Vietnamese SMEs Flourish on Amazon, Achieving Impressive Growth in Global Markets
Hanoi, The Gulf Observer: Vietnamese small and medium enterprises (SMEs) are capitalizing on the Amazon platform to not only bolster product sales but also to successfully establish brands in overseas markets, according to Amazon’s latest report titled “Vietnam’s SMEs Empowerment.”
The report reveals that during the 12 months ending on August 31, 2023, Vietnamese selling partners collectively sold over 17 million products on Amazon, achieving a remarkable 50 percent year-on-year export value growth. The overall export value of Vietnamese selling partners on Amazon witnessed an impressive year-on-year growth of over 50 percent, with the number of partners surpassing US$100,000 in sales increasing by 70 percent.
Key categories contributing to this success include home, kitchen, health and personal care, apparel, and beauty. These categories highlight Vietnam’s historical expertise in producing and exporting key goods such as furniture, handcrafted home decor, and garments. The rise of health and personal care and beauty categories also indicates the expansion of online exports into new and growing sectors.
The report emphasizes that Vietnamese companies are not only focusing on traditional best-selling products but are also venturing into niche products within their top categories. An exemplary case is Abera, a Vietnamese beauty brand that focuses on customer-centric product development and brand cultivation, resulting in remarkable success with over $1 million in revenue within a year on Amazon and a sixfold increase in conversion rates. This success story encourages other local beauty brands to establish their unique identities on the global stage.
Cross-border e-commerce has emerged as a crucial factor in the export success of Vietnamese businesses, with the number of selling partners on Amazon’s platform increasing by more than 40 percent. Businesses of various sizes and types, from established retailers like Lamer to traditional manufacturers like Beefurni and startups like Tidita and Abera, capitalized on the platform to reach international consumers.
The impact of selling on Amazon extends beyond individual businesses, contributing to the revival of local economic communities, the creation of more jobs, and the enhancement of digital skills in the local workforce.
Vietnamese selling partners leveraged Amazon’s tools, programs, and services to achieve significant growth. For instance, Tidita, a wooden kitchenware and home decor brand, attributed its success to robust investment in research and development, early brand building, and the utilization of Amazon’s research tools. Lamer, a fashion producer, streamlined operations and saved costs through Fulfillment by Amazon (FBA), leading to over a 70 percent increase in the number of partners using FBA and an over 80 percent increase in their sales.
Amazon Seller University played a crucial role, offering educational resources to help sellers learn the intricacies of global selling on Amazon and grow their businesses and brands internationally.
Gijae Seong, Head of Amazon Global Selling Vietnam, expressed enthusiasm for the sustainable growth of Vietnamese entrepreneurs and manufacturers, emphasizing the vital role of SMEs in the local economy. He affirmed Amazon’s commitment to continue innovating and supporting the growth of these businesses into thriving success stories.
