With over 200,000 websites worldwide, Magento is today’s most widely used eCommerce platform. Magento is always the best choice for businesses to use because of the benefits of open source code and specialized features for the eCommerce market.

Businesses must carefully study the strategy and consider the needs of the website system when deciding between Magento Open Source and Magento Commerce to implement eCommerce on the Magento platform.

Magento Open Source là gì?

Magento Open Source was initially known as Magento Community Edition (CE), a free version of the Magento open source platform. This version provides a flexible framework for building eCommerce websites, which is popular among many businesses.

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What is Magento Commerce?

Magento Commerce, formerly known as Magento Enterprise Edition (EE), is a website system used by large businesses with complex website system requirements. 

This instance provides an on-premises solution as well as a hosted solution as a service (Magento Commerce Cloud), which aids in website performance and user experience. As a result, the annual fee for using this version is $24.000.

Comparison between Magento Open Source and Magento Commerce

Hosting

The platform will charge an additional $2.000/year for the included hosting service when using Magento Commerce to ensure that the business’s website system is constantly updated and upgraded, allowing it to handle high traffic and bills of lading more quickly.

Meanwhile, Magento Open Source is free to select a hosting provider that meets the business’s requirements and budget.

Feature

The following table compares the features that distinguish the two versions of Magento:

Magento Open Source has fewer features than Magento Commerce because it is a free version. Businesses, on the other hand, businesses can build the necessary functions themselves using extensions from the Magento ecosystem, the community of extension developers, or the project developers with whom Magento collaborates.

Cost

Magento Open Source will require a lower investment than Magento Commerce, from hosting and domains to website development. Nevertheless, the technology infrastructure is the same, so the costs of interfaces and extensions are calculated similarly.

Technical assistance

While Magento Commerce provides global technical support, including cloud service integration, Magento Open Source is not directly supported by the Magento technical team. However, the current Magento Open Source website developers continue to ensure expertise so that the business website is constantly updated and effectively operated.

Should businesses choose the Magento Open Source or Magento Commerce version?

Magento Open Source will be ideal for startups, SMEs (small and medium enterprises), businesses new to eCommerce, and even large corporations that do not yet require Magento Commerce’s advanced functionality system. Because using Magento Open Source is advantageous:

• Spending less money: Eliminate license costs, opt for more affordable hosting, and avoid paying for unnecessary specialized functions.
• Choosing to develop essential business features: Creating specialized functions to address industry and product-specific issues.
• Appropriate for all stages of business growth: Businesses can create basic features and then gradually improve them.

Meanwhile, Magento Commerce will be appropriate for large businesses because:

• Complex functional systems are available: such as Advanced Marketing, Bill of Lading, and Delivery Process Management, to meet global sales needs.
• Dedicated Hosting Service for Websites: Using the same service from Magento developers will ensure that the website works more efficiently.

Choosing the best Magento version will be determined by each company’s long-term eCommerce strategy. However, it is also critical to implement those versions. They must collaborate with professional Magento developers to consult on and implement the best eCommerce solution.

With in-depth experience and developing many complex eCommerce systems on Magento, SECOMM understands the obstacles in choosing a platform and implementing Ecommerce businesses face.

Get in touch with us now for FREE eCommerce development consultancy and solutions 

The growth of the grocery eCommerce industry in the Vietnamese market in 2021 is undeniable. According to the Google report, online grocery-related searches will increase by 223% in 2021, 3.6 times in June, and 11 times in July during Vietnam’s lockdown due to Covid-19 in several provinces.

Recognizing the market’s enormous potential, the need for a professional eCommerce website for online grocery businesses has grown significantly to expand the business system, supporting digital transformation and long-term revenue growth. Some of Vietnam’s largest grocery businesses, including Annam Gourmet Market, Bach Hoa Xanh, Organica, Farmer’s Market, and WinMart, have led the way in developing an eCommerce website system and have seen great success.

Choosing the right platform to build an eCommerce website makes the above brands successful. Platforms play a significant role in developing and operating an effective online grocery website. Along with well-known names such as Shopify, BigCommerce, and WooCommerce, Magento is considered the best online grocery support platform.

The advantages of creating eGrocery websites on the Magento platform

Various approaches to designing a website interface

Businesses have many options when designing the eGrocery website interface on the Magento platform, including using available themes, customizing themes, and creating their own.

Businesses can find Magento-specific themes in the grocery field, developer community, or partner using available themes. It helps businesses reduce the cost of interface design, but it limits businesses’ brand positioning because the interface is easy to duplicate with other websites.

Businesses can save money and add brand identity elements such as colors, fonts, layout, and so on by customizing their themes. However, businesses need a team with extensive Magento expertise and experience to set up and customize the interface efficiently.

Businesses will have a one-of-a-kind website for their brand if they design their interface. However, it will require an enormous investment in development costs and a professional team.

When choosing Magento to develop an eCommerce website, most grocery stores often customize or use their themes to support an in-depth eCommerce business.

Various eCommerce functional systems

The Magento platform provides a comprehensive set of features, ranging from basic to advanced, for the development of professional eCommerce websites. Additionally, Magento allows you to create custom functions to solve specialized grocery industry problems.

