Vietnamese prefer overseas sites for online shopping
In this article (5)
Local consumers say global giants like Amazon and eBay offer a wider range of products and better return policies. Vietnamese online shoppers spend significantly more on overseas purchases than they do domestically as they believe international e-commerce platforms offer better products and service quality, a new report has said.
The report, from the Vietnam E-commerce Association or VECOM, said that many global retailers like Amazon and eBay have made it easier for Vietnamese consumers to buy online.
“Meanwhile, a majority of Vietnamese e-businesses, especially small- and medium-sized companies, have yet to make significant investments in market research catering to consumers,” said the report.
Local online shopping sites are less competitive in terms of product diversity and quality, return policy, and order placement costs, the report highlighted.
“I shop on both eBay and Amazon,” Quoc Hung, a reader said in a comment. “I can just send a product back if I don’t like it.”
Most Vietnamese online businesses don’t offer free delivery and free return, another reader pointed out.
Chinese online retail giant Alibaba is also attracting more Vietnamese customers. Internet company OSB, Alibaba’s authorized agent in Vietnam, said the company’s customer base in Vietnam has expanded to 500,000 after sharp increases over the past three years.
The online shopping trend is growing rapidly in Vietnam, where 30 percent of the population will be buying goods and services over the internet by 2020, according to the Vietnam E-Commerce and Information Technology Agency.
The agency, run by the Ministry of Industry and Trade, said revenue from online retail is expected to account for 5 percent of the country’s retail market in 2020, up from only 2.8 percent in 2015.
Vietnam’s e-commerce market, which has one of the world’s fastest growth rates, jumped 37 percent in 2015 to around $4 billion, based on government statistics.
The growth rate is about 2.5 times faster than that in Japan, based on some estimates by industry experts.
Questions & Answers
Q.What are the main reasons Vietnamese consumers prefer international online shopping sites?
What are the main reasons Vietnamese consumers prefer international online shopping sites?
Vietnamese consumers prefer international sites due to a wider product range, better return policies, and higher perceived product and service quality. They also often benefit from free delivery and returns, which local businesses typically do not offer.
Q.How are Vietnamese e-businesses responding to the competition from global retailers?
How are Vietnamese e-businesses responding to the competition from global retailers?
A majority of Vietnamese e-businesses, especially small and medium-sized ones, have not made significant investments in market research catering to consumers. They are less competitive in terms of product diversity, quality, return policies, and order placement costs.
Q.What is the projected growth for Vietnam's online retail market?
What is the projected growth for Vietnam's online retail market?
By 2020, 30% of the population is expected to be buying goods and services online, with online retail revenue accounting for 5% of the country's total retail market. The e-commerce market grew 37% in 2015 to about $4 billion.
Q.Which international companies are mentioned as attracting Vietnamese online shoppers?
Which international companies are mentioned as attracting Vietnamese online shoppers?
Global giants like Amazon, eBay, and Chinese online retail giant Alibaba are attracting Vietnamese customers. Alibaba's customer base in Vietnam has expanded to 500,000, according to its authorised agent OSB.
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