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 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 Group: Class ID: 2227ENPR5011 Course: 2021-2022 Hanoi, 2022 MEMBERS LIST NUMBER 30 NAME Nguyễn Thùy Ninh 31 Mai Thị Lâm Oanh 32 Nguyễn Minh Phương 33 Nguyễn Thị Phượng 34 Lê Thị Nguyệt Quế (nhóm trưởng) 35 Nguyễn Thị Quyên ID 20D17003 20D17027 20D17027 20D17015 20D17003 20D17021 CLASS K56N1 K56N5 K56N5 K56N3 K56N1 K56N4 TASK TABLE NUMBE R 30 TASK C 1.BEFORE THE SALE NAME Nguyễn Thùy Ninh 1.3 Promotion Strategy ( 1.3.2 Use multi channel marketing ) C DURING THE SALE 2.1 Shipping services 31 C AFTER THE SALE Mai Thị Lâm Oanh 32 C DURING THE SALE 2.2 Logistics services Nguyễn Minh Phương C DURING THE SALE Nguyễn Thị Phượng 33 2.3 Customer services 34 INTRODUCTION + CONCLUSION Lê Thị Nguyệt Quế A THEORETICAL BASIS B E-TAILING IN THE LAST YEARS (2019 – 2020) C BEFORE THE SALE 1.1 Product Strategy 1.2 Price Strategy 1.3 Promotion Strategy (1.3.1 Create high-quality websites) 35 C BEFORE THE SALE Nguyễn Thị Quyên 1.3 Promotion Strategy (1.3.3 Engage users with gamification) 1.4 Payment Strategy TABLE OF CONTENTS LISTS OF TABLES Table COVID-19 critical items LISTS OF FIGURES Figure Main factors that influence online purchases in Vietnam in 2020 Figure Fall of average online spending per month since COVID-19, per product category Figure Estimated closures as share of store base (CY 2020-2026) Figure US nonstore sales rate during COVID – 19 Figure Web Traffic Growth of Ecommerce Retail Categories, Vietnam, Q1, 2021 Figure Main trends emerging in Vietnam food & beverage industry in the period of 2019-2020 Page 11 Page 7 11 INTRODUCTION Due to the advancement in technology, the use of the Internet for buying things has become 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 and standards are increasing day by day, and customers also always demanding more in all aspects of their shopping Accordingly, E-tailing must also develop and regularly updated to meet consumers' changing demands Therefore, this discussion will investigate the various factors that are critical to the success of E-tailing and offers solutions to make Etailing successful in today's market economy A THEORETICAL BASIS 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 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 YEARS (2019 – 2020) Before the pandemic, online shopping was growing at a steady pace of 4.5 percent a year globally But COVID-19 has put E-tailing at the forefront of retail in the last years ( 2019 – 2020), due mainly to movement restriction measures aimed to protect public health and growing consumer preference to avoid physical stores Businesses can adapt to digital platforms thrived and traditional retailers with weak 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 years That's why 2022 is the year of the internet cakes C HOW TO MAKE E-TAILING SUCCESSFUL IN TODAY’S MARKET ECONOMY BEFORE THE SALE 1.1 Product Strategy 1.1.1 Consumer demand Consumer demand and shopping behaviors have changed because of Covid-19 Even though strict social distancing has been lifted, online shopping demand has increased steadily since the beginning of the year General goods and health care products grew most rapidly in the first half of the year For example: - Health product: + Vegetables, fruits, fish + Supplements, vitamin C + Medical masks, social protection, air purifiers, water purifiers, home exercise equipment, - 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 be worst-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 in Vietnam is witnessing hot growth, though they were not the key products of marketplaces 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 into operation For example: -Tiki: TikiNGON: The number of fresh food orders remained stable with a high proportion in the post-social distancing period The average order value remains at VND 200,000-300,000 (US$8.8-US$13.2), especially even after the Covid-19 restrictions were lifted 10 Solution: - Hire top website designers: A top web designer will know how to make tweaks to your design, and design an SEO - friendly website that will elevate your website to the next level ( SEO stands for “search engine optimization.” In simple terms, it means the process of improving your site to increase its visibility when people search for products or services related to your business on Google, Bing, and other search engines The better visibility your pages have in search results, the more likely you are to garner attention and attract prospective and existing customers to your business.) 