Basic functions to assist businesses in running an efficient and smooth website system, such as

• Catalog Management: Manage all data, processes, categories, attributes, prices, inventory quantities, and images/videos to operate and optimize the efficiency of the online grocery store.
• Store Management: Manage product inventory and each branch’s business activities and personnel.
• Cart and Checkout: Manage the shopping cart and customers’ information when they check out.
• Customer Management: Manage customer information to increase marketing efficiency, purchase experience, and customer satisfaction.
• Marketing Management: Optimize SEO and implement marketing strategies with tools to increase business sales.
• Sales Management: Create and manage sales, order, payment, and shipping processes.
• Content Management: Create and optimize all content elements for CMS pages, image storage, customize themes, and design websites.
• System Management: Delegate administrators to review the best methods for website security and maintenance
• Analysis and Report: Support tracking and measuring eCommerce system performance and developing future strategies.

Advanced functions that improve consumers’ online shopping experiences, such as advanced search (Elasticsearch, live-search), MSI (Multi-Source Inventory), abandoned cart, similar product recommendations, PWA (Progressive Web Apps), multi-layered product catalog, and so on.

In addition, industry-specific functions assist businesses in dealing with their problems and reducing mistakes in the online grocery industry, such as order tracking, fast delivery, delivery time and location options, etc.

The ability to expand the system in the future

The high flexibility of Magento open source is an outstanding advantage that helps the system not only operate effectively at present but also expand the system to accompany businesses in the future.

Grocery businesses can fully integrate 3rd party services with Magento, making eCommerce operations efficient and smooth: 

• Payment: Integrating with card payments (ATM, VISA, Master Card); e-wallet (MOMO, Zalo Pay); payment gateways (OnePay, VNPay, Paypal), and COD that helps diversify the payment experience.
• Delivery: Integrating with delivery companies like Giao Hang Nhanh, Giao Hang Tiet Kiem, Viettel Post, and order tracking applications aid in the processing and optimizing delivery processes.
• Management software: Integrating with software like ERP, CRM, POS (SAP), Salesforce, and Oracle that help run all businesses’ resources.
• Business analysis tool: Integrating with business analysis tools (Business Intelligence-BI) like Power BI, Tableau, and Looker assists in the improvement of the business strategy and growth plan

Marketing: Integrating with marketing software from Email Marketing (Mailchimp, Getresponse) to advertisement (Facebook, Google, Zalo, Tik Tok) to optimize eCommerce business

Besides that, Magento also allows businesses to expand from one website, and one store to many websites, and stores, and convert multi-language, and multi-currency flexibly while still being able to manage all data at the same time.

As a result, Magento is a suitable platform for a wide range of business models, including B2C, B2B, B2B2C, and O2O, as well as a wide range of business sizes, including new businesses entering the eCommerce market, startups, SMEs (small and medium enterprises), and large corporations.

Outstanding security

In the path to building a website, security is another significant benefit that makes the Magento platform the preferred platform for online grocery stores.

Magento includes a security scan tool that helps identify problems and propose security solutions to handle arising errors, effectively optimizing the security of grocery eCommerce websites. Moreover, to improve admin account security, Magento requires admins to use advanced passwords with at least 7 characters, including letters, numbers, and special symbols. Simultaneously, password complexity can be added to lowercase and uppercase passwords or re-login after a certain amount of login session time. Furthermore, Magento supports two-factor authentication, such as OTP or CAPTCHA code, to strengthen the security of the grocery eCommerce website system.

Diverse ecosystems

The Magento platform has a worldwide developer community that includes many experienced and professional Magento developers.

Magento is also part of the Adobe ecosystem, helping businesses easily access new technology trends and use Adobe’s available application store.

With such a strong development community, online grocery store businesses will receive the most assistance in resolving technical issues and consulting on building eCommerce solutions that are appropriate for their business model.

Difficulties in creating an eGrocery website on the Magento platform

High development cost

Although Magento is highly appreciated for its features and performance, the cost issue is still a significant obstacle that makes many eGrocery businesses hesitate to choose Magento.

Implementing a complete eCommerce website system built on Magento costs between $10,000 and $250,000.

The table comparing Magento construction costs

Take time to implement

A complete Magento project typically requires 3 to 6 months, with some projects requiring up to a year. As a result, businesses frequently waste time because of the complex functional system and the scarcity of Magento experts.

Professional team required

Businesses require a professional team with a deep understanding of Magento as well as practical experience on highly complex systems to implement an effective eGrocery website using Magento.

Annam Gourmet’s case study

Although Annam Gourmet has previously owned a website, it is primarily used for brand development, and the effectiveness of eCommerce activities has not been prioritized. As a result, this website system is not comprehensive and is limited to crucial eCommerce functions. Furthermore, to transition into the “new normal”, Annam Gourmet must expand its online sales channel more intensively and effectively.

In order to meet the needs mentioned earlier, as well as to support the company’s long-term development goals in the Vietnamese market, Secomm and Synova successfully built a complete eCommerce website system on the Magento 2 platform.

