Order Fulfillment in Vietnam

Hi everyone,

If you are interested in the logistics industry in Vietnam, you might want to know more about the order fulfillment sector. Order fulfillment is the process of delivering products to customers after they place an order online. It involves several steps, such as storage, picking, packing, shipping, and returns.

Order fulfillment is a vital part of e-commerce, as it affects customer satisfaction, loyalty, and retention. Therefore, online sellers need to provide a fast, accurate, and hassle-free delivery experience for their customers.

According to Statista*, logistics has been among the fastest-expanding sectors in Vietnam, accounting for around 4.5 percent of the total GDP. By 2025, the growth rate of this sector was forecast to outpace the growth of Vietnam’s GDP. The main drivers of this growth are:

Vietnam’s emergence as a new manufacturing hub in Southeast Asia, attracting foreign investment and trade.

Vietnam’s rising e-commerce sector, which has seen a surge in online shopping and digital payments due to the COVID-19 pandemic.

Vietnam’s expanding aviation, maritime, and road networks, which carry the bulk of freight across the country and beyond.

However, there are also some challenges and opportunities for order fulfillment in Vietnam, such as:

The lack of standardization and regulation in the logistics industry, which can affect the quality and reliability of service providers.

The high cost and complexity of cross-border logistics, which can limit the market access and competitiveness of online sellers.

The increasing demand for automated fulfillment solutions, which can improve the efficiency and accuracy of order processing and delivery.

The growing need for sustainable and green logistics practices, which can reduce the environmental impact and carbon footprint of order fulfillment.

To overcome these challenges and seize these opportunities, online sellers can use different types of e-commerce fulfillment services, such as:

Self-fulfillment: This is when online sellers handle the order fulfillment process by themselves, using their own resources and facilities. This can give them more control and flexibility over their inventory and delivery, but it can also be time-consuming and costly.

Third-party fulfillment: This is when online sellers outsource the order fulfillment process to a third-party service provider, who takes care of the storage, picking, packing, shipping, and returns of their products. This can save them time, money, and resources on order fulfillment, but it can also reduce their visibility and involvement in their inventory and delivery.

Dropshipping: This is when online sellers do not keep any inventory at all, but instead rely on a third-party supplier who ships the products directly to the customers after they place an order. This can eliminate the need for storage and inventory management, but it can also affect the quality and consistency of the products and delivery.

Each type of e-commerce fulfillment service has its own advantages and disadvantages, depending on the size, scale, and nature of the online business. Therefore, online sellers should carefully evaluate their needs and goals before choosing the best option for their order fulfillment.

I hope this post helps you understand more about order fulfillment in Vietnam. If you have any comments, feel free to leave them below.

Thank you for reading. ??

*Logistics industry in Vietnam - statistics & facts | Statista

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