report major in electronic commerce building an e commerce project

Product: Product: Stationery Reason: Products with large consumption or quick re-use The product has a good enough net profit Products focus on young customers Easy to adapt technology,

UNIVERSITY OF ECONOMICS AND LAW FACULTY OF INFORMATION SYSTEMS

REPORT

MAJOR IN ELECTRONIC COMMERCE

BUILDING AN E-COMMERCE PROJECT

Supervisor: Ph.D Nguyen Thi Thuy Hanh Student:

Student ID: K234111431 K234111389 K234111407 K234111440 K234111448 Full name: Nguyen Thi Hong Hanh

Le Thi My Hoa

Le Huu Quynh Nhi

Do Minh Nhat Nguyen Thanh Thanh Class: 231EIE400901 K234111E K234112E

Ho Chi Minh City, November/2023

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CHAPTER I: PRODUCT OVERVIEW

1.1 Product:

Product: Stationery

Reason:

Products with large consumption or quick re-use

The product has a good enough net profit

Products focus on young customers (Easy to adapt technology, easy-going )

The product is not bulky or fragile

Products focus on customer needs (This will make it easier for customers to make decisions, higher repurchase rates, low marketing costs, and stable revenue )

1.2 Goal:

1.2.1 Short-term goal:

Determine within 3-5 years to form the company's position in stationery: distribution and consumption of products in the Ho Chi Minh City market

Expected to supply stores 10-15% and supply to companies, and schools 10-15% Increase in market share 3-4% after one year and 5% in the following years

Meets about 90-95% of customer requests

Expected sales for the second year increased by 18.75% compared to the first year 1.2.2 Long-term goals:

Determined in 5-10 years to build a good brand, and create trust and reputation with customers

Market share increased by 5-10%, supply for stores 20-25%, and companies, and schools 15-20%

Ability to meet customer requirements 95-98%

Sales are expected to increase by 38% compared to the first year

Expand distribution area to other neighboring provinces and cities

Expand company scale from low to high level

In short, the company set a business goal at this new store to have a net profit in the first month of over 10 million VND, to pay back capital within 3 months when the

company puts this store into operation, and open another store of stationery within the next few years

CHAPTER IT: TARGET MARKET

2.1 Stationery market:

The stationery market in Vietnam, especially in Ho Chi Minh City, has been experiencing steady growth in recent years With a growing population and increasing emphasis on education, the demand for stationery products remains strong Here's a general overview of the stationery market in Vietnam and HCMC:

Growing market: Vietnam's stationery market has been growing as a result of several reasons, including greater emphasis on education, economic growth, and rising literacy rates Being Vietnam's principal economic center, HCMC controls a significant portion of the nation's stationery market

Education sector: Vietnam has a long history of placing a high value on education, which directly affects the stationery sector There are a lot of students in elementary, secondary, and post-secondary school, thus stationery materials such as notebooks, pens, pencils, and art supplies are still in great demand

E-commerce boom: The emergence of e-commerce has changed Vietnam's retail environment, affecting the stationery industry in particular A large number of companies have set up shop online, providing convenience and an extensive range of stationery items Because HCMC is a tech-savvy city, online stationery purchasing platforms have grown significantly

Office supplies: Apart from the education sector, the stationery market is also influenced by the office segment Office supplies like paper, folders, organizers, and writing instruments are in high demand because HCMC is home to many corporations, startups, and businesses

Innovation and trend: Sophisticated consumers are becoming more and more interested in trendy and innovative stationery products Consumers, especially the younger generation, are becoming increasingly drawn to products with unique designs, eco-friendly components, and practical features

2.2, Competition:

In HCMC, there is fierce competition among local and foreign brands for market share

in the stationery industry Although new and creative brands can enter the market and meet niche consumer needs, well-known brands still have a significant presence

CHAPTER III - MARKETING STRATEGY

3.1 Some specific marketing strategies

Social Media

Set up pages on Instagram, Facebook, and TikTok to showcase our stationery products combined with landing pages

Use high-quality and well-groomed images, trendy filters, creative concepts, and engaging captions to attract customers’ attention

Encourage user-generated content by inviting customers to post pictures with our stationery items and positively reply to customers’ comments

Google Ads:

Set up Ads campaigns via Google to reach a wider range of audience

Use keywords relevant to our products, implement ads extensions, and create compelling ads copy to increase clicks