The Magento 2 website system is operationally stable and effective with other components in Annam Gourmet’s operating system. As a result, Annam Gourmet’s eCommerce website, with typical grocery industry elements, is capable of meeting all business needs, such as operating effectively in a highly complex system, quickly processing huge amounts of data about products, customers, and orders, and seamlessly syncing with ERP, CRM, POS, and so on.

In general, when building a grocery eCommerce website with Magento, businesses can master everything from interface design to feature system, leveraging a diverse ecosystem, a system capable of flexible customization, and superior security. On the other hand, businesses must prepare and invest in a budget, time, and team to successfully and effectively implement it.

Our company – SECOMM, has been partnering with many big enterprises such as An Nam Group (Vietnam), Jasnor (Australia), and Changi Airport Group (Singapore). As a result, we are aware of the challenges and worries firms face while developing an eCommerce website system.

Get in touch with us now for FREE eCommerce consultancy and solutions in eGrocery businesses.

Along with the eCommerce market growth comes an increase in business demand for a separate eCommerce website system to maximize online business.

The platform’s role in developing and operating an effective eCommerce website system is enormous because choosing the right platform will help businesses save time in building a team, saving system development costs, reaching potential customers, boosting sales, and seizing long-term sustainable development opportunities.

Among today’s popular platforms such as Shopify, BigCommerce, WooCommerce, and others, Magento is widely regarded as the best platform for developing eCommerce websites, with over 186,000 websites in use worldwide.

What is Magento?

Magento is an open-source platform designed specifically for the eCommerce industry. In addition, Magento is the most challenging source code platform in the PHP programming language. As a result, Magento can handle a company’s specialized needs in a constantly changing and evolving market like eCommerce.

Many major brands and corporations, including HP, Asus, Puma, and Walmart, have used Magento platforms. In addition, some famous brands in Vietnam use Magento websites, including CellphoneS, Vua Nem, Kids Plaza, Mobile Viet, and so on.

Classification

Magento currently offers two versions: Magento Open Source and Magento Commerce.

Magento Open Source

Magento Open Source was initially called Magento Community Edition, a free version of Magento. This version provides a “framework” to build eCommerce websites flexibly, so it is very popular with many businesses.

Some websites use Magento Open Source in Vietnam, such as Canifa, Kids Plaza, Bach Long Mobile, etc.

Magento Commerce

Magento Commerce was previously known as Magento Enterprise Edition. This version is appropriate for significant businesses that require a website system with complex functions.

In addition, this edition provides an on-premises or a hosted solution as a service (Magento Commerce Cloud), which aids in website performance. The minimum fee for using this version is $24,000 per year.

The brands using Magento Commerce in Vietnam are CGV, Bibo Mart, Rohto, etc.

The Pros

Functional systems from basic to advanced

Magento includes all of the features required for a complete eCommerce website, including category management, content management, sales management, marketing management, and customer management, as well as analysis and reporting. 

In addition, Magento owns many extensions with advanced features such as Headless Commerce, PWA (Progressive Web Apps), MSI (Multi-Source Inventory), ElasticSearch, etc to meet all eCommerce needs for businesses.

Furthermore, Magento has a global technical support community comprised of many experienced experts and professional development units to assist with meeting all business requirements.

Flexible customization capabilities

Magento possesses all the advantages of an open-source platform with flexible customization capabilities. Owning and controlling the entire source code, in particular, allows businesses to customize parts of the code in the system, easily update, or even develop new functions based on each business specificity.

High scalability

In addition to customizing, Magento also has very useful website scalability. Magento allows businesses to scale from one website to many websites, one store to many stores, but the management is still on the same system. Besides, Magento supports multi-language and currency conversion, helping businesses expand globally.

Superior security capabilities

Magento’s high security is also an outstanding advantage, with the ability to control the system regularly, propose security solutions, improve security for administrators, and prevent bots or unauthorized malware, among other things. As a result, this platform assists businesses in reducing potential risks associated with the data and transaction processes.

The Cons

High development cost

The cost of owning a Magento website is high due to its many outstanding benefits, such as the functional system, customizability, scalability, and good security. However, depending on the system’s complexity, a website built on the Magento platform costs between $10.000 and $100.000.

Take time to implement

A comprehensive Magento project requires implementation time ranging from 3 months to 1 year. A complete Magento project requires implementation time ranging from 3 months to 1 year. As a result, it slows down businesses’ digital transformation processes and makes it difficult for them to keep up with competitors’ development rates and market trends.

A team of qualified technicians is required

Businesses require a technical team with high expertise and experience with the Magento platform to build and operate an intensive eCommerce website system customized to the unique characteristics of each product and category.

As a whole, Magento is an eCommerce platform that is appropriate for all types of businesses, including startups, SMEs (small and medium enterprises), and large corporations. However, budget, time, and professional team issues have caused many SMEs businesses to be hesitant to use Magento to develop eCommerce websites. That is why Magento frequently be used in large corporations to build complex eCommerce systems.

Our company – SECOMM, has been partnering with many big enterprises such as An Nam Group (Vietnam), Jasnor (Australia), and Changi Airport Group (Singapore). As a result, we are aware of the challenges and worries firms face while developing an eCommerce website system. 

Contact SECOMM now for a free consultation on detailed eCommerce system development solutions!

