90% of Micro, Small and Medium-sized Enterprises (MSMEs) in ASEAN-6[1] stated that they would not be able to export without e-commerce.
U.S. among top priority destination countries today and in the next 5 years for ASEAN-6 MSMEs exporting through e-commerce.
Thousands of businesses in Southeast Asia (SEA) – many of which are micro, small and medium-sized businesses – export their products to the U.S. through Amazon Global Selling. The number of new SEA sellers selling in the U.S. through Amazon Global Selling increased by 50% year over year[2].
SINGAPORE - Media OutReach Newswire – 13 November 2024 - Today, Amazon Global Selling (AGS) shared the results of a report about the opportunities and challenges faced by micro, small, and medium-sized enterprises (MSMEs) in the ASEAN-6 countries—Singapore, Malaysia, Thailand, Vietnam, Indonesia, and the Philippines—as they navigate the expanding global e-commerce landscape.
According to the report conducted by Access Partnership and commissioned by Amazon Global Selling, ASEAN-6’s B2C e-commerce export revenue was estimated at USD 18.9 billion in 2023, with MSMEs accounting for 38% of this total. Assuming the current pace of e-commerce adoption and export, this could rise to USD 30.4 billion by 2028, with MSMEs potentially increasing their share to 48%. 90% of MSMEs in ASEAN-6 said that they would not be able to export without e-commerce. The report indicates that the U.S. are among the top priority destination countries today and in the next 5 years for ASEAN-6 MSMEs exporting through e-commerce.
Anand Palit, head of Southeast Asia for Amazon Global Selling said: “e-commerce unlocks a world of export possibilities for MSMEs and entrepreneurs by offering direct access to a global customer base and a chance to carve their own path on the international stage.”
Amazon Global Selling, which helps businesses from anywhere in the world to launch a global business on Amazon, has dedicated teams in Southeast Asia to help prospective and existing Amazon sellers and support local entrepreneurs to tap into this new export opportunity. Anand Palit added: “Thousands of businesses in Southeast Asia sell their products in Amazon’s U.S. store through Amazon Global Selling, and the number of new sellers in Southeast Asia selling on Amazon.com has increased by 50% in 2024 compared to last year[3].”
Challenges faced by ASEAN-6 MSMEs exporting through e-commerce
However, according to the report, nine out of ten MSMEs identify a lack of understanding of foreign export regulations and high logistics costs as their primary obstacles. 90% of MSMEs agree that lack of knowledge of e-commerce import regulations in destination countries impede their ability to export via e-commerce. The top country MSMEs seek to bridge their gap in the knowledge of e-commerce export regulations is the U.S.
Amazon provides its selling partners with a variety of tools, services and programs - including educational resources on destination country regulations and international shipping - which simplify critical aspects of selling to customers around the world. SEA selling partners can benefit from Amazon’s state-of-the-art international logistic capabilities to help them move products more easily and cost effectively across borders. Amazon’s end-to-end Supply Chain by Amazon service, simplifies operations and optimizes inventory placement for selling partners, unlocking faster delivery speeds from factories to customers. SEA businesses selling in the U.S. on Amazon can also provide U.S. customers with fast, premium shipping with Fulfilment By Amazon (where Amazon can pick, pack, and ship orders in the U.S. on behalf of its selling partners) at a cost that is 70% less per unit than comparable premium options offered by other U.S. fulfilment services.
Alisha Tan, Marketing Director of Malaysia-based Galano Furniture, selling with Amazon in North America said: “We have adopted Fulfillment by Amazon (FBA), which has offered us peace of mind in terms of customer service and last-mile delivery. We have seen a remarkable business growth in 2023 and are looking forward to expanding our presence to Amazon Canada, UK, and Germany in 2024.”
Amazon tools also help simplify listing products across countries with automated translation and currency conversion capabilities for managing pricing and receiving disbursements. Altogether, Amazon makes it dramatically easier for small businesses to sell globally.