15 - Use Mobile- Friendly Test: The most important thing for any website, it is mobile-friendly, because nowadays users 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 from desktops Of the mobile internet browsers, Apple's Safari is proving to be the most popular 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 their URL and find out how mobile-friendly Google thinks their site is Or use your phone and access to check If the structure and text of your site look fine on your smartphone, but your 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 down your web application - Use Security protocol "Https" instead of “Http” HTTPS is HTTP with encryption The only difference between the two protocols is that 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 16 - Use website monitoring tools: Google search console, Google Analytics: help you measure your Search traffic and your site's performance, fix problems, and boost your site's rankings in Google Search results SeoQuake & Web developer: help you analyze websites more optimally with Google for the purpose of improving rankings - Use a conversational agent (Conversational AI ) Conversational AI combines natural language processing (NLP) with traditional software like chatbots, voice assistants, or an interactive voice recognition system to help customers 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 several media channels for spreading marketing messages to approach and attract customers This approach efficiently and effectively communicates a product or service’s value using the unique strengths of specific marketing channels These channels include but are not limited to, email, direct mail, websites, e-commerce platforms, and social networks sites (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, sellers can take advantage of this excellent opportunity to advertise your store The sellers can 17 boost their brand's online presence by creating a Youtube channel, a Tik Tok account, or a Facebook and Instagram business page - Content Marketing and SEO - Email Marketing - Websites - Affiliate Marketing Solution: (How does a seller approach their customer by using multiple channels of marketing?) - Creating some platforms: such as a website, a Tik Tok account or a Facebook and Instagram business page, E-commerce platforms, … - Interact with customers on a variety of channels: (social networking, Facebook, YouTube, website, Gmail ) In a single day, the channels will be accessed by customers at least 3- times or more Sellers will depend on customer data to classify and adopt appropriate methods such as Email Marketing or social media promotion… Marketing via multiple channels is a new efficient way that helps sellers to approach and attract customers easily It also helps to identify your brand and have new customers 18 Example: You are surfing a fashion website where you discover your favorite dress and put it in an online shopping cart However, because of distractions arising from something else, you cannot finish the purchasing process If you not really love that dress too much, by 80 percent, you're not going to come back and buy it Multi-Channel Marketing will address this problem just a few hours later when you're watching your Facebook NewsFeed, or in some post on Instagram, you can easily see some of the advertising posts for your favorite dress So, you just need to click on it A few days later, when you are using the Tik Tok platform You see some videos that review your favorite dress After all, I believe that you will take the purchase decisions into consideration - Multi-channel marketing is more effective than single-channel strategies Sellers use a lot of channels to approach customers the number of visitors turning into paying customers increases There is no reason not to use it 1.3.3 Engage users with gamification An effective online commerce business technique you should use is to organize the implementation of mini-games This will increase revenue for sellers Online games capture your audience's attention with both curiosity and engagement, making them one of the most engaging forms of marketing you can take advantage of At the same time, they are a great opportunity for you to introduce your products to a wider group of people Especially, if you choose the winner according to the number of people who like, share, or drop hearts the most The more likes and shares, the more customers will know about you, from which the number of orders will also increase When a customer receives a gift from your mini-game, they may recommend it to their friends to follow you Above all, this will attract a large number of followers This way of online sales is being applied a lot and is highly effective on social networks such as Facebook, Instagram, etc To have an excellently successful mini-game, you need to build a plan for it, including minizine content, rules, prizes, and ways to reward customers Prizes or minigame content should be directly tied to the type of product you're selling It could be the type of product that your shop is attracting the most customers to or any product model that is really valuable to players Avoid giving rewards that buyers are not interested in participating in your mini-game For example, in sales live streams on Facebook, Tiktok, …etc Sellers offer a game of lucky numbers Followers will comment on their phone number, then the seller will give a random number and that number matches the last numbers of someone's phone number, and that person will immediately contact the shop to receive the gift This gift is usually the products that the shop sells, which can be lipstick, perfume, or sometimes money, which will be deducted from the order that the buyer places in the shop It is also possible by discounting product samples, promoting gifts for buyers, or in the form of buy get And this