Grocery companies should create their eCommerce website as soon as possible to jump into the bigger game and develop online grocery business activities to capitalize on the enormous potential of the eGrocery market and gradually transition to digital transformation.

SECOMM has outlined the journey to create a comprehensive eGrocery website for the Vietnamese market with over 7 years of experience in eCommerce.

The initial stage: Basic eGrocery website development 

Setting goals for the development of the eGrocery website

The first step for grocery businesses is to set goals and prioritize those goals to plan the result of an appropriate eCommerce website for each stage.

Businesses can consider long-term goals such as brand positioning, exploitation of potential customers, and product online business capability.

Short-term goal activities such as revenue growth, customer monitoring and analysis, campaign effectiveness evaluation, and so on should prioritize by businesses. 

Furthermore, the user experience factor, which includes services such as payment, logistics, online customer care, and so on, is critical to increasing interaction, support, customer consultation, and problem resolution as quickly as possible.

In terms of duration, businesses can choose to deploy quickly to penetrate the eGrocery market or gradually adapt to the market at this stage. When deploying a grocery ecommerce website, the budget will be determined by each business’s strategy and financial potential.

Selecting a basic eGrocery website development platform

Two popular platforms assist businesses in developing eCommerce websites: SaaS (Software as a service) and Open Source. Here are some of the best Saas eCommerce platforms: Haravan, Shopify, and BigCommerce.

• Pros: Rapidity, reasonable price, no IT experience requirement
• Cons: Operating costs rise over time as a result of annual/monthly service license payments, platform developer reliance due to lack of ownership of source code and data, and limited functions such as the ability to integrate and expand the website system.

Open Source eCommerce Platforms widely used in the Vietnamese market include WooCommerce, OpenCart, and Magento. 

• Pros: The user owns the source code and data, has more interfaces and functions, and has better integration and extensibility than SaaS platforms.
• Cons: It takes more time and cost to develop the website initially than SaaS platforms. Also, it requires an experienced IT team to handle its system.

Due to the significant differences between SaaS Platforms and Open Source Platforms, stage businesses prefer to use SaaS Platforms in the initial stages of basic eGrocery

Designing the interface of the eGrocery website

Businesses have to meet the following criteria when designing the website interface: UI/UX standardization, displaying the brand’s and the eGrocery industry’s characteristics, and product presentation synchronization to provide the best experience to customers.

There are three approaches to designing the interface: using available themes, customizing themes, or creating their own. Businesses frequently use the available themes in this stage to save the most money. Still, some companies with financial potential will choose the other two options for better branding.

Adding functions to the eGrocery website

When operating a grocery eCommerce system, businesses can prioritize the development of basic functions to meet the essential needs during this time.

Some basic functions required in eGrocery websites, such as:

• Catalog Management: Manage all data, processes, categories, attributes, prices, inventory quantities, and images/videos to operate and optimize the efficiency of the online grocery store.
• Store Management: Manage product inventory and each branch’s business activities and personnel.
• Cart and Checkout: Manage the shopping cart and customers’ information when they check out.
• Customer Management: Manage customer information to increase marketing efficiency, purchase experience, and customer satisfaction.
• Marketing Management: Optimize SEO and implement marketing strategies with tools to increase business sales.
• Sales Management: Create and manage sales, order, payment, and shipping processes.
• Content Management: Create and optimize all content elements for CMS pages, image storage, customize themes, and design websites.
• System Management: Delegate administrators to review the best methods for website security and maintenance
• Analysis and Report: Help track and measure eCommerce system performance and develop future strategies.

Finalizing the legal procedures

According to Decree 52/2013/ND-CP of the Government, every individual or organization that owns a sales eCommerce website must notify or register with the Ministry of Industry and Trade on the eCommerce Operation Management Portal. 

Websites that exceed the time limit or fail to register/notify the competent management agency within the time frame specified will be administratively sanctioned by regulations.

The following stage: Advanced eGrocery website development

Re-targeting

As the company grows and the market changes, the goals must be adjusted accordingly. This is also the time for leaders to rethink the business strategy’s target and money to invest in the grocery eCommerce website system. During this time, businesses frequently focus on the short and long-term goals of expanding the online grocery store system.

Long-term business goals can include expanding market segments, developing loyalty programs, forming consumer online shopping habits, etc.

Short-term goals for businesses can include capturing more new potential customers, increasing revenue, and supporting Ecommerce Marketing strategy.

Selecting platforms for conversion

When SaaS platforms are no longer effective enough to help businesses expand their online grocery store website systems, they have to turn to Open Source platforms like Magento, WooCommerce, and OpenCart to build advanced eGrocery websites.

In this stage, platform selection criteria include:

• Professional website interface, UX / UI standardization, displaying the brand’s and the eGrocery industry’s characteristics.
• Comprehensive functional system from basic; advanced to industry-specific
• Flexible customization and extensibility, allowing businesses to integrate with a wide range of third-party utilities and support multiple websites, multi-language, and multi-currency.
• High security, assisting businesses in avoiding network attacks, and assisting with data backup when needed 

Absolutely, businesses will face more challenges when switching platforms from SaaS to Open Source, such as changing costs, time to train personnel on open platforms, and data loss or errors during the conversion.

