Cross-border e-commerce offers significant export opportunities for smaller enterprises

Speaking at the “E-commerce Development - Opportunities, Drivers, and Challenges” forum, organized by the Government e-Portal in mid-August, Ms. Lai Viet Anh, Deputy Director of the Vietnam E-commerce and Digital Economy Agency at the Ministry of Industry and Trade, said the Ministry’s upcoming five-year e-commerce development plan aims to promote the export of “Made in Vietnam” products to international markets through e-commerce.

In line with this, many e-commerce platforms are actively promoting cross-border programs and supporting sellers in expanding their reach from domestic to international markets. They are particularly focused on local businesses to realize the goal of sending “Made in Vietnam” products to a global audience. The “Shopee International Platform” program (SIP), launched by Shopee in 2021, aligns closely with this objective.

Local businesses thrive with online export model through e-commerce

The greatest advantage of Shopee’s SIP program lies in its comprehensive and free support throughout the entire process, including synchronizing stores from the domestic to international versions and handling export-import paperwork, marketing, sales, and operations. The sole responsibility of the seller is to meticulously prepare the inventory and coordinate with the platform’s team to ensure a smooth and timely journey of products being delivered to international consumers.

Choosing to focus on niche products such as plus-size fashion, the Big Size Boutique brand on Shopee, managed by Mr. Dinh Huu Lam, has experienced remarkable revenue growth in the Southeast Asian market. Notably, Thailand has surprised, with a 167 per cent increase in sales and a 220 per cent rise in orders in just the last 30 days, providing a promising boost for Mr. Lam after nearly three years of dedication to the Malaysian and Singaporean markets.

Looking at the broader picture, Big Size Boutique’s revenue across ASEAN has doubled compared to the same period last year, with a 70 per cent increase in new customers. “Malaysia currently accounts for 63 per cent of our market share, and Singapore represents over 30 per cent,” he said. “However, I plan to continue expanding and experimenting in other markets where Shopee operates.”

Another example is the SKFood store, which specializes in dried products such as cashews and Vietnamese dried fruit. Participating in the ASEAN Online Shopping Festival 2024 helped SKFood’s international store achieve impressive metrics. On August 8 alone, the number of orders surged by over 50 per cent compared to typical days, and new user acquisitions exceeded 30 per cent.

“Before joining SIP, I didn’t think online exporting could be so easy,” said Ms. Le Thi Bich Ben, a representative from SKFood. “Shopee handles all aspects of marketing, operations, warehousing, export paperwork, and even food safety certification. I only need to deliver the goods to the shipper. This allows me to manage both the domestic and international stores simultaneously and enhance our production capabilities.”

E-commerce offers export opportunities for businesses of all sizes

Acknowledging the vast potential for growth in e-commerce, Ms. Viet Anh affirmed that micro, small, and medium-sized enterprises (MSMEs) can compete on equal footing with larger companies. According to Access Partnership from the UK, retail e-commerce exports were valued at $3.5 billion in 2022, up 7 per cent from 2021, and could reach $13 billion by 2027. This growth underscores the potential of online export models. To capitalize on this, MSMEs need to accelerate their e-commerce adoption. The report also reveals that 95 per cent of MSMEs expect at least a 10 per cent annual increase in B2C e-commerce exports over the next five years.

“We support businesses in exporting to the Southeast Asian market and hope to expand into more new markets in the future,” said Mr. Tran Tuan Anh, Managing Director of Shopee Vietnam. “Sellers can focus on manufacturing, while Shopee handles operations and product promotion.”

Over 350,000 Vietnamese sellers currently participate in SIP, with thousands of new sellers joining each month, promoting more than 15 million products across Southeast Asia. On average, the monthly sales of Vietnamese sellers in the program consistently increase by 20-30 per cent.

From the perspective of an experienced seller, Mr. Lam believes that while online exporting is no longer difficult, it requires a clear business strategy and effective utilization of platform resources. New sellers should avoid overextending by targeting all markets or diversifying into too many product niches. Instead, they should focus on a few key areas to achieve sustainable and effective growth.