Why Should Retail Businesses Invest in Their Own E-commerce Website?

In the digital age, owning a dedicated e-commerce website has become a critical factor for the survival and success of retail businesses. Beyond serving as a direct communication channel with customers, a website offers numerous strategic benefits that enable businesses to compete and grow sustainably. Below are the key reasons why retail businesses should invest in their own e-commerce website, supported by detailed analysis and real-world examples.

1. Expand Market Reach and Access Global Customers

A physical store is limited to serving customers within a specific geographic area. In contrast, an e-commerce website allows businesses to reach customers nationwide or even globally, unrestricted by distance. With the rise of e-commerce, consumers are increasingly comfortable shopping online for everything from clothing and household goods to food.

Real-World Example
A local fashion store in Hanoi can expand its market to major cities like Ho Chi Minh City, Da Nang, or even export products internationally through a website. By integrating international payment gateways like PayPal or Stripe, the business can easily serve customers in the U.S., Europe, or beyond.

Specific Benefits

• Increased Revenue: Reaching a larger customer base without geographic limitations boosts sales opportunities.
• Global Brand Building: A website enables businesses to promote their brand in new markets, establishing credibility and recognition on a broader scale.

2. Enhance Customer Experience

Today’s customers expect convenience and personalization when shopping. A well-designed e-commerce website can deliver a seamless shopping experience, from product search and price comparison to checkout and order tracking.

Features That Improve Experience

• Smart Search: Websites can integrate search tools to help customers quickly find desired products.
• Personalized Recommendations: Using customer behavior data to suggest relevant products, e.g., “Customers who bought this also liked…”
• Online Support: Incorporating chatbots or live chat to address customer queries instantly.

Real-World Example
Tiki, a leading e-commerce platform in Vietnam, has invested heavily in its website with a user-friendly interface, fast loading speeds, and features like product reviews and order tracking. This has helped Tiki retain customers and increase repeat purchases.

Specific Benefits

• Improved Customer Satisfaction: A smooth shopping experience makes customers feel valued and cared for.
• Higher Conversion Rates: An intuitive website encourages customers to complete purchases rather than abandon their carts.

3. Reduce Dependency on Third-Party E-commerce Platforms

Many retail businesses rely on platforms like Shopee, Lazada, or Tiki to sell products. However, depending entirely on these platforms comes with risks, such as high commission fees, intense competition, and limited control over customer data.

Risks of Third-Party Platforms

• Commission Fees: Platforms often charge 10-20% per order, reducing profit margins.
• Lack of Customer Data: Businesses don’t own customer information, making remarketing challenging.
• Price Competition: Competitors on the same platform may lower prices to attract customers, pressuring businesses.

Benefits of an Independent Website
A dedicated e-commerce website gives businesses full control over the sales process, from pricing and promotions to customer data. This enables long-term relationship building through email marketing, personalized offers, and loyalty programs.

Real-World Example
The Body Shop in Vietnam built its own website to sell directly while also using platforms like Shopee. Their website allows exclusive promotions, collects customer data, and delivers a consistent brand experience.

4. Boost Credibility and Brand Building

A professional website with an attractive design, high-quality content, and clear information creates a strong impression on customers. To consumers, a dedicated website is often seen as a sign of credibility and trustworthiness.

Elements That Build Credibility

• Interface Design: A visually appealing, user-friendly design aligned with brand identity conveys professionalism.
• Transparent Information: Detailed product descriptions, return policies, and contact information build trust.
• Security Certificates: Using HTTPS and SSL certificates ensures customer data protection.

Real-World Example
Canifa, a Vietnamese fashion brand, invested in a modern website with features like 360-degree product previews and clear return policies. This has solidified Canifa’s reputation as a trusted fashion brand in Vietnam.

Specific Benefits

• Increased Trust: Customers are more likely to trust businesses with their own websites compared to those operating solely on social media or third-party platforms.
• Stronger Brand Identity: A website allows businesses to directly convey their core values and brand story.

5. Optimize Long-Term Costs

While building and maintaining an e-commerce website requires an initial investment, it saves costs in the long run compared to relying on third-party platforms or paid advertising channels.

Website Costs

• Initial Costs: Include website design, domain purchase, hosting, and integration of features like shopping carts and payment systems.
• Maintenance Costs: Include domain renewal, hosting, and website upkeep, which are typically much lower than platform commission fees.

Long-Term Benefits

• Reduced Commission Fees: Businesses avoid per-transaction fees charged by platforms like Shopee or Lazada.
• Improved Advertising Efficiency: Websites enable SEO (search engine optimization), attracting organic traffic without heavy reliance on paid ads.

Real-World Example
An organic food store in Da Lat invested approximately 20 million VND in a website. Within a year, through SEO and quality content, the website attracted thousands of organic monthly visitors, saving millions in advertising costs.

6. Leverage Technology and Data Analytics

An e-commerce website is not just a sales channel but also a powerful tool for collecting and analyzing customer data. This data helps businesses understand shopping behaviors, preferences, and needs, enabling more effective business strategies.

Popular Analytics Tools

• Google Analytics: Tracks website traffic, conversion rates, and customer behavior.
• Integrated CRM: Connects the website to a CRM system for managing customer data and running remarketing campaigns.
• Heatmaps: Analyzes which website areas receive the most interaction to optimize the interface.

Real-World Example
Juno, a Vietnamese brand, uses its website to collect data on top-selling products, peak shopping times, and high-demand regions. This data informs inventory and promotion strategies, significantly boosting revenue.

Specific Benefits

• Data-Driven Decisions: Website data enables more accurate business decisions.
• Improved Marketing Efficiency: Understanding customers allows for more targeted and effective advertising campaigns.

7. Flexibility in Business Strategies

Owning a website gives businesses the freedom to adjust strategies without being constrained by third-party platform rules. They can change pricing, launch promotions, or test new business models as needed.

Real-World Example
A furniture store in Ho Chi Minh City used its website to test a “buy now, pay later” model by integrating installment payment services. This experiment increased sales by 30% without relying on e-commerce platforms.

Specific Benefits

• Creative Freedom: Businesses can experiment with new ideas without platform restrictions.
• Quick Adaptation: Websites allow rapid adjustments based on customer feedback.

8. Adapt to Emerging Technology Trends

Technology is constantly evolving, and a dedicated website enables businesses to integrate new trends like artificial intelligence (AI), augmented reality (AR), or cryptocurrency payments.

Notable Technology Trends

• AI and Chatbots: Provide 24/7 customer support, answer queries, and recommend products.
• AR: Allows customers to try products virtually, e.g., testing glasses, clothing, or visualizing furniture in real spaces.
• Modern Payments: Integrate digital wallets, cryptocurrencies, or contactless payment methods.

Real-World Example
L'Oréal integrated AR technology on its website, allowing customers to virtually try lipstick or eyeshadow before purchasing. This enhances the customer experience and reduces return rates.

Conclusion

In the booming e-commerce landscape, investing in a dedicated e-commerce website is a strategic move that every retail business should consider. From expanding market reach and enhancing customer experience to optimizing costs and embracing technology, a website is more than a sales tool—it’s a foundation for building a brand and ensuring sustainable growth. With reasonable investment costs and significant long-term profit potential, an e-commerce website is the key to helping retail businesses compete and thrive in the digital era.

Start your digital journey today by building a professional website tailored to your business needs and vision!