E-commerce businesses thrive with TikTok tool

May 22, 2025 | 17:04

In the context of Vietnam's rising e-commerce market, leveraging data and technology tools in developing business and marketing strategies has led to success not only for large enterprises but also for local sellers.

After only one year of joining TikTok Shop, COLORKEY, a new name in the cosmetics market, has become one of the best-selling cosmetics brands on the platform.

George Zhao, CEO of COLORKEY Vietnam, stated that COLORKEY's success comes not only from quality products and affordable prices but also from the support of the ACE index system on the platform.

The ACE index system is an innovative tool developed by TikTok Shop to optimise e-commerce operations for businesses, focusing on three strategic pillars: assortment, content, and empowerment.

According to the assortment index, COLORKEY has quickly identified trending products, thereby optimising the display priority for each product line on the brand's store page.

In addition, the brand has optimised product descriptions and images, enhancing the consumer's shopping and purchasing experience to be easier and more efficient.

One of the typical successful cases for these efforts is COLORKEY's foundation spray product, which saw a GMV growth of over 200 per cent in the fourth quarter of 2024.

After assortment, COLORKEY places special emphasis on performance metrics related to content.

In the fourth quarter of 2024, the brand produced up to 30,000 videos and livestream sessions, while collaborating with over 37,000 creators to enhance brand exposure and recognition.

Meanwhile, the empowerment tool has helped the brand boost advertising based on data such as views, conversion rates, and return on ad spend. In the fourth quarter of 2024 alone, the hashtag #COLORKEY appeared in over 42,000 video posts and rose to the number one position in the Beauty and Health Care category on TikTok Shop.

Individual sellers also benefit from this index system, not just brands.

Having previously dealt in imported soil and organic fertilisers through traditional retail, after nearly a year of e-commerce sales, Kieu Van Dung, the owner of the shop “Anh Nong Dan Ao Xanh” (@anhnongdanaoxanh), has become the most sought-after farmer on TikTok Shop.

He mentioned that revenue from e-commerce accounts for up to 78 per cent of the total revenue of the business, with revenue from TikTok Shop contributing as much as 72 per cent. In the fourth quarter of 2024, the total value of goods sold by the storeincreased by 28 times, with the average number of orders per month increasing by 19 times compared to the third quarter of 2024.

Kieu Van Dung's secret to success lies in his ability to effectively utilise TikTok Shop's exclusive data tool, the ACE index system, especially in terms of content.

The number of views on the store's product detail pages has increased by 12 times, and the number of orders has increased by 19 times, thanks to successfully applying data and recommendations from TikTok Shop.

“Designing a well-organised store layout, eye-catching and consistent product images, and clear information helps customers easily find desired products and leaves a good impression, enhancing the shopping experience and order conversion rate,” Dung said.

Nguyen Ngo, marketing manager of TikTok Shop in Vietnam, evaluated, "Not only focusing on pricing, many sellers are increasingly emphasising operational optimisation and service quality improvement to enhance sustainable competitiveness. The ACE index system is an important operational tool, reflecting our commitment to providing better support and resources for the seller community."