Ho Chi Minh City, June 14 2022, Cho Tot – the leading classifieds site in Vietnam, launches the Protected Payment’ (Thanh toán đảm bảo) feature today, to enhance the safety and convenience in buying and selling secondhand items. The company also has a solid plan to reshape the future of recommerce via building a comprehensive ecosystem.
Cho Tot is a part of Carousell Group, the leading classifieds group in Greater Southeast Asia. Since launching in Vietnam in 2013, Cho Tot has become the leading recommerce platform with more than 10 million unique monthly users and more than 1 million used items listed every month. Unlike the traditional consumption cycle which comprises buying new items and then discarding, Carousell and Cho Tot enables consumers to buy and sell used items, extending the life cycle of these items. Reinforcing the circular economy helps the community take steps together towards fulfilling the United Nations Sustainable Development Goals.
The biggest barrier to buying secondhand items for Vietnamese consumers is concerns about product quality and if it matches up with the description (70% of Vietnamese respondents cite this as the reason why they are reluctant in choosing secondhand – Carousell Recommerce Index, 2021 report). 40% of Vietnamese respondents say that having authentication and/or warranty on products that might be faulty/imitation would increase their consideration of buying secondhand items.
In order to increase trust in transacting on secondhand items, Cho Tot’s ‘Protected Payment’ feature is an escrow payment system which provides assurance to users by holding payment until a transaction is verified successful by both buyer and seller. Supported by third-party payment platforms – mobile e-wallet platform MoMo and intermediary payment service Payoo, as well as on-demand logistics firm Ahamove, transactions via this method are recorded and ensured under Cho Tot’s protection policy. Buyers will be refunded in full if they do not receive items or if the items do not match the description. In addition, Cho Tot will assist to mediate between buyers and sellers, in cases of dispute, based on platform policy to ensure transparency and the rights of both parties.
Additionally, Cho Tot users now can experience much more convenience when buying and selling used items. Previously, transactions of used items would include multiple steps from contacting the seller, bargaining, making an appointment, verifying items, to making payment. Now, buyers only need to click ‘Buy Now’ and make payment, and the item will be shipped to their address as seamlessly as buying a brand new item on e-commerce sites.
On the recommerce growth strategy, Ms Hoang Thi Minh Ngoc – Chief Growth Officer of Cho Tot, said: “With the feature of ‘Protected Payment’, we are reshaping the experience of buying and selling used goods to be safer and more convenient. We are planning to develop a comprehensive ecosystem for recommerce via working with strategic partners providing inspection, authentication, warranty and finance solutions; combining online platform and offline services to enhance the user experience for both buyers and sellers. In addition, Cho Tot also partners with organisations advocating for circular economy and sustainable development to encourage consumers to prioritize used items as their first choice, moving towards sustainable consumption.”
On the partnership with Cho Tot to enhance the buying and selling experience of used items, Mr. Nguyen Manh Tuong – Vice Chairman and CEO of MoMo, said: “We are proud to provide a secure payment solution and secured account for this pioneering feature of Cho Tot. MoMo believes that this partnership will help solve the ‘bottleneck’ for recommerce in Vietnam, remove barriers, and provide outstanding experiences in buying and selling secondhand.”
Mr Quek Siu Rui, Co-Founder and CEO of Carousell, said: “During the past 10 years, we have tirelessly made efforts to inspire people all over the world to start selling and buying secondhand items. Climate change and over-consumption has made us realise more than ever the importance and relevance of our mission. With the introduction of ‘Protected Payment’ on Cho Tot, we are prioritising a safer, more reliable and convenient experience in selling and buying secondhand items as the core focus in our growth strategy, directing towards serving various demands of tens of millions users in Southeast Asia, Hong Kong and Taiwan. Across these countries, Vietnam is our strategic market due to its largest user base and significant growth rate. We’re doubling down on our support for the Cho Tot team to accelerate growth organically, and we’d be keen to explore inorganic options too.”
Vietnam’s recommerce market size is estimated to reach 1.1 billion USD in 2021 and reach 5.1 billion USD in 2026 based on research by RedSeer Strategy Consultants. According to the Carousell Recommerce Index (2021 report), 83% of Vietnamese respondents have bought secondhand items before and are still open to buy more. Sustainable consumption and environmental protection are becoming the top concerns of the youth, especially Gen Z – the generation leading the consumption trends in the near future. In 2021, the top 3 popular categories for secondhand shopping on Cho Tot are Electronics, Home Appliances and Fashion.
About Carousell Group
Carousell Group is the leading classifieds group in Greater Southeast Asia on a mission to inspire the world to start selling, and to make secondhand the first choice. Founded in August 2012 in Singapore, the Group has a leading presence in eight markets under the brands Carousell, Mudah.my, Cho Tot, OneKyat, Ox Street and Refash, serving tens of millions of monthly active users. Carousell is backed by leading investors including Telenor Group, Rakuten Ventures, Naver, STIC Investments and Sequoia Capital India. Visit here for more information.
About Cho TotCho Tot (www.chotot.com) is part of Carousell Group. With more than 50 million visits per month, Cho Tot is the leading online classifieds site in Vietnam with a wide range of products: Property (Cho Tot Nhà), Vehicle (Cho Tot Xe), Electronics, Blue Collar Jobs (Việc Làm Tốt), Pets, Home Appliances etc. Visit here for more information.