Vietnamese-branded products have gained significant popularity on global e-commerce platforms, contributing to the promotion of Vietnamese goods. E-commerce platforms like Amazon have provided a platform for Vietnamese businesses to reach a global audience, resulting in increased orders and greater awareness of their products. However, selling commodities in potential markets like North America and Europe through Amazon is a rigorous process, requiring businesses to have warehouses in those countries. Additionally, domestic e-commerce platforms like Tiki and Shopee Vietnam have also become popular choices for businesses to sell their products. While these platforms have less stringent requirements compared to Amazon, the competition is tougher. To stand out, businesses must increase promotions and cut profits to invest in advertising costs. Overall, e-commerce is a crucial trend for businesses looking to expand globally, and efforts should be made to improve product quality and design.
Introduction
Vietnamese-branded products have gained popularity on global e-commerce platforms, contributing to the promotion of Vietnamese products and making a significant impact on the economy. The continuous growth of the Vietnamese e-commerce market is evident, with an expected market size of over US$ 20 billion in 2023. This growth has opened up opportunities for Vietnamese brands to showcase their products on popular platforms like Amazon, leading to increased revenue for manufacturers and bringing foreign currency into the country.
Vietnamese-branded products on popular e-commerce platforms
Vietnamese brands are increasingly making their presence felt on global e-commerce platforms. These platforms provide a platform for Vietnamese products to be displayed and sold, attracting customers from around the world. Popular platforms like Amazon have seen the inclusion of Vietnamese brands such as Minh Long ceramics, Sunhouse-branded household appliances, Truong Tho sea grapes, Made in Vietnam 3D postcards, and sedge weaving fine art. The availability of these Vietnamese-branded products on international platforms has helped increase customer awareness and generate more orders for businesses.
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Growth of Vietnamese e-commerce market
The Vietnamese e-commerce market has seen outstanding growth and is expected to exceed US$ 20 billion in 2023. This growth has had a positive impact on the Vietnamese economy, creating opportunities for businesses to expand their reach and tap into a global customer base. The increasing number of customers engaging in online shopping has further fueled the growth of the e-commerce market, making it a crucial driver of economic development in Vietnam.
Vietnamese brands on Amazon
Amazon, one of the world’s largest e-commerce platforms, has become a popular choice for Vietnamese brands to display and sell their products. Vietnamese brands like Minh Long ceramics, Sunhouse-branded household appliances, and Truong Tho sea grapes have seen increased orders and customer awareness through their presence on Amazon. From September 1, 2022, to August 31, 2023, over 17 million products from Vietnamese businesses were sold to Amazon customers worldwide. However, selling on Amazon comes with its own set of challenges, including the strict process of listing goods and the requirement of having a warehouse in the US for businesses targeting North American markets.
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Challenges of selling on Amazon
Selling commodities for potential markets like North America and Europe through the Amazon e-commerce channel poses several difficulties for businesses. The process of bringing goods to this platform is strict and goes beyond simply posting products for sale and giving attractive prices. Businesses must meet the requirements set by Amazon, and having a warehouse in the US is essential. Poor sales can become a burden for businesses, as they may need to invest in packaging and changing goods to meet customer demands.
Domestic e-commerce platforms in Vietnam
In addition to Amazon, Vietnamese businesses have also started utilizing domestic e-commerce platforms like Tiki and Shopee Vietnam to sell their products. These platforms have less strict requirements compared to Amazon, making it a viable choice for businesses to reach local customers. However, the increased competition on domestic platforms has necessitated businesses to find effective strategies to stand out and attract customers.
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Competition and promotion on e-commerce platforms
Fierce competition among businesses is prevalent on e-commerce platforms, and businesses need to strategize to differentiate themselves. In order to stand out, businesses have increased their promotions and advertising costs, cutting into their profits to invest in marketing. The Business Director of Tiki, Nguyen Quach Nhi, emphasizes the importance of knowledge and professional staff in successfully selling goods on e-commerce platforms. Tiki has been proactive in supporting businesses by providing training and connecting them with relevant organizations to improve their products and enhance consumer interest.
Support and training for businesses
Success on e-commerce platforms is heavily reliant on businesses’ knowledge and abilities to navigate the complex landscape. A lack of knowledge and professional staff can impede the growth of businesses on these platforms. To address this, partnerships have been formed to support businesses, offering training programs and initiatives to improve products and connect businesses with the resources they need to thrive in the e-commerce market.
Regulations and inspections for e-commerce platforms
Efforts have been made to regulate and control the origin and quality of goods on e-commerce platforms. Authorities have focused on building an e-commerce information portal and database system to facilitate the sharing of information between ministries, agencies, and authorities. These measures aim to combat counterfeit goods and protect consumers who purchase commodities on e-commerce platforms.
E-commerce as a global trend
E-commerce is a global trend that businesses must pay attention to if they want to expand globally. The Managing Director of Amazon Global Selling Vietnam, Mr. Gijae Seong, emphasizes the importance of e-commerce as a significant driver of business growth. He pledges continued support for Vietnamese businesses to improve their products’ quality, packaging, and marketability to meet customer demands and promote Vietnamese-branded products worldwide.
Long-term growth and preparation for global e-commerce
While online business is experiencing strong growth, competitiveness in the e-commerce market is fierce. It takes time for businesses to establish a strong presence on global e-commerce platforms. Businesses must prepare their internal resources, such as capital, product quality, and design, before venturing into global e-commerce. This preparation is crucial for long-term growth and success in the highly competitive online marketplace.
In conclusion, Vietnamese-branded products have gained popularity on global e-commerce platforms, providing opportunities for businesses to showcase their products and expand their reach. The growth of the Vietnamese e-commerce market has had a positive impact on the economy, with Vietnamese brands making their presence felt on platforms like Amazon. While challenges exist, businesses can leverage domestic e-commerce platforms and receive support and training to improve their chances of success. As e-commerce continues to be a global trend, businesses must prepare for long-term growth and navigate the regulations and inspections associated with e-commerce platforms.