Revenue of 5 Vietnamese e-commerce platforms could reach 310,000 billion VND this year

Metric's 2023 Online Retail Market Overview Report and 2024 Forecast shows that in 2023, revenue on 5 e-commerce platforms in Vietnam, namely Shopee, Lazada, Tiki, TikTok Shop, Sendo, will reach VND232,134 billion, up 53.4% ​​compared to 2022. At the same time, this report also forecasts that revenue and sales volume on 5 Vietnamese e-commerce platforms will continue to increase strongly, possibly reaching more than VND310 trillion in 2024, up 35% compared to 2023.

Accordingly, Vietnam is the country with the highest growth rate in Southeast Asia in terms of online shopping. Cross-border shopping will be an inevitable trend of the market, especially genuine stores from China and Korea are increasingly interested in online retail platforms in Vietnam. Online retail platforms also offer many policies to stimulate shopping with the form of buy now pay later.

Livestreaming and multi-channel sales will continue to be the focus of increasing revenue for sellers in 2024. Product combos are a trend favored by consumers when shopping because of affordable prices, helping them save money.

2024 is expected to continue to be a boom year for the e-commerce market. However, that does not mean that growth opportunities are available to all businesses. If in the period 2016 - 2018, any business that switched to the floor could easily make a profit, then in recent years, when online shopping floors adjusted the rules of the game and players became more sophisticated, the businesses that remained were all players with a clear, methodical strategy.

Metric's report also selected some of the most prominent trends that will be applied in Vietnam in 2024 to increase competitiveness and attract target customers in the electronic environment.

DTC - Direct to Consumer, will continue to become more popular. That is, instead of using distributors, manufacturing businesses now sell directly to consumers on e-commerce platforms. This allows manufacturing businesses to have complete control over operational processes such as production, marketing and sales. At the same time, intermediary costs are reduced to the maximum level, helping to increase profit margins.

For example, if they apply the B2B2C (Business to Business to Customer) model, they will have to spend 35% - 40% of the cost on the product price for agents. In the case of selling directly on the e-commerce platform, they will only spend a much lower fee (about less than 10%); and the remaining amount can be deducted directly from the selling price or invested in product features.

However, manufacturing enterprises applying this model need to clearly understand the operating process on the floor, carefully research the approach to customers in this market and at the same time build a reasonable sales policy to balance the relationship with distributors.

As manufacturers expand their business markets to e-commerce platforms, the price war is expected to continue to be fierce in 2024.

Artificial Intelligence (AI), Machine Learning and Big Data analytics continue to dominate. These technologies have completely changed the way sales operate and the way users shop by creating more sophisticated, accurate and secure experiences.

Now, users can see product ads, promotional news updates, product suggestions specifically for them in the blink of an eye; based on their search history, interaction history, viewing and purchasing history...

While AI and Machine learning are currently mainly applied by online shopping platforms or e-commerce websites with large investment resources, Big Data is being rapidly deployed on a larger scale.

Not only e-commerce platforms with available internal data sources, businesses selling on the platform can also apply this technology through neutral third-party software providers.

This amazing tool helps brands increase revenue and market share based on authentic analytics, especially during tough market times.

Business managers will better understand what consumers want and market changes; thereby creating opportunities to help businesses take firm steps, minimize risks and make decisions faster than competitors.

Big data also helps optimize transportation - logistics, supply chain management, R&D and business operations on the floor.