In the past year, 14 Vietnamese products, including rice paper, dried noodles, coffee, and pottery, have been sold on Amazon per minute.
Almost 7.2 million items were sold on Amazon in 2016.
On the Amazon e-commerce site, try searching for “Rice paper wrapper” to find hundreds of items from Vietnam, Thailand, and Japan. But Vietnamese-made goods are widely available. Prices range from $8.45 to $19.99 USD for a stack of thin rice paper rolls from Vietnamese manufacturers including Mekong River, Tanisa, Binh Tay, etc.
Similar to that, numerous businesses on this level sell fresh grape seaweed goods of Vietnamese origin for $9 to $19, which are also well-liked by many US customers. Or a number of well-known items, including broomsticks, conical hats, pottery, coffee, dried noodles, bamboo and rattan furniture, wooden furniture, etc., were marketed in several nations and could be found on Amazon or Ebay. Vietnamese products are becoming more numerous and diverse on international e-commerce platforms. Especially in 2021, this tendency is continuing to rise despite being impacted by the Covid-19 pandemic and challenges with international freight movement. Bringing products to international marketplaces like Amazon is something that many firms (DN) cannot ignore given the rapid growth of e-commerce. Because selling on Amazon gives businesses the chance to have their goods swiftly reach markets in the US, Canada, UK, Germany, France, the Netherlands, Sweden, Japan, and Singapore…
The most recent data from Amazon shows that over the course of a year (from September 2020 to August 2021), customers worldwide purchased almost 7.2 million goods from small and medium-sized businesses in Vietnam. On this level, 14 Vietnamese items should be sold on average every minute. The research said that more small and medium-sized businesses than achieved the sales milestone of one million US dollars on Amazon, while it did not disclose the number of firms engaging in selling on this level, grew by more than 40% over the same period last year. Businesses with Amazon sales of more than $100,000 climbed by over 18%, while the number of companies surpassing the $500,000 milestone increased by more than 53%. Home appliances, kitchen appliances, textile items, home gadgets, and health and personal care products are the top-selling Vietnamese product categories on Amazon. In the last year, a large number of Vietnamese firms have shifted from doing traditional local business to exporting via e-commerce to the global market with success. For instance, there are Truong Tho grape seaweed, Lafooco cashews, Royal helmets, and Minh Long pottery.
Channel for brand marketing
Tanisa’s orders for rice paper, vermicelli, and other items on the Amazon floor shot up 3 to 5 times more than typical in the first few days of the new year 2022. The Omicron mutation that is spreading in the US has caused a rapid rise in consumer demand, says Ms. Tran Hanh Thu, Director of Tanisa Co., Ltd. The chilly winter prevents many people from venturing outside, therefore online purchase sales have surged significantly. This, in addition to the disrupted supply chain, contributed to a severe lack of necessities on the market.
Selling online offers a simple and inexpensive way to reach a worldwide audience. But for a firm to be successful, it has to understand the market and consumer demands, gain expertise, and most importantly, be patient. Each business may create its own e-commerce sales and marketing staff depending on the size and kind of items, or it can engage professional services to save expenses.
Tanisa’s wholesale orders are also fully booked, adding to the burden on the business. Tanisa’s products, which started to appear on the Amazon floor at the end of 2018 and have continued to do so, have made headway among hundreds of comparable items from other local and foreign firms. According to Ms. Tran Hanh Thu, despite the fact that the company’s annual total export sales are still modest compared to its retail sales, this is a fantastic channel for promoting the brand since it successfully reaches customers, particularly those who are customers. small companies or new ventures. The expense of participating in sales on e-commerce platforms like Amazon or Alibaba is lower when compared to the cost of reaching international customers in the conventional way, such as by attending fairs and exhibitions abroad. On the Amazon floor, however, selling prices are not 5–10 times greater than domestic selling prices, therefore companies are not as profitable. Because in addition to the expenses incurred on the Amazon floor, which include operational expenses, advertising costs, and other expenditures with a minimum estimate of 55 to 60 percent, omitting shipping expenses, third-party warehousing, and product expenses. Businesses will also encounter a number of ongoing challenges, such as producing fewer quantities of higher-demanding items while using multiple product codes, which drives up the cost of administration, transportation, and raw material inventory prices.
“Retail operations don’t generate as many sales as the wholesale channel, but it’s still an excellent way for small firms to promote their brands. Even wholesale clients may use retail channels to learn more about consumer opinions of their goods. As with sowing seeds, planting will only produce fruit, it is a process of investing, testing back and forth, failing, correcting, and recreating it for many years ago, according to Ms. Tran Hanh Thu.
The brand Truong Tho Grapes joined Amazon as a cutting-edge, but still relatively young, aquaculture company in the market, according to Mr. Tran Van Tuoi, CEO of Truong Tho Grapes. Due to the very tight regulations regarding food safety and packaging, the firm encountered several challenges while trying to reach the worldwide market. Then, the assistance of the Amazon team and the FBA service (supporting warehousing, shipping, and finishing orders on Amazon), not only aids companies with shipping and packing but also guarantees the upkeep of the goods. product excellence. In 2020, when Covid-19 caused several problems and obstacles for small enterprises, 35% of Truong Tho Grapes’ overall sales came from Amazon.
Great opportunity, but professionalism is required
All Vietnamese items have the chance to “get on the shelves” of Amazon, according to the representative of Amazon Global Selling, and this division continuously assists businesses through several seminars and training programs for small and medium-sized firms. The Vietnam E-commerce and Digital Economy Agency (IDEA), the Vietnam E-commerce Association, and industry associations are all cooperating more closely with Amazon Global Selling at the same time to share information, promote the development of the “made in Vietnam” brand abroad, and raise awareness of exporting through e-commerce. However, businesses and industry professionals agree that a large number of enterprises lack the necessary operational, cross-border export, and even online booth capabilities. to draw in clients.
Vice Chairman of the Ho Chi Minh City Woodworking and Handicraft Association (HAWA), Mr. Nguyen Chanh Phuong, stated that exporting products to foreign markets through online marketplaces like Amazon, Ebay, or Alibaba is a smart option for small enterprises. and medium, including both retail and wholesale. A set of handicrafts that take the initiative in their creation and are ideal for modest orders… then selling directly to customers is fairly nice, for instance.
Enormous-scale businesses, however, are only accustomed to outsourcing and are not actively involved in the design, making industrial production and retail more problematic with large items. However, each industry and product will demand specific expertise. Similar to how a direct selling firm must maintain the store, tastefully display the items to draw in consumers, and even continually take images of the merchandise, attend to clients, and respond to inquiries. Only by doing this can products be sold, customers be kept, and brand esteem is built.