Understanding Rules to Export Goods via E-commerce

9:58:03 AM | 12/15/2020

Exporting products via e-commerce is not only an immediate salvage solution for businesses in the context of COVID-19, but also becomes a necessary strategic tool for cross-border trade.

Accessing new partners and markets

Mr. Pham Hoang Tien, Director of the SME Support Center (VCCI), said that amid the COVID-19 epidemic, e-commerce increasingly shows its superiority and strengths for small and medium-sized enterprises (SMEs) to continue their business, maintain operations and create a breakthrough after the epidemic. In addition, e-commerce offers many opportunities for businesses, especially SMEs to directly approach international customers, boost sales, speed up marketing and reduce costs.

Ms. Doan Thuy, export manager of Glovimex Company, said, the company has transformed from offline to online and e-commerce in the past three years on B2B e-commerce platforms, social networks and websites. Gradually, the company's products gained a certain position on the e-commerce platform. The revenue of e-commerce sales increased 2 times compared to traditional methods. Especially, with handmade products, costs will be higher if they are introduced via trade fairs. E-commerce helps businesses reduce travel and personnel costs while reaching more customers and more orders.

Mr. Thai Thien Hao, Director of International Market Development of Thai Binh Company, shared, “Through e-commerce, we easily exchange information and establish business relationships with foreign partners. We approach more than 100 customers a month, analyze buying habits of importers around the world. Currently, we have an export order worth US$100,000”.

Director of Ho Hoang Gia Company, Hoang Trong Hieu said that after only four months on Alibaba platform, the company exported its products to big demanding markets such as the United States, South Korea, Australia and New Zealand.

Solutions for businesses

According to experts, businesses need to clearly understand “rules” according to international practices and apply new marketing methods and tactics to be more active in exporting through e-commerce.

Mr. Nguyen Thien Phuc, Operations and Sales Director of Innovative Hub Vietnam Company, said businesses need to take advantage of smart digitalization for marketing to achieve better effect. They should also focus on rebuilding the brand identity because of strong demand growth of online shopping trends, search engines and supplier websites.

“In addition to having a good product, they should have a good image and content information of the product that is appropriate, accurate, complete and detailed. This helps buyers search for better products and trust in their products more,” he emphasized.

Lawyer Le Trong Thiem from Vietnam International Trade Mediation Center advised that exporting via e-commerce raises exposure to potential risks like cash flow risk, deposit, international payment transactions, transaction fee, fraud and hacking, beside economic embargo.

“Differences in culture, processes, foreign currency flows for payment settlement, especially in goods quality standards among countries, places of export and import, and international laws outside Vietnamese territory may pose risks to Vietnamese businesses,” he said.

Facing these issues, he recommended that businesses develop a full, detailed and specific sales policy, understand rules, ensure payment deadline, have a clear agreement with partners and, at the same time, carefully invest in technology and understand the geopolitical situation of importing countries. At the same time, they also need to join associations, strengthen connections with authorities to find support for settling disputes and conflicts that they encounter during their operations.

By Huong Ly, Vietnam Business Forum