The e-commerce market is volatile, what should sellers prepare for the last 6 months of 2023?

Data is independently collected and analyzed by Metric to help businesses and sellers operating on e-commerce platforms develop effective business strategies that closely follow the market.

E-commerce market report for the first 6 months of the year and forecast for the third quarter of 2023.

Shoppertaiment model is booming, Tiktok Shop benefits

On the ranking of e-commerce platforms with the highest revenue in the first 6 months of 2023, Shopee still proved its strength when it sold 667 million products and earned 59 trillion VND.

However, Tiktok Shop had a spectacular sprint and finished in 2nd place as the Shoppertainment model is growing in Vietnam.

Monthly revenue of e-commerce market in the first half of 2023.

The rapid development of Tiktok Shop is explained by 3 factors: possessing a huge number of users of the TikTok social network, many active KOLs - KOCs, good policies for sellers and high conversion rates, product categories (such as snacks, drinks, ...) that are not prominent on other platforms but sell well on the platform,...

According to Metric's representative, the change in the rankings forces sellers to have stronger changes, closely research the market and make appropriate adjustments to avoid being left behind.

Beauty maintains position, Home - Life has great growth potential

With a total revenue of 16,500 billion VND for all 5 e-commerce platforms in the first 6 months of the year, Beauty shows its influence by continuing to maintain the top position in the ranking of product lines with the highest revenue.

At the same time, according to market reports, this is also the leading industry in terms of earning potential on the three largest e-commerce platforms in Vietnam today: Shopee, Tiktok Shop and Lazada.

Revenue by product category on e-commerce platforms in the first half of 2023.

A representative of the Ecommerce Metric Data Platform shared that the reason why Beauty can maintain its position from year to year comes from 3 industry characteristics: products with high repurchase power (usually after 6 months to 1 year), many promotional programs compared to offline stores, and buyers are mostly women - the main customer base of e-commerce platforms.

However, if calculated by the number of products sold, Home - Life is the leading industry. With 149 million products delivered to customers in just the first 6 months of 2023, the industry has helped 5 e-commerce platforms earn a total of 10,800 billion VND, an increase of 49% over the same period.

Number of products sold by category on e-commerce platforms in the first half of 2023.

Market reports show that Hanoi and Ho Chi Minh City are the two localities with the highest market share of sales by warehouse location with 52% and 31% respectively (based on data from two sales channels, Shopee and Lazada). Sellers can use this data to adjust warehouse locations and optimize shipping costs.

Regular shops are still the most popular type of shop on e-commerce platforms with revenue reaching VND 8,331 billion. However, compared to the same period in 2022, the first 6 months of 2023 witnessed the rapid development of Shopmall with a growth of 55%.

Current sellers in the shop category often need to closely follow the developments of the e-commerce market and consider moving to shopmall if there is an opportunity and feels appropriate. According to Metric's forecast, shopmall will be a trend on the E-Commerce platform because it enhances business reputation and brings peace of mind to consumers.

Although revenue and number of products sold increased, the number of shops with sales in the second quarter of 2023 decreased by 18% compared to the same period last year. This shows that the e-commerce market is increasingly competitive in all product categories.

Continuous market research, searching for niche products, understanding competitors and potential customers will be the solutions for sellers on e-commerce platforms in these problems.

The e-commerce market report is periodically released by Metric, the E-Commerce Data Platform, as part of efforts to provide valuable information to help businesses and sellers build smarter business methods and strategies based on a deep understanding of e-commerce market data.
Metric's data reports are independent, based on publicly available data and are not influenced by third parties. Based on Metric's criteria, the statistics exclude two types of products: goods in the form of services and gifts with unusual output that is not commensurate with consumer feedback. ‏ ‏
To learn more and get free consultation about Metric software, businesses can contact the following address:
Data Science Joint Stock Company
Address: 7th Floor, 180A Tran Duy Hung, Cau Giay District, Hanoi City
Phone: 033.806.2221
Email: [email protected]‏ ‏
Website: https://metric.vn

Bao Anh

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