In the context of the Covid-19 pandemic, which is seen as an “obstacle” to the business activities of most businesses, eCommerce is emerging as an efficient way to enable Vietnamese furniture businesses to participate in the typical “playground” of global digital transformation.

At the same time, it is a pressing solution for furniture products to be consumed easily and accessible to many potential customers.

Therefore, the first wise step furniture brands have been hurrying to do in order to fast access the market is developing an eCommerce website. However, this difficult path calls for a significant investment of time and energy.

With years of expertise supporting several companies, SECOMM has developed a thorough process for developing a successful eCommerce website exclusively for the furniture sector.

Overview

A brief overview of the eCommerce market

The Covid-19 pandemic’s convoluted dynamics made travel challenging, which led to a necessity and urgency that resulted in the explosion of global eCommerce. At that point, internet buying and selling, which is more practical, takes the place of on-the-spot buying and selling.

Global eCommerce sales will rise from 15% in 2019 to 21% in 2021 and then continue to rise to 22% in 2022, according to Morgan Stanley. eCommerce will likely continue to have a large surplus. The market is established, and its growth rate might rise from its current level of 3.3 trillion USD to 5.6 trillion USD in 2026 as a result of significant company penetration in all industries worldwide.

In Vietnam alone, many service sectors had negative growth as a result of the Covid-19 outbreak, although the eCommerce market continued to grow steadily. In particular, the sector for wholesale and retail fell by 0.21%, transportation and warehousing fell by 5.02%, and that for lodging and food services fell by 20.81% in comparison to 2020.

In contrast to that doom, eCommerce has consistently grown at a pace of 16%, with retail sales reaching $13.7 billion USD in 2021. Additionally, the proportion of eCommerce retail sales in all retail consumer goods and services nationally reached 7%, up 27% from the same period in 2020. (Vietnam eCommerce White Paper in 2022).

Because of this, even if the epidemic is now under control and customers are beginning to purchase again in stores, expectations about the potential and rapid growth of the post-Covid eCommerce business are well-founded. The furniture business will not be the only one promoted to extraordinary growth from that point on.

Significance of eCommerce in the Furniture industry

According to Forbes, furniture and building materials have experienced the biggest growth in eCommerce sales during the past two years of the epidemic, with a cumulative growth rate of more than 200% over the year prior to the pandemic, 2019. The category of furniture and home appliances likewise experienced a remarkable cumulative gain of more than 66% compared to the same time in 2019.

The milestone of every top-rated furniture eCommerce website
The incredible Compound annual growth rate of the furniture category in eCommerce in 2021 compared to 2019

Recent findings made by Maddyness include the following intriguing details:

  • The value of the worldwide furniture eCommerce market exceeds $200 billion.
  • Online sales account for more than 90% of the growth of the furniture industry.
  • According to estimates, 8 out of every 10 consumers who purchase furniture have made an internet purchase at least once.
  • One in three consumers prefers to buy furniture online.
  • 16% of sales of furniture and home goods are made online.
  • Customers anticipate purchasing sofas online in 53% of cases and mattresses in 80% of cases.

Stage 1: Basic furniture eCommerce website development

The milestone of every top-rated furniture eCommerce website
Basic furniture eCommerce website development

Targeting

The very first thing that furniture businesses need to do is to determine their short-term and long-term goals and priorities before starting to develop an eCommerce website.

To accomplish the anticipated revenue increase in the short term, firms should place a priority on promoting marketing activities, tracking and analyzing customer behaviour, and assessing the efficacy of marketing initiatives. Furthermore, user experience is a crucial consideration that furniture companies must have in mind while advertising eCommerce.

Long-term objectives for firms could include raising brand awareness and coverage as well as evaluating the viability of individual items on online marketplaces. Effective marketing campaigns are also one of the long-term objectives that firms should take into consideration if they want to increase their online consumer base.

Businesses can take a lot of advice from specialized eCommerce implementation consulting units with a lot of experience in consulting a long-term roadmap to get the right list and priority of goals for both this period and beyond since they currently have little data to analyze and evaluate for the entire process.

Platform selection

There are currently two categories of platforms available on the market that enable the development of expert eCommerce websites and are highly well-liked, namely SaaS platforms and Open-source platforms. When used to create eCommerce for the furniture sector, these two types of platforms will each have the following advantages and disadvantages:

SaaS Platform

A service-based software application distribution mechanism for eCommerce commercial purposes is the simplest definition of a SaaS platform. To put it another way, the service provider develops and maintains software to aid in the creation of an eCommerce website, and the firm pays a set fee to use this service.

With SaaS platforms, the provider will own and manage the source code and data because the complete enterprise website system is hosted on the provider’s server. This means that the service provider will be in charge of handling and resolving technical issues that arise during the implementation of eCommerce by businesses.

Popular SaaS platforms are especially favored by businesses today, such as Haravan, Shopify, BigCommerce, etc.

Some of the advantages of the SaaS platform include:

  • Fast eCommerce site deployment: Typically, it only takes a few minutes or days for businesses to possess an eCommerce site with all the features they need for the furniture sector at a fair initial building cost.
  • Ease of use: The SaaS platform is built with user-friendliness in mind, making it possible for companies without IT advantages or technical expertise to swiftly develop and manage an eCommerce website.
  • Good security: SaaS providers are in charge of the security aspect since they give and maintain the platform for building eCommerce websites. As a result, eCommerce companies in general, and furniture eCommerce companies in particular, won’t need to worry too much about PCI compliance, SSL, or the possibility of websites being hacked.
  • Excellent customer service: Due to the supplier’s 24/7 assistance, businesses may easily contact them by email, hotline, or live chat if their eCommerce website experiences any issues during implementation.

The leading furniture enterprises in Vietnam using the SaaS platforms to build eCommerce websites include

  • Noi That Hoa Phat: The Vietnamese furniture giant has implemented eCommerce with the BigCommerce platform to maintain its position in the market.
  • Noi That Moho: A rooky of the furniture village uses the Haravan platform to build a website as the first step on the journey to conquer eCommerce.
  • Noi That Cozy: The European furniture import and distribution tycoon has chosen Shopify as a companion to design a website to expand sales channels in the online environment.

However, there are still several drawbacks to the SaaS platform that should be taken into account:

  • Expenses rise over time: Instead of paying once and owning the platform for a long time, businesses will have to pay for interfaces, applications, extensions, marketing, and SEO, among other fees, steadily and continuously. This is in addition to having to pay for the cost of using the platform month by month and year by year. Too many expenses are incurred each month, which makes it challenging to monitor cash flow.
  • Can not own the source code and data: As mentioned earlier, the business will not own and control the source code and data of the website that this right belongs to the supplier. Therefore, when you want to switch platforms, businesses will not be able to keep and bring all the source code and data to the new platform because of the Lock-in feature of SaaS.
  • Limited functionality and customization: Businesses employing SaaS platforms will have fewer options for functionalities and customization in accordance with the particular requirements of each eCommerce website. To enhance clients’ online shopping experiences, the website system must be modified to reflect the company model’s growth as well as industry and product features. SaaS’s constraint, however, makes it challenging to adapt to corporate demands.

Open-Source Platform

Open Source Platform is software with generally available source code that enables customers to obtain, upgrade, and modify additional features required for eCommerce company needs. Instead of being produced by a single corporation, open-source platforms are frequently created by a community of developers.

In addition, because it offers extensive customization options, this platform will be perfect for creating sophisticated eCommerce website systems tailored to a variety of industries, including the furniture industry.

This means that in order to efficiently administer the website and handle technological issues, firms either need to work with expert eCommerce website builders or develop a team of highly qualified internal workers.

In Vietnam, the most popular Open Source platforms to mention are Magento, OpenCart, WooCommerce (WordPress Plugin), etc.

The outstanding advantages of the Open-Source platform:

  • Ownership of source code and data: Unlike a SaaS platform, the enterprise is the sole owner of the system’s source code and data. Businesses can thus bring all the data and reuse the existing source code when switching to a new platform. 
  • Flexible customization: Companies using the Open Source platform can quickly alter or expand the functional system and create new features to keep up with the rapidly shifting market. From there, companies may quickly link with systems and services provided by other parties to help run eCommerce websites more effectively. Moreover, the Open Source platform’s flexible customization capabilities enable businesses to choose between three popular options for customizing the interface design of their eCommerce website: using an existing theme, customization based on an existing interface and designing its own interface tailored to the particular requirements of the industry.
  • Numerous features and add-ons: The Open Source platform includes a wide range of advanced capabilities, like advanced search, product suggestions, abandon cart, etc., in addition to the fundamental functions that facilitate eCommerce implementation. Since the Open Source platform is so well-liked, there is a sizable global developer and expert community from which add-ons are explored and shared. These add-ons are more varied and better than the SaaS platform’s utilities.

The following well-known Vietnamese furniture companies are developing their online stores using the Open Source platform:

  • Sieu Thi Noi That va Trang Tri Baya: A reputable furniture retailer that serves many Vietnamese families, has created a professional eCommerce website using the Magento platform for the purpose of immediately dominating the market.
  • Noi That Nha Xinh: Manufacturer and supplier of Asian-style furniture products, using the WooCommerce platform for easy and effective eCommerce website deployment.

The disadvantages worth noting when implementing eCommerce with the Open Source platform:

  • Long implementation period: In comparison to SaaS systems, an open-source platform typically takes 3 months to 1 year to create an eCommerce website, depending on the complexity of the functional system.
  • High building expenses: Even though companies are free to utilize the platform, it costs quite a bit of money to own a complete eCommerce website with all of its features, usually between $10,000 and $50,000 per project.
  • Not easy to use: Building an eCommerce system is more difficult than building on SaaS platforms since the system of open source eCommerce features is so diverse and is made to be fine-tuned for each business model. When IT is not a strong suit for a company, this presents a significant challenge, necessitating the assistance of a highly skilled unit.

