A website is a powerful tool for supporting ecommerce (Electronic Commerce) business, serving as a bridge between businesses and customers in the online shopping market, facilitating the entire process of buying and selling goods, and boosting sales. Therefore, building an ecommerce website is crucial for the ecommerce business of a company, requiring not only serious investment but also a long-term strategy.

However, there are still many ecommerce websites facing certain issues that need to be addressed promptly! Here are some common problems:

1. Low Page Load Speed

To evaluate the speed of a website, tools like Google PageSpeed Insights, WebPageTest, Pingdom Speed Test, Uptrends, etc., can be used.

Scores range from 0 to 100, where 0-49 indicates relatively low speed, 50-89 indicates average speed that needs improvement, and 90-100 indicates excellent speed.

Slow page load speed affects user experience, conversion rates, customer retention, and SEO ranking.

Causes:

• Large product catalogues and diverse products with various attributes.
• Numerous high-resolution images.
• Increasing data in customer information, marketing, content, product catalogue, sales, and operations.
• Hosting quality and configuration issues.

Solutions:

• Compress or resize images, choose efficient image formats (e.g., jpg or .webp instead of .png).
• Utilize browser caching to reduce data load time, optimize the database by minimizing CSS, JavaScript, and HTML, and use tools like CDN/cache to reduce the time to retrieve large amounts of access data.
• Choose hosting providers with suitable caching memory, and web server configurations (Apache/Nginx/PHP/MySQL…), and use CDN to save bandwidth.

2. Unprofessional Ecommerce Website Interface

Issues with graphic design, colour schemes, inconsistent images and fonts, lack of brand representation, and non-optimal website structure affect the professionalism of the interface.

Consequences:

• Unattractive and unimpressive website interface.
• Reduced professionalism in the eyes of customers leading to decreased customer return rates.
• Decreased user experience, ineffective product search, suggestions, and quick purchase.

Causes:

• Insufficient research on consumer behaviour during the website structure design.
• Lack of expertise in evaluating the aesthetic appeal of the ecommerce website.

Solution:

• Use tools like Google Consumer Surveys, Facebook Audience Insight, and Prisync for market research, customer research, and competitor price tracking.
• Explore design trends such as Dark Mode, Gradient, 3D, and Lai Landing pages.
• Collaborate with experienced interface design providers for an attractive and brand-aligned ecommerce website interface.

3. Suboptimal Product Categories

Poorly structured product categories and incomplete product information negatively impact the user experience.

Issues:

• Lack of detailed and organized product categories.
• Incomplete product information related to attributes, images, videos, inventory, pricing, promotions, etc.

Consequences:

• Difficulty for customers to search for products.
• Inability to suggest relevant products.
• Prolonged decision-making time for customers, affecting sales.

Solutions:

• Establish a layered category structure, apply filtering and sorting features, and supplement detailed information for each product.
• Implement SEO campaigns for the ecommerce website, including keyword research, category content planning, proper robots.txt configuration, optimized website structure, and URL optimization for category pages.

4. Lack of Features to Enhance the Shopping Process

Websites should support customer search, and provide convenient and quick shopping processes.

Issues:

• Lack of effective features for searching and suggesting suitable products.
• Inefficient processes in cart addition, checkout, and payment.

Consequences:

• Incomplete shopping experience for customers.
• Slow and complicated purchasing processes lead to reduced conversion rates and revenue.

Causes:

• Absence of a strategic plan for deploying features according to customer buying behaviour.
• Suboptimal implementation by developers.

Solutions:

• Develop a comprehensive strategy with costs and timelines for integrating features into the business model.
• Collaborate with experienced solution providers to ensure successful integration.

5. Lack of Synchronization with Other Business Systems

Failure to link sales channels (social media, ecommerce platforms, ecommerce websites) with internal business systems like CRM, and ERP for synchronization can lead to misinformation and management difficulties.

Issues:

• Inconsistent information across sales channels.
• Challenges in managing customer, product, order, and store data.

Consequences:

• Impacted online sales due to uncontrolled product/service data.
• Lack of centralized data for reporting, analysis, business forecasting, and customer care activities.

Causes:

• More critical issues in the current ecommerce website system.
• Lack of a suitable strategy regarding costs and time for implementation.

Solution:

• Devise a plan including costs, timelines, and testing methods for the integration of data synchronization functionality into the ecommerce website system.
• Seek solution providers with experience, industry knowledge, and comprehensive services from consultation to development, maintenance, and optimization.

When deploying an ecommerce website, Magento is the top choice of platform that businesses are aiming for, including global giants like Nike, ASUS, HP, and Burger King, as well as leading Vietnamese enterprises such as Canifa, CellphoneS, Trung Nguyen, and CGV Vietnam.

With outstanding advantages ranging from a diverse ecosystem and flexible customisation capabilities to absolute security, Magento is considered the ‘ultimate boss’ among ecommerce website development platforms today.

So, what are the superior points of Magento?