SUNHOUSE, a Vietnamese home and kitchen appliances brand, chose Amazon as its first store to drive its global e-commerce expansion. “Expanding into international markets is an essential and strategic move for Sunhouse to assert the standing of both Vietnamese enterprises and brands on the global stage. This path, while essential, is fraught with anticipated challenges. However, throughout this ambitious journey, Amazon has been a key partner, standing alongside Sunhouse and supporting us in overcoming the hurdles of global market entry. Being a selling partner on Amazon has allowed us to list and promote our products swiftly to global consumers, particularly in the U.S. market, and continuously evaluate and refine our strategies. With Amazon’s support, we’ve optimized our cost structure, boosted revenue, and set the foundation for continuous growth over the next three years,“ said Mr. Le Tung, Chief Marketing Officer of Sunhouse.
Joseph Zapanta, Chief Operating Officer of Argon40, a Philippine-based distributor and manufacturer of consumer electronics products said: “The main benefit of selling on Amazon is being able to reach customers in the U.S. directly without the necessity of setting up a physical store there. As an emerging brand and a start-up company, selling on Amazon enabled us to be on the same stage as established brands.”
Government-industry partnerships
According to the report, over 90% of MSMEs surveyed agree that government-industry partnerships could help them better navigate foreign markets, while 92% emphasize the importance of online resources for enhancing their e-commerce capabilities. While the potential for growth in e-commerce exports is significant, the report highlights the necessity of coordinated efforts to empower MSMEs, ensuring they can fully engage in and benefit from the global digital economy.
This is why Amazon Global Selling actively works with government agencies across ASEAN to support local sellers reach global customers. In Singapore, AGS collaborated with Enterprise Singapore and Singapore Business Federation to launch the Cross-Border Brand Launchpad Program[4] which will equip over 100 local MSMEs with the skills to launch and scale their brands globally. Thanks to this program, Singapore-based Everiday Foods has rapidly expanded its reach beyond Singapore. Founder Riyana Rupani credits the program with helping the brand break into the competitive U.S. destination, where demand for their healthy products has surged. “Without Amazon Global Selling, she says, it would have been a daunting task to connect with U.S. customers on such a large scale. Today, Everiday Foods is thriving, sharing its message of wellness with a global audience.”
In Malaysia, Amazon Global Selling recently entered into a Memorandum of Understanding (MoU) with the Malaysia External Trade Development Corporation (MATRADE) to bolster export capabilities of Malaysia’s MSMEs[5] and in Thailand, AGS is strengthening of their collaboration with Thailand’s Department of International Trade Promotion (DITP) to help more Thai brands sell in the Amazon U.S. store.[6]
Read the full report here: Transforming Trade: The E-commerce Revolution in ASEAN
Businesses across Southeast Asia can learn more about Amazon Global Selling on https://sell.amazon.com.sg/north-america/us or join us at the upcoming Southern Seller Fest.
[1] Singapore, Malaysia, Thailand, Vietnam, Indonesia, and the Philippines
[2] From January to September 2024 versus January to September 2023.
[3] From January to September 2024 versus January to September 2023.
About Amazon Global Selling
Amazon Global Selling helps businesses from anywhere in the world to launch a global business, reach Amazon customers around the world and build international brands. Through selling in Amazon stores, sellers of different types and scale can reach millions of Amazon customers worldwide, including 200 million+ Prime customers in overseas Amazon stores; and more than five million business and institutional buyers in the USA, Europe, and Japan.
About Access Partnership’s survey of MSMEs on e-commerce
Access Partnership conducted a survey to understand the B2C e-commerce export opportunity for MSMEs in ASEAN-6.
The MSME survey was carried out with 700 MSMEs (100 MSMEs each in Singapore, Thailand, Indonesia, and the Philippines, and 300 MSMEs in Vietnam) that conduct B2C e-commerce in their operations. The sample size of respondents is statistically significant based on the total number of MSMEs engaged in e-commerce in the region, at a 90% confidence level.
