|Ecommerce platform rankings by iPrice (Source: iprice.vn)
A report by online shopping aggregator iPrice Group indicates that Lazada, which made headlines as the most visited ecommerce platform with 42 million visits per month during 2018, was overtaken by Shopee during the first quarter of the year.
Shopee became the most visited ecommerce website in the country with 40.7 million visits per month on average. It was followed by Tiki which enjoyed an average of 35.6 million visits per month. Lazada dropped to third spot with an average of 29 million visits per month.
Experts believe that changes made by Lazada in its sale policies, along with errors in delivery and their handling of defective goods, has harmed the firm. These downturns come at a time when many rivals continued to offer attractive promotions and discounts.
Lazada halted a service that allows customers to check the goods they order before payment as of March 15. This has raised concerns regarding the condition that goods sent to customers could be defected by manufacturers or broken during delivery.
Mirroring a similar downward trend to Lazada, the ecommerce website of The Gioi Di Dong (Mobile World Co., Ltd) saw its monthly visits drop from 39 million to 28.8 million during the first quarter of the year. This left the website in fourth place according to the iPrice rankings.
Nguyen Huu Tuan from the Vietnam eCommerce and Digital Economy Agency under the Ministry of Industry and Trade, said the local ecommerce market has undergone changes in customer needs. During the initial phase of market development, buyers are more keen on discounts and promotions, however, as time passes they attach more importance to their experiences in terms of delivery, payment method, and after-sale services.
Local customers are quite familiar with online shopping and the presence of ecommerce platforms backed by big multi-national corporations. Despite brand awareness among consumers, ecommerce firms of all statures in the market could suffer if they fail to provide customers with positive experiences.
In fact, a number of shopping websites such as beyeu.vn, deca.vn, fab.vn, cucre.vn, and lingo.vn shut down due to fierce competition from within the domestic market.
In addition, online shopping features developed by Facebook are another threat to local ecommerce platforms.
According to the Vietnam Ecommerce Association, the domestic ecommerce market enjoyed an annual growth rate of 30 per cent in 2018 with total revenues reaching US$8 billion. This figure is expected to touch some US$15 billion by 2020.