The Vietnamese marketplace Sendo seems to be on a roll.
“In 2016, we tripled our gross merchandise value (GMV) from 2015, crossing US$50 million quite early in Q4. With the current rate we are going, there’s no reason we would slow down,” says Tran Hai Linh, founder and CEO of Sendo.
Sendo believes it can reach a GMV of US$1 billion by 2020. They think there are two key ways to crack Vietnamese ecommerce: focusing on micro-merchants and playing in tier two cities.
Those small to micro merchants come mainly from the cities, while the sellers live mainly in rural regions:
The majority of Sendo’s merchants are from Ho Chi Minh City and Hanoi. But more than half of their buyers are from tier-two cities.
66 percent of Vietnam’s population lives in rural areas. Out of them, over half own a smartphone. This segment is an opportunity for market growth for ecommerce players offering a modern and comfortable, yet highly affordable shopping experience.
This is a mobile shopping culture leapfrogging the brick-and-mortar-phase in action.
At their local merchants’ recommendations, Sendo allows buyers to do a product check during the delivery before paying. […]
“After 48 hours, if there is no complaint from the buyer, we automatically transfer earnings to the Senpay wallet. Small merchants prefer daily withdrawals for capital rotation as they need money to stock products,” says Tran.
Additionally, Sendo has an ongoing collaboration with Google. Small and medium merchants can perform Google advertising campaigns directly through the portal for about US$4 day. They would otherwise lack the knowledge and means to advertise digitally.
Vietnam’s ecommerce market is worth up to $4 billion in 2015 and is expected to see an annual growth rate of 16.5 percent for the next years.