HOW TO MAKE E - TAILING SUCCESSFUL IN TODAY’S MARKET ECONOMY (2020 - 2022)

MINISTRY OF EDUCATION AND TRAINING THUONGMAI UNIVERSITY ENGLISH FACULTY DISCUSSION OF BUSINESS ENGLISH 1 3 TOPIC HOW TO MAKE E TAILING SUCCESSFUL IN TODAY’S MARKET ECONOMY Teacher Tran Thi Bich Lan Gr.

MINISTRY OF EDUCATION AND TRAINING

THUONGMAI UNIVERSITYENGLISH FACULTY

DISCUSSION OF BUSINESS ENGLISH 1.3

TOPIC: HOW TO MAKE E-TAILING SUCCESSFUL IN

TODAY’S MARKET ECONOMY

Teacher: Tran Thi Bich Lan Group: 6

Class ID: 2227ENPR5011 Course: 2021-2022

Hanoi, 2022

MEMBERS LIST

R

30 C 1.BEFORE THE SALE

1.3 Promotion Strategy ( 1.3.2 Use multi channel marketing )

C 2 DURING THE SALE

2.1 Shipping services

Nguyễn Thùy Ninh

32 C 2 DURING THE SALE

2.2 Logistics services

Nguyễn Minh Phương

33 C 2 DURING THE SALE

2.3 Customer services

Nguyễn Thị Phượng

A THEORETICAL BASIS

B E-TAILING IN THE LAST 2 YEARS (2019 – 2020)

Lê Thị Nguyệt Quế

1.1 Product Strategy

1.2 Price Strategy

1.3 Promotion Strategy (1.3.1 Create high-quality websites)

35 C 1 BEFORE THE SALE

1.3 Promotion Strategy (1.3.3 Engage users with gamification)

1.4 Payment Strategy

Nguyễn Thị Quyên

TABLE OF CONTENTS

MEMBERS LIST 1

TASK TABLE 1

TABLE OF CONTENTS 3

LISTS OF TABLES 4

LISTS OF FIGURES .4

INTRODUCTION 5

A THEORETICAL BASIS 6

1 Definition of E-tailing 6

2 Factors that influence buyers to buy online 6

B E-TAILING IN THE LAST 2 YEARS (2019 – 2020) 6

C HOW TO MAKE E-TAILING SUCCESSFUL IN TODAY’S MARKET ECONOMY 8

1 BEFORE THE SALE 8

1.1 Product Strategy 8

1.2 Price Strategy 12

1.3 Promotion Strategy 13

1.4 Payment Strategy 19

2 DURING THE SALE 20

2.1 Shipping services 20

2.2 Logistics services 21

2.3 Customer services 22

3 AFTER THE SALE 23

CONCLUSION 25

REFERENCES 25

LISTS OF TABLES Page

Table 1.COVID-19 critical items 11

LISTS OF FIGURES Page

Figure 1.Main factors that influence online purchases 6

in Vietnam in 2020

Figure 2.Fall of average online spending per month 7

since COVID-19, per product category

Figure 3.Estimated closures as share of store base (CY 2020-2026) 7

Figure 4 US nonstore sales rate during COVID – 19 8

Figure 5 Web Traffic Growth of Ecommerce 9

Retail Categories, Vietnam, Q1, 2021

Figure 6.Main trends emerging in Vietnam 11

food & beverage industry in the period of 2019-2020

Due to the advancement in technology, the use of the Internet for buying things hasbecome common The sellers also have started using the web for selling their products.With the current strong development trend of E-tailing, people's living standards andstandards are increasing day by day, and customers also always demanding more in allaspects of their shopping Accordingly, E-tailing must also develop and regularly updated

to meet consumers' changing demands Therefore, this discussion will investigate thevarious factors that are critical to the success of E-tailing and offers solutions to make E-tailing successful in today's market economy

A THEORETICAL BASIS

1 Definition of E-tailing

- Electronic retailing (E-tailing): is the sale of goods and services through the internet.

E-tailing can include business-to-business (B2B) and business-to-consumer (B2C) sales

of products and services (According to Investopedia)

- For example: Amazon, Ali Express, Ali Baba, and drop-shipping businesses.

2 Factors that influence buyers to buy online

Figure 1: Main factors that influence online purchases in Vietnam in 2020

(Source: Minh-Ngoc Nguyen, Jul 15, 2021)

→Based on the chart above, price is a big factor and probably the most rational factor when it comes to shopping online It is followed by free shipping, a wide selection of products, a user-friendly online experience, etc

B E-TAILING IN THE LAST 2 YEARS (2019 – 2020)

Before the pandemic, online shopping was growing at a steady pace of 4.5percent a year globally But COVID-19 has put E-tailing at the forefront of retail in thelast 2 years ( 2019 – 2020), due mainly to movement restriction measures aimed to protectpublic health and growing consumer preference to avoid physical stores

Businesses can adapt to digital platforms thrived and traditional retailers withweak online strategies dwindled, several prominent ones filed for bankruptcy.