1. A ecommerce platform functions from basic to advanced

Magento possesses all the features for a complete ecommerce website:

• Category Management: Control all data and functions related to products, categories, attributes, pricing systems, inventory, images, and videos.
• Content Management: Develop and optimise content for CMS pages (Content Management System), store images, customise themes, and website design.
• Sales Management: Control and operate sales processes, orders, payments, and shipping.
• Marketing Management: Support the building and implementation of marketing programmes with available support tools.
• Customer Management: Manage and collect customer information to enhance the user experience.
• Inventory Management: Continuously meet goods supply for the supply chain with inventory management tools and shipping route navigation.
• Reporting: Exploit data through reporting features on the system to improve and enhance business efficiency.
• Analysis: Support tracking and measuring system performance through integrated tools such as Google Analytics, Facebook Pixels, and Google Tag Manager.

In addition to the basic features of a complete ecommerce website, Magento also owns a diverse system of extensions with many advanced functions in themes, products, marketing, optimal payment solutions, shipping, etc. to meet every operational need and ensure sustainable development of ecommerce for businesses.

When building an ecommerce website, Magento also supports businesses to integrate and link third-party services for efficient ecommerce website operation, such as:

• Payment: Support all forms of payment, from COD, card payments, and e-wallets to online payment gateways, helping businesses diversify the payment experience for customers.
• Shipping: Easily integrate with many shipping units and popular shipping tracking applications to optimise the shipping process for customers.
• Management and operation software: Support the integration of back-office software such as ERP, CRM, POS, etc. to operate human resources more efficiently.
• Business intelligence (BI) analysis tools: Support the integration of business analysis tools such as Power BI, Tableau, and Looker… to improve business strategies for enterprises.
• Omnichannel: Unify all sales channels on the same Magento system to process and control data and seamlessly handle business processes from offline to online.

Furthermore, Magento also has a global technical support community, including many rich experts and professional developers to meet all the requirements of businesses.

2. High customisation and scalability

The Magento ecommerce website platform possesses all the advantages of open-source software with flexible customisation capabilities to operate the ecommerce website more effectively.

• Customisation: Owning and controlling the entire source code makes it easy for businesses to customise code sections in the system, enabling them to build innovative and improved solutions according to the specific business characteristics of each enterprise.
• Scalability: Magento allows businesses to expand from one website or store to many different websites or stores on the same system. Besides, Magento supports language and currency conversion, helping businesses expand their market to many countries.

3. High security

High security is also a superior advantage of Magento compared to other ecommerce website platforms, helping businesses minimise potential risks from data systems and transaction processes on the system. 

Some outstanding points of Magento’s security features include:

• Regularly control the system, propose security solutions, and improve website performance.
• Enhanced security for administrators.
• Advanced security for user accounts.
• Ability to block unauthorised bots and codes.

With the advantages of having all ecommerce website functions, from basic to advanced, high customisation capabilities, and high security, Magento is the top choice for businesses when deploying an ecommerce website system. However, issues related to costs, time, and the requirement for a highly specialised technical team make it challenging for many businesses to implement an ecommerce website system with Magento.

Contact SECOMM now for FREE CONSULTATION SUPPORT!

Business-to-Consumer (B2C) ecommerce is online transactions between businesses and consumers.

B2C ecommerce is considered a potential market for Vietnamese businesses at present. According to the 2020 Ecommerce White Paper, B2C ecommerce in Vietnam reached 11.8 billion USD, ranking 3rd in the ASEAN region, with a 41% increase in new participants, the highest in the region.

This type of ecommerce is currently popular with a global scale of 4,280 billion USD in 2020. Examples include the B2C websites of Mobile World (Top 5 with 16,606,700 visits), Bach Hoa Xanh (Top 9 with 5,440,000 visits), and FPT Shop (Top 10 with 4,213,300 visits).

Why do businesses need to implement B2C ecommerce?

1. B2C Ecommerce: Maximize business and brand positioning

Changes in consumer shopping habits have influenced the B2C ecommerce market. Customers tend to spend on brands in the online market rather than shopping and experiencing directly at physical stores. Therefore, implementing B2C ecommerce helps not only to position the brand in the market but also to maximize revenue and profit for businesses.

Brand positioning

Effective Ecommerce Marketing campaigns help businesses reach more potential customers. On popular social media platforms (Facebook, Instagram, TikTok, Zalo), businesses can reach customers through advertising tools and directly interact with customers, supporting the brand’s presence in the subconscious of customers. Additionally, customer search habits for product information help businesses that have implemented SEO and SEM attract a large amount of traffic to their ecommerce websites, increasing the conversion rate of orders.

Maximize revenue

Establishing an additional online sales channel helps businesses maximize revenue. Unlike physical stores, ecommerce websites operate 24/7, supporting customers in shopping at any time. They also provide features to facilitate the online shopping process for consumers, such as quick search, product comparison, fast cart, recommended products, and quick payment. This speeds up the online shopping process, improves order conversion rate, and boosts business sales.

Moreover, in 2020, businesses that implemented B2C ecommerce demonstrated its importance when social distancing due to Covid-19 occurred. B2C businesses with ecommerce maintained their business activities compared to traditional businesses.

