Solutions To Develop Sales By E Commerce In Vietnam

SOLUTIONS TO DEVELOP SALES BY E-COMMERCE IN VIETNAM ACKNOWLEDGEMENTS During the writing of this graduation thesis, I had many challenges and could not complete it without the assistance of many people. First and foremost, I want to express my gratitude to my instructor, PhD. Nguyen Van Thoan for his time and helpful guidance in helping me complete this research. He was the one who suggested and encouraged me to choose this topic, which deals with themes that are currently regarded vital in business and society: E-commerce. With my limited knowledge and experience, I could not have completed this thesis without his assistance. Thanks to all of my instructors at Foreign Trade University for schooling me. Your patience and enthusiasm for teaching boosted me significantly in my studies and really touched my heart. The knowledge and skills I receive while studying here provide a solid basis for me to finish my thesis and achieve my objectives. More importantly, following four years of education here, I have learned not just about knowledge but also about how to be a nice person. Last but not least, I want to express my sincere thanks to my family and my friends for their support and encouragement in completing this thesis. They offered me recommendations on how to improve it. Hanoi, May 2022 Nguyen Thi Phuong Anh INTRODUCTION 1. Rational Currently, the world is entering the fourth revolution in science and technology, and Vietnam is also witnessing changes in life and economy thanks to this revolution. The digital economy has increasingly contributed to the national economy in the past few years. Many e-commerce companies were born, and consumers, especially young consumers living in big cities, have viewed online shopping as a consumption habit. According to the 2021 E-Commerce White Paper, internet users participating in online shopping in Vietnam have increased from 77% in 2019 to 88% in 2020. Besides, according to the forecast of E-Economy SEA by Google and Temasek, the market value of Vietnam's digital economy will reach 33 billion USD by 2025. The Covid-19 epidemic has changed the shopping habits and behavior of consumers. Due to the highly infectious nature of the coronavirus and the convenience of online ordering and delivery, in the past, online shopping services have increased sharply. According to the survey results in 2020 by the Vietnam Department of E-commerce and Information Technology, the value of online purchases in the year is estimated at 160 USD/person, and B2C e-commerce sales are about 4.07 billion USD. , an increase of 37% compared to 2019, accounting for about 2.8% of the total retail sales of consumer goods and services nationwide; The most popular types of goods and services purchased online are clothes, shoes, and cosmetics (accounting for 64%), followed by technology and electronics, home appliances, books, and stationery. – flowers – gifts; most online shoppers still choose the form of cash payment, 48% use the method of bank transfer, and 20% of survey respondents said that they used to use payment cards. The report results show that for the online shoppers, the goods they bought the most in 2020 were clothes - shoes cosmetics (64%), followed by technology - electronics (64 percent). 56%), household appliances (49%), books - stationery - flowers - gifts (42%) The above statistics show that e-commerce in Vietnam is on the way to developing and will thrive in the future. Besides, there is fierce competition among e-commerce enterprises in Vietnam. Therefore, how to improve competitiveness and effectively exploit the extremely potential number of online customers in Vietnam? In order to do that, each business itself must understand and grasp what factors affect and how it affects its customers to prepare or change in business to meet the needs of customers. Stemming from the above reasons, the author chose to research the topic "Solutions to develop sales by e-commerce in Vietnam" as the topic of my graduation thesis. 2. Mục tiêu nghiên cứu The study was conducted to analyze and evaluate the current status of e-commerce applications in Vietnam and, at the same time, to determine and measure the influence of factors on online shopping intention through e-commerce platforms e-commerce. On that basis, some solutions are proposed to promote sales activities on e-commerce in Vietnam. Based on the general objective, the study identifies the following specific objectives: (1) Analysis and assessment of the current status of e-commerce applications in Vietnam. (2) Determining factors affecting online shopping intention through e-commerce platform of Vietnamese consumers. (3) Measuring the influence of factors on online shopping intention through e-commerce platform of Vietnamese consumers. (4) Proposing solutions to promote sales activities on e-commerce in Vietnam 3. Research questions To achieve the stated research objectives, the study focuses on clarifying the following specific research questions. (1) What is the current status of e-commerce applications in Vietnam? (2) What factors affect Vietnamese consumers' intention to shop online through ecommerce platforms? (3) How are the factors affecting the online shopping intention through e-commerce platforms of Vietnamese consumers? (4) What solutions help businesses promote sales on e-commerce platforms? 4. Object and scope of research 4.1 Object of research The object of this study is the current status of e-commerce applications in Vietnam and the factors affecting the intention to shop online through the e-commerce platform of Vietnamese consumers. 