With the continuous increase in the volume of goods sold on Amazon over the years, Amazon Global Selling believes that cross-border e-commerce in retail (B2C) will become Vietnam's fifth-largest export industry in the next 5 years.
In the "2023 Activity Report: Empowering Small and Medium-sized Enterprises in Vietnam" recently released by Amazon Global Selling Vietnam, it is forecasted that cross-border e-commerce in retail (B2C) will experience significant growth by 2027 and become Vietnam's fifth-largest export industry in the next 5 years.
The report outlines two development possibilities for cross-border e-commerce exports by 2027. In the baseline scenario, the export turnover of this sector could reach $5 billion (equivalent to 124.2 trillion Vietnamese dong).
In the high scenario, with support for small, medium, and micro-sized enterprises in Vietnam to increase online exports, the turnover could reach $12 billion, or 296.3 trillion Vietnamese dong, by 2027. This figure is 2.4 times higher than the baseline scenario, indicating that retail e-commerce will become Vietnam's fifth-largest export industry.
Many "Made in Vietnam" products are being exported online with a significant increase in sales volume
Last year, Vietnam's export turnover reached nearly $356 billion, according to data from the General Statistics Office. The industries with export turnover exceeding $20 billion include electronics - computers and components; phones and components; machinery - equipment; textiles, garments, agriculture - forestry, and aquatic products.
Amazon Global Selling assesses that Vietnamese goods have the opportunity to increase online exports as global consumer behavior continues to shift from offline to online. The online retail market is expected to reach over $31.3 billion this year, accounting for nearly 13% of global retail. This figure is projected to increase to over $40.5 billion in the next 5 years, equivalent to 15% of global consumer spending.
In the 12-month period ending on August 31, 2023, Amazon reported that Vietnamese partners sold more than 17 million products. At the same time, the export value also increased by over 50% compared to the same period last year.
What are the most popular categories on Amazon?
Out of over 17 million products sold, Vietnamese seller partners saw a 70% increase in the quantity of exported products through Amazon. Among these, the top-selling categories were home goods, followed by kitchenware, health & personal care, apparel, and beauty products.
Furniture & Home Decor
In 2019, the export value of wood products to the US market accounted for 50% of Vietnam's total global export value. As one of the top-selling product categories for Vietnamese sellers on Amazon for two consecutive years, the Furniture & Home Decor sector is expected to continue growing in the near future.
Kitchenware
The number of buyers purchasing products in the Home & Kitchen category on Amazon reaches 89%. Selling kitchenware products brings significant profits to sellers, second only to the Beauty & Personal Care category. This is evidence of the potential profitability of selling kitchenware products.
Beauty & Personal Care
In the list of best-selling products on Amazon today, cosmetics cannot be overlooked. With society developing rapidly, the demand for beauty and aesthetics is increasing dramatically. According to a report by Statista, Amazon is the leading online retailer for purchasing beauty and personal care products, with over 70% of consumers stating that Amazon is the first place they consider when buying cosmetics. The Jungle Scout consumer trend report for the first quarter of 2023 shows that up to 93% of consumers buy cosmetics on Amazon, and the number of people deciding to purchase more than the previous year has increased by 18%.
Textiles and Accessories
For the keyword "shirt" on Amazon, there are over 36 thousand searches in a month, with total revenue reaching over $15 million USD. Particularly, revenue for this product has seen a 29% increase compared to the same three months of 2020.
The product "jeans" has 152 thousand searches, with monthly revenue on Amazon for this brand reaching over $36 million USD, an 86% increase compared to the same three months of the previous year. Specifically for the brand "revival", revenue for the month reached over $1 million USD, with over 46 thousand products sold in 30 days.
The product "jacket" also attracts 56 thousand searches in a month, with revenue exceeding $7 million USD.
Promotion for new sellers registering an account on Amazon
The promotion is for sellers who complete their account registration from October 4th, 2024, to April 3rd, 2024. The amount businesses need to pay for account maintenance fees is $1 in the first month and $0 for the remaining 5 months!
Get exclusive benefits for new sellers on Amazon:
- Account maintenance fee for 6 months is only $1 when registering an account.
- Market research and product support assistance.
- 1:1 Key Account Manager (KAM) support (Handling any arising issues).
Businesses will receive benefits if they meet the following three conditions:
- You are a seller in Vietnam (Select Vietnam as your business location for registration).
- Start selling on Amazon North America (markets including the United States, Canada, and Mexico).
- Complete the account registration process from October 4th, 2024, to April 3rd, 2024.
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