1. Vietnam SMEs are still early into their online retail journey; social commerce is their typical starting point
Published on: Oct 2019
- A significant share of SMEs started selling online very recently, with HCMC SMEs are slightly more mature in their online journey
- Most SMEs make their online foray via social commerce, however formal marketplaces are increasingly becoming their first point of call
2. A large chunk of online retail in VN (including social commerce) still flows within Hanoi/ HCMC; COD and return rates are high
- COD and return rates are even higher for formal e-tailing, as large chunk of orders is fulfilled outside bigger cities (in lower trust environments)
3. Social e-commerce is heavily dependent on Hanoi/HCMC, while formal e-tailing is a more country-wide phenomenon
- 65% of all online retail orders were on social commerce in 2018
- Formal e-tailers have been able to drive e-tailing demand beyond HCMC and Hanoi, driven by superior supply chain coverage and delivery speeds
4. For online SMEs, the price still remains the overwhelming most important parameter when choosing a logistics partner
- 65% of all online retail orders were on social commerce in 2018
- Formal e-tailers have been able to drive e-tailing growth beyond HCMC and Hanoi, driven by superior supply chain coverage and delivery speeds