Web interface design

Businesses should focus on making sure that the website interface conforms to UI/UX standards, clearly displays the brand’s distinctive characteristics and those of the furniture industry, and is synchronous in terms of product presentation and layout when designing the interface of an eCommerce website.

So, businesses can select one of the three methods listed below to create the website interface:

  • Using the available interface: In comparison to the other two payment options, this is the most affordable way for businesses to pay for the interface. With pricing ranging from $300 to $500, both SaaS and Open Source platforms offer a selection of common UI/UX interfaces.
  • Customizing based on the available interface: Like the previous method, businesses will use the current interface but will modify it to suit their brand’s requirements. As a result, companies cut expenses while also expressing their brand’s distinctive qualities in part.
  • 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.

​​​​Firms should typically only use methods 1 or 2 at this point because the functional system is still in its early phases and easily found in the available interface.

Functional system development

In phase 1, businesses can prioritize the development of a system of basic functions needed for a complete furniture eCommerce website, specifically as follows:

  • Catalog management: Manage and control categories, product functions, as well as prices and images/videos for each product to optimize the operation and achieve high efficiency when doing furniture eCommerce business.
  • Sales management: Manage all order information, including order status and order fulfillment process, thereby helping businesses understand and analyze customers’ shopping behavior and set up and control payment and delivery processes efficiently.
  • Marketing management: Integrating basic SEO optimization support features such as URLs, meta tags, internal links, etc., and deploying effective marketing campaigns to drive sales.
  • Content management: Build and optimize content for CMS pages from text, images, pagination, blocks, banners, widgets, and templates to all kinds of branded content, blogs, etc.
  • Customer management: Manage and control all customer information and customer groups to improve the effectiveness of marketing campaigns, thereby providing a better shopping experience for customers.
  • System management: Manage and decentralize administrators to control and operate, secure and maintain the eCommerce website system.
  • Store management: Using tools to support inventory management at branches, stores, and different warehouses to ensure the continuous supply of goods for the whole system.
  • Cart and checkout management: Manage and control customers’ shopping carts and payment information.
  • Analysis and reporting: Support to analyze and measure the performance of the eCommerce website system, thereby offering the next effective business strategies in the future.

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: In-depth furniture eCommerce website development

The milestone of every top-rated furniture eCommerce website
In-depth furniture eCommerce website development

Re-targeting

Along the journey of business development that comes with ever-changing consumer needs, business goals and strategies need to be adjusted and reconfigured to fit the current business landscape In addition, at this stage, businesses also have problems, data, and insights about their online users, so setting goals will be easy.

In the short term, companies can use efficient marketing techniques to locate and connect with a wider pool of new potential clients online and boost online sales.

In the long run, market sector expansion and building a loyal customer base might be objectives for furniture eCommerce firms. In the second step of the trip to create a successful eCommerce website, businesses will simply develop and implement marketing strategies in accordance with the product features and individual directions of each business by identifying the target market segment.

Businesses must prioritize thinking about the time and cost of investing in a furniture eCommerce website system in addition to short- and long-term objectives because at this stage, the cost and investment budget will frequently be substantial and much higher than the above basic building phase.

eCommerce platform switching

If a company decides to use the SaaS platform to create an internal eCommerce website in the first stage, it will not be able to satisfy the expectations for development and expansion in the second stage due to its restricted customization and capability. Businesses should now convert to an open-source platform with well-known names worth considering, such as Magento, WooCommerce, Ziel Commerce, etc., in order to create an advanced furniture eCommerce website.

Following are some criteria for furniture companies to take into account when selecting an Open Source platform:

  • Support to design standard UI / UX website interface with beautiful and high-quality images and videos, showing the unique characteristics of the brand and the furniture eCommerce industry.
  • Provide a functional system from basic to advanced in the furniture industry
  • High levels of scalability and customization enable the creation of specialized features as well as the integration of several add-ons, third-party services, and administrative support that extends from a single website to numerous websites, multiple language support, multiple currencies, etc.
  • High levels of security assist businesses in reducing the dangers from illegal access to the data system and, when necessary, aid in data recovery for the eCommerce website system.

Businesses should focus on the costs associated with switching from a SaaS platform to an Open Source platform, the time required for staff to adapt to the new platform, the risk of data loss, and any errors that may occur during the changeover.

Resources selection

Resource selection for the deployment of an advanced system must be made with considerable thought, in contrast to the basic system development phase. Businesses have the option of creating an internal team or hiring a professional website developer to assist them.

The business will hire and train skilled and specialized IT people on the selected platform for internal team building which requires a lot of time and money, but it will improve resource management and control and actively adapt the development of the eCommerce website system in line with the original objective.

Businesses frequently consult several eCommerce website developers before choosing the finest one for their collaboration. The needs of the businesses for an eCommerce website will thus be satisfied as anticipated, the collaboration process will go smoothly, and the businesses will gain more expertise and experience in website development from that partner, which will provide them with directions consistent with the development trend of the furniture eCommerce industry.

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

Web interface re-design

Businesses are not required to update the website interface while switching platforms. However, the redesign of the website interface to fit the Open Source platform is now turning out to be a beneficial piece of advice given the new company development plan introduced concurrently with the implementation of eCommerce websites at a more advanced level.

Similar to the preceding period, companies have three alternatives for designing the user interfaces of their eCommerce websites: they can use the existing interface, customize it based on the existing interface, or create their own interface. To ensure the distinctiveness of the brand and the particularity of the furniture eCommerce industry, businesses should typically use methods 2 or 3 to develop the interface at this stage.

Upgrade the system with advanced and industry-specific functions

Businesses should concentrate on establishing a system of advanced and specific features of the furniture eCommerce industry to suit the new development phase, in addition to the basic functions that have been established for the eCommerce website system in the early stages.

Businesses may better grasp the challenges of implementing intense furniture eCommerce and provide solutions to address those challenges and fulfil the market’s rising expectations thanks to advanced and distinctive functions.

As a result, companies use AR technology to improve the consumer experience. While augmented reality (AR) technology is built on virtual reality (VR) technology, it focuses on fusing the actual environment and digital data to give users the ability to view digital data in the physical world. The furniture eCommerce sector makes extensive use of this technology.

Customers now only need to download the company’s AR program, turn on the camera, and evaluate the product’s fit with the area of the house rather than physically going to the store to see the things and try them on to see whether they fit.

Customers’ buying experiences are improved and made more unique by augmented reality (AR) applications, which convert traditional marketing into interactive marketing. IKEA Place App, the furniture buying an app from “big man” IKEA, is a wonderful example because it offers clients a novel and engaging shopping experience.

Customers can use their smartphones to place and try out the more than 2,000 tables, chairs, sofas, shelves, and other household appliances in a real room, change the viewing angle, and zoom in and out. Also, the software will scale items to their true size with 98% accuracy.

The 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.

Some special notes for furniture eCommerce website development

The journey of developing an eCommerce website for the furniture sector is divided into two phases with clear step-by-step instructions. Businesses will, however, be able to go in one of two strategies, each with its own advantages and drawbacks, depending on the platform they decide to use for the first phase.

Strategy no.1: Initially use an eCommerce SaaS platform before switching to an Open Source platform later on.

The milestone of every top-rated furniture eCommerce website
Strategy 1 for choosing an eCommerce platform

Pros

The quick deployment time of a SaaS platform is one of its benefits. In order to swiftly enter the market and create a simple website system, enterprises can pick SaaS at an early stage. Businesses will evaluate the furniture items’ suitability for the eCommerce market’s demands as well as their influence on upcoming consumer trends there.
The switch to an open-source platform will make it more reasonable to extend and develop a specialized website system in order to raise brand awareness and increase online sales over a period of time long enough for businesses to become accustomed to and adapt to the ever-changing market.

Businesses will save a lot of money by implementing eCommerce utilizing the SaaS platform early on as opposed to developing a website using the Open Source platform. Businesses can use that capital to invest in other activities, such as marketing strategy, which is one of the crucial components for the success of any company, not only furniture companies, because the initial cost of a SaaS platform is typically not too expensive.

The ability to conduct business while gaining knowledge and expertise in technology and how to efficiently implement eCommerce is another advantage of this approach to developing an eCommerce website. In general, running a business is challenging, and operating an eCommerce firm is even more challenging in today’s continuously shifting market and technologically complicated and varied trends.

As a result, acquiring knowledge and real-world experience is both a necessary and a sufficient condition for businesses to achieve extraordinary success. Because a SaaS platform is simple to use and doesn’t require a lot of technical knowledge, choosing one to deploy in the early stages can help businesses become comfortable with eCommerce terminology, concepts, and how to build a website at a basic level.

Due to the complex requirements of an extensive eCommerce website system, businesses will need support from a strong IT team during the second stage of switching to the Open Source platform. The collaborators and partners will then complement each other’s knowledge and experience at that point.

Cons

As was stated in the introduction to the platform, the fundamental functional system of SaaS platforms will not be sufficient to meet the needs of the eCommerce business at the growth and scalability stage.

Therefore, whether you like it or not at this moment, you must switch to the Open Source platform in order for the eCommerce system’s expansion and scalability goals to continue to be successfully implemented.

When adopting this approach for the process of developing and perfecting the website system, eCommerce firms in general, and furniture enterprises, in particular, should pay close attention to this first drawback.

Businesses will significantly reduce the initial cost of the working process by using this strategy. The initial benefit, though, later turns into a detriment in the long run. In addition to the ongoing platform usage fees that companies must pay for the SaaS platform, additional service costs are also significant enough to complicate and make cash flow management challenging to manage.

Because of the characteristic of the SaaS platform, customers are not permitted to keep the source code and data when switching platforms, thus enterprises must once again pay the initial development costs after the stage of moving to the Open Source platform. Additionally, the cost of development using an Open Source platform is rather costly, ranging between $30,000 and $50,000 on average.

