“Free Shipping Frenzy: How Waived Delivery Fees Boosted Sales for Heavy Home Appliances During the 8.8 Shopping Event”

A Surge of Improved Metrics from Sellers and Brands Alike

Panasonic is among the brands that witnessed impressive sales figures following the recent 8.8 event on Shopee. Ms. Tran Thi Phuong Anh, Head of E-commerce for the brand, shared that consumer demand for electronics has been heating up since August, focusing on refrigerators, washing machines, and small appliances.

On 8.8 alone, Panasonic Vietnam’s order volume on Shopee increased eightfold compared to regular days. Nearly 70 units of their 251L antibacterial refrigerators were sold, each weighing an average of 51kg. On the same day, LG also recorded a ninefold increase in washing machine sales compared to a typical day.

Speaking of sales strategies, brand representatives attributed the success of this campaign to free shipping, which played a pivotal role in encouraging users to complete their purchases. Free shipping eliminated the final hurdle from adding items to the cart to checking out.

High shipping fees are a significant deterrent for large appliance purchases, and LG overcame this obstacle by offering valuable free shipping promotions.

Long Hung Electronics/Smarthouse is another notable success story. According to the store owner, Mr. Pham Minh Hung, sales of large appliances, such as microwave ovens, ovens, electric kettles, rice cookers, and air fryers, increased significantly during the 8.8 event. Other sales metrics also showed positive changes compared to the previous month.

Specifically, the store’s overall revenue increased by over 10%, order volume rose by more than 20%, and, most notably, new customer acquisition increased by a remarkable 32%. This indicates that the store’s strategy of diversifying its product range, coupled with increased discount codes and free shipping promotions, is paying off. By offering free shipping vouchers worth up to 500,000 VND, Long Hung eliminated the barrier of high shipping costs for bulky items and reduced cart abandonment rates.

Long Hưng Electronics/Smarthome’s primary strategy for 8.8 revolved around diversifying their product range, offering more discount codes, and providing free shipping during live streams.

Shopee’s statistics also highlight the profound impact of free shipping on purchasing decisions. In just the first eight hours of 8.8, over 6 million free shipping vouchers were redeemed, contributing to the overall transaction of over 1 billion kilograms of goods during the event.

From the consumers’ perspective, many shared that electronics brands often offer exclusive online deals, which, combined with the marketplace’s discount codes, result in very attractive final prices. Additionally, after-sales services like installation, maintenance, and consultation remain unchanged. “Nowadays, all home appliance and refrigeration brands have official stores on e-commerce platforms. So, I just read reviews or ask my friends for advice and then place my order through the app. It’s convenient, and I don’t have to pay any shipping fees. If I need to return or exchange anything, they’ll take care of it at my place,” said Quoc Minh, a 27-year-old from Hanoi.

Beyond the electronics sector, brands in the home and living category also witnessed improved sales figures, underscoring the impact of Shopee’s “Free Shipping” program, especially for bulky items. For instance, Vua Nem recorded a ninefold increase in orders on 8.8 compared to a typical day, while Lumili Tong Kho Ban Hoc saw a staggering 49-fold surge, reflecting the heightened demand ahead of the back-to-school season.

Gearing Up for the Year-End Peak Shopping Season

The year-end period is often likened to a “jump-off” for the e-commerce market, coinciding with consumers’ heightened purchasing power. To balance supply and demand during this critical phase, sellers and brands in the electronics and home appliances sector must prepare multiple strategies.

Earlier, the report “Overview of the Electronics, Technology, and Telecommunications Industry in Vietnam (Q1/2024)” by Nielsen IQ and GfK highlighted significant growth in high-value segments. For instance, microwave ovens with digital clocks increased by 70%, air purifiers with cleaning and humidifying functions rose by 123%, and smart air purifiers with integrated controls surged by 114%.

Given the typically high price points of electronics, consumers tend to research and carefully consider their needs before making a purchase. To expedite the decision-making process, offering additional value through substantial discount codes and free shipping vouchers is highly effective.

Based on this overview, Long Hung’s plan for the year-end includes further diversifying their product range, maintaining sufficient inventory of key products, and continuing their live streaming strategy with exclusive live deals. Meanwhile, LG and Panasonic intend to launch new product lines to cater to diverse consumer needs. They also plan to strengthen their logistics and prepare for the upcoming mega sales events.

All three brands emphasize their commitment to free shipping throughout the year-end peak season, along with swift delivery and excellent customer care. Additionally, they advise new sellers to focus on refining their shop’s appearance and enhancing product images to convey their brand’s core values effectively.