ESSAY SUBJECT MICROECONOMICS THEME e COMMERCE MARKET ANALYSIS IN VIETNAM

MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY ECONOMICS AND LAW DEPARTMENT o0o ESSAY SUBJECT: MICROECONOMICS THEME: E-COMMERCE MARKET ANALYSIS IN VIETNAM Group : Class : K60MF2 Major : International Business and Trade Teacher : Ph.D Phạm Văn Quỳnh Ho Chi Minh City, March 31, 2022 TABLE OF Contents A Analysis of E-commerce market size and Competitors The situation of E-commerce development in Vietnam and the world: .5 1.1 E-commerce development in the world: 1.2 Current status of e-commerce development in Vietnam: Scale of Vietnam's e-commerce in 2025 Competitors 10 3.1 Rookies" massively entered the market: 10 3.2 "Veterans" strengthened to dominate the playing field: .10 3.3 Fierce competition between Vietnam e-commerce and foreign e-commerce: 11 B The growth of the e-commerce market in Vietnam 11 Reasons for the development of e-commerce: 11 1.1 The advent of new technology makes internet access faster: 12 1.2 Market approach of e-commerce: .13 1.3 B2B platforms and e-commerce influences: .13 1.4 Progressive improvements and changes in the e-commerce platform: 14 Regional Perspectives 14 2.1 Growth potential in Asia: 14 2.2 Growth potential in Vietnam: 14 THE E-COMMERCE MARKET IN VIETNAM 15 Reasons to Invest in the E-Commerce Industry in Vietnam: 15 C_ E-COMMERCE MARKET TRENDS .17 ECommerce Concept: 17 Overview of Vietnam's e-commerce market today: 17 E-commerce Market Trends: .18 3.1 The trend of turning social networks into sales channels: 18 3.2 Trends in the variety of payment methods: 19 3.3 Trends in the use of domestic brands and retail retailers: 20 3.4 Visual trade trends: 21 D Demographics and Market Segmentation: .22 Definition: 22 1.1 Demographics .22 1.2 Market Segmentation 22 Segmentation by geographic location: .22 Market segmentation by demographic: 23 3.1 Age: 23 3.2 Income: .24 Market segmentation according to psychology and preferences: .25 Market segmentation by behavior: .26 5.1 Reasons for purchase: 26 5.2 Benefits: .27 E PROFITABILITY OF THE E-COMMERCE MARKET .27 E-commerce "crowned" in covid-19 pandemic: 27 Changing traditional buying habits: 29 Outstanding development trends: .30 How are businesses adapting to the new normal? 31 F Success factors of the e-commerce market in Vietnam 32 Social commerce - take advantage of social networking as a potential commercial channel: 33 "Playground" of content creators: 35 Personalization to provide the optimal user experience: 35 Electronics and consumer goods industry quickly ascends to the throne: 36 Foreign investment: 37 Logistics services: 38 G Resources and equipment needed for an E-Commerce startup: .38 Hiring a team and finding vendors: 38 Obtaining insurance and permits for an eCommerce startup: .39 Choosing an integrated payment solution: 39 Marketing: 39 IN CONCLUSION: 40 PRESENTATION/ REPORT REQUIREMENT REQUIRE:  Group of 5-10 students  The last two weeks of school  Content of requirements: use the supply and demand model to analyze a market of products and services in Vietnam, for example, the gold market  Write, print, and submit a report (to GV) and submit online to the link: at least 25 pages A4 before 17:00 on April 12th, 2022  Class presentations THE NECESSARY CONTENT:  Present the topic and generalize the basic theories of the problem  Conclusions or lessons learned  The names of the team members and each person's work  State facts and use theories to analyze reality EVALUATION CRITERIA:  Presentation  Teamwork  How to present/present a report  Answer your questions and those of your teachers CONTACT INFORMATION: About lecturer:  Ful Name: Ph.D Pham Van Quynh  Email: phamvanquynh.cs2@ftu.edu.vn GROUP MARKET RESEARCH – TEAM The number of members: 10 1) Phạm Gia Bảo Student’s ID: 2115027133 2) Nguyễn Phạm Minh Thư Student’s ID: 2115027077 3) Phan Nguyễn Khánh Linh Student’s ID: 2115027030 4) Phan Thị Minh Tâm Student’s ID: 2115027073 5) Lê Thành Đạt Student’s ID: 2115027098 6) Hoàng Gia Phúc Student’s ID: 2115027116 7) Trịnh Hải Tùng Student’s ID: 2115027087 8) Trần Thị Phương Trinh Student’s ID:2115027125 9) Trần Thị Mai Anh Student’s ID: 2115027030 10) Trịnh Thị Minh Ngọc Student’s ID: 2115027 GROUP 3 A few opening words The impact of the COVID-19 pandemic has changed a lot in the traditional economy Entering the 4.0 era has made the number of smart mobile devices increasing, which sets the stage for the e-commerce industry to be born Group 3, who are part of Gen Z, young people today must be the ones who know and also through this essay on the e-commerce market will help students understand more about this market in the most objective way According to the statistical report, Vietnam is on the list as the country with the most developed e-commerce market in Asia and the world in the future with the presence of major