Additionally, firms will “headache” from the sunk costs associated with switching platforms. The cost of staff training is seen as an additional expense rather than a true investment if you are accustomed to the new system, especially at a time when the economy is anticipated to rebound following COVID-19.

Furthermore, it is easy to make mistakes during the platform shift that result in the loss of crucial firm data, such as data that is closely tied to financial matters. With all the hazards mentioned, managing cash flow and maintaining balance is still a challenging issue that obviously affects furniture companies’ eCommerce business strategies.

Strategy no. 1 will be appropriate for startups or SMEs learning about eCommerce and entering the market safely based on the pros and disadvantages highlighted.

Strategy no.2: Implement an open-source eCommerce platform from the first phase on and use it throughout the second phase.

The milestone of every top-rated furniture eCommerce webiste
Strategy 2 for choosing an eCommerce platform

Pros

With the second strategy, companies develop eCommerce websites on the Open Source platform from the very beginning. Due to the smooth website development process, businesses merely need to gradually improve their functional systems in line with their growth and scale rather than switching platforms.

Long-term cost savings for enterprises are made possible by this seamlessness. In which, addition to saving money by avoiding the cost of starting over when switching platforms as a first strategy, firms also minimize the danger of data loss and spend less time and money training staff to use the brand-new platform.

The second approach, on the other hand, aids firms in laying a strong foundation right away with a professionally designed and smooth eCommerce website system and a team of essential technical personnel who are knowledgeable and well-trained from the start.

Cons

Similar to the first strategy, despite its notable benefits, the second one still has some drawbacks that companies should take into account before implementing furniture eCommerce. The market penetration will be slowed down if Open Source is chosen for the first phase of the deployment process.

All of the website’s features will be designed from the ground up because it will be built on an open-source platform. It takes the team a lot of effort, time, and brainpower to accomplish the entire process, which often takes between three months and a year.

Therefore, the lengthy implementation period is a drawback that slows down market entry, increasing the risk of falling behind in the competitive eCommerce race. Correspondingly, firms will have to pay a considerably larger upfront development fee than they would for a SaaS platform.

When companies must invest a significant sum of money in a platform upfront yet are unsure of its viability and effectiveness for adopting eCommerce, there is a risk involved.

From a business perspective, this drawback is viewed as an opportunity cost, meaning that while this strategy offers firms enormous long-term rewards, it also comes with trade-offs that present difficulties in the short term.

To meet growth and scalability objectives as well as avoid potential risks from switching platforms mentioned in advance, or to make the process of eCommerce implementation simple and efficient.

Therefore, it is incredibly appropriate to invest time and money in starting from scratch with Open Source.

The second approach can be appropriate for firms with a variety of business models, including B2B, B2C, and B2B2C, when the advantages and downsides are carefully thought.

​​With the high growth rate of Vietnam’s economy, eCommerce makes a significant contribution to promoting the flow of goods and services, supporting small and medium enterprises, especially those in the furniture sector, to seek effective business opportunities in the context of deep integration and the spread of the 4th Industrial Revolution.

Moreover, a qualified eCommerce website serves as a “bridge” for furniture companies to achieve that integration objective. However, building a comprehensive, modern, and professional eCommerce website is never simple and necessitates a significant financial investment.

The journey to develop an eCommerce website is described above in great detail by SECOMM with a few extra tips that furniture businesses can refer to shorten your own planning.

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.

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BUY NOW PAY LATER IN ECOMMERCE: MODELS AND EXAMPLES

The Juniper Research report titled “Buy Now Pay Later: Regulatory Framework, Competitive Landscape & Market Forecasts 2022-2027” predicts that the global user base for Buy Now Pay Later (BNPL) will exceed 900 million by 2027. In Vietnam, the BNPL payment method is expected to experience an annual growth of 126.4%, reaching 1,123.9 million USD in 2022.

What is Buy Now Pay Later (BNPL)?

Buy Now Pay Later (BNPL) is a short-term financial arrangement that allows consumers to make immediate purchases and defer the payment to a future date, typically without accruing interest.

How it works

In BNPL, the financial technology (Fintech) organization facilitating the service directly pays the purchase amount to the seller on behalf of the customer. The customer then repays this amount gradually to these organizations over a period, often extending from one to several months.

When using BNPL, customers can make payments through bank transfers or have the amount automatically deducted from their debit card, bank account, or credit card. While the specific terms and conditions may vary between companies offering BNPL services, the general operational mechanism is similar to credit card instalment plans. However, BNPL is often considered much simpler, and additionally, it typically does not involve interest charges; instead, late payment fees are calculated as a percentage of the product or service value.

Buy now Pay later in eCommerce Models and Examples - How BNPL works
How does Buy Now Pay Later work in eCommerce?

Pros and Cons

For customers

With the BNPL model, consumers can make immediate purchases even if they don’t have the financial capacity to pay the entire shopping cost upfront. This payment is divided into shorter instalment periods, corresponding to smaller amounts, reducing financial pressure on consumers. Additionally, BNPL typically does not entail annual fees or hidden charges, and the registration process is simple and quick, averaging less than 15 minutes. In general, BNPL companies usually only require customers to be at least 18 years old and own a bank card, without specifying a minimum personal income.

However, BNPL often comes with a relatively low consumer spending limit, typically ranging from 20 to 30 million VND, to meet the needs of purchasing items such as fashion, cosmetics, phones, laptops, electronic components, etc. If consumers do not know how to control their spending, they may easily engage in excessive shopping as there is no immediate need to pay the full amount at the time of purchase. This can lead to late payments for the instalment periods and additional penalty fees.

For businesses

Collaborating with BNPL organizations to launch BNPL programs with 0% interest can help businesses attract more customers without incurring excessive marketing costs. With this approach, businesses can encourage customers to make purchasing decisions more quickly without extensive financial consideration, thereby significantly boosting revenue. Moreover, instead of offering discounts or freebies, the ability to pay gradually without urgency and without incurring interest aligns with customer psychology and needs.

However, many businesses still hesitate to implement BNPL models due to concerns about not being able to control the debt of individual customers. Additionally, this potential model is relatively new to the Vietnamese market, so there are not many payment service providers offering BNPL services, and there is a scarcity of experienced eCommerce website development units capable of efficiently integrating this functionality.

Compare Buy Now Pay Later with Credit Cards

The BNPL model is revolutionizing the global consumer credit sector, but many people still confuse BNPL with credit card instalment plans offered by banks. 

So, what are the differences between Buy Now Pay Later and credit cards?

Format Buy Now Pay Later Credit Card
Unit accepting payment The seller allows BNPL payment method Banks issue credit cards
Registration process Register quickly, completely online The procedure requires a lot of paperwork
Time 1 to 3 minutes Have to wait for censorship, which can take up to several days, even weeks
Credit limit Depends on buyer profile Depends on buyer profile
Card maintenance fee All free Average 299,000 VND/year
Registration fee All free Average 50,000 VND/card
Conversion fee in instalments All free Average 200,000 VND/transaction, or calculated as a percentage of transaction value

Comparison table of Buy Now Pay Later with Credit Card

Despite trailing behind the global trend, the BNPL model in Vietnam is forecasted to explode due to the market falling into a favourable timeframe. This is influenced by the impact of the Covid-19 pandemic, which has significantly propelled the development of online shopping and eCommerce. Additionally, the BNPL model aligns more with the preferences of Generation Z than traditional credit cards.

Case studies

Tiki and Sendo – Two of the four kings of eCommerce participating in BNPL

Two out of the four largest eCommerce platforms in Vietnam have begun implementing BNPL, affirming the tremendous potential of this model in the online shopping market.

In 2020, Sendo was a pioneer in eCommerce by early adoption of BNPL through collaboration with financial solution provider Atome, offering Buy Now Pay Later services. With BNPL, Sendo aims to make shopping more convenient for customers, removing concerns about financial issues often associated with credit cards, such as increasing interest rates for late payments over an extended period.

Buy now Pay later in eCommerce Models and Examples - Sendo
Buy Now Pay Later program in Sendo

Since the beginning of 2022, Tiki has collaborated with two financial service providers, Home Credit and Lotte Finance, to launch the ‘Buy Now Pay Later’ project, enhancing smart payment solutions directly within the Tiki app. This initiative not only supplements intelligent payment options for Tiki users but also empowers customers to manage their personal finances better when engaging in online shopping, thereby further enriching the overall eCommerce experience for consumers.

Buy now Pay later in eCommerce Models and Examples - Tiki
Buy Now Pay Later program in Tiki

Laybyland – The leading brand in the Buy Now Pay Later model in Australia

Laybyland was established in 2012 in Australia with two key eCommerce business models: Layby (Pay Later) and Shop Now Pay Later (Shopzero). Over its 10 years of eCommerce operations in the Australian market, the business has witnessed remarkable growth. Starting with +10,000 products across two initial websites, it has expanded to offer over +400,000 products daily across five online stores, including Laybyland, Shopzero, Mylayby, and Layawayland.

Shopzero, a part of Laybyland, provides BNPL services through seven main partners: Afterpay, Zip, Openpay, Humm, Latitude, Klarna, and Wizpay. Notably, Shopzero maintains complete control and operation over all BNPL activities and payment processes within its system. Pioneering the BNPL market has brought Shopzero significant success, especially in the electronics, office supplies, fashion, cosmetics, furniture, gardening tools, children’s toys, and travel sectors.

It is evident that BNPL is contributing to a significant revolution in consumer payment habits, shifting from a payment method choice to a crucial factor in customer purchasing decisions.

Buy now Pay later in eCommerce Models and Examples - Laybyland
Buy Now Pay Later program in Laybyland

With extensive experience in implementing eCommerce solutions in various countries, especially in the Buy Now Pay Later market, SECOMM understands the challenges businesses face when exploring how to establish Buy Now Pay Later systems.