Minimize costs

With the nature of unlimited time and location for shopping, online stores help businesses solve cost-related problems more effectively.

• Save fixed costs: Costs such as rent, personnel…
• Reduce variable costs: Apply advances in online payment, E-logistics, Marketing, etc., to minimize business operation costs.
• Reduce intermediary costs: Directly transact with customers through the Internet, reducing dependence on intermediary channels like traditional models.

2. B2C Ecommerce: More efficient data exploitation and analysis

In the current era of “Big Data,” data plays a crucial role… When deploying their ecommerce systems, businesses can easily:

Synchronize data about:

• Marketing: Advertising, communication, sales channels…
• Content: Images, messages on the website or Marketing campaigns…
• Customers: Shopping behaviour, potential customer segments
• Sales: Revenue, order quantity per campaign…
• Operations: Payment process, delivery process…

Report and analyse business:

• Marketing is based on the effectiveness of each campaign, searched keywords, etc.
• Sales in terms of sales, orders, payments, taxes, etc.
• Customer based on shopping history, order value, favourite products…
• Products based on customer reviews, best-selling products, product views…

Business forecasting:

Examine scenarios that data has shown regarding developments in the B2C ecommerce market, thereby devising more suitable business strategies.

Business development and direction:

Upgrade B2C ecommerce systems to adapt to market changes. Introduce innovations in new products and accompanying services (payment, shipping…).

3. B2C Ecommerce: Better business management

When a business successfully transitions to the B2C ecommerce business model, issues related to sales, marketing, and operations are improved.

For Sales and Marketing systems

Automate the sales process:

• Automatically collect customer data.
• Automatically process orders: Order creation, store selection, automatic storage location selection.
• Automatically receive and respond to common issues through features like Livechat, and Chatbot.
• Automatically send order confirmations, generate invoices, and handle shipping through features like Auto Email…

Order processing speed is faster:

• Order processing for faster delivery from order creation, order picking, packaging, and delivery.
• Faster error handling: All data is stored on the system, so handling arising errors is faster.
• Minimize errors from manual processes.

Improve Marketing campaigns:

• Build suitable Marketing: Use social media to reach customers, SEM & SEO to increase website traffic, Ecommerce Marketing to increase conversion rates…
• After-sales, ensure customer retention rate: Email Marketing about unpaid orders in the cart, promotional programs…

Improve Customer Support:

Personalize the user experience at each stage through:

• Website: Structure, interface, features (Chatbox & Livechat)…
• Email: Personalize the sender’s name, and desired service/product.
• Telesale: Based on data to sell suitable products and services.

Build better return/exchange policies:

• Applicable cases: Check system data on time, and validate product status.
• Return/exchange methods: Customers send returns by mail, courier services, or directly.

• Refund methods: Online payment via local ATM, Visa/Mastercard, or E-wallet.

For Operations systems

• Prepare orders: Use warehouse management software to check goods, label/barcode, categorize, and set up product storage categories to operate the warehouse scientifically, thereby speeding up delivery.
• Packaging: Apply mechanization technology to package products faster.
• Delivery: Map location technology helps build delivery routes for shippers, and delivery times are faster. Example: Tiki’s 2-hour delivery or Hasaki.
• Warehouse management system: Identify suitable locations to rent/build warehouses to save transportation time and inventory management.

After understanding the importance of B2C ecommerce for business development, the next important thing businesses need to do is learn about effective and flexible methods to deploy this system. 

With more than 9 YEARS OF EXPERIENCE providing comprehensive ecommerce solutions for many businesses in various countries, SECOMM provides solutions such as:

• Ecommerce solution consulting: Consult on technology solutions and resources to develop a suitable B2C ecommerce business strategy.
• B2C ecommerce system development: Provide professional B2C ecommerce system development services using Magento or according to requirements.
• B2C ecommerce system care: Provide maintenance and system upgrade services for B2C ecommerce systems, such as hosting and system maintenance services, and app system care.
• B2C ecommerce growth: Provide B2C ecommerce growth services such as Omnichannel, Ecommerce Marketing, and SEO.

Contact SECOMM now for FREE CONSULTATION SUPPORT!

The ecommerce (Electronic Commerce) ecosystem is an open space that facilitates all interactions, connecting human factors, social elements, and information technology platforms with applications and services to provide value and efficiently operate components within the ecosystem. So, what are the components of the ecommerce ecosystem?

1. Ecommerce Ecosystem: Infrastructure

The system includes hardware (servers and devices), software (services/tools for management, and analysis), network systems, and physical facilities that form the foundation for the remaining components, ensuring smooth and efficient ecommerce processes.

2. Ecommerce Ecosystem: Ecommerce Platform

Software applications are used to build and manage all activities within the system. Currently, businesses often use platforms such as Magento, Shopify, BigCommerce, WooCommerce, Haravan, and Wix to create ecommerce websites.

3. Ecommerce Ecosystem: Ecommerce Development Services

Provides services and solutions for developing websites, systems, and ecommerce processes. Some popular ecommerce solution providers in Vietnam include SECOMM, SmartOSC, Isobar, etc.

