Ecommerce on the rise as customers go mobile

The popularity of mobile e-commerce in Vietnam has seen its strongest yearly growth with the usage of e-payment systems increasing at an estimated rate of 22% per annum.
ecommerce on the rise as customers go mobile

Smart phones have been the medium for 72% of the total hits on e-commerce websites, while 53% of online shopping transactions have been conducted via mobile platforms.

According to Appota’s report on Vietnam’s mobile application market in the first half of the year, the number of online shoppers in Vietnam is estimated at 35.1 million, generating more than US$2 billion in revenue. That figure is predicted to reach 43.9 million with revenue surpassing US$4 billion by 2022

The statistics show that the number of people goods purchasers through Facebook, accounted for 67% of online shopping in 2016 and that figure rose to 83% in 2017.

The report indicates that the millennial generation (18-35 age group) has made up 82% of shares of Vietnam’s e-commerce market. This is the most important segment for retailers and online service providers. HCM city has the biggest online shopping market with 38%, trailed by Hanoi (17%), Can Tho (3%), Da Nang (3%) and Hai Phong (1%) while the remaining localities hold 39%.

The findings of another report, by iPrice, also show that mobile platforms have contributed a large number of hits of e-commerce websites. Vietnam has the lowest rate of e-commerce website access in South-East Asia but posted the strongest growth over the past year.

Statistics indicate a 26% increase in the number of unique visitors to e-commerce websites using mobile devices. Strong growth after 2016 pointed to a gradual rise in the number of Vietnamese consumers using smart phones for online shopping. This requires retailers and service providers to design e-commerce channels which are smart phone compatible.

In addition, the use of work computers for shopping has increased 12% compared to 2016. Up to 53% of online shoppers use smart phone browsers to purchase goods, while 52% of online shoppers use mobile applications to buy goods.

According to experts, the use of mobile devices is now a common trend among consumers purchasing goods online and there has been a remarkable increase in consumers’ dependence on smart devices for their shopping habits.

At the recent Mobile Ecommerce Day 2018, Sapo Web released the statistics of visits to its system of more than 33,000 customer websites, more than 60% of visitors to e-commerce sites are from mobile phones (up 5% over last year) while the remaining proportion arrive from desktop and tablet.

The latest report from iPrice shows that the growth of visitors using smartphones in South East Asia and Vietnam in particular has seen continued growth during the year, accounting for 72% of the total hits on e-commerce websites.

However, the iPrice study shows one downside to the positive growth in the number of hits from mobile phones using mobile shopping apps, the percentage of visitors completing the checkout process on mobile is not as high as with PCs.

The conversion rate from online shop personal computers is much higher than mobile devices, while the average value of online shopping carts also differs between the two devices.

For example, the conversion rate among Vietnam’s online shoppers while using computers is 3.6 and the rate for mobile users is only 1.4. The average value of an online shopping cart on PCs is US$26 and US$23 on mobile devices.

The difference in shopping habits between mobile and computer shows that Vietnamese people often search and study products on their phones before completing the purchase of goods on computers.

Many e-commerce websites B2C like Lazada, Tiki, and Sendo have consistently had the highest traffic and posted constant growth.

A representative from Lazada Vietnam said that since the beginning of the year, the number of online shoppers using Lazada’s mobile applications has increased 60% and the quantity of orders through their mobile apps accounts for 70% of total orders.

However, the e-commerce industry faces a stumbling block on the path to sustainable development for a lack of consumer trust in the quality of online products. Up to 44% of consumers report being dissatisfied with the quality of goods purchased online. Low consumer confidence remains the biggest hindrance for buyers completing the checkout process. Feelings of security are the key factor in consumer’s willingness to buy online.

In addition, businesses are confused about ensuring the standard of design for mobile platforms which meets customer demands and will increase the rate of conversion for shopping.

Mr. Tran Trong Tuyen, CEO of DKT Technology —which has just launched Sapo X, the first multi-channel management and sales platform in Vietnam — said many businesses have lost revenue as they have neglected improvements to their online shopping apps in order to provide customers with new shopping experiences and maximize the mobile conversion.

To accomplish this, businesses need to research consumer behaviour and take advantage of applications and features to optimize the efficiency of advertising and selling goods on the now ubiquitous smartphone.

Source: VOV

Related News

Paving the way for Vietnamese agricultural products in China

Paving the way for Vietnamese agricultural products in China

VCN - The signing of protocols between the Ministry of Agriculture and Rural Development of Vietnam and the General Administration of Customs of China has created momentum for many domestic agricultural products. In 2025 and the coming years, participating in cross-border e-commerce channels is considered a potential direction for domestic enterprises to directly approach Chinese consumers.
Rise in e-commerce violations sparks concern

Rise in e-commerce violations sparks concern

VCN - The increasing sophistication of violations in e-commerce operations is presenting significant challenges for regulatory agencies, with offenders employing advanced tactics to evade detection.
Strengthen the management and use of electronic invoices for e-commerce

Strengthen the management and use of electronic invoices for e-commerce

VCN - Prime Minister Pham Minh Chinh requested ministries, branches and localities to strengthen the management and use of electronic invoices and improve the efficiency of tax collection for e-commerce.
Concerns over counterfeit goods in e-commerce and express delivery

Concerns over counterfeit goods in e-commerce and express delivery

VCN - The proliferation of counterfeit goods and intellectual property (IP) violations in e-commerce has become a significant challenge for businesses and authorities alike. This issue was highlighted at the seminar titled "Enhancing Cooperation to Combat Smuggling, Counterfeiting, and IP Violations," organized by Customs Magazine last weekend in Ho Chi Minh City.