Contact SECOMM now or call us via hotline (+84)28 7108 9908 for a free consultation on detailed eCommerce system development solutions!

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What is Social Commerce? A Trend That Keeps Heating Up
WHAT IS SOCIAL COMMERCE? A TREND THAT KEEPS HEATING UP

As per Statista’s data, Social Commerce worldwide generated 992 billion USD in revenue in 2022, with projections indicating a potential surge to 2.9 trillion USD by 2026. This positions Social Commerce as a highly valued and potential trend in the future of eCommerce.

What Is Social Commerce? A Trend That Keeps Heating Up
Source: Statista

What is Social Commerce?

Social Commerce is a term that combines two key concepts: “Social” and “Commerce”.

It represents a business model that seamlessly integrates social media and eCommerce, aiming to create a shopping experience that is more interactive and connected for customers.

What Is Social Commerce? A Trend That Keeps Heating Up
What is Social Commerce?

Social Commerce enables users to view and purchase products directly through social media platforms such as Facebook, Instagram, TikTok, etc.

This approach allows customers to delve into product details, read reviews, engage with comments from other users, and even make direct purchases through business posts, advertisements, or social platform storefronts.

The Social Commerce model often comes with interactive features, product-sharing capabilities, and personalized product recommendations.

Social Commerce takes advantage of the widespread popularity and extensive user base on social media platforms to naturally amplify the reach and influence of products and brands.

How does Social Commerce work?

Social Commerce vs eCommerce

Social Commerce and eCommerce are two distinct online business models, yet they share the common goal of online commerce. Here are the differences between these two models:

What Is Social Commerce? A Trend That Keeps Heating Up
Social Commerce vs eCommerce

Types of Social Commerce

There are various popular types of social commerce, and the choice depends entirely on the scope and objectives of each business. Here are some common types of social commerce:

  • Influencer Marketing: This marketing form leverages the influence of users with large social media followings. Businesses collaborate with celebrities or influential individuals to promote their products and brands.
  • Affiliate Marketing: In this strategy, businesses empower influential individuals to promote or review their products/services in social media posts by embedding links, and incentivizing sales. In return, these affiliate partners earn a percentage of the revenue generated from those links.
  • Social Media Advertising: This type of social commerce centers around using social media platforms as advertising spaces. Businesses can run ads on platforms like Facebook, Instagram, Pinterest, TikTok, etc., to reach their target audience.
  • User-Generated Content (UGC): By encouraging customers to share their experiences using products or services on social media platforms, businesses aim to build trust among both current and potential buyers. 
  • Live Streaming: Hosting live streaming sessions on platforms like TikTok, YouTube, or Twitch allows viewers to interact directly with the business. This involves introducing products/services, fielding questions, and receiving user feedback during the broadcast, ultimately boosting online interaction and sales.

Benefits of Social Commerce

Enhance brand identity

Social Commerce facilitates businesses in reaching millions of users across various social media platforms, particularly globally popular ones like TikTok, Facebook, Instagram, and Pinterest.

This approach not only boosts brand awareness but also promotes businesses’ products and services to the extensive user base on these platforms, creating organic traction through user sharing and interaction.

The renowned sportswear brand Nike has successfully implemented Social Commerce by leveraging engaging posts, videos, and advertisements on social media platforms such as Facebook, Instagram, and Twitter.

The brand consistently runs advertising campaigns encouraging users to share their product experiences. Through user-generated posts and the strategic use of specific hashtags, Nike has sparked natural virality, resulting in an increased level of brand recognition.

What Is Social Commerce? A Trend That Keeps Heating Up
Enhance brand identity

Optimize the shopping experience

A key feature of social commerce is its focus on creating a seamless online shopping experience for users, simplifying the transition from product browsing to actual purchases. Customers can buy directly from posts, advertisements, or online stores on social media platforms.

This not only streamlines the shopping process but also enables businesses to optimize customer experiences, save time, and boost the eCommerce sales volume for the brands.

The cosmetics brand L’Oréal has created various TikTok channels for each target market in its beauty chain, such as lorealparis (global), lorealparisusa (U.S. market), lorealparis_vn (Vietnamese market), lorealparisid_shop (Indonesian market), lorealparisth_store (Thai market), and so on.

This approach not only allows the brand to reach the right target audience but also takes advantage of TikTok Shop, enabling customers to purchase products directly through L’Oréal’s TikTok channel.

What Is Social Commerce? A Trend That Keeps Heating Up
Optimize the shopping experience

Monitor & measure performance

Presently, social media platforms offer comprehensive analytics and data measurement tools for businesses. For instance, Instagram Insights provides demographic information such as gender, age groups, and geographic locations.

Facebook Audience Insights goes a step further in collecting detailed data about a business’s target audience, while TikTok Pixel allows tracking vital metrics like clicks, views, and conversion rates, and assessing the effectiveness of advertising campaigns.

Leveraging these data sources assists businesses in creating more efficient social commerce campaigns compared to traditional retail operations. A noteworthy example of the successful implementation of Social Commerce with optimized tracking and measurement is Fashion Nova.

This prominent American fashion brand specializes in offering women’s clothing and accessories. Fashion Nova’s Instagram posts often incorporate sharing and user tracking features, enhancing the dissemination of information about products and the brand.

Furthermore, Fashion Nova utilizes Instagram’s measurement features and analytical tools to evaluate the effectiveness of the brand’s marketing and advertising campaigns.

What Is Social Commerce? A Trend That Keeps Heating Up
Monitor & measure performance

Boost engagement & customer service

Embracing social commerce enables businesses to seamlessly engage in direct interactions with customers and gather their feedback regarding the brand or product through posts, direct conversations, comment responses, and messages.

This facilitates quick customer support, addresses inquiries promptly, fosters satisfaction and fortifies customer relationships. Moreover, based on this valuable customer feedback, businesses can refine their products/services to align with customer expectations.

Tarte Cosmetics, a renowned cosmetics brand specializing in makeup and skincare products, has effectively utilized social media platforms such as Instagram, Facebook, and Twitter to implement social commerce. The brand consistently engages with customers across social media channels.

The administrative team promptly responds to user comments and messages, addressing inquiries and offering technical support. This approach builds trust and satisfaction among customers, actively strengthening positive customer relationships.

What Is Social Commerce? A Trend That Keeps Heating Up
Boost engagement & customer service

The Bottom Line

Here are insights, advantages, and examples of businesses effectively embracing Social Commerce. Depending on each business’s strategy, administrators can blend social media and eCommerce to engage customers and establish a brand in the current digital era.

Related Reading: eCommerce: Inbound Marketing vs Outbound Marketing

Contact SECOMM or directly call the hotline at 02871089908 today for complimentary guidance on implementing eCommerce Marketing overall and Social Commerce specifically.

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14 Must-Have Features to Develop Your Online Marketplace
14 MUST-HAVE FEATURES TO DEVELOP YOUR ONLINE MARKETPLACE

The surge in demand for online shopping via eCommerce marketplaces over recent years has been remarkable. So, it comes as no surprise that numerous businesses are looking for ways to build their own marketplaces to diversify their product offerings and engage with a wide range of customer segments.

Operating an eCommerce marketplace differs significantly from managing an eCommerce website. The key is to ensure that the experience is user-friendly and efficient for all involved parties, including administrators, sellers, and buyers, during both the operational and transactional phases. 

Depending on the strategy, scale, budget, market, and target audience, businesses will make suitable adjustments. However, the following online marketplace features continue to be crucial when implementing the majority of eCommerce marketplaces today.

Operator Features

14 Must-Have Features to Develop Your Online Marketplace - Operator features
Operator Features

The operator, also known as an administrator or owner of the online marketplace, holds a pivotal role in managing and running the platform. They possess the authority to access and govern all data and carry the responsibility for the platform’s overall performance and growth.

As a result, essential features for operators include:

Seller Management

14 Must-Have Features to Develop Your Online Marketplace - Seller management
Seller Management

The operator’s role involves helping sellers register on the platform, gather their information, and grant access to tools that aid their business operations. Additionally, other aspects of ‘Managing Sellers’ that businesses should consider include:

  • Communication and Support Channels: This entails providing customer service and addressing seller accounts and technical issues through channels like email or a hotline.
  • Content Management:  Ensuring that products, content, images, and videos uploaded by sellers comply with the eCommerce platform’s established standards and regulations.
  • Monitoring Seller: Tracking and evaluating data related to seller activities, such as sales volumes, customer feedback, response times, and adherence to platform policies.
  • Transaction Management: This covers policies regarding commissions, transaction fees, and payments. Businesses must ensure they furnish comprehensive documentation, accurately and promptly process payments, and offer support in resolving related concerns.

Marketing Management

14 Must-Have Features to Develop Your Online Marketplace - Operator features - Marketing management
Marketing Management

To expand the pool of registered sellers and draw more customers to shop on the online marketplace, operators continually rely on marketing efforts. Some methods include optimizing SEO, leveraging influencer marketing, running targeted advertisements, devising in-platform promotional initiatives, and more.

However,  it’s crucial for businesses to possess a set of features and tools to proficiently craft and manage marketing campaigns across multiple channels. This aids in the effective promotion of their marketplaces, the attraction of additional sellers and customers, and the establishment of a distinctive presence within the competitive eCommerce landscape.

Supply Chain Management

14 Must-Have Features to Develop Your Online Marketplace - Supply chain management
Supply Chain Management

Given the substantial order volume, operators need features that offer them full control of order fulfillment. This includes inventory management, overseeing multiple warehouses, configuring automated workflows for handling and transporting orders between warehouses, and delivering them to end-users.

Plus, to optimize the delivery process, businesses can partner with third-party shipping providers to provide customers with various choices, such as standard, express, or expedited shipping methods.

