Are You Planning To Set Up an eCommerce Business in Vietnam? This is a perfect time to get started.
Overview of the Vietnamese eCommerce Market
When it comes to starting an eCommerce business from scratch, Vietnam turns out to be a profitable place because it’s home to 92 million people.
In 2018, the Vietnamese eCommerce market retail sales earned $8 billion, with over $10 billion expected in 2020.
It makes sense:
Out of 95.5 million citizens of Vietnam, 51.1 million people are online shoppers, with pretty much most of them coming via mobile.
According to Statista, the average revenue per user of the Vietnamese eCommerce market is $53.60.
This is huge and only set to grow more.
By 2023, the number of online shoppers is expected to grow to 55.9 million, which is going to make the market more lucrative.
Which means that you have a chance now more than every to take advantage of this quickluy growing market.
Last year, Google and Temasek together announced that the Vietnam eCommerce Market growth rate ranked 2nd in the Southeast Asian market.
It may even rank at the 1st place. Who knows?
Why don’t you begin the preparation to get settled in such an amazing market?
Yes, there are reasons. Reasons that worth your efforts.
Starting an ecomerce business from scratch in vietnam
A report generated by Global Digital indicated that an average Vietnamese person spends more than 6 hours a day on the internet.
And you know?
Where population goes, business owners market their stores. Like 49P – For Nice Products know.
49P use Shopify to make their e-commerce dream a reality.
Another survey has found that out of 87% of Vietnamese who has ever visited an online store, 77% came back to buy the same product.
The credit of this jumping resiliency goes to Facebook retargeting.
Don’t you know what it is?
Well, that’s where the money is, that and some smart marketing and using things like abandoned cart emails.
You can’t promote the same product offline again and again without getting scolded. Right?
No worries, you can do the same thing online without even getting into trouble with any rude people. This is the power of technology.
Everyone is using it for their benefit. Why aren’t you?
As an online marketer knows, huge amounts of sales are derived when people surf the internet on their smartphones.
And yes, it’s true. In Vietnam, almost 35.6 million people are using smartphones.
The Vietnam eCommerce Market is huge, but it must cost so much to start an e-commerce store?
Not so my future ecommerce entrepreneur.
Investment Required To Start An eCommerce Business in Vietnam
Before starting any business, you must gather the necessary resources first. Similarly, to start an eCommerce business, you need:
A Domain & Hosting
You can buy a domain from anywhere, but the hosting should be purchased from a well-recognized hosting company.
I said so because a minute of website down may result in the loss of hundreds or even thousands of sales.
The next is what I use with all my ASEAN clients: An eCommerce Platform – Shopify.
Shopify eCommerce Platform
Back a few years, people used to hire freelancers to code their website. But nowadays, there are many platforms like Shopify where you can set up your online store with the help of a few mouse clicks. It may cost you $29-$299/month.
I recommend the $79 a month package, it gives you so much more to play with, and cuts down on extra charges.
eCommerce Logo Designs
A logo may represent your business more professionally. You can either get it for free or for $5-$50. A good website like Fiverr.com is a cheap alternative.
You can also use something like 99designs.com which is probably my choice of logo design sites, but it is a bit more pricey.
eCommerce Store Business Registration
Without the correct documents, you may end up losing your time and money. So, you need a legal adviser who can help you get the registration for your eCommerce business.
Initially, this is not necessary, but as you begin to grow, and start making tons of sales, you will want to keep everything above board.
Most Valuable Commodity – Time
The most underestimated currency on this earth is Time. Apart from the regular costs, you have to look after the advertisement, management, and inventory of your Vietnam eCommerce Market empire.
Those who have utilized their time well are now standing on the top of the world.
Let me tell you some inspiring entrepreneurs of Vietnam who have made huge money so far.
Top Inspiring eCommerce Entrepreneurs in Vietnam
Susumu Fujita (Tiki Corporation)
Tiki is one of the fastest growing eCommerce companies in Vietnam that received a very nice 62.5 million dollars of funding.
