E-commerce amateur sellers face major hurdles in Vietnam
E-commerce amateur sellers face major hurdles in Vietnam
About 165,000 online retailers withdrew from the 2024 market, demonstrating that e-commerce has entered a new era of fierce competition and natural selection in Vietnam.
Durians are sold during a live-streamed session in Vietnam. Photo: Nguyen Tri |
This serves as a wake-up call, particularly for small retailers; the days of casual selling online are over, and it is time to adapt or exit the market.
E-commerce has revolutionized consumer behavior, transforming online shopping from a convenience into a lifestyle in the digital age.
As e-commerce platforms compete, each implements its own set of regulations to protect consumers and ensure merchant credibility.
To survive, sellers must master these platform rules and learn to navigate them effectively, including how to avoid penalty points, maintain consistent promotional programs, and prevent traffic restrictions.
On top of this, they are responsible for delivery times and order fulfillment rates to avoid permanent account suspension.
Even minor infractions can result in severe penalties, not to mention the challenges of dealing with customer disputes and complaints.
Operating costs on e-commerce platforms typically range from 15 percent to 20 percent, with sellers facing additional expenses of 10-20 percent for taxes, promotional vouchers, and advertising.
To remain profitable, sellers must carefully balance their costs, pricing strategy, and inventory management. Success in e-commerce requires strict adherence to numerous platform guidelines and best practices.
For today's savvy online shoppers, star ratings and flattering reviews have lost their impact.
Only sellers with established credibility and substantial sales volumes can thrive in this environment.
New sellers or those with low sales volumes struggle to compete without strategic investment and comprehensive development plans.
Small retailers entering this increasingly competitive marketplace must take several critical steps to establish themselves by carefully aligning with an e-commerce platform that will work with their inventory volume and business model.
This selection must be accompanied by thorough market and product research to identify viable opportunities.
Beyond research, retailers must develop competitive products with sustainable market potential, while creating an attractive online storefront that captures the appeal of physical retail.
Additionally, mastering platform operations and understanding various business scenarios is essential for day-to-day success.
While online business development offers retailers access to a vast customer base and increased revenue potential, the path to success demands multiple ongoing commitments.
Retailers must focus on building customer trust through reliable service and establishing credibility through genuine customer reviews.
This trust-building process needs to be supported by efficient delivery systems that leverage existing logistics infrastructure, combined with maintaining honest product representations across all listings.
Furthermore, providing comprehensive documentation, including warranties and certificates of origin, helps build the legitimacy and professionalism necessary for long-term success in the digital marketplace.