Analysis & Reporting 

14 Must-Have Features to Develop Your Online Marketplace - Operator features - Analysis & reporting
Analysis & Reporting

Through comprehensive data analysis and detailed reporting, businesses can gain insights into their overall operations and make informed adjustments. Key data points include:

  • eCommerce Performance: This encompasses metrics related to sales, revenue, user engagement, and satisfaction levels to assess the current state of the platform and make strategic decisions.
  • User Behavior: This includes data on new account registrations, conversion rates, browsing habits, and search trends on the platform. It helps identify lingering issues for improvement and provides a better user experience.
  • Marketing Reports: Operators need in-depth marketing reports to assess the ROI of marketing campaigns, analyze customer acquisition channels, and evaluate the impact of various promotional programs and incentives.

Seller Features

14 Must-Have Features to Develop Your Online Marketplace - Seller Features
Seller Features

Sellers, also known as suppliers or merchants, are individuals or businesses that offer products or services on the online marketplace. Their responsibility is to manage their operations and optimize sales performance.

Therefore, eCommerce marketplace features for sellers to conduct efficient business operations include:

Easy Onboarding

14 Must-Have Features to Develop Your Online Marketplace - Easy onboarding
Easy Onboarding

Sellers have many choices in the midst of multiple online marketplaces. So, offering a swift and uncomplicated registration and store setup process is an effective way to attract a wide pool of new sellers to open their stores.

Businesses can offer detailed step-by-step guidance to sellers, from creating an account and verifying their seller identity to decorating their store and listing products. Furthermore, businesses can provide instructional videos, FAQs, and blogs to guide them on optimizing their store, promoting products on the platform, as well as understanding the fees associated with the eCommerce marketplace’s sales policies.

Product Management

14 Must-Have Features to Develop Your Online Marketplace - Product management
Product Management

Beyond listing products, helping sellers manage their product catalog effectively on the marketplace is equally important.

This includes tasks like adding and removing products, maintaining high-quality product descriptions, images, and videos, handling product variations and attributes, updating inventory, setting product prices, applying discounts, prompting product reviews, and moderating and verifying reviews based on the platform’s standard.

Marketing Management

14 Must-Have Features to Develop Your Online Marketplace - Seller Features - Marketing management
Marketing Management

Sellers need tools and features for setting up marketing campaigns to promote their stores and products, driving increased sales. These commonly used marketing tools on online marketplaces include in-site and off-site advertising, promotional messaging, flash sales, bundled deals, shipping discounts or free shipping promotions, creating discount vouchers, live-streaming sales events, and participating in platform-wide promotional activities.

Order Management

14 Must-Have Features to Develop Your Online Marketplace - Order management
Order Management

Providing sellers with effective order management capabilities also impacts the customer experience on the eCommerce marketplaces. This means offering sellers features to manage their order lists, track the status of orders, fulfill orders, handle returns, and efficiently address any issues that may arise.

Analysis & Reporting

14 Must-Have Features to Develop Your Online Marketplace - Seller Features - Analysis & reporting
Analysis & Reporting

Sellers rely on data analysis and reports to track and manage their business performance on the online marketplace effectively. These reports provide valuable insights for making data-driven decisions and optimizing their operations.

  • Sales Performance: Sellers have access to data including total sales, revenue, order volume, and average order value to evaluate the success of their products or services and make informed decisions.
  • Inventory Reports: Data related to inventory levels, inventory turnover, best-selling products, and less popular products help optimize inventory by adding popular items or reducing/limiting the sale of low-demand products.
  • User Behavior: This includes data on purchasing behavior, feedback, customer reviews, and ratings for products and services, allowing sellers to enhance the customer experience and service.
  • Expense Reports: This covers financial aspects such as transaction fees, commissions, invoices, payment receipts, and taxes. Clear financial reporting helps sellers manage cash flow efficiently while adhering to the marketplace’s policies.

Buyer Features

14 Must-Have Features to Develop Your Online Marketplace - Buyer Features
Buyer Features

Buyers, also known as customers, refer to individuals or businesses that purchase goods or services from sellers on the eCommerce marketplace. Customers play a crucial role in driving the success of the marketplace. Therefore, feature development is focused on enriching the shopping experience.

Advanced Search

14 Must-Have Features to Develop Your Online Marketplace - Advanced search
Advanced Search

When accessing an eCommerce marketplace, the first thing most users do is use the search bar to find the information and products they desire. However, the product catalog on marketplaces is extensive and can be overwhelming for buyers. 

Therefore, beyond maintaining well-structured and organized product categories, businesses should offer advanced search capabilities to simplify and enhance the customer’s product discovery experience process. Common advanced search options include filtering, image-based, or voice-based search (optimized for mobile devices).

Personalization

14 Must-Have Features to Develop Your Online Marketplace - Personalization
Personalization

Features like product recommendations, push notifications, personalized content, and customer service tailored to individual shopping behavior and preferences are crucial for enhancing the eCommerce experience. Studies have revealed that 74% of customers feel frustrated when encountering non-personalized shopping experiences on websites. 

By integrating advanced search capabilities with personalization, companies can offer a more enriching user experience, leading to greater satisfaction, higher levels of engagement, and increased customer retention. This transforms their marketplace into an ideal shopping destination for buyers.

Simple Checkout

14 Must-Have Features to Develop Your Online Marketplace - Simple checkout
Simple Checkout

Out of the various reasons for cart abandonment, issues related to long and complicated checkout procedures make up 17%, according to Baymard. it is essential for businesses to streamline the payment experience for customers, removing unnecessary steps, offering a transparent payment process, or implementing a one-page checkout. 

Moreover, businesses can diversify their payment methods to suit their target markets, including options such as Cash on Delivery (COD), credit card payments, eWallets, and buy now, pay later options.

Order Tracking

14 Must-Have Features to Develop Your Online Marketplace - Order tracking
Order Tracking

To boost the trust of buyers and sellers in the eCommerce platform, it is crucial for businesses to offer real-time order tracking and status-checking capabilities. 

Buyers can track their orders through the marketplace’s mobile app or website by using their unique order IDs. This way, both the seller and the buyer can communicate promptly if any issues arise with the order.

Review & Rating

14 Must-Have Features to Develop Your Online Marketplace - Review & Rating
Review & Rating

With a diverse range of product choices offered by different sellers, customers may find it challenging to make purchasing decisions when they lack trust in either the product or the seller. Hence, the review and rating feature is essential for building trust and expediting decisions.

The review feature allows buyers who have made purchases to leave comments, reviews, and ratings for a product, customer support, and product packaging, regardless of the seller. 

Whether these reviews and ratings are positive or negative, they have a significant impact on a buyer’s decision-making process. Therefore, this serves as a motivation for sellers to enhance the quality of their products and services and for the eCommerce marketplace owner to provide an improved user experience.

Above are the 14 essential features for operators, sellers, and buyers that businesses should keep in mind when building an online marketplace. With many years of eCommerce implementation experience for numerous clients in various countries worldwide, SECOMM has gathered valuable insights to boost the development and operation of your business’s marketplace swiftly and effectively.

Contact or call SECOMM’s hotline (02871089908) today for a free consultation.

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The Complete 9 Steps for Building an eCommerce Marketplace
THE COMPLETE 9 STEPS FOR BUILDING AN ECOMMERCE MARKETPLACE

Unlike building eCommerce websites for simpler models like B2C or B2B, implementing an online marketplace requires a higher level of technical knowledge, programming skills, database management, system administration, and more.

In this article, SECOMM will share the essential steps for successfully developing an eCommerce marketplace, from market research and business planning to designing an appealing user interface, developing functional systems, and more.

Conduct market research and business planning

Market research and business planning are essential and indispensable initial steps in starting an eCommerce marketplace or any business operation.

The Complete 9 Steps for Building an eCommerce Marketplace - Conduct market research and business planning
Conduct market research and business planning

Here are some considerations for businesses when undertaking these activities:

  • Understanding customers and market needs: Market research helps businesses gain a better understanding of their target customers, competitors, and industry-influencing factors. By exploring customer needs, preferences, and shopping behaviors, businesses can make strategic decisions to create the best online shopping experience and seize effective business opportunities.
  • Setting goals and business strategies: Business planning helps companies identify specific objectives and devise strategies to achieve them. Companies need to define their core and secondary products/services, market access strategies, customer engagement approaches, and competitive value creation methods. A business plan helps create a detailed roadmap for how the business will build, develop, and operate its eCommerce marketplace.
  • Defining USP (Unique Selling Point): Market research allows businesses to comprehend the strengths and weaknesses of their competitors. This helps businesses identify distinctive features and competitive value that their brand can provide to attract customers. Determining the USP enables businesses to leverage these elements in branding, marketing, and operational strategies to gain a competitive advantage in the eCommerce marketplace.
  • Risk and financial management: Creating a financial plan and managing risks before embarking on the online marketplace development process is crucial. Businesses need to evaluate the financial resources and requirements for project implementation and establish long-term financial plans to ensure the sustainability of the business.

Select eCommerce platform

The eCommerce platform is a crucial element in the process of building an online marketplace. If the right choice is not made from the beginning, businesses may find themselves entangled in the whirlpool of technology when implementing their marketplace.

Typically, there are two types of eCommerce platforms for businesses to choose from: SaaS and Open Source.

The Complete 9 Steps for Building an eCommerce Marketplace - Select eCommerce platform
Select eCommerce platform

SaaS platform

SaaS (Software as a Service) eCommerce platforms are a software distribution model for building websites.

In this model, data is stored on the provider’s server, and the platform is responsible for handling technical aspects for businesses. Some popular SaaS platforms today include Haravan, Shopify, BigCommerce, and more.

  • Pros: User-friendly, quick development time, high security, 24/7 customer support.
  • Cons: Increasing development costs over time, limited customization, functionality, and scalability, and businesses may not own the source code and data.

Open-source platform

An Open Source platform, or open-source software, is software with publicly available source code that anyone can use for free. Open-source platforms are an optimal choice for businesses looking to develop complex eCommerce systems, especially tailored to the specific needs of an online marketplace.