Figure 2: Fall of average online spending per month since COVID-19, per

product category

(Source: UNCTAD and NetComm Suisse e Commerce Association)

→ During the pandemic, online consumption habits have changed significantly, with

a greater proportion of internet users buying essential products, such as food and

beverages, cosmetics, and medicines

Figure 3: Estimated closures as share of store base (CY 2020-2026)

(Source: Bureau of Labor Statistics, Census Bureau, UBS)

→ U.S has seen losing almost 81,000 retail locations over five years in UBS base scenario.

Figure 4: US nonstore sales rate during COVID - 19

( Source: Digital Commerce 360 analysis of U.S Department of Commerce data)

→ Based on U.S Commerce Department data released in December 2020, consumer spending through nonstore7 channels grew 31.3% over November 2019, according to Digital Commerce 360

→ Conclusion: E-tailing is one of the industries that best survived the last 2 years That's why 2022 is the year of the internet cakes.

C HOW TO MAKE E-TAILING SUCCESSFUL IN TODAY’S MARKET

- Entertainment products: Headphones, books, video games,

- Products for studying or working at home such as laptops, computers, webcams,phones,

While essential product has increased, fashion has declined significantly, and to beworst-hit E-tailing sector

Figure 5: Web Traffic Growth of Ecommerce Retail Categories, Vietnam, Q1, 2021

→ iPrice’s report shows that the sale of necessities and groceries on marketplaces inVietnam is witnessing hot growth, though they were not the key products ofmarketplaces.

1.1.2 Competitor

A series of E-tailing platforms that are occupying the largest market share in Vietnam,such as Tiki, Lazada, and Shopee, have put fresh food, fruit and vegetable stalls intooperation

For example:

-Tiki: TikiNGON: The number of fresh food orders remained stable with a highproportion in the post-social distancing period The average order value remains at VND200,000-300,000 (US$8.8-US$13.2), especially even after the Covid-19 restrictions werelifted

- Shopee: ShopeeFood recorded growth in the number of visitors and user demand onthe platform in recent months, focusing on main services: food (food delivery) and fresh

(grocery shopping assistance).

- Lazada: Amidst the boom in online shopping, some e-commerce players have

intensified their focus on fresh food items with a fast delivery commitment Lazada haslaunched a new service category with delivery within two hours by cooperating withbusinesses and optimizing its logistics resources, catering to new online shoppingdemands

1.1.3 Solution

- Focus on serving essential products (products that consumers need to use every day) with a wide variety of products.

For example: Essential goods may include food, water, and medicine as these goods

are essential for survival

Figure 6:Main trends emerging in Vietnam food & beverage industry

in the period of 2019-2020.

(Source: VietnamCredit, 06, 02 2020)

Experts in the food & beverage industry believe that organic and natural-origin aswell as convenient and one-of-a-kind products for young people will be the main trends inthe market in the near future

A quick survey of consumer behaviors in the country's two major cities, Hanoi and HoChi Minh City, conducted in September 2019, shows that consumers' top priorities whenbuying foods and drinks are Nutritious (60.3%) and Organic (51.5%)

Table 1 COVID-19 critical items

(Source: WHO on 30 March 2020)

- Choose the right supplier:

There are seven common supplier selection criteria, in no formal order:

For example: Lazada: Currently, many reputable businesses are participating in

providing fresh food on Lazada such as Meat Deli, Mega Viet Phat - specializing intrading clean meat and imported meat; Foodmap, Hiep Nong – providing fresh vegetablesand Vietnamese agricultural products; Lothamilk with bar milk products, pasteurized All items sold in the program meet strict regulations to ensure the best quality andnutritional content for customers such as Certificate of food hygiene and safety,Certificate of production model Global GAP standard, Viet GAP certification…

- Maintain the product quality:

+ Use MAP (Modified atmosphere packaging) system of packaging for fishery

products

+ Use CAS (Cells Alive System): CAS: is a Japanese modern frozen preservationtechnology CAS technology is one of the effective methods of agricultural products + Others:Controlled atmosphere (CA) storage, Food irradiation (is a technology thatimproves the safety and extends the shelf life of foods by reducing or eliminatingmicroorganisms and insects), etc

+Lazada: Lazada has announced all fresh food orders worth VND 50,000 and more inHCM City will be shipped free

1.2.2 Solution:

- Offer low price: offers a relatively low price to stimulate demand and gain market

share

For example: Price of products on the Hanoi market: 30.000 to 34 000 VND/liter for

liquid milk Your price should be lower than 30.000 – 34.000 VND

- Offer free shipping ( 79% of consumers say free shipping makes them more likely to shop)

For example: Free shipping on all orders over 200.000 VND.

