Vietnam – Vietnamese MSMEs with B2C e-commerce export value are forecast to grow from US$3.3b in 2021 to US$11.1b by 2026, according to a report by the e-commerce exports program Amazon Global Selling.
The newly released report found that if ‘B2C e-commerce’ were an export category, it could be the fifth-largest export category in Vietnam in five years. It also discovered that 88% of surveyed MSMEs in the country feel that e-commerce is critical for their ability to export, while some of them anticipated greater sales growth prospects overseas with 42% more than in their home country with 11%.
Moreover, the survey has revealed that key challenges can be narrowed down to three categories, namely barriers in cost, regulation, and information and capabilities.
Meanwhile, more than 80% of surveyed local MSMEs yet admitted that they lack information on relevant regulations overseas, while 85% believe they lack the ability to compete with other sellers globally, and 81% admitted that they are unsure of foreign consumers’ demands and preferences.
Gijae Seong, Amazon Global Selling’s head for Vietnam, noted, “Local businesses of any size can benefit from the report on Vietnam e-commerce export trends to update about export potential, the perspective of local MSMEs, and best practices to achieve that potential.”
Dhaka, Bangladesh – Jarafa, a reselling platform has announced the launch of its reseller and wholesaler marketplace in Bangladesh. It aims to link wholesalers and resellers via its website and app so that all they have to do is click to generate money.
Anyone in the country can sell and buy things from anywhere in the country. Both B2B and B2C business models are maintained by Jarafa. Jarafa also shared that it will be offering a financing program in the near future that would involve bank loans.
Jarafa’s chief mission is to develop an eCommerce environment that will allow digital businesses to grow and expand throughout the country. Ultimately, Jarafa aims to become a one-stop tool that helps businesses sell their products through Facebook and other social media platforms.
Md. Fahad, CEO of Jarafa, said that the Jarafa team will work tirelessly and sincerely to facilitate the creation of a social commerce ecosystem that is safe and secure. By using this strategy, digital commerce and entrepreneurship will both be boosted to a larger extent.
“With the best technical and ﬁnancial support available to our resellers and wholesalers, Jarafa hopes to reach a strong and stable position in the next 2-3 years,” the company said.
The internet and social media transformed the way we do business where conducting transactions online has become the ‘new normal’ for buyers and sellers. However, there are manufacturers and distributors who are still reluctant to list their products and services in online marketplaces which is now a necessity due to the COVID-19 pandemic.
The pandemic may have forced some companies to set up their own e-commerce operations or sell their products in marketplaces. But most marketplaces they know are designed for retail and are not capable to handle business-to-business transactions. Purchasing officers want the best prices for their procurement requirements, but you can’t attract them with rebates, vouchers, or free delivery.
We’ve been talking to manufacturers and distributors who shared with us the common reasons why they remain reluctant in getting listed in online marketplaces. Below are their common responses:
• They don’t want to upset their existing clients. • They have a tight-knit distribution channel. • They already have a dedicated sales team. • They are afraid of the competition. • They don’t want to disclose prices. • They think it’s costly.
They don’t want to upset their existing clients. Some manufacturers would argue that they don’t need online marketing because they already have a strong business relationship with their clients for the long term. They think that disrupting the process might break that relationship. Marketplaces, on the other hand, can improve that relationship by providing more transparency and efficiency.
They have a tight-knit distribution channel. Like the relationship manufacturers have with their customers, they also have a close relationship with their logistics provider that runs like clockwork. Marketplaces can be configured to select which logistics provider they prefer and can offer tools that can provide more efficiency in the supply chain. While B2C marketplaces have a few logistics partners, B2B marketplaces are more flexible and can be integrated with any logistics partner selected by the supplier.
They already have a dedicated sales team. Sales representatives are a channel for customers – but it’s not the only channel. Distributors can easily expand their reach by bringing their business online. And even before potential customers would meet with sales rep, they will do some research online.
They are afraid of the competition. Marketplaces are a great tool for competitor research. Manufacturers shouldn’t be afraid to be compared with their competitors. Buyers now are more informed and will be able to tell which suppliers have the best products with better prices.
They don’t want to disclose the prices. B2B companies have a different pricing model which can vary for each customer. Unlike retail marketplaces like Lazada or Shopee where prices have to be shown, B2B marketplaces are better at handling wholesale pricing and can be negotiated.
They think it’s costly. Traditional marketplaces can be costly because they rely on commission and transaction fees. Modern marketplaces are shifting to a subscription model that provides suppliers better tools at a lower cost.
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