Prominent examples of Open Source online marketplaces include Magento, WooCommerce (a plugin for WordPress), OpenCart, and more.

  • Pros: These platforms offer high levels of customization and scalability, a wide range of additional features and utilities, and businesses have ownership of the source code and data.
  • Cons: They are not very user-friendly, involve high development costs, and require extended deployment times.

Each platform type has its own set of advantages and disadvantages. Therefore, businesses should either have an in-house team or collaborate with an experienced and highly skilled eCommerce marketplace development agency to effectively advise on the selection, development, and operation of the chosen platform.

Outsource or build an in-house team

The initial decision regarding resource allocation for starting an eCommerce marketplace system has a profound impact on a company’s early business direction. Companies can choose to either collaborate with specialised development firms or establish their own in-house teams.

The Complete 9 Steps for Building an eCommerce Marketplace - Outsource or build an in-house team
Outsource or build an in-house team

Opting for an in-house team entails investing time and budget into the recruitment and training of staff. However, it provides effective resource management, enabling businesses to adapt and develop the online marketplace system in alignment with their original vision.

Alternatively, when companies decide to seek external partners, they need to collaborate with various firms to identify the most reputable one. However, upon finding a partner with extensive practical experience in marketplaces across multiple platforms, businesses benefit from consultations and a multitude of solutions from diverse perspectives even before system development begins.

Moreover, these firms possess a wealth of experience in promptly addressing emerging issues during system development and operation. This not only ensures that the requirements are met as anticipated but also facilitates valuable knowledge and experience exchange among all parties involved.

Design UI/UX

The User Interface (UI) and User Experience (UX) are often considered two inseparable aspects in the process of designing the interface for an eCommerce marketplace.

The Complete 9 Steps for Building an eCommerce Marketplace - Design UIUX
Design UI/UX

Here are the key steps in the UI/UX design process:

  • User Research: Research and gain a deep understanding of the target user audience, including demographic information, behaviour, needs, and expectations. This helps the business identify important elements to focus on and design accordingly.
  • Create Wireframes: Wireframes are simplified outlines of the website’s structure and layout, helping the business determine the placement of interface elements such as menus, buttons, images, and content containers. Wireframes provide an overview of the interface and assist in building the basic layout for the marketplace.
  • Optimize User Experience (UX): Ensure the website is user-friendly, easy to navigate, and meets user needs, such as enhancing interactivity, mobile-friendliness, optimizing page loading speed, and more.
  • User Interface (UI) Design: Create UI components such as buttons, menus, forms, images, and graphics that align with the brand. Make sure to use appropriate colors, fonts, and images to create a professional interface with a touch of the brand’s identity.
  • Testing and Evaluation: After completing the UI/UX design, conduct testing with a user group or use testing tools to assess the effectiveness of the interface.

Design architecture and database

Starting from business requirements, the technical team will build the system architecture for the eCommerce marketplace based on the appropriate technology framework or platform. Various architectures can be used, such as three-tier architecture, microservices architecture, hybrid architecture, headless architecture, etc. Each type of architecture has its own advantages and limitations, so businesses need to carefully consider and work with experts on the team or partners to choose the most suitable system architecture for each stage.

The Complete 9 Steps for Building an eCommerce Marketplace - Design architecture and database
Design architecture and database

Another equally important next step is to establish security and data management. Businesses need to define security measures to protect user data, payment information, and other critical data. Ensure that data is encrypted and transmitted securely via an SSL connection. Implement data protection measures such as access control, user authentication, data encryption, and data integrity checks.

Depending on the operating model of the marketplace, system and database design may need to be customized to be suitable and effective.

Develop functional system

After completing the essential functional systems, businesses should continue to develop specific features for their online marketplace, such as:

The Complete 9 Steps for Building an eCommerce Marketplace - Develop functional system
Develop functional system

Operator Portal: Full control of platform information, including seller management, product categorization, customer segments, supply chain management, ad content control, and more.

  • User Groups and Administrative Levels: Categorizing users into various groups and granting different permissions to different users.
  • Supply Chain Management: Warehouse and inventory management, assisting sellers in order fulfilment by routing orders, and more. 
  • Marketing Tools: A range of tools support marketing strategies, including search advertising, live streaming, gamification, and more.
  • User Experience Personalization: The ability to display personalized products such as favorites, similar products, past purchases, and facilitate order communication with sellers.
  • Analysis and Reporting: Analyzing and measuring the performance of the online marketplace to develop future business strategies.
  • Integration with Other Systems: Seamless integration with external systems.

Seller Portal: Sellers self-manage their presence in the marketplace, including product listings, orders, and activities, etc

  • Category and Product Management: Add, edit, delete product categories and products within categories; manage product attributes and variations (color, size, etc.); manage inventory quantities.
  • Content Management: Create and optimize content, including text, images, videos, banners, widgets, templates, branding, messaging, and more.
  • Order Management: View order lists and their statuses. Track shipments and deliveries. Update order status (processing, delivered, canceled, etc.).
  • Advertising and Promotions: Display advertisements, banners, promotions on the website. Manage discount codes, promotional programs, and more.
  • Payment Integration and Transaction Processing: Integrate payment gateways for online payment processing. Confirm and track payment transactions.

Customer Portal: Allow users to perform and manage basic information such as phone numbers, email addresses, delivery addresses, adjust payment options, request quotes, manage shopping lists, check order status, etc.

  • Account Registration and Management: Register new user accounts (buyers and sellers), log in, and manage personal information, delivery addresses, payment methods, etc.
  • Product Search and Viewing: Search for products by keywords, categories, brands, etc. View detailed product information, including images, descriptions, prices, ratings, and more.
  • Cart and Checkout: Add products to the cart; edit product quantities, remove products from the cart, calculate and display the total amount in the cart; select payment methods; enter payment information and delivery address; confirm and place orders. 
  • Reviews and Comments: Rate and write reviews about products; view reviews and comments from other users.
  • Customer Support: Provide contact channels for customers to ask questions, request assistance; offer real-time support through direct chat, email, phone, and more.

Q/C Testing

Whether you’re building an in-house team or enlisting the services of external development agencies, the quality testing phase of a project holds immense significance. This critical stage is where businesses validate that the system functions as expected and complies with the initial requirements.

The Complete 9 Steps for Building an eCommerce Marketplace-QC-Testing
Q/C Testing

Step 1: Define Testing Objectives

Identify the objectives and scope of the testing process. Set specific criteria and requirements that the business wants to verify to ensure the platform operates accurately and meets the specified requirements.

Step 2: Test Planning

Determine a detailed test plan, including test cases, scenarios, and data. Identify the resources, timeline, and scope of the testing phases.

Step 3: Functional Testing

Verify all website functions to ensure they are working correctly as expected. If the business’s website supports multiple languages and regions, it should also verify compatibility and display of each feature in different geographical areas.

Step 4: User Interface (UI) Testing

Ensure the interface is designed beautifully and user-friendly. Evaluate information display, buttons, links, and user experience on various devices, including mobile and tablet.

Step 5: Browser Compatibility Testing

Test the website on popular browsers such as Google Chrome, Mozilla Firefox, Safari, and Microsoft Edge to ensure compatibility and correct display on all platforms.

Step 6: Performance Testing

Assess website performance, including page load speed, concurrent processing, and scalability. Ensure the website operates smoothly and can handle the expected traffic load.

Step 7: Security Testing

Examine the platform’s security by testing intrusion potential, data security, and user authentication. Verify security methods such as SSL, data encryption, and security certificates.

Step 8: Issue Resolution

Document and track any errors and issues that arise during testing. Identify the root causes, rectify the errors, and retest until the testing process is approved, and the entire system is ready for go-live and operation.

Golive

Go-live is the final stage in the process of starting an eCommerce marketplace when the system is officially launched and becomes operational.

The Complete 9 Steps for Building an eCommerce Marketplace - Golive
Golive

To ensure a successful go-live process, businesses should prepare a checklist known as the Go-live checklist. This is a list of tasks that the deployment team needs to perform to prepare the system for go-live. The checklist includes task items, responsible individuals, status, and how they affect the system.

Pre-golive

  • Prepare the Production environment and configure the domain.
  • Ensure that the entire source code of the go-live preparation system is the final version of the quality testing process.
  • Data migration: Execute the data migration process from the old system to the new system using the established method. Then, verify the data after migration to ensure the integrity and accuracy of data in the new system.
  • Content update: Review website content, including text, images, videos, and other materials. Ensure that the content is displayed accurately without spelling or formatting error
  • Backup all website data to ensure safety and data recovery capabilities when needed
  • Identify and prepare customer guide and support materials

Finally Golive 

  • Implement the transition process from the development environment to the actual production environment.
  • Monitor website traffic and activities immediately after golive.
  • Ensure system stability and performance throughout the go-live process.

Post-golive

  • Monitor and analyze user feedback
  • Address issues and problems that arise post-go-live
  • Ensure the system’s stability and performance over an extended period after golive
  • Ensure compatibility of integrations with external systems
  • Train employees and managers to use and maintain the system effectively

Continuously update & develop features

Regularly updating the system is important for businesses to adapt to the ever-changing customer needs, improve customer experience, stay abreast of emerging technology trends, enhance competitiveness, and more. Moreover, continuous bug fixes and security patch updates enhance the brand’s credibility, safeguard users from internet threats, and so on. 

Moreover, the development of new features empowers businesses to capitalize on market opportunities and scale their operations more professionally. For example, after a period of operation and accumulating a specific customer base, businesses can introduce features tailored to loyal customers. 

The Complete 9 Steps for Building an eCommerce Marketplace - Continuously update & develop features
Continuously update & develop features

Running a thriving marketplace involves a multitude of factors, such as the business model, financial capabilities, and building strategic partnerships with diverse brands. However, a well-functioning eCommerce platform with high performance plays a vital role in the path to success. The journey of marketplace development is anything but straightforward. It requires substantial investments of time and resources for thorough research and the seamless alignment of solutions with each development phase.