Selecting the development resources (In-house team or Project developer)

Businesses must choose the right resources to develop their website to build eCommerce website on an open source platform.  Typically, companies can create an in-house team or find a project developer. Regardless of the resource, professional knowledge and practical experience about the chosen platform are required.

Businesses should recruit and train IT and eCommerce personnel with expertise and experience in the chosen platform. Building the right team will take a lot of time and money. Still, it will help businesses manage resources better and actively edit or develop the website system according to the requirements.

Businesses should look for project developers based on the following criteria to collaborate with them: 

• Ecommerce experience (the number of years of experience, the quantity and the quality of projects they have done, and the complexity of projects).
• The professional team (solution consultants, IT personnel, customer service).
• Good process (analyzing, proposing solutions, developing, testing, and maintaining).
• Fast processing and support capabilities.
• Warranty and maintenance commitments. 

This will help businesses learn expertise, gain experience, and develop a website in all aspects of the eGrocery industry. Still, companies and their partners must collaborate effectively to achieve a better result.

Re-designing the interface of the eGrocery website

Businesses can keep things the same while switching platforms. There is no need to change the current website interface. Many companies, however, will rebuild the website interface to match the new strategy and platform.

Similar to the previous stage, businesses have several options when designing the interface of a grocery eCommerce website: using available themes, customizing the themes, or creating their own. At this stage, however, businesses frequently choose to customize or design their own theme to reflect the characteristics of the eGrocery brand and industry.

Converting platform

After selecting the appropriate conversion platform, the conversion should be carried out carefully to limit the risk of data loss or enterprise error. To avoid errors, the conversion is usually done as automatically as possible.

The platform conversion process includes steps to extract data from the old system and record it into the new system. After converting the platform, businesses need to double-check to ensure that the converted data is fully and correctly according to the plan.

Upgrading functional system

In addition to the basic functions, businesses should focus on developing a more complex system of functions, including advanced and industry-specific functions for the eGrocery industry.

Advanced functions include order tracking, abandoned cart, similar product recommendations, advanced product search, multilayer product catalog, and others that improve the consumer experience and speed up the shopping process.

Industry-specific functions aid in thoroughly resolving the challenges of implementing intensive departmental eCommerce, meeting the needs of customer segments and businesses such as fast delivery, delivery time selection, and so on.

Furthermore, businesses must constantly update and develop user-friendly functions to stay competitive in the market.

Operating and maintaining the eGrocery website system

When putting the grocery eCommerce website system through testing, businesses must review and test the entire website and functionality in a specific time frame to ensure order processing speed, website stability, and so on. In addition, businesses must immediately contact the in-house team or the developer if issues arise to adjust and improve the website before going live.

After the grocery eCommerce website system has stabilized, businesses should focus on Ecommerce Marketing strategies (SEO, SEM, Email Marketing, Content Marketing, Social Marketing, and so on) or implement Omni-channel to grow their online eGrocery business.

For long-term sales growth, businesses should maintain, update, and upgrade their website system regularly, quickly adapting to changes in the eCommerce market in general and the grocery market in particular.

In general, developing comprehensive eGrocery websites for the Vietnamese market is complex. It requires businesses to invest significant time and money in researching the best eCommerce strategy for each stage of business development.

Our company – SECOMM, has been partnering with many big enterprises such as An Nam Group (Vietnam), Jasnor (Australia), and Changi Airport Group (Singapore). As a result, we are aware of the challenges and worries firms face while developing an eCommerce website system.

Get in touch with us now for FREE eCommerce consultancy and solutions in eGrocery businesses.

Bach Hoa Xanh 

Bach Hoa Xanh is one of the most popular grocery store chain owned by Mobile World Joint Stock Company that specializes in selling fresh food and necessities. Bach Hoa Xanh currently operates nearly 2,000 stores in the South, East, and South Central provinces. This is the most visited website in the top five most visited websites in the Vietnam market, behind only the top four eCommerce platforms today, namely Shopee, Lazada, Tiki, and Sendo (According to iPrice).

– Website: https://www.bachhoaxanh.com/ 

– Traffic: 1.1M/month

WinMart

Organica

Farmer’s Market

Annam Gourmet

Annam Gourmet arose from the two Annam Group founders’ deep love of European cuisine. Annam Gourmet chain stores have been successfully operating in the Vietnamese market for over 20 years, offering high-quality imported product lines such as high-end food, wine, beverages, and cosmetics.

– Website: https://shop.annam-gourmet.com/ 

-Traffic: 8.7K/month

Grocery eCommerce Solutions

With a 200% annual growth rate, the future potential of grocery eCommerce in the Vietnamese market is undeniable (according to Statista). There are numerous opportunities in the eGrocery industry. Recently, many challenges have arisen, necessitating careful consideration of tactics by business managers in order to take the most effective steps.

The eGrocery businesses have opportunities and challenges, requiring business managers to consider tactics to take the most effective steps. Finding a partner is tricky and building an in-house team is tough. Businesses must incur significant opportunity costs and time to reach the goal.

Our company – SECOMM has been partnering with many big enterprises such as An Nam Group (Vietnam), Jasnor (Australia), and Changi Airport Group (Singapore). We are aware of the challenges and worries faced by firms while developing an e-commerce website system.

