Amazon e-commerce platform and business opportunity for Vietnamese native resource products

Amazon is a multinational company specializing in e-commerce, artificial intelligence. Amazon along with Google, Apple and Facebook are considered the four giants of technology in the world.

Amazon was founded in July 1995 by Jeff Bezos – a man with a vision for a potentially expanding future of selling online at that time. The book was the company’s first catalog of products for sale online. As time progresses, Amazon has gradually expanded its size and influence to become a famous multinational e-commerce company around the world.

The products that Amazon provides are not limited, from toys, cosmetics to furniture, technology, etc. Along with that, the company always knows to expand the market and quickly spread globally. thanks to the Internet connection and no obstacles in the form of freight forwarding.

As the world’s largest online retailer, Amazon has consistently provided customers with lowerbuying and transaction costs than traditional transaction methods.Amazon perfectly combines three factors to build a perfect foundation for the company that is brand -customer – technology. In addition to its headquarters in the United States and its own online sales page for the US, the “big” Amazon also designs separate websites in different countries to develop corporate brands.

Amazon activities in Vietnam

Amazon is set to enter the Vietnamese market by providing e-commerce services for the Vietnam E-commerce Association (VECOM), which is a group of 140 local online businesses, according to theNikkei Asian Review.

Amazon will help these companies sell and export their products through its platform, and details of its plans are expected to come at the Vietnam Online Business Forum 2018 on March 14.

Partnering with third-party merchants is likely a precursor to Amazon entering the market with its full slate of offerings. The Seattle-based company may be looking to use its partnership with VECOM as a way of getting its footing in Vietnam and building familiarity with consumers before introducing its fullmarketplace, Fulfillment by Amazon (FBA), Prime, and more.

This launch in Vietnam suggests that Southeast Asia is a focus for Amazon’s international expansion plans. Amazon also launched in Singapore, its first market in Southeast Asia, in July 2017,where it is now operating in full with Prime and Prime Now. These first two forays occurring so close to each other may mean that Amazon has grand plans for the region, which would make sense as SoutheastAsia’s e-commerce sales are projected to climb to $88 billion by 2025, up from an estimated $11 billion in 2017.

In 2019, Amazon Global Selling announced its launch in Vietnam as a support and facilitation forVietnamese sellers to access multinational markets around the world. With the new team, Amazon GlobalSelling will provide Amazon sales relevant expertise to prospective businesses, from item listing to fulfillment by Amazon (FBA – Fulfillment by Amazon). Through Amazon Global Selling, Vietnamesesellers can expand their businesses and build brands in this new market.

Amazon Global Selling announced its launch in Vietnam as a support and facilitating Vietnamese sellers to access multinational markets around the world (Source: CafeBiz)

Opportunity for local enterprises

Amazon’s penetration into the Vietnam market benefits both parties. On the one hand, Amazon can expand its market and increase its influence not only in Vietnam but also in many other countries in the region. On the other hand, this helps Vietnamese products have the opportunity to approach the international environment and raise the brand. Through Amazon, Vietnamese products can be more easily exported to the world than before.

Amazon’s plan is made clearer by a series of activities such as setting up the staff in Southeast Asia, company building in Vietnam, etc. Amazon also launched two information channels to directly support sellers in Vietnam: Amazon Global Selling website (services.amazon.vn) and Amazon Global Selling Officially Vietnamese Facebook Page. With these two channels, a seller in Vietnam who wants to sell on Amazon will reduce difficulties in language and culture barriers. All of the above activities are for the purpose of consulting, supporting sellers and manufacturers to reach global customers through Amazon.

The difference between Amazon and other e-commerce floors when entering Vietnam

If Alibaba enters Vietnam in the form of a Vietnamese e-commerce site – Lazada, Amazon doesn’t. Amazon brings “itself” into Vietnam. Amazon’s goals can also be clearly seen as seller training by helping our sellers understand the Amazon selling process and promoting Vietnamese brands. Since then, Vietnamese enterprises with full resources can “join the war” in the world market. Amazonalso fulfills its mission as an intermediary link.

By Nguyen Van Nhi

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