Recognizing the challenges and hurdles that businesses face during the process of starting their eCommerce marketplace, feel free to contact or call SECOMM directly at (02871089908) for a free consultation.

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Ultimate Guide for Vietnamese Firms to Deploy O2O Commerce
ULTIMATE GUIDE FOR VIETNAMESE FIRMS TO DEPLOY O2O COMMERCE

According to data compiled by Statista, over 82% of retail sales take place in brick-and-mortar stores. Within that, more than 81% of customers have spent time researching products online before deciding. This demonstrates both online and offline business activities must be aligned for the optimized overall operation. That means you, as a business, need to consider implementing an O2O commerce strategy in line with your business goals and capabilities.

Define objectives

To establish objectives, it’s important to determine your vision for O2O commerce implementation. It represents the future look that you aim to achieve, and then you will set specific and measurable goals. You can also use SWOT to make sure you understand your strength, weakness, opportunity, and threats. 

Ultimate Guide for Vietnamese Firms to Deploy O2O Commerce - Define objectives
Ultimate Guide for Vietnamese Firms to Deploy O2O Commerce – Define objectives

Clear objectives will keep you focused on what is important, minimize risks, and achieve O2O commerce success.

Plan the strategy

Next is to work with your team to develop O2O strategies to achieve the established objectives. 

You can use performance analysis software to measure and analyze, identifying pain points and touchpoints throughout the purchasing journey. This way, you can determine which O2O model to implement and which channels are suited for the chosen model. 

After choosing your business model, you will select resources to facilitate O2O commerce. 

Ultimate Guide for Vietnamese Firms to Deploy O2O Commerce - Plan the strategy
Plan the strategy

Here are 3 great ways to pool resources:

Number 1. Plan to build your in-house team for both online and offline sales channels

Pros: You can manage and shape your team to develop the business the way you want

Cons: It requires significant costs and time to recruit and train your in-house team, making your market entry to be slower than the competition. 

Number 2. Collaborate with an O2O-experienced developer

Pros: You can learn a lot from your partner

Cons: It’s not easy to find trustworthy and professional partners with expertise that suits your needs. 

Number 3. Facilitate the O2O commerce with an expert developer along with building the in-house team to maintain it.

Pros: You can quickly develop the O2O system and control it in the long run

Cons: It takes time to find a trustworthy vendor, as well as the costs to recruit and train your in-house team.

Those approaches can help you in effectively outlining your O2O commerce plan, encompassing aspects such as budget allocation and implementation timeline.

Optimize the offline commerce system

Typically, businesses that implement O2O strategies are those that already have an existing offline business system. However, to effectively fulfill O2O orders you must optimize your offline commerce capabilities. The optimized offline system will strengthen your O2O operations with some management software such as POS, CRM, ERP, and PIM instead of using manual management processes relying on paperwork or Microsoft Office tools (Word, Excel, OneNote, Access, etc).

Ultimate Guide for Vietnamese Firms to Deploy O2O Commerce - Optimize the offline commerce system
Optimize the offline commerce system

POS (Point of Sale) is where the buying and selling transactions take place. A POS system combines hardware and software to create a complete transaction process. Some popular POS systems include Magestore, mPOS, VNPAY, and KiotViet. 

ERP (Enterprise Resource Planning) is software that helps plan and manage all operations of a business. Some world-renowned ERPs include Odoo, Sage, TomERP, Oracle, and SAP. 

CRM (Customer Relationship Management) is a software that allows you to manage information and interaction of your existing and prospective customers. CRM helps you to collect, store, and analyze customer data to improve customer interactions and enhance sales capabilities. You can use CRM tools like Salesforce, HubSpot, Zendesk, Zoho, and Pipedrive. 

PIM (Product Information Management) is a system used to store and manage your business’s product information in a centralized manner. Product information includes technical specifications, descriptions, images, videos, size and color information, multilingual product descriptions, and other relevant information needed by marketers or sales staff. There are some popular PIM solutions including Pimworks, Salsify, Akeneo, and Inriver.  

Depending on the current level of digitization in your offline operations, you can consider upgrading existing systems, transitioning to different platforms, or implementing additional suitable software solutions. 

Develop the online commerce system

Select platforms

Typically, building the online commerce system including websites, and apps, you can choose between 2 types of platforms: SaaS and Open Source.

Ultimate Guide for Vietnamese Firms to Deploy O2O Commerce - Select platforms
Select platforms

SaaS (Software as a Service) platform is a service delivery model where the website system is provided as software. In this model, data is stored on the provider’s server, and the platform is responsible for handling technical issues for the business.

Some popular SaaS platforms:  Haravan, Shopify, and BigCommerce.

  • Pros: Easy to use, quick development time, high security, 24/7 customer support
  • Cons: Increasing development costs over time, businesses have limited ownership of source code and data, limitations in functionality and customization, and scalability.

The SaaS platform is often a popular choice for startups or SMEs (Small and Medium-sized Enterprises) due to its reasonable cost and implementation time. 

The Open Source platform refers to software with publicly available source code that can be used by anyone free of charge. Open-source platforms are the optimal choice for businesses to develop comprehensive websites and apps. 

Some notable Open-source platforms include Magento, WooCommerce (a plugin for WordPress), and OpenCart. 

  • Pros: High customization and scalability, diverse critical features and utilities, you have ownership of source code and data. 
  • Cons: Not user-friendly, high development costs, lengthy implementation time. 

The Open-source platform is the perfect choice for enterprise-level businesses requiring complex customization due to its high flexibility and scalability.

In addition, you can also build your store on popular eCommerce marketplaces such as Shopee, Lazada, Tiki, Sendo, and Amazon. Marketplaces give you a great opportunity to reach out to a wide pool of potential customers and increase sales. Moreover, using eCommerce marketplaces helps you save costs on ads, shipping, and customer relationship management (CRM).

To succeed on marketplaces, you will need optimized store pages and an effective strategy. It’s easier said than done, however, relying on eCommerce marketplaces in the long run may result in a loss of control over customers and their data. Marketplaces will have their own policies regarding customer data management and contact information making it difficult for you to directly access their customers and may lose these potential customers to your competition. 

Overall, to effectively implement O2O commerce, you can choose to develop an online system alongside your offline system or proceed with it after getting the offline system done. 

Create UI/UX design

After choosing the platform to build the O2O e-commerce website and app, you will create the UI/UX design that aligns with your brand’s characteristics. 

Ultimate Guide for Vietnamese Firms to Deploy O2O Commerce - Create UI UX design
Create UI/UX design

There are 3 recommended approaches:

  • Using pre-built themes: This helps you save theme costs. Both SaaS and Open-source platforms offer a variety of themes ranging from $300 to $500.
  • Customizing based on pre-built themes: This approach allows you to customize the theme to suit your development needs. 
  • Create the UI/UX design from scratch: This helps you to develop your brand image uniquely and creatively compared to the majority of competitors. It may incur higher costs compared to using pre-built themes but the “tailored” design will meet the market needs and your business’s requirements. 

Develop critical functions for the digital system

Ultimate Guide for Vietnamese Firms to Deploy O2O Commerce - Develop critical functions for the digital system
Develop critical functions for the digital system

After you’ve done with your design, it’s time to develop some critical functions for both eCommerce website and app implementation. Below are a few suggestions:

  • Catalog Management: involves managing categories, functions, prices, and product images/videos to optimize your operations.
  • Sales Management: focus on managing order information, and being aware of customer shopping behavior.
  • Marketing Management: integrating features such as URLs, meta tags, and internal links to optimize SEO, and combine with other effective marketing campaigns to boost sales. 
  • Content Management: All about generating and optimizing engaging content for CMS, including text, images, banners, widgets, templates as well as blogs, and branded content, v.v
  • Customer Management: All about storing, managing, and analyzing customer data and segmentation to boost your marketing strategy and optimize the customer online experience.
  • System Management: All about managing and assigning permissions to administrators to operate, secure, and maintain the eCommerce system. 
  • Store Management: All about using inventory management tools at main stores, branches, and warehouses to ensure an efficient supply chain. 
  • Cart and Checkout Management: All about the shopping cart and payment information.
  • Analysis and Reporting: All about analyzing and measuring the performance of the eCommerce system to help you make decisions based on data. 

Testing

Testing serves as a vital undertaking to help you uncover any lurking bugs that may emerge within a website and app, all in the pursuit of aligning the entire system seamlessly with the precise demands of your business. By doing testing, you will not only grant a comprehensive overview of your project but also provide the means to evaluate targets and even proactively manage risks as you navigate the realm of eCommerce.

Ultimate Guide for Vietnamese Firms to Deploy O2O Commerce - Testing
Testing

There are several testing methods:

  • White-box testing: In white-box testing, the code and algorithms are examined. Testers access the source code to perform the tests. 
  • Black-box testing: This method tests the system’s functionality based on specific requirements.
  • Gray-box testing: It combines black-box and white-box testing. 

In general, conducting testing based on test scenarios is an important step that helps you ensure quality and provides a solid foundation for a smooth operation.

Legal Registration and Launch the app

Ultimate Guide for Vietnamese Firms to Deploy O2O Commerce - Legal Registration and Launch the app
Legal Registration and Launch the app

Declare with the Vietnamese Ministry of Industry and Trade

The final step to developing the online capabilities is to complete the legal procedures to make sure your eCommerce operation is legit. You can follow the step-by-step guide in the eCommerce Management Portal. 

This is a mandatory requirement set by the Vietnamese Ministry of Industry and Trade for individuals or organizations having online businesses to fulfill their obligation to register/notify within the specified timeframe. 