Get in touch with us now for FREE eCommerce consultancy and solutions in eGrocery businesses.

According to the VISA’s data in 2021 – the world’s leading electronic payment technology company, up to 87% of Vietnamese consumers surveyed are currently using home delivery services, of which 82% said that the first time they used this service was since the Covid-19 outbreak occurred.

That further confirms that social distancing and work-from-home models have led to significant consumer shopping behavior changes. In particular, the transition from the direct shopping experience to e-commerce has taken place rapidly in just a few months. One of the industries that have benefited the most from the boom in the e-commerce market is eGrocery.

So, what is eGrocery?

eGrocery (or Grocery Ecommerce) includes online business activities of grocery products such as food (both fresh and prepackaged), household products, healthcare, personal care, etc. Product display, ordering to pay, and shipping are all done on the website of eGrocery businesses.

Some successful eGrocery businesses in the Vietnamese market are Bach Hoa Xanh, An Nam Gourmet, Organica, Farmer’s Market, etc.

The potential of Vietnam’s eGrocery market

Covid-19 is a powerful catalyst, one of the impulses to boost the grocery industry’s demand for shopping for essential products. According to a report from iPrice, websites specializing in the grocery business grew by 45% in traffic when people started staying at home to prevent the epidemic. After the social distancing eases, this trend remains stable, increasing by 10% by the end of 2021. eGrocery is the only industry that has maintained solid growth throughout the pandemic since the beginning of the pandemic, with search demand still increasing steadily.

Additionally, with revenue coming from the U.S, the worldwide eGrocery market is also highly active. The grocery e-commerce business is anticipated to surpass $20 billion in 2021 and $24 billion in 2023 (Statista). According to Redseer’s report, India’s eGrocery market is estimated to reach $10.5 billion by 2023.

Seeing the vast potential that the eGrocery market may bring, now there are many “big guys” not from the traditional grocery industry who also jump in to fight for this lucrative “piece of cake” like Con Cung, Kids Plaza, etc.

Case Study

BigBasket – The giant in the eGrocery market in India

BigBasket was founded in 2011 by V.S. Sudhakar, Hari Menon, V.S. Ramesh, Vipul Parekh, and Abhinay Choudhari. In May 2021, Tata Group’s acquisition of 64% of BigBasket shares helped push BigBasket’s valuation to $1.85 billion.

By promoting the research and development of transportation services and expanding the logistics function system in the enterprise’s e-commerce website, in 2016, BigBasket made fast deliveries within 60 minutes. In the same year, BigBasket also built a B2B delivery service to serve the food needs of restaurants and customers in major Indian cities. This business strategy has been a solid stepping stone for the BigBasket brand in the Indian online department since 2017

Blinkit (Formerly Grofers) – Fastest Delivery Business in India

Grofers is India’s 3rd largest grocery e-commerce platform, with about 13% of the market share, behind only BigBasket (37%) and Amazon (15%). Founded in 2013 by two technology engineers, Albinder Dhindsa and Saurabh Kumar, after the two founders noticed a massive gap in the local logistics services.

Initially, Grofers only specialized in supplying grocery products such as packaged food, bakery products, mother and baby care, pets, etc., to local grocery stores, medical, restaurants, or supermarkets. But thanks to the advancements in technology successfully applied in the e-commerce strategy, Blinkit has rapidly expanded its business successfully in 28 Indian cities.

On December 13, 2021, Grofers officially changed its brand name to Blinkit to deliver within 10 minutes. Like BigBasket, Blinkit also focuses on developing its logistics system and expanding its network of partner brands on its e-commerce website. Blinkit has more than 60 partners in New Delhi, more than 30 partners in Gurgaon, and many in Mumbai, Kolkata, Bengaluru, etc.

Bach Hoa Xanh – MWG’s strategic card in the eGrocery market

Bach Hoa Xanh is a mini supermarket chain selling fresh food and necessities under the Mobile World Joint Stock Company (MWG). Bach Hoa Xanh has nearly 2,000 stores across the South, East, and South Central provinces. According to iPrice, this website is in the top 5 most visited e-commerce websites in Vietnam, just behind four e-commerce platforms (Shopee, Lazada, Tiki, and Sendo).\

Since its establishment in 2015, Bach Hoa Xanh has advocated two key campaigns, competing with traditional markets and developing e-commerce websites. At first, Bach Hoa Xanh set up branches at selling points near the market, but in suburban areas and provinces, the space rental cost is much more affordable than in the central area. At the same time, the company creates a website system to boost online sales channels and draw in customers who enjoy making purchases online, particularly young people.

These days, the company has officially entered the Vietnamese retail “triad association” with Saigon Coop and WinMart (formerly VinMart), achieving a record of 26,300 billion VND in revenue in 2021 – an increase of 38% compared to the first 11 months of 2020.

Besides Bach Hoa Xanh, some other successful businesses have been applying grocery e-commerce, such as An Nam Market (specializing in serving foreign customers or former international students in Vietnam); Organica (focusing on offering customers from around the world ecologically friendly items), etc.

eGrocery is still in development and has not yet formally taken off. Thus the market’s growth potential is still tremendous despite the existence of several major companies. To confidently enter this lucrative market, grocery stores in Vietnam can use the lessons learned from their forebears and select a platform to construct a website system that fits the e-commerce business model.