Website:

Create a user-friendly and visually appealing website to showcase our stationery products

Ensure to include clear product descriptions, high-quality images, and an easy-to-use purchasing process

Influencer partnerships:

Collaborate with influencers in the stationery or creative niche to promote our products Send them samples of our stationery and encourage them to share their reviews and experiences with their followers

Example: Chau Kha Di, Happy Hidarl,

Email:

Build an email list of interested and potential customers and regularly send newsletters

or promotional emails showcasing new product releases, discounts, or offers

Personalize our emails and make them visually appealing to engage the audience 3.2 Sources of goods

Supplier from a famous brand:

Thien Long Group:

Top 50 of Vietnam's leading brands and previously on November 23, Thien Long Group was announced to become one of six Vietnamese companies Asia's 200 Best Under-A-Billion List for the first time, selected by Forbes Asia

Thien Long’s products are always diversified, trendy, convenient and durable Ensure the quality of the products that can satisfy customers’ demands for office stationary Thien Long’s products are now the favourite in the domestic market and are sold in all provinces and cities nationwide

Deli stationery; Futurebook; Casio calculator; Horse stationery, GSTAR stationery; Vinacal; Queen; UNI writing pen; Hai Tien notebook

Import not too many products from these brands because even though the quality is still good but there will be some problems arising from different aspects ( manufacture’s requirements)

External Import ( Mostly from China )

China, with its huge area and population, is considered the world's factory, so goods produced here are often very cheap but the quality is still good enough

In addition, in recent years, with the development of information technology and the Internet, importing goods from abroad has become popular with the masses and chosen by many people

Most people import goods from China through two websites: Taobao.com and 1688.com This is always considered to be the source of goods with the cheapest price and the most diverse types among the 5 sources above However, negotiating the price

as well as when you want to discuss further with the manufacturer will be quite difficult due to language differences

3.3 Forms of promotion and advertising

Because of the e-commerce platform to sell our products is Shopee so it will be appropriate to attend shopee’s promotions :

In the hope of increasing clicks, sales and attracting new customers and building a group of loyal customers

Shopee will support our shop as a retailer who is merchandising on shopee with several attractive promotions ( Promotion Parties 11/11, 9/9, )

Just need to register the desired promotions and wait for admission

Self-created promotions

Buy with shocking deals : attract and increase the attention of customers

Promotional combos: mostly combos of hot products with less one to improve sales for products with few sales

Shop's flash sale in special hours ( 12am, 12pm, )

Follower incentives : create discount voucher ( 10%-20%) for new followers

My discount code ( shopee live, new customer, )

My programme: actively consider among those ways to create a smart and appropriate promotion ( duration, time to air promotions, which products, )

3.4 Models

Business Modet:

Business-to-Consumer (B2C): This model involves selling stationery directly to consumers through an online store The manufacturer can own the store or a third- party seller The seller can use a dropshipping mode

Business-to-Business (B2B): This model involves selling stationery to other businesses The customers can be other retailers, wholesalers, or corporations The transactions are usually larger and involve longer sales cycles

Operation Model:

Dropshipping: This model involves partnering with a supplier who will handle the inventory and shipping of our products (Tik Tok Shop) You will only need to focus

on marketing and customer service

Wholesaling: In this model, you purchase stationery items in bulk from manufacturers

or distributors and sell them at a markup price

Private Labeling: This model involves creating our brand of stationery products and selling them under our brand name

3.5 Delivery Methods : Shopee

Shipping best practices:

Utilize Shopee Supported Logistics:

Keep track of your shipments

Save time with hassle-free shipping arrangements

Build trust and improve customers’ satisfaction by keeping them informed

Take advantage of Shopee free shipping

Provide accurate weight and dimension for all your products

Avoid unexpected shipping fees for you and your shoppers

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Offer free shipping

Increase your sales by providing incentives to shop with you

Keep your shipping service promise

Provide an excellent shopping experience by shipping out orders before the shipping deadline

3.6 Warehouse:

Merchandise management is one of the top priorities for stationery products This is a common item, with many different designs, colors, and sizes That's why we need a warehouse to store all items and choose our homes to do that

Here are some notes to arrange and store goods in our company warehouse more appropriately

Arrange according to usage needs: You should arrange frequently used items such

as pens, rulers, paper, tissues, etc outside the warehouse to easily provide them to customers when they have used them all Check to see if any goods are out of stock to receive goods at the right time