Latest News

Nghệ An Province anticipates record FDI amidst economic upswing

Nghệ An Province anticipates record FDI amidst economic upswing

This places the province among the top 10 nationwide in FDI attraction, showcasing its increasing appeal to international investors.
Green farming development needs supportive policies to attract investors

Green farming development needs supportive policies to attract investors

The numbers investing in this sector remains modest, because the supportive mechanisms and policies for the investors are not attractive enough, according to experts.
Vietnamese enterprises adapt to green logistics trend

Vietnamese enterprises adapt to green logistics trend

Principal of the School of Business at the National Economics University, Associate Professor Dr Tạ Văn Lợi, talked to Vietnam News Agency about solutions for domestic enterprises to become more green in terms of logistics.
VN seafood export surpass 2024 goal of $10 billion

VN seafood export surpass 2024 goal of $10 billion

Việt Nam’s seafood export in 2024 has surpassed its target of US$10 billion despite many challenges related to the market, logistics and materials, according to the Việt Nam Association of Seafood Exporters and Producers (VASEP).

More News

Exporters urged to actively prepare for trade defence investigation risks when exporting to the UK

Exporters urged to actively prepare for trade defence investigation risks when exporting to the UK

The UKVFTA and the UK’s official participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) from December 15 are creating significant opportunities for Việt Nam to expand exports to the UK. However, the risk of trade defence investigations is always present.
Electronic imports exceed $100 billion

Electronic imports exceed $100 billion

Computers, electronic products and components are the first import group to exceed the US$100 billion mark this year.
Forestry exports set a record of $17.3 billion

Forestry exports set a record of $17.3 billion

Việt Nam’s forestry export turnover is estimated to reach a record of US$17.3 billion in 2024.
Hanoi: Maximum support for affiliating production and sustainable consumption of agricultural products

Hanoi: Maximum support for affiliating production and sustainable consumption of agricultural products

VCN - Hanoi City aims to have clean agriculture by 2030, from land, water to air, and clean the environment, especially rivers. Hanoi must create a difference for agricultural product brands, products must be certified and must build the brand "made in Hanoi".
Việt Nam boosts supporting industries with development programmes

Việt Nam boosts supporting industries with development programmes

Việt Nam’s supporting industries play a crucial role in the development and competitiveness of key sectors, receiving substantial government investment and support.
VN

VN's wood industry sees chances and challenges from US new trade policies

Việt Nam’s wood industry will need to be flexible due to the anticipated new trade policies of US President-elect Donald Trump in the future, according to experts.
Vietnam

Vietnam's fruit, vegetable exports reach new milestone, topping 7 billion USD

Vietnam’s efforts in expanding export markets for its fruits and vegetables in 2024 has paid off as for the first time, the export of these products has brought home 7.2 billion USD, much higher than the figure of 3.3 billion USD two years ago.
Aquatic exports hit 10 billion USD

Aquatic exports hit 10 billion USD

Vietnam's aquatic exports reached 10 billion USD in 2024, driven by shrimp and pangasius, despite challenges related to markets, logistics, and raw materials, the Vietnam Association of Seafood Exporters and Producers (VASEP) said on December 23.
Hong Kong: A gateway for Vietnamese businesses to access the Greater Bay Area market

Hong Kong: A gateway for Vietnamese businesses to access the Greater Bay Area market

VCN - According to the General Department of Customs, Vietnam-China trade is expected to reach a new record of approximately US$200 billion in 2024. This milestone marks a record in bilateral trade that Vietnam has achieved with a partner.
Read More

Your care

Latest Most read
Nghệ An Province anticipates record FDI amidst economic upswing

Nghệ An Province anticipates record FDI amidst economic upswing

This places the province among the top 10 nationwide in FDI attraction, showcasing its increasing appeal to international investors.
Green farming development needs supportive policies to attract investors

Green farming development needs supportive policies to attract investors

The numbers investing in this sector remains modest, because the supportive mechanisms and policies for the investors are not attractive enough, according to experts.
Vietnamese enterprises adapt to green logistics trend

Vietnamese enterprises adapt to green logistics trend

Principal of the School of Business at the National Economics University, Associate Professor Dr Tạ Văn Lợi, talked to Vietnam News Agency about solutions for domestic enterprises to become more green in terms of logistics.
Paving the way for Vietnamese agricultural products in China

Paving the way for Vietnamese agricultural products in China

VCN - The signing of protocols between the Ministry of Agriculture and Rural Development of Vietnam and the General Administration of Customs of China has created momentum for many domestic agricultural products. In 2025 and the coming years, participatin
VN seafood export surpass 2024 goal of $10 billion

VN seafood export surpass 2024 goal of $10 billion

Việt Nam’s seafood export in 2024 has surpassed its target of US$10 billion despite many challenges related to the market, logistics and materials, according to the Việt Nam Association of Seafood Exporters and Producers (VASEP).
Mobile Version