Online sales drive business success to new heights

Online sales drive business success to new heights

A report by market research firm Statista highlights that Vietnam’s e-commerce market is currently dominated by major platforms such as Shopee, TikTok Shop, Lazada, and Tiki.

Online sales drive business success to new heights, Source: freepik.com

As the global economy accelerates, online sales have emerged as a crucial factor in the success of many businesses.

A report by market research firm Statista highlights that Vietnam’s e-commerce market is currently dominated by major platforms such as Shopee, TikTok Shop, Lazada, and Tiki. Shopee leads with a commanding 67.9 per cent market share, followed by TikTok Shop 23.2 per cent, Lazada 7.6 per cent, and Tiki just 1.3 per cent.

Nguyen Thanh Son, Director of E-commerce at WINCO Group, emphasised that businesses are increasingly recognising the importance of selling across multiple platforms. However, many companies still rely on a single channel, thereby missing opportunities to expand their customer base. With the rapid rise of social media, failing to engage on these platforms can leave businesses behind. A significant challenge is managing and synchronising product information across different channels, which requires investment in both technology and human resources, Son added.

Pham Thuy Hanh, CEO of Lumos Cosmetics Vietnam Co. Ltd, underscored that multi-platform online sales are an inevitable trend for sustainable business growth. However, the road to success is not always smooth. Despite the rising demand for online shopping, many businesses have yet to fully understand the importance of having a presence across multiple platforms.

Hoang Trung Dung, CEO of Hoang Thinh Solutions Trading and Services Co. Ltd, pointed to limited resources as a key barrier. Many small and medium-sized enterprises (SMEs) struggle with manpower shortages and financial constraints. The pressure to invest in new technologies to keep pace with market developments can cause smaller businesses to fall behind larger competitors.

Another challenge is managing and synchronising data across platforms. Without an effective management system, inconsistencies in product details, pricing, and promotions may confuse customers and damage brand credibility. To succeed, businesses must go beyond developing quality products, but also enhance customer experience and support across multiple sales channels, he noted.

A Google study found that 53 per cent of consumers abandon a website if it takes more than three seconds to load, highlighting the critical need to optimise user experience across all platforms. Furthermore, many companies are leveraging multi-platform sales not only for revenue growth but also to strengthen brand recognition. As each platform requires a distinct approach, businesses must tailor their communication strategies to suit each one. Engaging content and targeted interactions, whether through social media ads or personalised website experiences, can help foster customer loyalty.

To help businesses, particularly SMEs, navigate multi-platform sales, experts advocate for a comprehensive approach to marketing and sales strategies.

Companies can utilise multi-channel management software to track orders, manage inventory, and analyse customer behavior. Some firms have successfully implemented these solutions. For example, Tiki has integrated artificial intelligence (AI) to personalise user experiences and boost conversion rates. Data analytics is also critical, as it provides valuable insights into consumer behaviour and market trends. A report by McKinsey & Company revealed that businesses effectively utilising data analytics can increase revenue by 5-6 per cent.

Strategic marketing and promotional campaigns are essential for expanding customer reach. For instance, during major shopping events like Black Friday or Cyber Monday, businesses can attract consumers with exclusive discounts and targeted promotions.

Le Van Dung, CEO of ABsoft JSC and a digital transformation expert, highlighted that multi-platform online sales not only help businesses expand their market but also mitigate risks associated with over-reliance on a single channel. According to company data, businesses operating on at least three platforms have reported a 40 per cent increase in revenue compared to the previous year. Utilising social media platforms such as Facebook and Instagram strengthens customer relations while fostering an interactive community where users can share and discuss products—an essential component of brand building.

VIR