Our company – SECOMM has been partnering with many big enterprises such as An Nam Group (Vietnam), Jasnor (Australia), and Changi Airport Group (Singapore). We are aware of the challenges and worries faced by firms while developing an e-commerce website system.

Get in touch with us now for FREE ecommerce consultancy and solutions in eGrocery businesses.

However, not all businesses are fortunate to deploy effective e-commerce because risks and wrong decisions when doing business can happen in any market, not only in the eGrocery market.

Some mistakes are fixable, but there are mistakes no matter how much budget and time it takes to make up. Here are some online grocery store mistakes that eGrocery business leaders need to know.

Building operating procedures for complex e-commerce systems

The grocery store business process in chain stores and e-commerce websites is entirely different. However, when implementing e-commerce, many businesses put the entire existing process on the website system without any customization or modification to conform to general operating procedures.

To shift business from offline to online, businesses must face difficulties such as synchronizing data from POS (Point of sale), e-commerce platforms, and e-commerce websites for other systems like CRM, ERP, BI, etc.

Grocery e-commerce is an extraordinary industry, with many complex features such as products with many units, selling methods, weight differences, constantly changing prices (day/week/month/year), expired products that need to be canceled, or imported new must have specific data, complicated payment processes, cumbersome warehousing operations, etc.

In particular, most products in the grocery store are fresh and fast food, so the damage rate is high, and the delivery time needs to be faster than in other fields. In addition, for these items, “housewives” also need to choose the correct delivery time.

Because of the complexity of the operation process, the requirements for the e-commerce system are also more unique compared to other industries, making it difficult for managers to grasp the business situation and not be able to manage the number of products in stock in each branch.

Enterprises should build their in-house team or look for experienced grocery e-commerce developers to design the system operation process for specific industry and business problems that SaaS platforms cannot provide.

Wrong choice of an e-commerce platform for egrocery

An e-commerce platform is software that businesses use to build an e-commerce website. Choosing a platform is always the first step in the e-commerce business process, so choosing the wrong one will lead to the entire online grocery store strategy going down.

After a period of using the unsuitable platform, businesses are required to “change blood” with another platform. This mistake wastes time and budget to build an e-commerce website for businesses without bringing about the expected results. It takes time to recruit and train employees to get used to the new platform.

To avoid this unnecessary mistake, businesses need to clearly define short-term and long-term goals for the brand, thereby building the criteria for choosing the most suitable e-commerce platform. To do that, businesses can do their research or seek professional advice before making a final decision. Of course, this takes time, but it will save time in the long run for the business.

Currently, businesses that want to implement e-commerce step by step often choose Saas (Software as a service) platforms such as Shopify, BigCommerce, and Haravan in the early stages. This helps businesses save budget and time in the short term, market exploration, etc. Then, switch to open source platforms (Open Source) such as WooCommerce, OpenCart, and Magento to upgrade and expand the website system with convenient features for users and businesses.

Businesses with a long-term e-commerce business orientation often choose open source platforms right from the start to long-term companionship with businesses. Starting and developing continuously on an open source platform helps businesses save money and time to switch platforms, and own and fully control the system from source code to customer data, efficiently and proactively develop new features suitable for users and markets.

However, similar to building an operating process, choosing an e-commerce platform does not have a typical “recipe” for all businesses. Hence, each business needs to understand its business strategy, operating model carefully, and so on. in each stage of development.

Not investing in website interface design

The interface is essential in the grocery business, and it is necessary to meet UI (User Interface) and UX (User Experience – User Experience) standards. These are two crucial factors in any e-commerce website. However, many businesses forget these two factors when designing websites, leading to consequences such as an unattractive interface, not showing the characteristics of the business and the grocery, poor website performance, and page loading—slow, poor navigation, and few specialized functions for e-commerce, etc.

The UI / UX standard design has not been emphasized. However, the user experience on the enterprise’s website becomes worse, unable to retain users, affecting the revenue and brand positioning of the business.

So when choosing an e-commerce platform, businesses should also choose platforms that can help businesses customize the interface and functionality of the source code.

Currently, there are 3 ways to design the interface for a website:

• First, use existing themes (interfaces): Businesses can choose from themes available in the market, development community, or cooperation units. This will help businesses save costs, but brand awareness is low because it is easy to duplicate with other websites.
• Customize the interface based on the existing theme: Similar to the above, businesses can customize their characteristics by affecting the code in the front end. From there, businesses both save costs and express their characteristics.
• Design your interface: This is often more expensive than using a theme, but it meets the business’s most specific and specific needs.

Inappropriate feature build roadmap

At the right time, the functional system is not what “needs not to have” and “what has is not needed.” For example, in the early stages of entering the e-commerce market, businesses often do not have a certain number of users, so the functions of the Loyalty Program (loyalty program) are not necessary. Instead, businesses should focus on building functions that help exploit potential customers. Then, after having a stable number of users, businesses can gradually build more specialized functions, solving industry-specific problems.

Building a functional system that is not suitable for users’ needs at each time will waste time and cost to build a website without providing a satisfactory shopping experience, affecting revenue efficiency and can be left behind competitors in the industry.