Currently, it has over 300K products in categories like books, lifestyle, and electronics. It’s well-known for its 2 hours delivery service that most other eCommerce company may not provide.
Tran Hai Linh (Sendo)
Sendo was launched in March 2012 – It’s a C2C eCommerce website that sells up to 10 million products annually, pretty impressive.
In August 2018, the company received sweet funding of $51 million. Sendo provides household items, cosmetics, tech accessories, clothing, etc.
After Lazada, this company ranks at the 2nd place as an eCommerce company in Vietnam.
Zhang Yixing (Lazada Vietnam)
Lazada was founded in 2010 by Rocket Internet. This eCommerce company isn’t only popular in Vietnam but also well-known in Malaysia, the Philippines, Indonesia, Singapore, and Thailand.
So, the opportunity is there, only you are stopping it happening.
If you are fired up, let’s see what you can sell to make this work.
Best Products To Sell Online To Make Money
Product selection is the base of any eCommerce business. And if you have just taken a pledge to make a fortune in this industry, then be sure to choose the products carefully.
According to reports, we get to know that the people of Vietnam tend to spend more on travel, electronics, and fashion & beauty related products.
Whatever, it’s a fact that electronics & media is the hot selling product category in 2019 because it holds a market volume of around 685 million dollars alone.
That’s not to say you need to choose this market, check out the niche sheet below to see a huge list of niches and choose the best ones for your future Vietnamese e-commerce empire.
GRAB NICHE SHEET
Below to see a huge list of niches and choose the best ones for your future ecommerce empire.
Shopify For Starting Up An eCommerce Business in Vietnam
What is Shopify eCommerce?
Shopify is a one-stop solution for all of your eCommerce store needs. It alone takes care of the $100 billion of sales and has given autonomy to over 900K online stores in the last 13 years.
All the credit goes to its functionality and convenience, and a great marketing team.
The basic Shopify plan will cost you $29 per month, but it’s the medium $79 plan that you will want to get, as it comes with a whole host of cool features and multiple accounts so you can add team members.
Why we recommended Shopify
Shopify allows its members to integrate up to 70 payment gateways for the transaction. There’s no other platform like this where you can have such facility.
Payment gateways have just reminded me of a more crucial topic.
Let me break it down for you.
Leading Payment Methods For Online Shoppers in Vietnam
Are you are worried about the payment infrastructure?
It’s definitely an area that needs to be taken into consideration in the Vietnam eCommerce Market, and one that we covered here in about the benefits of using Shopify ecommerce for business.
If there are issues with transactions, you won’t get paid at the right time.
And… The flow of money may fluctuate, and this can cause serious issues.
We both know how important money flow is in the business.
In 2018, 1000 Vietnamese respondents completed a survey in which 85% of people preferred cash on delivery, and 15% preferred bank transfer and credit/debit card.
We recommended integrating these payment methods to keep a good money flow in your business.
Traditional still rules, although for how long we don’t know.
Where To Promote Your eCommerce Business in Vietnam
After setting up all the things, what you need to do is marketing, which is hugely important to get right.
The best way to promote your eCommerce Business is to combine Google Ads, SEO with Facebook Pixels and abandoned cart emails.
If you can do SEO, Facebook marketing and Google Ads, that’s great.
You can save some funds. Otherwise, if you’re not, it’s worth investing some time into finding out how to do these things.
Get expert help for every part of your business inside eCommerceASEAN Membership.
SEO and Adwords can help you bring visitors to your online shop, as they search on the likes of Google or Bing for the kind of products you may be offering.
Once they are on your store they will hopefully find and buy what they are after, which most likely isn’t always the case.
With a Facebook Pixel installed on your website, you can reach the same customer, again and again, to ensure they do make all important purchase.
That’s what retargeting is:
We talked about this earlier and is part of the eCommerce Quadrant, that is essential to all Vietnam eCommerce Market advertising activities.