exchanges in the country This is also a bright spot for Vietnamese citizens in particular and Vietnamese students, in general, to discuss this issue more closely OoOoO - Thank you! Before entering the main content of the essay, group would like to express their sincere thanks to Ph.D Phan Van Quynh has guided us on the extremely useful knowledge about microeconomics recently Although this is a very new and strange subject for us, the teachings and instructors have made it easier for us to understand and imagine this specialty Once again, we would like to thank you and wish you much success on the next teaching journey GROUP A Analysis of E-commerce market size and Competitors The situation of E-commerce development in Vietnam and the world: 1.1 E-commerce development in the world: E-commerce continues to grow strongly across the globe, especially in developing countries where e-commerce originated Development accounts for more than 90% of the total value of global e-commerce transactions, of which North America and Europe alone have reached over 80% E-commerce growth is fastest in North America, followed by Asia-Pacific and Western Europe In Asia, Singapore and China have two countries with rapid e-commerce development and keep up with North American countries In the rest of Asia, e-commerce has developed but is still very slow GLOBAL E-COMMERCE GROWTH TRILLION US DOLLARS 2000 2001 North America 2002 Asia Pacific West Europe 2003 2004 Latin America Source: US Census Bureau, 2005 The US is the country with the most developed level of e-commerce in the world Currently, US e-commerce activities account for over 70% of global e-commerce The country's retail sales from online sales increased year-over-year, and year after year was higher than the previous year.  GROUP B2C is the oldest and fastest-growing e-commerce model However, in recent years, the B2B e-commerce model has developed faster.   Source: US Census Bureau, 2004 E-commerce in Latin American countries has developed very rapidly in recent years Venezuela is the country with the fastest growth rate of e-commerce in the region, increasing by 224% in the two years from 2005 to 2007 After Venezuela are Chile, Mexico, and Brazil with similar e-commerce development rates respectively 183%, 143%, 116% The country's most popular form of online payment is a credit card B2B e-commerce accounts for 80% of e-commerce transaction value in Latin America Brazil is the fastest-growing country in the region, followed by Mexico and Argentina Currently, 88% of B2B e-commerce websites in the region are Brazilian GROUP 1.2 Current status of e-commerce development in Vietnam: E-commerce has appeared in Vietnam for the past 10 years since the Internet was launched in 1997 However, e-commerce applications have only been really popular in the past years since the Law on Electronic Transactions was promulgated in December 2005 and took effect in March 2006 The promulgation of the Law on Electronic Transactions is considered a turning point for the development of e-commerce in our country This shows that the Vietnamese government has seen the role of e-commerce in economic and social development.  In addition to promulgating the law, the government also issued the "Master Plan for E-commerce Development for the period 2006-2010" The objectives of the plan are:  60% of large-scale enterprises conduct business-to-business e-commerce transactions (B2B);  80% of small and medium enterprises know the utility of e-commerce and conduct e-commerce transactions in the form of business-to-consumer (B2C) or business-to-business (B2B);  10% of households conduct e-commerce transactions in the form of businessto-consumer (B2C) or consumer-to-consumer (C2C);  Government procurement offers are published on websites of government agencies and e-commerce transactions in government procurement (B2G) After years of promulgation of the law as well as a master plan for e-commerce development, in our country e-commerce has been applied in many fields such as:   In the field of production and services, businesses have deployed e-commerce software in business administration such as accounting management software, enterprise resource management software, sourcing software, and customer database management software.   