In general, egrocery is the “golden opportunity” for businesses to implement e-commerce. However, to capture opportunities and market share, businesses need to pay attention to many factors, especially the mistakes to avoid mentioned in this article.

With experience in successfully implementing complex grocery e-commerce systems like An Nam Gourmet, SECOMM understands grocery businesses’ obstacles. Contact SECOMM now for a free consultation on detailed e-commerce system development solutions!

Not only was grocery eCommerce appearing in the Vietnamese market but also globalization. For example, in the United States market, egrocery has an annual growth rate of 200% (according to Statista).

Businesses must swiftly develop an eCommerce system fit for industry and customers to capture changes in the market. However, administrators must consider several concerns while implementing grocery eCommerce to efficiently engage in the market.

Choose the right eCommerce platform

Choosing the right eCommerce platform is essential for any business, not just the grocery industry. An eCommerce platform compatible with business strategies will help companies save time, accelerate the digital transformation process, and save money on deploying eCommerce websites in both the short and long term. In addition, businesses do not need to switch platforms many times, saving time and budget for recruiting and training personnel to familiarize themselves with the system.

Some grocery business eCommerce platforms include Ziel Commerce, Haravan, Shopify, WooCommerce, and Magento. In particular, Ziel Commerce is a platform designed explicitly for eGrocery businesses.

SaaS platforms like Haravan and Shopify are suitable for SMEs (small and medium enterprises), startups, or new entrants to eCommerce. WooCommerce is ideal for businesses that need to own the source code and customize the website at an affordable cost. The Magento platform is suitable for many different business models (B2C, B2B, B2B2C, etc) and many different business sizes (SME, startup, large corporation, etc).

This platform meets the needs of building an industry-specific eCommerce website under its characteristics, with full ownership of the source code and the ability to customize the website. However, due to the prolonged deployment time and high prices, many businesses are hesitant to use Magento, while many enterprises trust it.

Building a system of industry-specific features

A big problem that egrocery businesses need to pay attention to is that the grocery industry has a relatively complicated operation.

Grocery products have many units of measure, weight differences, and different ways of selling; prices constantly fluctuate and update continuously by day/week/month/year.

The import and export of warehouses are complicated (general warehouse, store warehouse, warehouse for each area in the store), so when deploying an online grocery store, businesses need to synchronize the price and quantity of products so that when restocking, the data will not be lost. Weight and cost data on branches are changed under control, avoiding the lack of synchronization between frontend and backend, causing data processing to be interrupted.

At the same time, grocery products are mainly fresh foods such as meat, fish, eggs, milk, etc, so they need to be refrigerated, delivered quickly, or selected with the correct delivery time.

Handling all the problems in the complex operating process of the grocery industry requires a team of highly qualified IT and eCommerce personnel to design an eCommerce system that is suitable for the specific process and requirements of the business – something current SaaS platforms are not enough to meet.

Enhance customer experience

When running an online grocery store, the user experience requirements are very high; from navigating shopping behavior to the checkout process, order delivery needs to be optimized. Because user experience increases the likelihood of customers placing their first order, it also gives customers more reasons to buy again, contributing to a competitive advantage over competitors in the same industry.

There are many ways for businesses to enhance the user experience, such as layering product categories to navigate customers more intuitively and building specialized functions such as quick add products to cart, fast checkout, search enhancements, and product recommendations based on collected data, etc.

At the same time, personalizing the user experience is an essential factor in the customer’s shopping journey. Businesses exploit, analyze, and leverage data to build the right customer journey, match consumer behavior, and increase the user experience level of personalization.

Personalize from CMS content and display products to navigate the shopping journey for businesses to increase loyalty and customer lifetime value (CLV).

Implement attractive promotions

The secret of doing an online grocery business is building incentive programs suitable for customer segments.

Some popular promotions that businesses can apply in the early stages include free shipping, buy one get one free, gifts/vouchers, or promotions with specific conditions (certain items reach a particular value).

After that, businesses can deploy loyalty programs such as accumulating points for purchases, VIP membership, converting reward points into discount codes, donating bonus points to charities associated with the brand, subscription plans, etc.

Applying omni-channel

Omni-channel is one of the inevitable eCommerce trends in 2022; the application of Omni-channel will help businesses do online grocery business more conveniently.

Omni-channel will help customers’ shopping experience be seamless from the physical store to the website, helping businesses follow customers from eCommerce platforms, social networks, websites, etc.

In addition, by collecting and analyzing information from Omni-channel, businesses can efficiently study customer behavior, preferences, and psychology and know whether they are satisfied with the product, service quality, or not to take reasonable measures to change.

It can be said that the grocery eCommerce business has both opportunities and challenges, requiring business managers to think carefully about tactics to make the most effective steps. But, of course, that work is not easy, finding a companion is also tricky, building an in-house team is not easy, and businesses have to pay a lot of opportunity costs and time to reach the “finish line” themselves. 

With experience in successfully implementing complex grocery eCommerce systems like An Nam Gourmet, SECOMM understands grocery businesses’ obstacles. Contact SECOMM now for a free consultation on detailed eCommerce system development solutions!