4. Ecommerce Ecosystem: Ecommerce Marketplace

Provides an environment and all the services supporting ecommerce, allowing easy buying and selling between multiple sellers and buyers. Popular ecommerce marketplaces in Vietnam include Shopee, Lazada, Tiki, Sendo, etc.

5. Ecommerce Ecosystem: Payment System

Includes networks, systems, and devices processing all transactions within ecommerce. In addition to common payment methods such as cash, card payments (domestic cards, Visa, Mastercard, etc.), payment gateways (OnePay, PayPal, etc.), and e-wallets (Momo, ZaloPay, etc.) are developing in Vietnam.

6. Ecommerce Ecosystem: Shipping System

The shipping system includes all processes for managing, distributing goods from warehouses, packaging, and delivering to customers. Popular shipping service providers in Vietnam include Giao Hàng Tiết Kiệm, Giao Hàng Nhanh, ViettelPost, J&T, Ahamove, etc.

7. Ecommerce Ecosystem: Accounting System

Supports businesses in managing data related to invoices, sales revenue, and all financial flows in ecommerce activities. The emergence of e-invoicing software such as E-Invoice, MISA meInvoice, FPT.eInvoice, etc., has greatly supported accounting processes.

8. Ecommerce Ecosystem: Marketing System

Marketing activities support effective brand and product development, reaching and personalizing customer experiences through strategies, channels, and supporting tools.

9. Ecommerce Ecosystem: Management System

Uses resource management and operational process management software to enhance seamlessness and efficiency for the entire ecommerce system. Commonly used management systems include ERP, CRM, IMS, POS, OFM, etc.

In general, the components of the ecom ecosystem operate through a system of mechanisms, policies, and consistent laws to form a secure electronic data exchange system, ensuring the rights and responsibilities of businesses and consumers.

To achieve outstanding and sustainable growth, besides optimizing opportunities, businesses need to build a complete for themselves, creating a platform to enhance interactions between businesses, the market, and users more robustly. However, most Vietnamese businesses still face many challenges in building their ecommerce business plans. The majority of businesses have not correctly identified the necessary and appropriate components for their business models, leading to issues related to deployment time and budget constraints.

Frequent monitoring of metrics in business allows a deeper understanding of customers and quantifies important aspects of the business. Particularly in ecommerce (Electronic Commerce), measuring these indices is even more crucial as they assist businesses in assessing existing risks and opportunities in the market.

1. MEASURE ECOMMERCE: SALES

Gross Profit Ratio (GP)

Indicates how much profit is generated for every dollar of revenue.

Formula: Gross Profit Ratio (%) = Gross Profit / Revenue

Cost of Goods Sold (COGS)

The value of goods sold or consumed during a specific period.

Formula: Cost of Goods Sold = Beginning Inventory + Additional Purchases During the Period – Ending Inventory

Average Order Value (AOV)

The average amount a customer spends when shopping on an ecommerce website.

Formula: Average Order Value = Revenue / Number of Orders

Revenue Per Click (RPC)

Average revenue based on the conversion rate each time a customer visits an ecommerce website.

Formula: Revenue Per Click = Revenue / Number of Visits

Customer Lifetime Value (CLV)

The value a customer contributes to a company over their entire lifetime.

Formula: Customer Lifetime Value = (Transaction 1 + Transaction 2 + Transaction 3 + …Transaction n) x Average Profit Margin

Purchase Frequency

Indicates the average number of times a customer purchases within a specific period.

Formula: Purchase Frequency = Total Orders / Total Customers

Time Between Purchases (TBP)

Measures the time between consecutive purchases by a customer.

Formula: Time Between Purchases = Purchase Frequency / 365

Shopping Cart Abandonment Rate (CAR)

Measures the number of customers who added items to their cart but did not complete the purchase.

Formula: Cart Abandonment Rate = 1 – (Completed Transactions / Carts with Products) x 100

Cost of Acquiring Customer (CAC)

The cost associated with persuading consumers to purchase a company’s products or services.

Formula: Cost of Acquiring Customer = Total Cost / Number of New Customers

Repeat Purchase Rate (RPR)

Indicates the likelihood of customers returning to make a second or subsequent purchase.

Formula: Repeat Purchase Rate = Number of Repeat Purchases / Total Number of Purchases

2. MEASURE ECOMMERCE: MARKETING

Website Traffic

Refers to the total number of visits to an ecommerce website.

Traffic Source

Identifies the primary sources directing traffic to your website.

Time on Site (TOS)

Indicates the average time a visitor spends on the website.

Average Session Duration

The average time users spend in a single session.

Formula: Total Session Duration / Number of Sessions

Page per Visit

Measures the level of content engagement, indicating how deeply users explore information on the website.

Formula: Pages per Visit = Number of Pages Viewed / Visits

Bounce Rate

The percentage of single-page visits where visitors leave without clicking on any other content.

Formula: Bounce Rate = Total Bounces in a Period / Total Visits in that Period

Click Through Rate (CTR)

The rate at which customers view and click on a business’s advertisements.