game show sellers often organize at the beginning of the live stream to 19 attract followers Shops often give 10 gifts to lucky people And this game show sellers often organize at the beginning of the live stream to attract followers Currently, not only sellers on social networking platforms offer minigames, but now e-commerce platforms also offer game programs to increase the number of followers as well as increase the number of orders Another popular example of a Shopee marketplace Shopee offers and its trading platform a number of games such as Shopee farm, what is this number, lucky wheel, Shoppers will have access to play these games and the rewards received can be from shops or vouchers for free shipping These gifts will be applied to the purchase of products by customers, they will receive a discount of 10-50% of the order value and even free shipping The popular game users often participate in is Shopee farm, people will plant and water daily to collect coins, the more coins, the more discounts the buyer will receive This attracts a large number of visitors to Shopee and increases the number of orders It is through the incentives received from the games that the number of customers buying here will be very large According to statistics, a promotion code will increase from to 10 orders in day, and organizing programs and mini-games on the fan page will increase the interaction significantly for your online sales fan page Be more diligent in investing in gifts and promotions because this positively affects your effective online sales 20 1.4 Payment Strategy For e-tailers, cart abandonments and lost revenues can be avoided by offering customers a list of payment methods that they want to use or are accustomed to There were not many options in the past, and most of the online payments were made through money orders, cheques, or bank deposits But today, with the advanced technologies we have, there are various methods of payment that shoppers can use To cater to a wide range of customer bases and earn more conversions, allowing all to choose their preferred electronic payment system is critical The eCommerce industry is flooded with many eCommerce payments services, and it may be frustrating to choose how you accept online payments Before you decide which electronic payment methods to offer, you should define your target audience With the variety of your customers, the local, geographical, or cultural shopping habits may differ, and how they respond to different payment technologies can change For example, while cash is the most popular payment method in India, in Europe, it is not widely preferred Providing types of payment systems that your audience doesn’t trust or is not interested in may cause you to lose sales But again, if your eCommerce store lacks the proper range of online payment systems, it can lead your potential customers to abandon their carts and leave your website mid-checkout Therefore, when you have a reasonable payment method, these problems will be solved In addition, this is also a way to attract more new customers It would help your business remarkably if you offered different and uncomplicated options that best suit your target audience to allow them to shop at peace and complete their purchases Analyzing what your audience expects and defining your business niche is what you need to first Then you should evaluate different methods of electronic payments to find the ones that best suit your business’s requirements 21 For example, Amazon allows payment using either credit cards or electronic funds transfer eBay has implemented PayPal, through which shoppers run a personal online account, enabling them to shop online without disclosing their financial details to retailers Credit card providers have made advances in security, and increasing consumer familiarity has also improved confidence There are many popular payment methods but you need to choose for yourself the most suitable one Here, I suggest to you an effective payment method is a merchant account Merchant account is a smart choice for e-tailers E-tailing businesses should use a merchant account because it brings a lot of benefits to sellers Merchant account will gain prestige and respect for your e-business since customers will make their credit card payments directly on your website It is totally transparent, giving you total control of your sales, cash flow, and administration fees In the unlikely event of a dispute with a customer, you alone would decide whether to refund your customer's payment The fees of this method are amongst the lowest on the market, meaning that your business will be more profitable from day one There are also a few other methods that you can (and should) offer on your website: + Credit Card Payment + Debit Card Payment + Electronic Wallets + eCommerce Payment Gateways DURING THE SALE 2.1 Shipping services Let's be real for a moment: For most people, ecommerce shipping isn't exactly the most exciting aspect of running an online business — especially when compared to sales, branding, and product development But never underestimate the importance of ecommerce delivery — a solid strategy is essential to success according to new research, 22 