4.1 Scope of research Spatial scope: The study was conducted in the context of Vietnamese consumers. Time range: + Secondary data for the study were collected from 2018 to 2021. + Primary data was collected through survey questionnaires conducted from April 10, 2022, to May 15, 2022 5. Research methodology The study applies a combination of qualitative and quantitative research methods. Qualitative research was conducted in group discussions with ten consumers aged 18 and 45 years old who met the condition that they had ever shopped online through ecommerce platforms. In order to discover, adjust and supplement observed variables used to measure research concepts, ensure that the scale is suitable for the research context. Besides, data analysis and descriptive statistics methods are used to analyze and evaluate the situation of e-commerce applications in Vietnam in the past period. Quantitative research was carried out with data collected through a survey of Vietnamese consumers. All survey data were processed using SPSS 22 software to assess the reliability and value of the scale by Cronbach's Alpha reliability coefficient and Exploratory Factor Analysis (EFA). Besides, regression analysis and model fit tests were also performed to examine the influence of independent variables on the dependent variable. The research results will determine the direction and extent of the influence of factors on the intention to shop online through the e-commerce platform of Vietnamese consumers. 6. Structure of the study In addition to the introduction, the thesis conclusion is divided into four main chapters as follows: Chapter 1: Theoretical foundations of e-commerce and research models Chapter 2: Research methodology Chapter 3: Situation of e-commerce application in Vietnam Chapter 4: Solutions to promote sales on e-commerce in Vietnam CHAPTER I: OVERVIEW OF E-COMMERCE 1.1 Theoretical of E-commerce 1.1.1 The concept of E-commerce E-commerce, understood in the most common sense, is commercial transactions through an electronic environment. The concept of International Business Machines (IBM) - a multinational computer technology corporation introduced in the 1990s about ecommerce, is: “In a broad sense, e-commerce includes all types of transactions commercial transaction in which the trading partners use information technologies in the framework of an offer, agreement or provision of a service.” IBM's advertising campaign in 1998 was based on the concept of "E-Commerce," used circa 1995, a concept that is now considered an area of electronic business (E-Business). Electronic business processes can be viewed from an internal perspective or an external perspective (emarketplace, E-Commerce, etc.). International organizations have developed the concept based on the analysis of the narrow and broad meanings of e-commerce. In a narrow sense, e-commerce is limited to buying and selling goods and services through electronic means, primarily through the Internet and other interconnected networks. According to the World Trade Organization (WTO), e-commerce includes the production, advertising, sale, and distribution of products bought, sold, and paid for on the Internet, but physically delivered, delivered, and delivered digitized information. According to the Organization for Economic Cooperation and Development (OECD), e-commerce is doing business over the Internet, selling goods and services that can be delivered over the air or goods that can be delivered over the Internet. Digitally encoded and distributed over the network or not through the network. The E-Commerce Committee of the Asia-Pacific Economic Cooperation (APEC) defines e-commerce as business conducted through digital communication and digital information technology. According to the Association of Electronic Commerce (AEC), ecommerce is doing business using electronic tools. This definition is broad, considering most business activities as simple as a transactional phone call to complex exchanges of EDI information as e-commerce. The Model Law on Electronic Commerce of the United Nations Commission on International Trade (UNCITRAL) defines: “E-commerce is the exchange of commercial information through electronic means, without printing it out paper any stage of the entire transaction process. The term commerce (commerce) should be interpreted in a broad sense to cover issues arising from any relationship of a commercial nature, even if it is or no contract. Commercial relationships include, but are not limited to, the following: any transaction for the supply or exchange of goods or services; distribution agreement; commercial representative or agent, commission (factoring), long-term rental (leasing); construction of works; consulting, engineering works (engineering); invest; funding, banking; insurance; exploitation or concession agreements, joint ventures and other forms of industrial or business cooperation; carriage of goods or passengers by sea, air, rail or road”. According to this definition, the scope of activities of e-commerce is vast, covering almost all fields of economic activities. The purchase and sale of goods and services is only a minimal scope in commerce. e-commerce. According to the European Commission, e-commerce includes many acts such as buying and selling of goods; service; delivery of digital content on the network; electronic money transfer; electronic stock trading, electronic bill of lading; commercial auction; design cooperation; online resources; public shopping; direct consumer marketing and after-sales services; for trade in goods (such as consumer goods, specialized medical equipment) and trade in services (such as information provision, legal and financial services); traditional activities (such as health care, education) and new activities (such as virtual supermarkets), etc. With this definition, “commerce” in “e-commerce” is not only the trade in goods and services (trade) in the usual sense, which covers a much broader scope, so the adoption of e-commerce will change the way most economies operate economically. Up to now, it is estimated that e-commerce has more than 1,300 application fields, of which trading in goods and services is only one application area. In Vietnam, the concept of e-commerce is also introduced by researchers. According to author Nguyen Huu Anh, e-commerce is a form of using electronic means and methods to carry out commercial activities paperless trade at any stage of the transaction process (also known as paperless trade). According to author Mai Anh, e-commerce includes all transactions made possible by digital technology, especially the Internet, private networks for information exchange (EDI), and credit cards. In Vietnam, e-commerce has been recognized in legal documents. Which e-commerce is the conduct of part or the whole process of commercial activities by electronic means Connected to the Internet, telecommunications networks, or other open networks? Thus, according to that definition, e-commerce is understood broadly. On that basis, the concept of e-commerce is understood uniformly: “E-commerce is the performance of a part of the whole of the set of processes of commercial activity by electronic means connected to the Internet, mobile telecommunications networks or other open networks.” 