprehensive National Digital Transformation program that is committed to supporting by the Government. This is an extremely appropriate time for wine businesses to confidently deploy eCommerce because of the support from the Government and the push from the market.

However, planning to implementation are two completely different categories. Businesses are required to have a practical strategy and technical assistance from highly skilled firms to hasten the success journey and help advance the National Digital Transformation goal. 

SECOMM has many years of expertise in effectively executing eCommerce for numerous customers in various countries. We specialize in offering free consultation services with qualified eCommerce implementation solutions.

Contact us right away for free counsel and assistance.