75%* claim that free shipping had a significant or very significant influence on a purchasing decision.Customers won't stick around long if your packages arrive late, damaged, or containing the wrong items Plus, ecommerce shipping costs quickly add up — so without an effective solution, your business could find itself in trouble Successful fulfillment of a customer's order is about meeting their expectations This includes: - Free Delivery: One factor that could make a potential customer abandon their shopping cart is the presence of shipping charges they deem unacceptable With more and more retailers offering free shipping, it has become a norm that most customers expect - Fast Delivery: Fast delivery is also high up the list of expectations Who wants to be kept waiting for a shipment that should have arrived ages ago? While a free shipping option is necessary to appeal to cost conscious customers, be sure to offer an expedited option for those who don't mind paying for speed - Free Returns: As much as you aim for an error-free delivery, returns still happen due to circumstances out of your control Returns made cheap and easy remove a layer of risk for customers as they make their purchases - Keeping the customer informed of any delays and new delivery dates Solutions: - Offer as Many Shipping Options as Possible - Pay Attention to Packaging - Streamline Your Shipping Process 2.2 Logistics services The COVID-19 crisis accelerated an expansion of e-commerce towards new firms, customers and types of products It has provided customers with access to a significant variety of products from the convenience and safety of their homes, and has enabled firms to continue operation in spite of contact restrictions and other confinement measures The logistics in e-tailing was challenged head-on by the pandemic There were restrictions not only among countries but different states, provinces and even areas among cities had restrictions making it difficult for products to reach the end customers It wasn't an easy transition as retailers and logistic providers had to adapt to dramatic changes in the marketplace quickly As the demand surge for essential products made manufacturers scramble for suppliers and raw materials while other retails saw their demand completely stagnate or worse, wiped out in its entirety 23 There are many issues nowadays in transport and logistics like transparency; where consumers not know where their products come from.A product can be inspected by more than 30 organisms while traveling; adding all of this costs a lot of money.The process is still verified manually by sheets of papers; if one paper is missing, then a whole container, for example, can be delayed and not loaded The transport can be delayed for several days, and if there is an expiration date on the goods, it can be lost But luckily we finally have a solution to make it uncomplicated There's no complaints of blockchain technology, invented by Satoshi Nakamoto, is a distributed database technology that holds records of digital information with transparency, security and works without a controlled central organ In fact, many big companies like Amazon, Alibaba and others will be using this technology in their organization When shoppers decide to use blockchain technology,shops can now focus on selling during their actual business hours This convenience made sure that third-party supply chain companies grew by 2-3 times ever since COVID-19 lockdown Not just essential services or FMCG goods, but even consumer durable and apparel retailers are using their services to serve their customers Furthermore, it will create a trusted environment by making sure that transaction information on blocks is resistant to forgery or modification In conclusion, blockchain is not just another new technology, it is expected to play a key role in achieving growth of e-tailing logistics 2.3 Customer services “Selling is not just a profession, but you should understand that selling is a way of life.”An inevitable sale must always be accompanied by customer service - Politely listen to customers: When a customer is interested in a product and contacts your business, the first thing the customer service department has to is politely listen to their needs and desires During the sale, the employee can inspect the commodity, the ability to check and update the information to provide to the customers fast, accurate, and uncluttered throughout the website And when customers have a problem, Staff needs to comfort them like: I'm sorry, I regret… to make the customers feel like they're being sympathetic and we're respecting them I remember once I bought two shirts in a shop online and paid through payment via card Unfortunately, I received only one I immediately contacted the store and asked for a refund The counselor said they were deeply apologetic They would send me an extra 24 shirt and pay the shipping fee, then thanks for my trust You can see that with just a few polite apologies and problem solving, I still trust that shop for the next purchase - Quick customer response: Most businesses experience a delayed response to customer inquiries The reality is that most customers expect a response from your company within