In the field of online buying and selling, the number of exchanges, or virtual markets, has increased rapidly According to a study by the Department of Ecommerce and Information Technology - Ministry of Industry and Trade, by the end of 2007 the number of B2B e-commerce platforms in our country was 40, GROUP and B2C was 100 The C2C e-commerce platform is also growing fast of Vietnam's digital economy will surpass the threshold of 52 billion USD and hold the third position in the ASEAN region by 2025 In particular, Google's Southeast Asian internet economic report forecasts that Vietnam's e-commerce will reach about US$29 billion by 2025 with a growth rate of 34% compared to 2020 In addition, the proportion of new online shoppers, out of the total number of online shoppers in Vietnam also accounts for the highest proportion (about 41%) in the region, by 2020 Compare this rate to an average of about 36% in Southeast Asia, Indonesia, and the Philippines with 37%, Malaysia at 36%, Singapore and Thailand and 30% In the annual report, "SYNC Southeast Asia" (SYNC Southeast Asia) of Facebook and consulting firm Bain & Company (USA) announced on November 25, 2021, Vietnam is forecasted to be a developed e-commerce market fastest in Southeast Asia by 2026, with total e-commerce merchandise value (GMV) reaching $56 billion, 4.5 times the estimated value in 2021 Vietnam is at the forefront of driving change and seizing development opportunities based on digital transformation in the post-COVID19 pandemic The study surveyed about 16,700 digital consumers and more than 20 senior staff in six Southeast Asian countries, including 3,579 respondents from Vietnam The study GROUP 28 describes Southeast Asia as a leader in digital transformation in Asia-Pacific and Vietnam as one of the countries with the best performance Changing traditional buying habits: In 2021, Vietnam's e-commerce will grow strongly, continue to boom, and play an important role in promoting socio-economic development, creating new consumption trends The number of categories of goods purchased by Vietnamese online shoppers this year has increased by 50% compared to 2020, while the number of online stores in Vietnam has also increased by 40% year-on-year, thanks to that total online retail sales nationwide increased by 1.5 times About 49% of Vietnamese consumers have switched to online shopping within the last months based on considerations for price incentives (45%), product quality (,34%), and availability of products goods (33%) The Industrial Revolution 4.0 has promoted e-commerce activities, and forms of online sales (via e-commerce websites/apps; e-commerce platforms such as Amazon, Alibaba, Sendo, Shopee ) to flourish more than ever, for the first time Shopping for goods via e-commerce has become a major, safe and effective method of distribution, promoting immediate effectiveness in the context of the epidemic, fully providing people's necessities Lazada Vietnam's report covers e-commerce in Southeast Asia and Vietnam in 2021, where e-commerce has promoted and contributed strongly to economic growth in the context of the pandemic Accordingly, despite challenges from the Covid-19 pandemic, 2021 is considered a prosperous year for the digital economy across Southeast Asia, in which e-commerce is the main growth driver According to Statista, the value of the e-commerce market in Southeast Asia has increased 24 times in the past years, from billion USD in 2015 to 120 billion USD in 2021; and is expected to reach 234 billion USD by 2025 Vietnam's retail e-commerce market is forecasted to increase by 300%, from 13 billion USD in 2021 to 39 billion USD in 2025 Explaining this growth, the report notes that the driving force comes from the trend of grocery shopping on the e-commerce floor, the increase in the number of new sellers (meaning that more and more sellers want to develop their products) business development on online channels), and people's response to Shoppertainment activities 29 GROUP (shopping combined with entertainment) In particular, the strong investment in internal logistics systems has helped e-commerce platforms to solve the difficult supply chain disruption problem in the past year The COVID-19 pandemic has changed traditional consumer shopping habits to ecommerce Consumers are shopping more online, which creates a great opportunity for businesses to step up their digital media strategy and make a stronger footprint in the online market E-commerce has become a commonly used transaction method, the optimal choice of businesses as well as consumers, the trend of converting from traditional business to a digital platform is becoming more and more popular and is the solution to the problem Effective solutions to help businesses expand their markets, and find models to optimize flexible export resources In 2021, people have changed many consumer habits and behaviors "Overall, the age of online consumers on e-commerce platforms has expanded, they spend more time on e-commerce platforms, and are willing to place orders of greater quantity and value," the report said Outstanding development trends: Specifically, 58% of Vietnamese consumers said that they will continue to shop for department stores on the e-commerce platform because of the convenience and this habit will remain with 53% admitting that buying online department stores has become a part of their lives