Are you planning to start an e-commerce business in Vietnam?

Information about the Vietnamese e-commerce market will provide you with a comprehensive view of its potential and opportunities to create a better business plan. Contact the experts at Fulfillment by Ubox for consultation on effective solutions!

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Population:
>100 million people

E-commerce Consumers
>60 million people

Growth Rate
>22% per year

Market Size by 2029
>23.77 billion USD

Vietnam E-commerce Market Information

Vietnam E-commerce Market

Vietnam is recognized as one of the fastest-growing e-commerce markets in the world. According to the Ministry of Industry and Trade, over 41% of the population, equivalent to nearly 50 million people, shop online, the highest in Southeast Asia.

According to e-Conomy SEA, the e-commerce market in Vietnam reached 30 billion USD in 2023 and is projected to increase to 43 billion USD by 2025. The average growth rate for the e-commerce sector is around 20%, as reported by the Ministry of Industry and Trade. This highlights the immense potential of the Vietnamese market, making it an attractive opportunity for many major investors.

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Source: Department of E-commerce and Digital Economy – Ministry of Industry and Trade – E-commerce Report 2023

Several E-commerce business models in Vietnam

B2C (Business-to-Consumer / e-Com Platform)

This group consists of pure e-commerce retailers, often referred to as "e-Com Only / e-Com Platform" within the "Pure Play" category, as many multinational corporations define it. These platforms operate solely online, with no physical stores. There are three business models in the B2C e-commerce space:

(1) Stock and Sell Model
(2) Marketplace + Drop-shipping Model
(3) Marketplace + Fulfillment Model

In Vietnam, the B2C model is widely used on e-commerce websites such as Shopee, Tiki, Lazada, Amazon, and many other platforms.

e-Com Enablers

e-Com Enablers are agencies that support, promote, execute, and distribute goods, helping to make online business operations more convenient. They charge fees and commissions based on the services provided. Additionally, e-Com Enablers are more multifunctional than traditional distributors. Here are some responsibilities they undertake:

  • Assisting brands in listing products on e-commerce platforms.
  • Helping brands manage distribution operations.
  • Consulting on Digital Marketing and Digital Performance activities.
  • Assisting brands in managing pricing strategies.
Omni-channel Retailers

The online sales channels of retailers and supermarkets are referred to as Omni-channel Retailers, or simply e-Tail or e-Retailer. Some examples of Omni-channel Retailers include Bach Hoa Xanh, Winmart, FPT Retail, and The Gioi Di Dong

When brands want to sell online through Omni-channel Retailers, they must follow a workflow similar to that of collaborating with supermarkets, which involves managing key accounts within the Modern Trade (MT) channel. Products need to be listed across multiple channels, and promotional programs should also be prioritized for implementation on various platforms.

E-Commerce Brand Site

Both e-commerce platforms and Omni-channel Retailers share the advantage of leveraging traffic from customers who are looking to make purchases. Customers visit e-commerce platforms or physical locations of Omni-channel Retailers. In contrast, a brand's e-commerce website operates independently and does not benefit from free traffic from these platforms or retailers.

Advantages of Owning an E-Commerce Website

  • Complete Ownership: The brand owns all content and product listings.
  • Freedom: Brands have flexibility in terms of products and promotions without incurring platform fees or display costs.
  • Established Credibility: A dedicated site enhances brand reputation and customer experience without direct competition.
  • Customer Data Ownership: Brands can gather customer data to optimize programs effectively.
  • Higher and Sustainable Profits: If properly invested in operations and technology systems, brands can achieve greater and more sustainable profits.
Social Commerce

A significant and emerging segment of e-commerce is Social Commerce, which refers to business activities conducted on social media platforms such as TikTok Shop and Facebook.

For example, in Vietnam, Facebook utilizes the concept of "Conversation Commerce," encouraging content creators and brands to post content and sell products through their Fanpages. Users can click on ads, send messages to the brand’s Inbox, and complete transactions within the messaging interface. This approach fosters direct communication between brands and consumers, enhancing the shopping experience.

Aggregators / Quick Commerce

Aggregators are intermediary platforms that compile information and connect commerce. There are two types of Aggregators:

  • Retail Aggregators: These platforms act as personal shoppers, facilitating purchases on behalf of consumers, such as Grab Mart in Vietnam and DoorDash internationally. This category is often referred to as Quick Commerce or fast delivery commerce.
  • Food Aggregators: These platforms focus on food delivery services, such as Grab Food and Shopee Food, providing consumers with convenient access to a variety of dining options.
B2B e-Commerce Platforms

B2B e-commerce platforms do not sell directly to end consumers; instead, they focus on providing goods to intermediaries such as wholesalers, retailers, businesses, or organizations that need to purchase in bulk. Most buyers on these platforms are typically wholesalers and retailers. Notable brands in the B2B e-commerce channel include Telio, Vinshop, Ninja Mart, and SaboMal.

Let Fulfillment by Ubox Help You

 

Direct Sourcing from Factories

If your business has a production idea and needs manufacturing according to design, or if you want to import goods to start your e-commerce business, Fulfillment by Ubox can help reduce your cost of goods by 5-15% with several policies:

  • Purchase fees starting from just 1%.
  • Deposit starting from 20%.
  • Shipping costs from China starting at 6,000 VND/kg.
  • Negotiation costs at 0 VND.
 

Fulfillment Solutions – Order Completion

Businesses and sellers can scale their operations without worrying about logistics such as warehouse management, inventory control, packaging, order processing, COD payment collection, and data management.

  • No investment costs for warehousing and operational management.
  • 99.5% order processing accuracy.
  • 100% inventory accuracy.
  • 100% packaging compliance with SLA standards.

International Order Fulfillment

You can easily scale your business to another country by simply sending your goods to Fulfillment by Ubox's international fulfillment center.

With Fulfillment by Ubox's system, your business can effortlessly update products and synchronize orders across various e-commerce platforms. Expand your reach without the hassle

Global Dropshipping

A flexible e-commerce sales model that is easy to start and allows for quick capital turnover. You won’t spend time on sourcing and storing products, and you won’t need to track inventory or manage stock levels.

Join Fulfillment by Ubox's network of tens of thousands of dropshipping sellers and start selling anywhere right now!

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