the hour on social media Responding to customer inquiries as quickly as possible helps retain them For instance, if a customer wants your online store to advise on a few issues, but after a while, they have not received a response from you, what will happen? I guess most customers become uncomfortable, then leave Of course, there will be no successful transaction between your store and them On the contrary, customers can seek 1-on-1 advice from your employees on live chat as soon as they ask the question, which increases the rate of completed transactions because consumer drops off is that they meet problems when handling or controlling, without getting any help - Under promise, over deliver: Each employee in the enterprise must always bring the best value to customers That helps businesses master each of their activities As a result, they will receive more and more requests from customers All promotional activities between the two sides of the business are completed earlier than the specified deadline and with a commitment to better quality For example, during the last flash sale, DSW's sales website crashed, leaving many shoppers stuck with online orders and unable to proceed with payment The next day, the customer received a sincere apology email from the DSW store, along with an announcement that the flash sale would be extended Customers are not so satisfied, but they also take the time to order more products Even after the promotion is over, there are still customers who keep coming back to purchase Therefore, comprehensive and professional customer service is always one of the most significant factors to help build the business's prospect AFTER THE SALE After-sales, known as after-sales support (After-sale service) refers to the services and support that businesses provide to customers as part of the customer's after-sales policy/service is sold 25 Complicated products, expensive products, or products with long lifespans often require after-sales services for installation and/or use of the product Sometimes, guarantees about product use and longevity are also given to promote sales All of these constitute after-sales services and are vital to the realization of the organization's short- and long-term goals, such as: -To get more customers - To prove that the product is worth buying - To reaffirm the customer's decision to trust the brand - To retain customers and make them come back to buy, become loyal customers of the brand -To execute referral and word of mouth marketing strategies Increased competition in every industry has led to the proliferation of after-sales service categories for both specific customers and markets Here are some examples of the best after-sales services provided by top brands: For example: + Warranty service: Apple provides comprehensive care for iPhones for a period of one year from the date of purchase For the first year, the customer gets the device replaced or repaired free of charge if there is any problem While from the 2nd year they are charged if there is a need to repair/replace components + Installation service: When a product is purchased, it usually comes with a manual for installation Depending on the nature of the product, installation may vary While some products have very specific installation steps, others are customer-friendly Products such as ceiling fans, air conditioners, washing machines, etc require technical installation, other products such as mobile phones not + End-user training: In the case of industrial machinery, this is a very important part This aspect is especially necessary, especially for industries prone to technology, software, engineering or supply of modern machinery For example: After launching the new software Simple Facebook Pro, ATP's technical team also provides detailed instructions for use, in addition to instructions for 26 troubleshooting common errors when using the software so that users can easily monitor and have certain visualizations when using the software + Upgrade: This form of after-sales usually applies to software or electronic products Upgrading the device's software for a limited period of time is one of the forms of AfterSales Service applied by companies Upgrades are for a limited time only because hardware may not be compatible to run new software after a period of time For example, Apple follows a policy of providing over-the-air (OTA) upgrades to iOS software for about 4-5 years, a post where the upgrades stop Customers will still be able to use their device, but it won't be supported to run the latest software 27 CONCLUSION Overall, It can not be denied that E-tailing developed very strongly and has really become a popular form of modern shopping in Vietnam and over the world With the topic: How to make E-tailing successful in today's market economy, this essay was divided into periods before the sale, during the sale, and after the sale Each period has its own specific way In the process of implementing the topic, due to limited knowledge, our group's discussion still encountered many shortcomings We hope to receive your suggestions to improve the discussion report of our group We sincerely thank you! 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