Besides, Vietnamese consumers are also willing to spend more online The data shows that the percentage of online consumers shopping over million VND in 2020 has increased significantly compared to 2019 Lazada also recorded the highest value of an order of up to 300 million VND and 50 million VND per order LazMall genuine store system in 2021 Analyzing changes in the sales audience, the report found that e-commerce platforms attracted more sellers, especially from FMCG’s fast-moving consumer goods Two recent reports from Lazada Vietnam show that the number of sellers in the second quarter of 2021 has doubled compared to the same period last year, and this number continues to increase by more than 1.5 times in the third quarter of 2021 2021 30 GROUP compared to the same period last year The third quarter also saw major food and beverage (F&B) brands participating in the business on Lazada This has contributed to the highest growth in the number of FMCG sellers in 2021 In addition, the number of new sellers in non-urban areas has also increased significantly in the past year According to Lazada's latest statistics for the first 11 months of 2021, up to 40% of new sellers on the platform come from non-urban areas While the number of new sellers from Hanoi and Ho Chi Minh City is 29% and 31%, respectively How are businesses adapting to the new normal? Experts also analyze the fundamental difference between online and offline business as experience and connection Unlike offline shopping, where buyers can "touch and see" products firsthand, the online environment needs more effort from sellers to build "virtual connections" with customers Shoppertainment - a shopping strategy that combines entertainment - with a variety of activities such as live streams, and actual product reviews, is the "key" to helping help brands and sellers untie this knot, thereby promoting push revenue The proof is that even during the peak period of social distancing in 2021, the LazGame "Lizzie Star" game attracted more than 750,000 players and the revenue from LazLive increased 22 times During Lazada's 11.11 Shopping Festival, the SuperShow concert recorded 26 million views and sales through SuperShow increased 20 times Last year, logistics continued to be a differentiating factor among e-commerce platforms This comes from methodical investment in the internal logistics infrastructure system or initiatives toward social and community purposes Lazada Logistics has launched many initiatives to maintain stability and speed up the delivery process; thereby meeting the basic needs of the people To adapt to the situation of social distancing on a large scale and lasting for more than months in Ho Chi Minh City, Lazada has flexibly opened more satellite goods sorting centers in Tan Phu, District 4, Thu City Duc and Hoc Mon district to ensure timely distribution of goods AI technology is also applied to the delivery stage to ensure the shortest transportation route GROUP 31 During the 2021 Shopping Festival 11.11, Lazada achieved the record for the fastest delivery order – within 30 minutes of the order being recorded until the delivery was successful to the customer More impressively, during the 12.12 Shopping Festival, Lazada's fastest delivery order took just minutes The global e-commerce market is forecasted to continue to see strong growth in revenue in the coming years This statement is once again emphasized in the 2021 Vietnam E-commerce White Paper, which has just been published by the Department of E-commerce and Digital Economy Citing a statistical report from eMaketer.com, the white paper compares: if in 2020, global B2C e-commerce revenue reaches $4,280, in 2021, this figure will be at $4,891 billion, and in 2022 it will to $5.424 billion In 2023, revenue will reach $ 5,908 billion and in 2024, $ 6,388 billion F Success factors of the e-commerce market in Vietnam Social commerce, content creation, variety of payment methods, personalization These are the trends that promise to be crowned in 2022 Vietnam is considered one of the fastest-growing e-commerce markets in Southeast Asia, behind only Indonesia Vietnam is also one of two countries (along with Indonesia) with strong growth in e-commerce website traffic in the region With high and continuous growth from 2015 onwards, it is forecasted that in 2020, the size of Vietnam's e-commerce market could reach 13 billion USD This is completely grounded when there are 68 million internet users out of a total of 97 million people in Vietnam, which is the driving force behind the strong development of e-commerce GROUP 32 Photo source: VietnamCredit Vietnam is currently one of the leading countries in Southeast Asia when in the first half of 2021 alone, the country has 74% of people using the internet daily and more than million new e-commerce users, according to Google data