MARKETING CHANNEL

4.3. Channel structure recognition, channel behavior and

organization, channel design and management
a.Channel structure recognition: Shopee's distribution model
C2C Model
- Shopee's C2C - Consumer to Consumer business model was when it
first entered the Vietnamese market (August 2016). That means Shopee is
simply a channel through which individuals and individuals can buy, sell,
and exchange goods.
- Up to this point, Shopee's C2C model has developed very successfully. It
is clear that Shopee has established an extensive transnational sales
network. The number of people participating in buying and selling on
Shopee makes any e-commerce website wish it had it.
Advantages: Anyone can easily become a seller: promote images, sell
products, or buy: easy to search, comfortable product selection with only an
internet-connected device and an account on Shopee. Or play the roles of
both buyer and seller. Shopee also has features such as chat, evaluation,
tracking, and product sharing. Help buyers get more information about
products, bridging the space and time gaps in commercial transactions.
Disadvantage: Because of the C2C model, Shopee makes it difficult to
control product quality as well as sellers' reputations. As a result, Shopee
received many complaints and bad reports from shoppers. Therefore, the
"Shopee Guarantee" policy was put in place to protect consumers.
According to the policy, it must ensure that the buyer receives the goods
and there are no complaints about the product for the seller to receive the
payment. With a Shopee account, you can be both a seller and a buyer.
With this exchange, the seller and the buyer are equivalent. So, if you
receive the goods late or do not receive the goods, Shopee will notify you
that the order has been canceled without apologizing. Shopee is simply a
bridge between individuals, so there is no responsibility to solve the
problem.
B2C Model
- From the foundation of the C2C business model, Shopee has expanded to
the B2C model – Business to Consumer. With this business model,
Shopee becomes the connection center between businesses and individuals.
Shopee still acts as an intermediary link. Shopee's business model is evident
in the development of Shopee Mall, which was established in 2017.
- With stricter control of the source of goods, Shopee has gradually raised
its brand and is no longer known as a centralized e-commerce channel for
goods. Genuine brands appearing with the Shopee Mall brand affirm that
the quality of products and services is relatively high.
- Shopee Mall is a place that is committed to providing 100% genuine
goods with attractive benefits: Buyers will be refunded 100% of the product
value if counterfeit or fake goods are detected. Products belonging to
Shopee Mall are identified by the word "Mall" prominently on a red
background with white letters.
 - So far, Shopee is still coordinating smoothly between the two business
models. This is very effective.
* The B2B – Business to Business model is not an official operating model
developed by Shopee. However, the B2B model is still happening on Shopee in
the form of wholesale.
=> From Shopee, organizations, businesses, production facilities,
distributors, etc. can cooperate to do business together or create products
with the most competitive value compared to the market.

b.Channel behavior and organization   

- A vertical marketing system (VMS) of Shopee consists of producers,
wholesalers and retailers acting as a unified system. Shopee owns the
others, has contracts with them, or wields so much power that they must all
cooperate.  There are three major types of VMSs: corporate, contractual and
administered.
- Corporate VMS: Shopee will cooperate with businesses in many fields to
create exclusivity. For example, if Shopee wants to have a monopoly on
fashion, Shopee will find businesses specializing in consumer trends,
design, source of raw materials, product promotion, product
consumption, ... to create an exclusive production and distribution process
owned by Shopee.
- Contractual VMS: Shopee can also cooperate with businesses through
contracts. This form of business achieves better economic and business
influence when operated alone. Currently, Shopee cooperates with
influencers, celebrities, ... to have them advertise items on Shopee by
attaching product links to make it easier for consumers to find. This form is
mutually beneficial.
- Administered VMS: In this form, leadership does not come through joint
ownership or contractual ties, but through Shopee's massive influence in
many countries. It can get close commercial cooperation and support from
resellers. In contrast, retailers can make a strong impact by consuming
multiple products on Shopee.

c. Channel design and management

 Channel design
Marketing channel is a place to synthesize suitable marketing tools to serve 3
different purposes:
1. Increase sales
2. Increase Buyer Reach
3. Increase traffic
Shopee's promotions and Flash Sale can be found in the Marketing Channel.
Sellers can consult and start creating programs to increase sales for their Shop.

Marketing Announcement Section

 + Sellers can read about new Marketing tools or new Shopee Seller
Programs to drive sales.
+ Sellers can also get the latest notifications at the Marketing Notifications
section

Shopee's Program
Shopee's Program includes promotions to help highlight products and
participating Shop discount codes right on Shopee's homepage. Please check
Shopee's Programs regularly to choose the right Product Registration or
Discount Code Registration programs for your Shop.

Marketing Tools
- There are 3 types of Marketing tools for Shopee Sellers:
+ Sales boosters such as My Coupon Code and My Program make it possible
for Sellers to apply promotions to specific Shops or products. Sellers can also
use the Promotion Combo tool or Buy with a shock deal to encourage Buyers
to buy more products. For example: The following products have My Discount
Code, My Program and Buy with Shock Deal.

My discount code

My program

Buy with shock deal

+ Reach tools like Follower Deals and Shopee LIVE (Live Streaming) will
help Sellers increase the conversion rate of potential Buyers into loyal
customers. When the Shop has many Buyers who follow the Shop or watch
the Shop's livestream, any product information shared will also receive
more exposure.

+ Visitor tools such as Shopee Ads and Top Selling Products can drive
visits to the Shop by promoting products to Buyers who are in need.
 Channel management
Basic Setup
- 5 Basic Setup Steps
- Set up more sub-shops selling the same line of products
Warehouse Management
- Adjust inventory quantity
- Create and manage receipts
- Track inventory quantity, value and create initial stock count
Management Accountant
- How to set cost of product to calculate profit
- Guide to track revenue and profit

Order Management
- Manage orders under Shopee
- Manage orders that are not part of Shopee
- Delivery order management failed
Product Management
- Product Linking Guide
- Guide to the features of the Products for Sale
- A guide to the features of the Actual Product
 - Instructions for automatic product push feature
Purchase manager
- Supplier management
- Supplier product management
- Import forecast
Overview management of many Shops
- Keep track of tasks that need to be done for multiple Shops at the same
time
Manage Shop's active accounts
- Account Management User Guide