Vietnamese startups go global with Amazon

Vietnamese startups go global with Amazon

Tran Xuan Thuy, CEO of Amazon Global Selling Vietnam, said e-commerce grew six fold in comparison with traditional sales activities in 2020. Vietnamese sellers exceeded US$1 million in sales on Amazon last year, he added.

Tran Xuan Thuy, CEO of Amazon Global Selling Vietnam

Global brand name development

Thanks to a dramatic shift towards online purchasing, cross-border e-commerce has become the new norm. Instead of a traditional export model that includes many complex procedures, cross-border e-commerce helps sellers optimize export processes and reach out to international customers. In addition, it helps save costs on rent, labor, advertising and sales.

Amazon is the leading e-commerce platform in most countries. It supports sellers by promoting domestic small and medium-sized enterprises, helping them overcome geographical barriers to enter new markets and access Amazon’s 300 million buyer accounts worldwide. E-commerce also supports business in building and protecting brands. When businesses place their products on Amazon, in addition to reaching out to millions of customers and increasing sales, they also have opportunities to sign contracts with other Amazon partners.

Tran Xuan Thuy said that through the Amazon platform, many small and medium-sized enterprises obtain global information, enabling them to reach out to more than 300 million global customers and exploit customer files in 185 countries.

Cross-border e-commerce criteria

Trinh Hoang Linh, CEO of the Procom Vietnam Joint Stock Company (iExport), said that in addition to knowledge of import and export processes, businesses must acquire specific e-commerce skills. Cross-border e-commerce helps distribute directly to end-users, requiring businesses to quickly grasp consumer tastes and know how to position their brands and maintain their reputation to achieve sustainable growth.

Culture and language are also barriers because cross-border e-commerce requires a high level of interaction, while most Vietnamese sellers are small- and medium-sized, Linh said.

In addition, small businesses new to such platforms need to work in consultation with companies specializing in e-commerce solutions to apply the most appropriate model. In the long run, small businesses should be equipped with software that enables them to simultaneously manage traditional and e-commerce orders. In addition, they need to hire and train staff to process orders and reply to customer requests. Businesses also have to provide specific descriptions of products and build reputations based on feedback from customers. In addition to posting product photos, businesses can use videos/clips to guide product usage.

Currently, startups have products to sell on e-commerce floors, but they do not know how to develop their brands and do not have certificates for export goods. In addition, they lack experience in conducting international trade and customs procedures and renting logistics units.

Amazon Global Selling Vietnam has announced plans for a seller center in the Vietnamese language and a new dedicated global selling support team in Hanoi. In 2021, the company will continue to expand its network of payment and delivery in Vietnam.

VietNam Economic News