- Offer special occasions coupons: Give vouchers for a special discount or coupon to

the customer to use next time on Lunar New Year, Valentine's Day, InternationalWomen's Day, Vietnamese Teachers, etc

For example:A 10-15% discount would be offered on all days of the Valentine’s weekand thus each and every day of this week is going to be a memorable one,

1.3 Promotion Strategy

1.3.1 Create high-quality websites:

What can e-tailers do to make visitors actually buy products? (Less than 5% of peoplevisiting a website ever turn into paying customers.) The answer is to build the greatestwebsite that customers want to stay forever

Websites must be engaging, easily navigable, and regularly updated to meet consumers'changing demands Products and services need to stand out from competitors' offeringsand add value to consumers' lives

 There are qualities of a professional website:

+ Content should be easy to read and understand

+ The website has a beautiful interface and clear page layout.

+ The site structure is compatible with all types of browsers

+ Page load speed should be under 0.6s and the number of attachments should belimited

For example: SHEIN (https://www.shein.com.vn/)

 Solution:

- Hire top website designers: A top web designer will know how to make tweaks toyour design, and design an SEO - friendly website that will elevate your website to thenext level ( SEO stands for “search engine optimization.” In simple terms, it means theprocess of improving your site to increase its visibility when people search for products orservices related to your business on Google, Bing, and other search engines The bettervisibility your pages have in search results, the more likely you are to garner attention andattract prospective and existing customers to your business.)

- Use Mobile- Friendly Test:

The most important thing for any website, it is mobile-friendly, because nowadaysusers accessing via mobile devices are increasing day by day As of February 2022, 50.59

% of the total web visits are currently mobile, compared to 49.41 % coming fromdesktops Of the mobile internet browsers, Apple's Safari is proving to be the mostpopular choice among all mobile internet users in the US

 Use this link: https://search.google.com/test/mobile-friendly

The Google Mobile-Friendly Test is a tool that allows companies to type in theirURL and find out how mobile-friendly Google thinks their site is Or use your phone andaccess to check If the structure and text of your site look fine on your smartphone, butyour logo or images are blurry, there's a good chance that they haven't been Mobile –Friendly

( Ex: Thegioiskinfood website and Sheingal website )

- Use Website Speed Test (Pagespeed Insights)

Use this link:

https://pagespeed.web.dev/utm_source=psi&utm_medium=redirect&hl=en

Google PageSpeed Insights is a free tool to help you find and fix issues slowing downyour web application

- Use Security protocol " Https" instead of “Http”

HTTPS is HTTP with encryption The only difference between the two protocols isthat HTTPS uses TLS (SSL) to encrypt normal HTTP requests and responses As a result,HTTPS is far more secure than HTTP A website that uses HTTP has http:// in its URL,while a website that uses HTTPS has https://

For example: https://thegioiskinfood.com/cart, https://www.shein.com.vn/,

https://www.amazon.com/ , etc

- Use website monitoring tools:

Google search console, Google Analytics: help you measure your Search traffic andyour site's performance, fix problems, and boost your site's rankings in Google Searchresults

SeoQuake & Web developer: help you analyze websites more optimally with Googlefor the purpose of improving rankings

- Use a conversational agent (Conversational AI )

Conversational AI combines natural language processing (NLP) with traditionalsoftware like chatbots, voice assistants, or an interactive voice recognition system to helpcustomers through either a spoken or typed interface.

73% of those polled said that by 2022, chatbots will remain the leading use of AI,followed by sales and marketing

1.3.2 Use multi channel marketing

 Definition:

Multi channel marketing refers to creating your brand’s presence across severalmedia channels for spreading marketing messages to approach and attract customers This approach efficiently and effectively communicates a product or service’s valueusing the unique strengths of specific marketing channels These channels include but arenot limited to, email, direct mail, websites, e-commerce platforms, and social networkssites (Like Facebook, Tik Tok, Instagram )

- Promote on social media sites ( Facebook, Tik Tok, Instagram ) Social media has

become a large part of our daily lives and it proves to be a valuable marketing asset.Social media platforms let you find, connect, and engage with your target customers.According to statistics, 3.2 billion people use social media worldwide Therefore, sellerscan take advantage of this excellent opportunity to advertise your store The sellers canboost their brand's online presence by creating a Youtube channel, a Tik Tok account, or aFacebook and Instagram business page

- Content Marketing and SEO