Formula: Click Through Rate = Number of Clicks / Number of Impressions

Engagement Rate

Indicates the number of people who interacted with a company’s content through various ecommerce channels such as the business’s ecommerce website/app, ecommerce platforms, Facebook, Instagram, TikTok, etc.

Formula: Social Media Engagement = Number of Interactions / Number of Followers

Pay-Per-Click (PPC)

The Internet marketing model is where businesses pay a fee each time their ads are clicked.

Formula: Pay-Per-Click Cost = Advertising Cost / Number of Clicks

Conversion Rate (CR)

Measures the ratio of potential customers who become actual customers by making a purchase.

Formula: Conversion Rate = Number of Conversions / Total Ad Interactions

The Vietnamese e-commerce market is highly diverse, featuring a variety of models that cater to large and small businesses, individual sellers, and consumers alike. In the context of rapid digitalization, e-commerce business models have evolved in many directions to meet the needs of both consumers and enterprises. They can be summarized into six main types:

1. Ecommerce Business Model: B2C

B2C (Business To Customer) involves transactions between businesses and customers. This is also the most popular model in the Vietnamese market.

The Gioi Di Dong is the number 1 retail model in Vietnam for electronic devices such as phones, laptops, tablets, and accessories.

• Website: https://www.thegioididong.com/
• Traffic: 49,447,704 (7/2021)
• Website ranking: #18 (Vietnam), #1,075 (Global)

2. Ecommerce Business Model: B2B

B2B (Business To Business) involves commerce between two businesses.

TELIO is the first B2B e-commerce platform in Vietnam, connecting small-scale traditional retailers with brands and wholesalers on a centralized platform. By aggregating needs, Telio can provide small retailers with more choices, better prices, and more efficient backend support through economies of scale.

• Website: https://www.telio.vn/
• Traffic: 16,109 (7/2021)
• Website ranking: #37,337 (Vietnam), #2,041,569 (Global)

3. Ecommerce Business Model: B2B2C

B2B2C (Business To Business To Customer) is a collaborative business model between two businesses (B2B) to create and deliver products, services to end consumers (B2C).

Shopee is the most popular e-commerce platform in Vietnam. Shopee Vietnam initially operated as a C2C model, acting as an intermediary in the buying and selling process between individuals. However, Shopee Vietnam has now evolved into a B2B2C model by providing many services and utilities to support the shopping process for both businesses and consumers.

• Website: https://shopee.vn/
• Traffic: 108,842,585 (7/2021)
• Website ranking: #4 (Vietnam), #325 (Global)

4. Ecommerce Business Model: C2C

C2C (Consumer To Consumer) is a form of business between two individuals, not businesses.

Chotot is a C2C e-commerce website supporting individuals in buying and selling real estate, cars, recruiting, used electronics, pets, and home services.

• Website: https://www.chotot.com/
• Traffic: 36,610,361 (7/2021)
• Website ranking: #50 (Vietnam), #3,369 (Global)

5. Ecommerce Business Model: D2C

D2C (Direct to Customer) is a form of providing products directly from businesses to customers, bypassing intermediary distribution steps.

Lavender specializes in directly supplying premium bed sheets for homes and hotels in the e-commerce market without relying on any distributors.

• Website: http://lavendervn.com/
• Traffic: 14,036 (7/2021)
• Website ranking: #96,325 (Vietnam), #4,886,255 (Global)

6. Ecommerce Business Model: DROPSHIPPING

Dropshipping is a business model that allows online stores to operate without storing inventory, owning products, and shipping products to customers.

Selly is an e-commerce platform that supports business sellers without the need for capital, or inventory storage and takes care of shipping to consumers.

• Website: https://www.selly.vn/
• Traffic: 24,936 (7/2021)
• Website ranking: #58,359 (Vietnam), #2,747,670 (Global)

To inquire about free consultation on ecommerce solutions, please contact SECOMM for expert advice.

As consumer shopping trends shift from offline to online, owning an ecommerce website (EC) is almost a prerequisite for successful business operations. Despite its importance, many businesses are still unsure where to start to build an effective EC website.

Here is a step-by-step journey to building an EC website from basic to advanced for businesses to refer to!

1. PHASE 1: BUILDING A BASIC ECOMMERCE WEBSITE

When entering the ecommerce market, businesses often build a basic-level ecommerce website to minimize time and budget for website development and gradually adapt to market changes.

Choose a platform to build the website

Businesses can use free website-building tools with ready-made interfaces and features to create a website through simple drag-and-drop operations, without investing too much time and budget in website development and programming. Some popular platforms include Sapo, Haravan, Nhanh.web.

Advantages

• Various ready-made interfaces suitable for different industries and sectors.
• Basic features provided, such as managing product data, prices, images/videos, sales tracking, payment, shipping, marketing, customer management, inventory management, and reporting/analysis.
• Diverse payment methods: COD, card payment, e-wallet.
• Integration with common shipping services: GHN, GHTK, Ninja Van.

Reasonable initial deployment costs with a contract based on usage time.