Arrange and classify goods: To make it easier to identify when checking the list, we should set aside office documents on one side and other supplies used for cleaning or the daily needs of employees on the other On the other hand, detergents or waste placed near cosmetic offices such as paper and boxes, if carelessly cleaned, will clean those cosmetic offices, causing unintended damage

Sort by category: Sorting by type helps us easily find what we need Mark and write names to make it easier to work when picking up and not to mess things up Everything must be guaranteed to be educational

Ensure neatness: Aesthetics are also very important for the warehouse If our workplace is only around the warehouse, this is a very important job A clean and tidy place makes us feel more comfortable and excited to work than a rich place Even if you have arranged them correctly according to the above, if you do not arrange them

in rows, it will look very confusing On the other hand, whether our Administrator or superior comes down to check will approve our comment, or if the person visiting the

company will not be sympathetic Cleaning will become difficult if the warehouse is not neatly arranged by item

3.7, Payment:

Cash on delivery (COD): After packing the buyers’ order, the shop ships out via Shopee and the buyer will pay for Shopee after recetving their order Finally, Shopee returns money to the seller via the Shopee wallet

Shopee pay:

Step 1: Select Payment Method on the Payment page > ShopeePay Wallet > Select ShopeePay Wallet Balance or Bank Account linked to ShopeePay Wallet

Step 2: Check payment information and select Place Order

Step 3: Enter the ShopeePay Password, enter the OTP code (if any), and complete payment, like COD, Shopee will return the money to the seller via Shopee wallet

Credit/Debit Cards: Buyers can use Credit or Debit Cards belonging to the Visa, Mastercard, JCB card, and American Express (AMEX) card systems when paying for orders on Shopee

(Note: only applies to orders with payment value (including shipping fees and other costs) of 100,000 VND or more)

Interest Banking: Buyers can pay for their orders via online banking services

(Note: only applies to orders with final payment value (including shipping fees and other incurred costs) of 10,000 VND or more (*)

(*) Order does not include products in the Card Recharge & Services group)

ShopeePay in installments by credit card

Shopee account balance

NAPAS card

(Note: Only applicable to orders with final payment value (including shipping fees and other incurred costs) of 10,000 VND or more (*)

(*) Order does not include products in the Card Recharge & Services group) Apple Pay

(Note: only available for some certain Apple devices / Apple Pay payment method does not apply to orders including products in the Card Recharge & Services group, ShopeeFood orders)

SP Later: A payment method provided by a reputable partner bank(s), allowing you

to buy now and pay later on the Shopee e-commerce platform through a non-physical credit card

(How can the sellers receive the money from Shopee: After finishing the order, sales will be sent to the seller’s Shopee account balance, there are 2 ways for sellers to withdraw the sales)

CHAPTER IV: FINANCE

4.1 Prime cost: 100 million VND

Consider crowdfunding: Crowdfunding is another option for raising capital Several crowdfunding platforms allow you to raise money from a large number of people Explore government grants: Depending on where you live, there may be government grants available for small businesses These grants can provide funding for startups that meet certain criteria

Consider taking out a loan: If you’re unable to secure funding through other means, you may want to consider taking out a loan There are several types of loans available for small businesses, including SBA loans and traditional bank loans

4.2 Usage plan:

Capital Investment: 45 Million VND

Selling, General & Administrative Expense:

Employee’s salary: 30 Million VND (6M per person)

Office rental: 15 Million per month ( 50m”)

Warehouse rental: 5 Million per month ( 50m”)

The cost of stationery

Depreciation

CHAPTER V: CHALLENGING & SOLUTION

5.1 Challenging:

Select business items: Stationary is very diverse, and the needs of students will be different from the company or office

Supplies are scarce: Although there are many suppliers, requiring good quality and clear origin is not easy to find

Prices fluctuate erratically: market factors affect the listed price Price changes make customers feel uncomfortable

Operational management: customers need this product but there is not enough quantity, and the competitiveness of other units is too strong

Ineffective marketing: this leads to few orders, few customers, low purchase inquiry rate

Higher competitiveness: The number of starting businesses from online models is extremely large

5.2 Solution:

Reserve a certain amount of goods in the warehouse, and update prices frequently Manage and arrange appropriate personnel, use software to update and Store product information

Establish a business strategy with clear plans, targets, and timing tools