What is E-commerce? The development of the E-commerce industry

Concepts related to E-commerce

What is E-commerce?

Translated in a simple sense, E-commerce is electronic commerce (E-commerce). This is a concept that refers to business activities, buying and selling taking place on the Internet, especially buying and selling through websites. This is considered an important aspect of e-business. The purchase, sale and exchange of goods only need to be through the Internet.

E-commerce activities take place between businesses and customers. Or it can take place between two businesses together.

What is e-commerce?

E-commerce and e-commerce are the same thing. According to the World Trade Organization (WTO), the definition of e-commerce is as follows:

"E-commerce includes the production, advertising, sales and distribution of products that are bought, sold and paid for on the Internet. But delivered in a tangible way, both delivered products as well as information digitized information through the Internet".

E-commerce websites in Vietnam and around the world

Some of the major e-commerce businesses in Vietnam are: Shopee, Lazada, Tiki, Sendo, Cho Tot,...

The world's largest e-commerce websites are Amazon, Alibaba, Walmart, Ebay, Bestbuy, Etsy, Flipkart,... These are shopping sites for Vietnam to learn and develop.

The development of e-commerce in the world

◾ Up to now, the e-commerce industry has grown by up to 32% according to the WB. In the future, e-commerce will develop even more.

◾ Online sales now account for 40% of global FMCG growth.

◾ It is forecasted that by 2025, the e-commerce industry will account for 10% of the total spending of FMCG globally.

◾ The world is increasingly bursting with computer networks, everyone can access the Internet. People communicate and connect with each other easily just the Internet. This is the reason why e-commerce services in the world are growing stronger and stronger.

◾ Thanks to e-commerce, the shopping process becomes easy, without barriers of distance and time.

◾ The line between “conventional” and “electronic” commerce becomes more blurred as businesses move parts of their business operations to the Internet.

◾ Thanks to e-commerce, customers can shop cheaper, faster and more conveniently.

Development in Vietnam Việt

◾ Vietnam's e-commerce growth rate is estimated to increase rapidly at about 27%. And e-commerce sites in Vietnam mainly operate on the B2C model.

◾ E-commerce websites are springing up more and more. Foreign investment funds also invest a lot in Vietnam's e-commerce website.

◾ The number of Internet users is increasing, accounting for 40 million people, of which about 30% buy goods through the Internet.

◾ Buyers have quick access to a rich and diverse source of goods, with many shopping choices for themselves.

◾ The explosion of e-commerce through social networks such as Facebook and Zalo is increasing day by day. Sellers live stream on Facebook and the number of buyers there accounts for 70%. Thereby showing that Vietnam spends a lot of time on social networks and is interested in shopping here.

◾ The payment method of e-commerce activities in Vietnam is still mainly COD - payment on receipt.

However, in general, e-commerce in Vietnam is not really developed when the country has 40 million Internet users, but only about one third of them regularly visit shopping websites. Reason:

Many people do not buy online because they want to see the goods with their own eyes
Card payment in Vietnam is not known by many people
The trust of customers is not enough for online shopping. Also because many businesses "hang the head of a goat to sell dog meat".
The variety and prices of goods are not much lower than in the market.
Vietnamese enterprises have not really cooperated to develop together, still working individually.
Investment capital in e-commerce is not small. Businesses must invest for the long term to be profitable. Therefore, it is difficult to develop without capital to learn the market.
The necessity of freight with e-commerce

Explosive shopping on online e-commerce sites of consumers has led to rapid development of freight services. The transportation of goods is a very important activity in e-commerce for goods to reach consumers.

Currently, there are many delivery services to suit the needs of people such as regular delivery, express delivery or express delivery,... No matter where you are in the world, you can receive your goods quickly. fast. Thanks to shipping also makes the transaction successful even though the seller and the buyer do not meet in person.