Disadvantages

• Additional costs may be incurred to use extensions or develop new features for the system.
• Limited customization capability, making it challenging to create a unique brand identity.
• Low flexibility: Difficulty integrating with third-party systems or CRM, ERP, BI…

Design the interface and build functional systems on the chosen platform

Businesses use ready-made templates on the platform and customize them to fit the brand image, industry, and consumer preferences. The chosen platforms offer basic features, and businesses only need to select suitable functions and set them up on the website.

Provide payment and shipping services

• During the ecommerce website development process, businesses need to work with service providers to offer payment and shipping services.
• Common online payment gateways in Vietnam include Paypal, Ngan Luong, VNPay, Airpay, and e-wallets like Momo, ZaloPay.
• Reputable shipping providers in Vietnam include Giao Hang Tiet Kiem, Giao Hang Nhanh, VNPost, ViettelPost.

Complete legal procedures with the Ministry of Industry and Trade

According to Government Decree 52/2013/ND-CP, individuals or organizations that own ecommerce websites for selling goods must notify or register with the Ministry of Industry and Trade on the Ecommerce Management Information Portal.

2. PHASE 2: TRANSITION TO A SPECIALIZED ECOMMERCE WEBSITE PLATFORM

After using a basic ecommerce website for some time, businesses gradually realize the need to develop an independent, in-depth, and uniquely designed ecommerce website to promote a sustainable ecommerce journey.

Developing a specialized ecommerce website requires both experience and substantial investment in costs and time. However, this is a cost-effective solution for long-term business plans and a suitable transition for a separate and comprehensive ecommerce system.

Choose a platform to build the website

At this stage, businesses can choose specialized e-commerce platforms like WooCommerce, BigCommerce, Magento, which are scalable and customizable to maximize the requirements of:

• Open-source e-commerce platforms allow flexible customization according to needs.
• Support customization of the interface to match the brand’s unique style.
• Own a diverse range of functions from basic to advanced.
• Easily integrate with popular shipping and payment providers.
• Manage multiple systems such as CRM, ERP, BI on one screen.
• Easily develop specialized e-commerce functions, especially features related to industry-specific characteristics, brand development, and optimizing customer experience.
• Actively update and quickly develop new features and technologies.
• Flexible and easy integration with in-house systems and third-party systems such as payment, shipping, ecommerce platforms, CRM, ERP, BI…

However, implementing a specialized e-commerce website may face some difficulties:

• High costs and prolonged deployment time.
• Require a skilled and experienced IT team for effective implementation.

Select a website development service provider

When building an ecommerce website on specialized platforms, as it requires time, costs, and high expertise, businesses often collaborate with service providers for ecommerce website development. Afterward, businesses can build an in-house team or continue working with the provider to maintain website operations.

Some service providers for deploying specialized ecommerce systems include SECOMM, SmartOSC, Co-well Asia, Isobar, Magenest.

Develop the ecommerce website

During project deployment based on the agreed solution with the development provider, all factors related to the quality and effectiveness of the website need to be optimized and tested before handover. Especially crucial functions include:

• Category Management: Control data, functions, attributes, prices, inventory, images, and videos of products.
• Content Management: Develop and optimize content for CMS pages, store images, customize themes, and website design.
• Sales Management: Control and operate sales processes, orders, payments, and shipping.
• Marketing Management: Support building and implementing marketing programs using tools like Omni-channel Marketing, Auto Mail.
• Customer Management: Manage and collect customer information for personalized user experiences.
• Inventory Management: Ensure a continuous supply of goods through inventory management tools and shipping direction.
• Reporting & Analysis: Exploit data and measure performance on Google Analytics, Facebook Pixels, Google Tag Manager.

Operate and maintain the ecommerce website

To maintain seamless online-to-offline business operations, the website needs continuous maintenance, care, and updates.

• System Maintenance: Control and monitor all resources on the system to optimize performance.
• Hosting: Web App system, server management, and 24/7 monitoring.
• Cloud: Enhance accessibility and data storage across the entire website system.

Grow the ecommerce website

Implement activities to increase sales operations on the website and stimulate online sales.

• Omni-channel: Set up a sales system, marketing, and data management on the ecommerce website, social networks (Facebook, Instagram, TikTok, Zalo…) and e-commerce platforms (Shopee, Tiki, Lazada…).
• E-commerce Marketing: Analyze and plan comprehensive marketing based on core channels (Content Marketing, Social Marketing, Email Marketing, SEM…).
• SEO: Analyze and optimize website structure, and research specific keywords to build a long-term SEO strategy.

The journey from building a basic to an advanced ecommerce website helps businesses adapt to market changes over time.

Ecommerce website has been a companion for businesses facing COVID-19 challenges in 2020-2021. Efficient utilization of ecommerce (EC) not only helps businesses adapt to changing user and market dynamics but also enables them to seize opportunities and excel in the fiercely competitive landscape. Some successful standalone EC websites include thegioididong.com, bachhoaxanh.com, and fptshop.com.vn.

What is the formula for the success of these businesses?