Publish the app on Google Play and App Store

To publish the applications on these platforms, you need to follow these steps:

  1. Register a developer account on the App Store and Google Play
  2. Create your developer profile and register the app
  3. Create and submit the app, including necessary information such as name, description, images, videos, and other features. You must ensure the app complies with the regulations and requirements of these platforms.
  4. Check and confirm the app registration. When the app is approved, you can start promoting and managing it on the platforms. 

By pushing the app to Google Play and the App Store, you take one closer step to mobile users.

Measure performance

After facilitating your O2O commerce system, it’s time to take a look at the collected data to measure its performance for further critical decisions. Several tools can be integrated into your business system such as Google Search Console, Google Analytics, Facebook Pixel, TikTok Tracking Pixel, and more.

Ultimate Guide for Vietnamese Firms to Deploy O2O Commerce - Measure performance
Measure performance

Moreover, you can integrate BI (Business Intelligence) tools, which are intelligent management reporting systems, to gather large amounts of data from various sources and use them to make predictions. Some popular BI tools include Magento Business Intelligence, Tableau, Power BI, and Looker.

Optimize customer experience

Having the analysis and reports in place, you can now develop appropriate strategies to optimize customer experience. Some popular strategies include Loyalty Program and Omnichannel.

Ultimate Guide for Vietnamese Firms to Deploy O2O Commerce - Optimize customer experience
Optimize customer experience

The Loyalty Program is a marketing strategy designed to encourage customers to continue to shop associated with the program. This enriches customer shopping experience and keeps them engaged with your brand. 

Omnichannel is a multichannel sales approach that focuses on providing a seamless shopping experience by marketing and selling on all channels where potential customers are present, from mobile devices, social media, and eCommerce websites to brick-and-mortar stores.

O2O Commerce Solution at SECOMM

Established in 2014, SECOMM is a company specializing in providing O2O commerce solutions. Over the years, SECOMM has accumulated a vast portfolio of O2O commerce projects with large domestic and international clients such as Annam Gourmet, Trentham Estate, and much more.

Regarding O2O commerce solutions, SECOMM offers a diverse range of services to help businesses enhance their competitive capabilities and dominate the retail market in the digital age. These services include Solution Consulting, Team Development, and O2O System Development including:

O2O Commerce Model

eCommerce System

Developing an O2O commerce system to provide a comprehensive experience for customers:

  • Deploying eCommerce websites on platforms such as Shopify, WooCommerce, and Magento, etc
  • Building eCommerce Apps using platforms, technologies, and frameworks such as Flutter, NodeJS, ReactJS, Ionic.
  • Building and managing online stores on popular eCommerce marketplaces such as Shopee, Lazada, Tiki, Sendo, and Amazon.

Management system

Deploying and integrating management tools and software to efficiently operate business activities for the enterprise.

  • ERP: Odoo, Sage, TomERP, Oracle, SAP, etc.
  • CRM: Salesforce, Hubspot, Zendesk, Zoho, etc.
  • POS: Magestore, mPOS, VNPAY, KiotViet, etc.
  • PIM: Pimworks, Salsify, Akeneo, Inriver, etc.

Customer Experience System

Building and integrating platforms to support businesses in enhancing customer experience.

  • Mobile Applications: Flutter, NodeJS, ReactJS, Ionic, etc.
  • Loyalty Programs
  • Omnichannel Commerce

Data System

Integrating tools to support the analysis and reporting for the business operations.

  • Data analysis and reporting: Google Search Console, Google Analytics, Facebook Pixel, Tiktok Tracking Pixel, etc.
  • Business Intelligence: Magento Business Intelligence, Tableau, Power BI, Looker, etc.

To learn more about the O2O commerce model as well as the best solutions to conquer the retail market, please contact SECOMM today for a free consultation.

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6 Tips to Build a Successful Omnichannel eCommerce Strategy
6 TIPs TO BUILD A SUCCESSFUL OMNICHANNEL ECOMMERCE STRATEGY

In 2021, The Vietnamese eCommerce market size reached 13.7 billion USD, which means the industry is growing rapidly and playing an important role in Vietnam’s economy. 

It forces business owners to find ways to make their businesses stand out and connect with customers.

One of the effective approaches is to implement an Omnichannel eCommerce strategy. This is a marketing method aimed at providing a consistent customer experience across multiple channels. It may be confused with Multichannel eCommerce, where brands sell on various channels but provide different customer experiences on each channel. Although customers can shop on social media, eCommerce websites, physical stores, etc, their experience across these channels could not be seamless. There is also the Single-channel eCommerce model, where a brand only uses one channel for sales. 

Retailers globally recognize the potential and impact of Omnichannel eCommerce on their business operations. According to Report Linker, the market for multi-channel retail platforms reached 5 billion USD in 2020 and is projected to reach 14.5 billion USD in 2027. Industry analysts and experts also emphasize that Omnichannel is the future of eCommerce and is a great way to attract customers and provide them with true value. 

Here are 6 tips to help you, as a business successfully build an Omnichannel eCommerce strategy.

Tip 1: Understand the target audience & their shopping behavior

Tip number 1, regardless of any business strategy, you have to know who your target customers are and their shopping behavior. You can start by gathering relevant data about demographic information, purchase history, etc from various sources, including eCommerce websites, social media platforms, physical stores, etc. Then, you will analyze how they interact with the brand across different channels and create detailed buyer personas. 

6 Tips to Build a Successful Omnichannel eCommerce Strategy - Tip 1_ Understand the target audience & their shopping behavior
Tip 1: Understand the target audience & their shopping behavior

This helps identify effective approaches for each customer segment and tailor messages for each channel. For example, if a significant portion of your customers prefers shopping on mobile devices, you can optimize your suitable marketing campaigns alongside improving the website to attract more customers. Or, you can invest in developing mobile applications to enrich the customer shopping experience and drive conversions.

Tip 2: Map the customer journey

Tip number 2 is to map out the customer journey to visually understand the process that a potential customer goes through when interacting with your brand. It helps you clearly understand their needs, buying motivations, and so forth. When developing an Omnichannel eCommerce strategy, mapping the customer journey allows you to proactively provide personalized customer experiences across channels. It not only enhances cross-selling, and upselling but also improves customer intention and loyalty. 

There are typically 5 stages in the customer journey: Awareness, Interest, Purchase, Retention, and Advocacy. 

6 Tips to Build a Successful Omnichannel eCommerce Strategy - Tip 2_ Map the customer journey
Tip 2: Map the customer journey

Here are the basic steps to create a customer journey map:

  • Set clear goals for the map
  • Identify buyer personas and define the target customers
  • Determine the stages and objectives for each stage
  • List out the touchpoints
  • Collect data and feedback
  • Identify areas that need to be improved

Tip 3: Develop a brand image & messaging

Another valuable tip is to develop a consistent brand message and image across channels. It requires you first to identify and understand the brand values, vision, and mission. For example, you can use consistent elements such as colors, fonts, etc, to help customers easily recognize your brand. Moreover, you need to train your staff on the brand message and image to ensure they understand and communicate the message properly across all channels. 

6 Tips to Build a Successful Omnichannel eCommerce Strategy - Tip 3_ Develop a brand image & messaging
Tip 3: Develop a brand image & messaging

This tip not only helps increase brand recognition and customer loyalty but also creates a seamless customer experience.

Tip 4: Engage customers on social media

Next, you can incorporate social media into your Omnichannel eCommerce strategy and focus on engaging with customers on social media platforms alongside other effective marketing channels. With over 3.6 billion social media users globally, building your brand presence in these places is no longer an option but an imperative measure  to effectively connect your brand with customers.

6 Tips to Build a Successful Omnichannel eCommerce Strategy - Tip 4_ Engage customers on social media
Source: Statista

Leveraging social media enables you to engage with customers by responding to inquiries and addressing concerns through messaging or interactions on the news feed in a friendly and approachable manner. In addition, social media provides you with great space to deliver brand messages and voices to customers in a quicker and more intimate way to enhance brand awareness. You can create your own ideas and content or collaborate with influencers. 

To tightly integrate social media with other channels in the Omnichannel eCommerce strategy, you can, for example, encourage users to like, comment, and share posts to receive attractive discount codes for purchases on websites or physical stores. 

Tip 5: Optimize the shopping experience

Tip number 5, for a seamless omnichannel experience, you need to ensure that customers can make purchases through any channel they interact with, such as eCommerce websites, marketplaces, social media platforms, and physical stores.

Additionally, to keep up with mobile commerce trends, you should optimize mobile-friendly and responsive websites as well as user-friendly mobile apps for easy navigation and usage.

6 Tips to Build a Successful Omnichannel eCommerce Strategy - Tip 5_ Optimize the shopping experience
Tip 5: Optimize the shopping experience

Since Omnichannel eCommerce emphasizes consistent experiences across all channels, content and customer-related information such as login credentials, payment details, and shopping carts should be synchronized. This enables customers to move seamlessly between channels and devices while preserving the items in their shopping carts or without the need to spend time logging in or re-entering payment information. Moreover, you can leverage data analytics to personalize product recommendations for each customer, displaying relevant or complementary products based on their behavior and purchase history across channels to increase cross-selling and upselling opportunities.

Tip 6: Measure & analyze the outcome

Tip number 6 is measuring and analyzing the results of the strategy. During the implementation process, you can utilize data analysis tools such as Google Analytics, Google Tag Manager, Facebook Pixel, and others to check, track and analyze customers across all channels. It helps identify which channels generate the most traffic, level of engagement, and sales revenue, and identify areas for improvement. In addition, you can gather customer feedback to enhance and optimize your strategy. The work should be conducted to make appropriate adjustments and achieve desired results. 

6 Tips to Build a Successful Omnichannel eCommerce Strategy - Tip 6_ Measure & analyze the outcome
Tip 6: Measure & analyze the outcome

Contact SECOMM now for a consultation on building an Omnichannel eCommerce strategy.

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