In the “SYNC Southeast Asia” annual report from Facebook and Bain & Company, released last October, Vietnam was forecast to be the fastest-growing e-commerce market in Southeast Asia by 2026, with gross merchandise value (GMV) of an estimated $56 billion, or 4.5 times the estimated value in 2021.

However, e-commerce’s ability to connect buyers and vendors despite geographic or timing obstacles has created an aggressively competitive market, as the number of businesses and vendors keeps rising both domestically and internationally.

The Vietnam e-commerce white book in 2021 shows that the percentage of consumers buying through foreign websites increased from 29 per cent in 2019 to 36 per cent in 2020. The main forms of purchases include buying directly from foreign websites, buying foreign goods from Vietnamese websites, and buying through intermediary vendors on social networks or e-commerce platforms. Thus, businesses need to constantly predict and understand consumer trends to maintain their competitive edge and sustainable development.

The fast-changing nature of e-commerce requires that its supporting industries not only be quick on their feet in improving quality and introducing more compatible service / product packages but also play a driving role. Whereas information technology allows vendors to enhance their retail channels through multiple platforms (websites, social networks, etc.), the finance industry encourages buyers to make decisions quicker and more easily (cashless payments, installments, etc.).

As the key connection between vendors and customers, the shipping industry serving the e-commerce market (e-logistics) has also grown remarkably. E-logistics caters to the parties involved in the transaction chain: receiving goods from clients, including e-commerce platforms, businesses, and vendors, and delivering them to the final recipient - the buyer. Delivery methods are becoming more diverse, with suitable packages for businesses / vendors and promotional programs being offered.

When e-logistics was first introduced in Vietnam around 2017, it met basic expectations, such as fast delivery, a high rate of successful deliveries, and a low rate of returned package, etc. The technology was mainly built to support shipping and inspection, labelling / coding, and categorizing. Simply put, e-logistics at that time was limited to simply sending and receiving goods.

By 2021, however, e-logistics had grown to be indispensable to businesses, especially small and medium-sized enterprises (SMEs) that are new to the e-commerce market. With the help of applications, businesses can utilize their resources to overcome obstacles in the market through various services, creating higher value for the market and for users.

For example, with information collected from daily orders, e-logistic units can compile statistics on the market and trends by utilizing data, based on the use of machine learning (ML) and business intelligence (BI), and generating suitable forecasts for the development of businesses. This is a source of factual and accurate information that SMEs can access to better understand market movements and desires, decide which products to sell, resolve any financial problems, and calculate capital sources to ensure their business goals and long-term benefits. Research into market trends and access to information is easier and more reliable due to data on goods. Consumer behavior is also studied thoroughly to support businesses in finding customers. As a result, advertising activities are highly effective and cost-efficient.

Additionally, by utilizing statistical algorithms to analyze successful delivery rates based on data collected daily, e-logistics units can be alerted about buyers with high rejection rates, ghost buyers (those who purchase goods online but do not pay), and even areas with low successful delivery rates.

From these metrics, the vendor’s operating costs can be optimized by taking advantage of technology strengths and supply chain understanding from e-logistics units. Not only connecting consumers and vendors, e-logistics units also help connect businesses and vendors with domestic and foreign suppliers, finding goods from abroad when necessary.