This success hinges on the ability to have a broad vision and a strategic approach at the management level. Building a dedicated EC website is not just about establishing offline stores; it involves developing and optimizing an EC system that aligns with the business, brand, and users. Building a successful brand website offers various benefits, from brand positioning, cost savings, maximizing revenue to owning all data and controlling the game.

1. Brand Positioning

A dedicated EC website serves as a medium to convey the brand image and connects businesses with customers in the online market. By owning a dedicated EC website, businesses can easily convey messages, establish specialized marketing campaigns, provide accurate information, and promote the brand to get closer to customers.

2. Maximizing Revenue

Operating on a website, businesses are not limited by time and space. Business transactions can occur 24/7, regardless of location. Actively updating and upgrading the system’s features based on user characteristics, business needs, and industry specifics ensures an optimal user experience and facilitates a more convenient and faster purchasing process.

3. Minimizing Costs

In addition to enabling direct access and sales to customers, eliminating intermediary costs, establishing an online store (brand.com) is an optimal solution for minimizing various expenses such as rent, personnel, and equipment. Moreover, the automated business process with E-Payment, E-Logistic, E-Invoice functions on the website helps save costs related to personnel and paperwork.

4. Data Ownership and Control

Building a dedicated EC website means owning a unique “playing field,” reducing dependence on data from EC platforms, social media, or other business systems. With this data, businesses can conduct in-depth data analysis, make business predictions, and develop appropriate directions for the business.

With these superior benefits of deploying a standalone EC website, many businesses have quickly embarked on building an online store for their brand. However, to truly own a successful website that meets specific requirements, similar to Vinamilk, Thế giới di động, Canifa, businesses need a suitable strategy and significant time and investment.

How to build an ecommerce website tailored to your business?

With extensive experience in building numerous standalone ecommerce websites for businesses across various sectors, SECOMM fully understands the challenges encountered during the e-commerce deployment process that businesses are facing.

Contact SECOMM to receive consultation on building your own ecommerce website!

In the rapidly evolving landscape of today’s economy, where opportunities and competition are just a mouse click away, the effective implementation of E-commerce (EC) is a non-negotiable for businesses, regardless of their involvement in low or high-involvement industries. This comprehensive guide outlines the crucial steps that Small and Medium Enterprises (SMEs) can take to deploy and manage EC strategies successfully, ensuring a competitive edge in the digital marketplace.

1. Step 1: Choosing the Right Ecommerce Business Model

The initial phase involves meticulous planning and selecting an EC business model that aligns with the overall development direction of the business. SMEs have three primary models to consider:

• B2B (Business to Business): Focused on transactions between businesses.
• B2C (Business to Customer): Tailored for transactions between businesses and end consumers.
• C2C (Customer to Customer): Involving transactions between individual customers.

2. Step 2: Developing an Ecommerce Strategy

Building a robust EC strategy is a cornerstone for SMEs. Leveraging the 5W1H method provides a structured approach to strategic planning:

• Who: Identifying potential customers and understanding target demographics.
• What: Defining the chosen business model and selecting technology solutions.
• When: Setting a clear timeline for the campaign, specifying start and end dates.
• Why: Establishing a compelling rationale behind the strategy, supported by relevant data.
• Where: Deciding on selling platforms—whether through social media, EC platforms, or the business’s own website.
• How: Planning the implementation strategy, considering external support from consulting companies or EC solution providers.

3. Step 3: Implementing the Ecommerce Business Strategy

The focus of this step is on determining purchasing channels and ensuring a seamless customer experience:

• Utilizing popular social media platforms such as Facebook, Instagram, and TikTok to reach a broader audience.
• Establishing stores on well-known EC marketplaces like Shopee, Lazada, Tiki, and Sendo.
• Collaborating with partners to build a professional EC website that reflects the brand’s identity.
• Consolidating content across various channels to provide a consistent and cohesive customer experience.
• Personalizing the user experience through the application of Artificial Intelligence (AI) for product/service recommendations and delivering relevant information.

4. Step 4: Operating and Boosting Ecommerce Sales

Once the EC system is operational, the emphasis shifts to maintaining and enhancing the system for optimal performance:

• Regularly maintaining, updating, and upgrading the system to adapt to the dynamic changes in the market.
• Implementing E-commerce Marketing strategies to stimulate online sales, including targeted promotions and advertisements.
• Utilizing Search Engine Optimization (SEO) techniques to attract customer attention on popular search engines.

5. Step 5: Optimizing Post-purchase Services in Ecommerce

Improving post-purchase services is essential for customer satisfaction and increased conversion rates:

• Offering multiple delivery options, including free delivery for a certain quantity, fast delivery, and flexible time options (Morning/Afternoon/Office hours).
• Leveraging E-logistics to enable customers to track and update the order status conveniently through their mobile devices.

In Summary

The implementation of EC is a critical endeavor for SMEs, representing a transformative journey that, when executed effectively, can lead to sustainable growth and increased market share. However, navigating the complexities of the EC landscape requires a strategic approach and a wise investment of time and resources.