With strong growth even as traditional shopping has returned to the new normal, Vietnam's e-commerce continues to break through with new trends Experts said that these will be important factors contributing to shaping the market in this industry in 2022 At the same time, according to Lazada Vietnam's e-commerce panorama report and market trends with the theme "E-commerce 2021: Adapting and quickly overcoming obstacles from Covid-19", the booming industries thanks to the shift in consumer habits in the past year are also expected to continue to promote the digital transformation of brands, sellers Social commerce - take advantage of social networking as a potential commercial channel: One of the booming trends from the end of 2021 to the beginning of 2022 in the form of combining e-commerce with social networks Taking advantage of large platforms with a huge number of users every day such as Facebook, Instagram, GROUP 33 Twitter, or most recently TikTok, helps sellers and brands increase engagement with customers According to a survey by Remarkable Commerce, more than 90% of social media users access their favorite platforms using a mobile device 54% use social media to research products and shop Through the activities of commenting, live streaming, shopping, and evaluating products directly on social networking posts with vivid visual images, users can easily find the right quality item On the contrary, the sellers and brands have the opportunity to reach more potential customers, expand customer files, and increase popularity Since then, incentive programs and campaigns have also been more effective A livestream of shopping on the Lazada app Photo source: Lazada Vietnam Besides, making good use of modern technologies and attracting users such as 3D images, 360-degree videos, AI, or live streaming features on social networks can GROUP 34 help sellers and brands make the shopping interface more user-friendly, and closer to the user "Playground" of content creators: According to a Nielsen report, up to 63% of consumers still keep their online shopping habits in the new normal, even if traditional sales activities return to the same Many users said they maintain the habit of buying online because of the advantages of convenience, time savings, deep incentives, and taking place densely all year round Shopping activities combining entertainment – and shoppertainment are also increasingly diverse, helping consumers to both shop and relieve stress after working hours at home Not only small retailers, but large domestic and international brands are also gradually grasping this taste In particular, the Livestream of product introduction and sharing of consumer experiences in the past year has helped many brands reach record sales In the shopping festival "New Year, sale to" launched from January 5-14, 2022, Lazada recorded a 2.5-fold increase in the number of users willing to spend on the Livestream The number of orders sold on the LazLive channel also quadrupled Livestream views increased more than times, indicating that users are very excited about the entertainment content in The Spring Online Festival such as Tet Gala, Loto Sale, Slashing Price At the same time, LazLive also recorded a nearly 8-fold increase in sales compared to the same period last year The above figures partly show that consumers are increasingly enjoying entertainment content on e-commerce and live streams The self-created content series of live streamers, sellers, and brands have also become a powerful assistant of the ecommerce business channel In addition, apart from the live streams, users can share the experience of using the product through the form of reviews, short videos, "unboxing", instructions to use new products, services, technologies on their page This becomes a new form of marketing, which not only helps drive sales and stimulate shopping but also supports users to make more informed choices in spending GROUP 35 Personalization to provide the optimal user experience: In the e-commerce trends predicted to ascend this year, personalizing user experience is considered an important key to helping businesses in this industry, as well as sellers and brand partners, increase customer satisfaction Remarkable Commerce's report shows that up to 80% of users prioritize shopping for products from brands and e-commerce platforms with personalized elements and attractive incentives The conversion rate of orders on online purchase platforms that prioritize personalizing the user experience also increased by 20% According to Lazada Vietnam's e-commerce panorama report and market trends 2022, the purpose of personalization is to enhance the customer's shopping experience With the permission of customers, the information related to the multi-channel shopping experience is aggregated and plays a core role, in helping