Using Data Analysis & Artificial Intelligence to empower SMEs to thrive in e-commerce
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The document discusses leveraging data analysis and artificial intelligence to support small and medium enterprises (SMEs) in Vietnam's fast-growing e-commerce sector, with a projected CAGR of 30% until 2025. It highlights common challenges faced by MSME retailers, such as performance marketing pitfalls, stock management, and competitiveness, while emphasizing the need for data-driven strategies for better decision making. The conclusion points out that many MSMEs currently rely on guesswork and manual processes that hinder their efficiency and potential.
Using Data Analysis & Artificial Intelligence to empower SMEs to thrive in e-commerce
- 1. 1 Using Data Analysis and Artificial Intelligence to empower SMEs to thrive in e-commerce. Bui Hai Nam Chief Executive Officer Datamart Solutions Pte. Ltd.
- 2. 2 • MSME Retailers on E- commerce & • 3 typical performance marketing pitfalls & • Best practices using data & AI to tackle these challenges Using Data Analysis & Artificial Intelligence to empower SMEs to thrive in e-commerce.
- 3. Vietnamese E-commerce Economy is booming, CAGR at 30% till 2025 3 3,079 2015 2018 2019 2020 2021 2025 Market Size (mil $) 8,040 5,024 480 300k+ online retailers 3.2% retail shares 38 mil online shoppers
- 4. Mostly driven by MSME businesses MSME Retailers Big brands/ Retailers By platform By seller size
- 5. E-Commerce MSME Retailers - Who are they? 1 owner with 4-5 staffs 1-2 Online channels $10k-200k revenue per month 2-3% for marketing (FB, GG, LZD,…)
- 6. • Product Selection • Stock Management • Competitive Management • Performance Management • A/B Testing They run performance marketing based on guess works 6
- 7. #1 Traffic is usually driven to their best-selling 7 Best-Selling Products “Better” Selling Products
- 8. And the conversion rate lever is forgotten 8 Traffic x Conversion Rate = Orders Effective ROI lever to pull
- 9. A simple conversion rate analysis can take the guess work away 9 2% 3% 2.5% 3% 7% 1% 3% 5% 2% Product A Product B Product C Low Traffic Medium Traffic High Traffic The sweet spot
- 10. #2 stock management is one of the most common issues 10 • Lost business opportunity • Lost business continuity • Overspent on OOS products
- 11. Smart AI can detect spikes, forecast sales, and proactively alert shop owners 11 Human Machine
- 12. And recommend actions based on facts and analyses to back it up • Lack of stock! Only 11 units are in inventory that could be sold in next 18 hours • Add 86 products in order to sell in next 2 weeks
- 13. #3 competitiveness is also usually forgotten 13 Traffic Conversion 1% Majority of 99% people don’t buy is looking for alternatives: 99% Buy Don’t Buy Different Product Better Value Same Product Better Price
- 14. A price comparison table is super helpful but not easy to make and maintain it 14 • Search for competitors across all e- commerce websites • Matching their products vs competitors’ • Keep all competitor price updated regularly • Put all the data in one-place for easy decision making
- 15. This is where automatic data collection effectively monitors competitiveness 15 • Automatic monitoring of competitor’s visibility, stock level, and price changes • Optimize competitiveness and product conversion rate
- 16. AI will optimize the pricing automatically 16 • 2 inputs: - Price range - Difference from competitors • Algorimic engine will determine the most optimal price, and the best timing to reprice
- 17. And help them oversee the most important products on a single view 17
- 18. About using Data & Analytics for Brands & Agencies 18 BRANDS • Monitor Competior • Identify Right Product to Promote AGENCIES • Monitor performance of campaigns • Real-time optimization of stock/pricing issues
- 19. How Data & Analytics empower MSME Retailers 19 • Market Intelligence • Business Intelligence • Recommendation • Automation CONCLUSION • Manual Monitoring • Lack of Insights • Guess Works • Tedious Tasks
- 20. Bui Hai Nam - Datamart.vn