OVER 50 YEARS OF GLOBAL E-COMMERCE JOURNEY (1969 – 2020)

1. 1969: The first online service provider – CompuServe

In 1969, Dr. John R. Goltz, Jeffrey Wilkins, and electrical engineering students founded CompuServe – a service that provided an information-sharing portal through the Internet and email network connections.

2. 1979: Father of electronic commerce (EC) system – Michael Aldrich

Michael Aldrich pioneered the first EC system by connecting a television and a computer for transaction processing via telephone lines, enabling a secure information system to be opened and shared externally. This innovation laid the foundation for the development of modern EC systems.

3. 1982: The first ecommerce company – Boston Computer Exchange

Initially a store supporting the resale of used computers, Boston Computer Exchange became one of the earliest models for today’s EC companies.

4. 1992: The first online book market – Book Stacks Unlimited

Charles M. Stack established the brand Book Stacks Unlimited as the world’s first online book store. Initially using a dial-up bulletin board format, the company later transitioned to the Internet to create an online book trading market.

5. 1995: Birth of the ecommerce giant – Amazon

Jeff Bezos founded Amazon initially as a book-selling business but later expanded its business model to include various products by incorporating new technologies such as cloud computing and artificial intelligence. Amazon ushered in a new era for the EC industry by integrating Internet technology into its business strategy.

6. 1998: Online payment gateway, a platform for ecommerce development – PayPal

Confinity (the predecessor of PayPal) was founded by Max Levchin, Peter Thiel, Luke Nosek, and Ken Howery. In 2000, eBay acquired Confinity and renamed it PayPal, the world’s largest online payment gateway. PayPal addressed many limitations of traditional payment methods, making the buying and payment process more convenient and laying the foundation for EC development.

7. 1999: The king of the ecommerce industry in China – Alibaba

Alibaba officially entered the EC market, successfully raising $25 million in capital. By 2001, the company became profitable and led the EC platform under the B2B, C2C, and B2C business models. In 2020, Alibaba contributed $12.2 billion to global EC revenue.

8. 2000: Online advertising tool serving ecommerce marketing – Google AdWords

Google introduced Google AdWords, the world’s first online advertising tool. This tool supported businesses in marketing their products on Google’s search network, boosting sales for EC companies at that time.

9. 2004: The first ecommerce website development platform – Shopify

After unsuccessful attempts to build an e-commerce website selling snowboarding equipment on various platforms, Tobias Lütke and Scott Lake founded Shopify – the first platform supporting the development of EC websites worldwide. This platform enables users to easily create online stores without requiring extensive technical knowledge.

10. 2005: Ecommerce event – Cyber Monday

The National Retail Federation (USA) coined the term “Cyber Monday” to describe the first Monday after Black Friday, initiating the online shopping season between Thanksgiving and Christmas. This event marked economists’ interest in the global retail market.

11. 2007: Sustainable ecommerce development platform – Magento

Developed by Roy Rubin and Yoav Kutner in 2007, Magento is an open-source platform written based on the Zend Framework and PHP programming language, specifically designed to build complex EC websites. Magento, known for its multitasking capability, high performance, flexible customization, and easy scalability, has become the top choice for enterprises with 200,000 partners and 2.5 million downloads worldwide.

Multinational corporations using Magento to build sophisticated EC systems include Samsung, Nike, Coca-Cola, Asus, HP, Lenovo, Canon, Sigma, Olympus, Port, Pox, Nestle, BevMo, Burger King, and millions of small and medium-sized EC sites globally.

12. 2016: Facebook joins the ecommerce game – Facebook Marketplace

With the ambition to dominate the EC market, Facebook, a tech giant, continuously introduced new features on Facebook Marketplace, Instagram, and WhatsApp, and collaborated with various EC platforms (Shopify, OpenCart, BigCommerce, WooCommerce, and Magento). This made giants like Amazon, Lazada, and Shopee wary, demonstrating the strong allure of the EC market.

13. 2017: Growth of ecommerce

The global EC industry set a new revenue record of $2.352 trillion in 2017, a 25% increase from 2016 (according to eMarketer – a US market research company). Cyber Monday alone surpassed $6.5 billion in online sales. Economists predict that EC will be the world’s focal industry by 2025.

14. 2020: COVID-19 boosts the ecommerce explosion

2020 marked a significant turning point for the global EC industry. The impact of COVID-19 accelerated the construction of EC systems to meet consumer demands promptly. Currently, EC is not only present on platforms like Amazon, Shopee, and Lazada but also brands are starting to build their own EC websites. Additionally, EC spans various sectors from fast-moving consumer goods (fashion, food, technology) to service sectors (travel, finance, education, furniture, and real estate).

According to the “Southeast Asia Internet Economy 2020” report by Google & Temasek, consumers tend to spend more time shopping online than before COVID-19 (increased from 3.7 hours/day to 4.7 hours/day). Global B2C EC revenue increased from $1.948 trillion to $4.280 trillion, doubling Statista.com’s forecast of $2.238 trillion.

COVID-19 has brought positive effects on the global rise of the EC industry and opened up new opportunities for the Vietnamese economy.