e-commerce platforms and sellers improve the shopping journey of users The application of AI technology also contributes to this journey more complete when supporting information collection and processing, producing the results closest to the consumer habits and preferences of each user Through the results collected, the e-commerce platform can understand customers better, thereby designing its own experiences to suit the needs, helping to increase the rate of successful order conversion In addition, personalizing the shopping experience also helps brokers grasp spending habits The diversification of payment methods including payment via ewallet, bank card, credit card, or cash on delivery (COD) is also rooted in these personal factors, meeting the needs of all consumers Electronics and consumer goods industry quickly ascends to the throne: The epidemic not only changes consumer habits but also affects sales of existing industries on the e-commerce floor In the fourth wave of Covid-19 in 2021, the FMCG industry has shown strong growth This boom is not only in the number of orders and sales but also reflected in the number of new sellers on the floor Two recent reports by Lazada Vietnam showed that the number of new sellers in the second quarter of 2021 doubled compared to the same period last year This figure still GROUP 36 increased more than 1.5 times in the third quarter of 2021 and maintained growth through the end of the year Many foods, beverage, and restaurant brands in the F&B sector also have an application to guide conversion and business on Lazada in the past year In addition to the attributes of partners such as Nestlé, Vinamilk, new brands such as Star Kombucha also continuously poured sales and orders records The trend of shifting business to e-commerce has led to the highest growth in the number of sellers in this category last year In addition, the fashion, home & lifestyle and electronics industries also showed their attraction with an impressive number of sellers and sales Prominent among the brands that achieved "huge" sales in the shopping festival "New Tet, sale " recently on Lazada is the brand Of Co, founded by Mr Le Duc Duy Mr Duy said that in the last Tet campaign, Ms Cuong’s brand participated in the programs "Deal with Loc Phat 68k price, 88k pronoun", Freeship Max with the result of a significant increase in order conversion rate As a result, sales and orders tripled On the other hand, Mr Pham Minh Hoang's Inuka Store also recorded a doubling of sales during the shopping festival "New Tet, big sale" He said the booth growth rate per month was at 20-30% In large campaigns, this number can be 3-4 times higher than usual According to the data recorded by Lazada Vietnam in 2021, the e-commerce industry in 2022 promises to explode with a series of new trends Lazada representatives said the platform will continue to support partner brands and sellers to conquer new challenges, while gradually optimizing the user experience through promotional campaigns and shopping festivals Foreign investment: The participation is deeper and wider with the strong investment of foreign enterprises in the Vietnamese e-commerce market Specifically, in 2018, Japan's SBI Holdings poured an additional USD 51 million into Sendo; Next, Alibaba also invested another billion USD in Lazada Southeast Asia and SEA increased by 1,200 GROUP 37 billion VND, equivalent to 50 million USD in charter capital for Shopee Vietnam The fact that large foreign enterprises pour capital into the market shows the attraction and development potential of Vietnam's e-commerce market In addition, the fact that large foreign enterprises invest in the e-commerce market is also creating competition for market share between domestic enterprises and foreign enterprises Logistics services: In the growth of the e-commerce market over the past time, there has been a great contribution from the strong development of logistics services, last-mile delivery, and order fulfillment Leading e-commerce companies in Vietnam are sprinting to improve the delivery speed with various strategies to enhance customer experience such as DHL commits to same-day delivery, Lazada opens fire service speed, Tiki with "declaration" of delivery within hours, Shopee "commits" to delivery in hours with Shopee Express service According to a survey by the E-commerce Association, at present, Vietnam has more than 50 large and small fast delivery units This number has increased tenfold over the past five years Besides, the trend of online payment also has strong growth In 2019, the payment method that online shoppers prefer to choose the highest is the COD (pay for delivery) method, accounting for 86%; Domestic ATM cards accounted for 39% and debit credit cards accounted for 17% G Resources and equipment needed for an E-Commerce startup: As an online