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The secrets keep your online business standing firmly in the Vietnam E-Commerce market
In recent years, online trading has become more and more popular. Nonetheless, not anyone can be aware and enthusiastically step into this fierce combat. All the requirements are to meet the market needs and promptly work toward solutions satisfying consumers’ wants. Now we will find out what difficulties online sellers encounter and what resolutions they choose.
Potential Internet-based business market
According to the general evaluation, the Vietnam E-Commerce market is developing rapidly, especially after the Corona pandemic. The International Trade Administration’s statistics illustrate that the Vietnam E-Commerce industry revenue will reach USD 23 billion in 2025.
So, what are the elements contributing the most to this explosive growth? There are three essential factors: (1) the penetration rate of the Internet and hi-tech devices, (2) the Vietnamese young and tech-savvy population, and (3) the increasing individual disposable income of the middle class.
In addition, a crucial key we need to mention is the transference from offline to online shopping channels has been widely and heavily promoted since the Covid-19 pandemic breakthrough. Most people are afraid of the epidemic's impacts, so they avoid gathering in crowded offline shopping stores. At that time, the online channel predominated and became the ideal solution for meeting customers' demands and safety.
Thanks to these changes, great innovation opportunities for different kinds of business have been created, such as e-Shop, Online Marketplace, and sub-Commerce.
Challenges for online businesses
Besides the advantages of dramatic improvement in revenue, the shop owners and companies are still confronting enormous problems. They are in need to achieve practical solutions to tackle and compete against their industrial competitors. Here are 04 difficulties that traders are facing:
- Building up your own brand: Market expansion is the reason why businesses want to reach out to customers as much as possible by promoting their products online. This circumstance leads to obvious disadvantages for new sellers to struggle with fierce opponents. Knowing how to create their own brand, capture the customers’ attention and gain their trust is a considerable concern for every salesman.
- Difficulties in selecting suppliers: Choosing a potential supplier is not effortless. For the vast majority of merchants importing good resources from China, here are some critical factors in finding providers, including quality products, the latest models, reasonable prices, and efficient and adequate delivery service.
- Advertising strategy: This is considered one of the biggest concerns of sellers, especially ones who have just started up their online business. Being familiar with digital marketing techniques and tools, optimizing search keywords, participating in promotion programs, and flash sales available on e-commerce platforms are assumed as required knowledge that traders need to learn in the current Internet-based merchandising era.
- Capital: It is supposed to be the main difficulty for companies when going online. Clearly, lacking capital makes the company seem not very promising. Capital influences every phase in the operation process, from importing goods, and marketing to shipping cargo. Therefore, when the capital issue is settled, you completely deal with 70% of your problems.
What resolutions enable the merchants to troubleshoot?
- Enhancing the quality of goods: Commodities lie at the heart of sale activities. Your products’ quality must be controlled. Only then will your business acquire a reputation and gain the trust of consumers.
- Developing a brand synchronization strategy on multiple platforms: You should have your own brand, with a signature name that is easy to tell, remember, and customers possibly find whenever they need. Building up a well-known brand will also help you establish credibility with customers, this is one of the fundamental elements for the e-commerce platform to evaluate your online store as a favorite.
- Being a member of trading groups and communities or attending cost-free training courses regularly held by e-commerce platforms to share valuable experiences and general understanding about attracting buyers and boosting sales by effective marketing strategy.
- For capital issues, you can consider and consult the loans to expand business activities and increase market share. And UOB BizMerchant will be a preferred option that you should not overlook when it comes to budget solutions.
UOB BizMerchant: Pioneering smart loan solutions for e-commerce business
UOB BizMerchant is one of the initiatives in Vietnam proposing unsecured business lending with a limit of up to VND 1.6 billion for merchandisers on e-commerce foundations. The policy has supported hundreds of sellers on Vietnamese e-commerce platforms to access working capital in a cost-effective, convenient, practical, and quick way, facilitating the process without registering at the counter or going through a complicated procedure compared to other traditional types of lends. All these advantages are the merits of the electronic data interchange application and the efficient implementation of loan approval policies.
During the 04 years of accompanying and development within the merchant community, UOB BizMerchant products were honored to receive the duo awards, namely the Best Financial Inclusion Project presented by Asian Banking and Finance magazine in 2019, and the Best Financial Inclusion Project awarded by The Asian Banker magazine in 2020. Simultaneously, UOB BizMerchant has earned the recognition and trust of customers. More than 70% of traders who experienced UOB BizMerchant products have continued to employ and recommend them to their friends and relatives.
“UOB Vietnam’s BizMerchant lending program is suitable for merchants on e-commerce platforms as it requires no collateral or company establishment license. Additionally, financial ability evaluation is based on the shop’s sales record. These benefits create crucial points that outweigh traditional loans.
On the other hand, UOB offers a loan limit of up to VND 1.6 billion supporting the company's operation more proactively, and efficiently. By calculating, the total sales have doubled, and the amount of inventory has also tripled.” – Quoted Mr. Director of Natural House Co., Ltd.
As can be seen, UOB BizMerchant is undoubtedly the right choice for your company expansion and increases revenue when going online.
UOB launches e-commerce 101 series
In addition to the BizMerchant lending package, UOB Vietnam launched a series of E-commerce 101 articles. This series of articles provides adequate understanding and relevant experience for boosting revenue.
The E-commerce 101 series will assist the sellers in resolving business dilemmas:
- Knowing how to understand the market and consumers' tastes. From there, the merchants can decide to sell the right product that meets the customers' needs
- How to develop an advertising strategy efficiently and perform cost-effectively in the running operation
- How to overcome problems arising from a lack of business capital
- How to use multi-channel selling comprehensively and select the right purchasing platform.
Let’s look forward to useful shares of UOB on the website https://www.uob.com.vn/ and find out the answer!