1.1.2 Features of e-commerc Compared with traditional commercial activities, e-commerce has some essential characteristics as follows: Firstly, the parties in an e-commerce transaction do not have direct contact with each other and do not require a prior acquaintance. In traditional commerce, the parties often meet face-to-face to conduct negotiations. Negotiate and sign contracts. Since the emergence of the global computer network, the Internet, the exchange of information in various commercial activities has expanded rapidly worldwide with an increasing number of participants. Participants are individuals or businesses that may or may not have known each other. Second, e-commerce is done in a market without borders, in other words. E-commerce is done on a single global market. Information is digitized into bytes in the digital economy, stored in computers, and transmitted over networks at high speeds. This creates entirely new possibilities that change people's purchasing and consumption habits, in which sellers and buyers can transact with partners anywhere in the world. Suppose in traditional commerce, national borders have a significant meaning, especially for import and export activities, in e-commerce. In that case, the concept of national borders no longer makes sense too big. Thirdly, in addition to the subjects participating in the traditional commercial transaction relationship, in the e-commerce transaction, there is a third party that is the online service providers, the authentication and management agencies. These are the people who create the environment for e-commerce transactions. Network service providers and certification and management agencies are responsible for transferring and storing information between parties participating in e-commerce transactions. At the same time, they also confirm the authenticity of the information in e-commerce transactions. Fourth, for traditional commerce, the information network is just a means to exchange data, while for e-commerce, the information network is the market. Popular Web sites like Yahoo! America Online, Google or AltaVista, etc., act as the original websites that bring customers to many other websites with loads of information. These websites have become substantial trading places on the Internet. Fifth, the types of transactions in e-commerce are very diverse, including (i) the Business-to-business transaction model (B2B - Business to Business) is considered one of two models. The fastest-growing in the e-commerce industry, the B2B model, is applied in communication, buying, selling, and using product services between businesses and businesses; (ii) The business-to-customer (B2C) transaction model is the most popular and fastest-growing model in Vietnam, we can see a lot of Websites and vehicles operating under this model; (iii) Business to Government (B2G) transaction model is a commercial website model in which businesses play a role in providing information, services, and products to the Government country. The consumption of products serving the management and administration of the State is also classified in this model; (iv) The direct transaction model between individuals (C2C - Consumer to Consumer) is a model in which individuals are the people who buy and sell goods or use services of other individuals but not business organizations. Sixth, e-commerce activities are risky due to their dependence on technical factors. Ecommerce activities are carried out via electronic means connected to the internet, mobile telecommunications networks, or other open networks. Therefore, there are many potential risks such as Information can be stolen or is disclosed for other purposes, system safety may be affected due to objective reasons such as technical problems, unstable system operation. 1.1.3 Benefits of e-commerce Selling through e-commerce tools in online retail gives businesses the following benefits: - Save time, reduce costs: sellers can provide information about businesses and products quickly, concisely, and save time for customers; help customers easily compare products to buy; sell everywhere without geographical restrictions; saving advertising and space rental costs; help businesses compete in the fierce online retail market. - Understanding customers: Online retailing through e-commerce tools help businesses build relationships with customers and capture customer information through consulting systems at websites, webshops, and online sales channels on social networks... before they need information about the product, they introduce the product and step by step leading to the sale. - Apply adequate statistics and analysis tools: Website statistics will tell merchants what customers are interacting with on the website/website, including the websites they have visited, the specific time they spend on each page, traffic direction, and bounce rate... Sometimes, some tools will show additional information, for example, how often a customer visits the website salesman. Tools sellers can use for statistics such as Google Analytics, Facebook insight, tools provided by B2C exchanges, or email marketing analytics and statistics tools... With thorough analysis, Detailed statistics will help sellers create strategies to sell all of their products (Yonggui, 2013). With the characteristics and benefits of the above e-commerce tools, businesses need to quickly select and apply the toolkit for the most effective online retail. At the same time, the new wave of e-commerce is a combination of Mobile E-commerce, Social-based E-commerce, and E-commerce by geographical area (Mobile, Social, Local) Ecommerce) creates opportunities for online shopping to grow, which is a condition for increasing online retailing, and the application of e-commerce tools. 