business, your startup will be relatively low-cost and won't have any upfront costs; your most important resource will be your website As a bare minimum, you’ll also need to pay for hosting, web development, maintenance, and inventory The average costs for eCommerce stores include: • Professionally built E-Commerce website - $5000 - $10000 • Domain name - $2 - $20 per year • Hosting - $300 per month Hiring a team and finding vendors: One of the most attractive aspects of starting an eCommerce company is that it needs very few people to get the business idea off of the ground Although you can GROUP 38 employ extra staff to help manage the site, pack products, and ship orders, it’s equally possible to manage these aspects of the business yourself a If you decide you want to build an in-house team, you can expect to pay: • Web developer :7.000.000 10.000.000vnd/month • Ecommerce manager: 15.000.000 - 30.000.000vnd/month • Accounting: 7.000.000 – 8.000.000vnd/month • Marketing: 8.000.000 -15.000.000vnd/month Another important consideration is the cost of your inventory Whether you’re making the products yourself or ordering them from suppliers, you’ll need to find vendors that offer high-quality products at a reasonable price Obtaining insurance and permits for an eCommerce startup: Even though you’re selling your products online and don’t have a physical store, you’ll still need several licenses and permits before you can begin trading These can include:  Business license  Employer Identification Number  Professional licenses specific to your industry In most cases, you’ll need to pay a fee to obtain the necessary paperwork Contact your local authority to find out the rates in your state Choosing an integrated payment solution: As a new eCommerce business, you need to select a payment system that’s fast, secure, and easy to use The cost of a comprehensive point-of-sale system can vary, with some companies taking a flat fee for the service they offer and others charging per transaction Shop around to find a payment processor that meets your needs and that gives you scope to grow in the future For more information on how payment processing works, read our Credit Card Payment Processing 101 Guide GROUP 39 Marketing: Very few shoppers are going to discover your store by accident online Search engines use algorithms to rank your website, and where to display it on their results pages, therefore marketing is an incredibly important part of an eCommerce site Marketing costs can vary, but on average, eCommerce businesses spend between 7% and 12% of their total revenue on marketing This money goes towards ad campaigns, social media campaigns, and email campaigns that are designed to boost brand awareness and drive traffic to your online marketplace IN CONCLUSION: E-commerce is currently a global trend, attracting great interest from traditional, multinational businesses It is considered a fertile ground for young businesses to develop, and in Vietnam, e-commerce still occupies most of the spotlight in the economic and commercial sectors because it possesses a large market, open business opportunities, and huge potential Moreover, Vietnam is rated as one of the fastestgrowing e-commerce markets in Southeast Asia, behind only Indonesia, with the highest proportion of online shoppers in Vietnam (SEA) at 41% It can be seen that ecommerce is the main catalyst to help our economy close the gap, and even integrate with the world economy Data collected from sources:  https://www.globaldata.com/vietnams-e-commerce-market-reach-us13-1bn2020-says-globaldata  https://www.vietdata.vn/thuong-mai-dien-tu-viet-nam-1262137008(Nguồn: Cục Thương mại điện tử Việt Nam, iprice.vn,)  Thống kê Mua sắm trực tuyến, Thương mại điện tử Internet (2022) (webhostingsecretrevealed.net)  Theo Global web Index, 2017  Cục Thương mại điện tử Kinh tế số (2019), Bộ Công Thương, Báo cáo số thương mại điện tử 2019  Hiệp hội Thương mại điện tử Việt Nam (2019), Báo cáo số thương mại điện tử 2019, Sách trắng thương mại điện tử 2019 GROUP 40  Bộ Công Thương - Cục Thương mại điện tử Kinh tế số (2019) Sách trắng Thương mại điện tử Việt Nam 2019  Hiệp hội Thương mại điện tử Việt Nam (2019) Báo cáo số Thương mại điện tử 2019  Google Temasek (2018) THE END GROUP 41 GROUP 42 ... quite limited with the percentage of online businesses decreasing C_ E- COMMERCE MARKET TRENDS ECommerce Concept: E- commerce or e- commerce refers to the form of business transactions conducted... potential in Vietnam: 14 THE E- COMMERCE MARKET IN VIETNAM 15 Reasons to Invest in the E- Commerce Industry in Vietnam: 15 C_ E- COMMERCE MARKET TRENDS .17 ECommerce Concept:... e- commerce sector is witnessing a new wave of competition, as more businesses enter the market, old businesses deploy more services 3.1 Rookies" massively entered the market: Since the beginning