1.1.4 E-commerce tools in online retail Online retailing is an activity conducted by individuals or businesses that want to sell their products/services through the Internet to consumers (Nguyen Van Thoan et al., 2016). However, online retailing is not simply about putting products online. However, it also must interact with sellers and buyers with effective sales strategies. Sellers, including businesses and individuals, can use a variety of channels to retail online to maximize opportunities for customer interaction (Zachman, 2009). There are many e-commerce tools available, and businesses can choose an e-commerce toolkit that suits the characteristics of their online retail business (Brzozowska, 2015). Typical online retail tools include: - E-commerce website is a specific and most potent online retail tool and one of the earliest tools to contribute to the formation and development of e-commerce. These days, online business websites are essentially online stores. The essential functions of an e-commerce website include promoting a particular company or product, increasing brand awareness, attracting new customers, building customer loyalty, and being the leading distribution channel in online retail. - Online store (webshop) on B2C e-commerce exchange (business-toconsumer): is a place to display, introduce and sell products on the Internet, running on the trading exchange platform e-commerce. Sellers will have the opportunity to reach a wide range of potential customers through leading online exchanges. Typical B2C e-commerce exchanges are Amazon.com, eBay, and Taobao. - Email marketing: is the cheapest and most effective e-commerce and e-marketing tool (Brzozowska, 2015). One email can provide details about the business, products, services, and online retail website ecommerce applications that sell by email and web-based services can also provide businesses with analytics about email sales campaigns, such as the number of people who received the email and the number of people who clicked the link. - Forum: is a rich environment where sellers can promote their products to target customers. Selling on the forum channel is preferred by many shops, especially newly opened stores or small businesses. The most special advantage when businesses sell on forums is that they can focus on the target audience with high interaction. Blog: is a diary kept online and includes the content of interest to the reader that plays a vital role in providing the ability to comment on specific content and interactions between sellers and customers. Currently, the movement of blogging and setting up forums is being interested in many young sellers. If a seller wants to be successful with a blog, it needs to achieve factors such as a Deep understanding of his or her field, having customers who are often interested, and going back and forth on the seller's blog. - Classifieds floor: choosing a classified site to open a business booth is important, so businesses should note the following evaluation points: The number of visitors and the main items posted. Businesses can also find out the quality of the classifieds page through the number of years of experience. The information about the classifieds page in the introduction is placed at the top or bottom of the page. Sellers should not use any tools, software, or classified channels to automatically post ads all over the forum or classified ads that take time but are not effective. - Group buying and selling website: Group buying and selling with the advantage of group resources bring significant profits to all three parties, including suppliers, online services, and shoppers. Online shopping websites with millions of visitors every day will become an essential bridge for businesses to introduce products, prices, and quality... to consumers. All three parties involved in buying and selling online benefit from low prices, saving advertising and marketing costs through the website. - Facebook and other social networks: Selling on social networks (social commerce) is one of three new models of e-commerce besides two other new commerce models, by mobile geographical e-commerce area and (m-commerce) global and positioning e- (local commerce). Facebook continuously provides e-commerce applications, from providing advertising services on social networks so that customers can click and move to the business website to shop online to allowing businesses and individuals to create “branch websites” (fan pages) on Facebook to advertise and introduce products. In addition, social networks such as Twitter, Instagram, Pinterest, and Zalo... are also where stimulating online retail activities occur. - Youtube: is the second or third most popular search engine in the world. The primary and outstanding advantage of Youtube is that the seller's video will be included in the search results of Google and Youtube. Every video the seller creates is marketing content that helps the seller sell effectively in the future. Sellers can also use YouTube videos to post on their website, helping customers access the product and its benefits more efficiently. People come to YouTube not only for entertainment but also to learn new skills, find information and buy and sell products. SEO and Google Adwords: Search engine optimization (Search Engine Optimization - SEO) is essential for online retail website design and any other profitable online activities. Effective SEO not only helps a business website rank higher in search results, but it can also make real money with SEO because SEO can help search engines drive more noticed and profitable ads. . Adwords is Google's online advertising network that allows online sellers to reach customers by placing ads on virtually all Google search results pages, Youtube and partner websites. 1.2 Theoretical of customer behavior 1.2.1 Theory of Reasoned Action (TRA) The theory of Reasoned Action was developed by Ajzen and Fishbein in 1967 and adjusted and expanded over time. The TRA model (Ajzen & Fishbein, 1975) shows that consumption propensity is the best predictor of consumption behavior. To be more interested in the factors that contribute to the buying trend, consider two factors: the attitudes and subjective standards of customers. In the TRA model, attitudes are measured by the perception of product attributes. Consumers will notice attributes that provide necessary benefits and have varying importance. If the weights of those attributes are known, it is possible to predict the outcome of the consumer's choice roughly. Subjective normative factors can be measured through people related to consumers (such as family, friends, colleagues,...); these people like or dislike what they buy. The impact