At the TOPTHAI Cross Border E-Commerce Day 2024, the Department of International Trade Promotion (DITP) and Amazon Global Selling (AGS) unveiled a ground-breaking initiative to catapult Thailand’s Small and Medium-sized Enterprises (SMEs) into the stratosphere of global e-commerce. By signing a Memorandum of Understanding (MoU), these two powerhouses plan to supercharge Thailand’s e-commerce export capabilities.
Under this MoU, DITP and AGS will collaborate to arm Thai businesses with a robust understanding of e-commerce exports to the US market. They aim to accomplish this by rolling out educational workshops and offering bespoke advisory services for those keen on becoming Amazon Selling partners. The numbers speak for themselves; the US was the world’s second-largest e-commerce market in 2023, generating a staggering $1.1 trillion in revenue, according to Statista. A survey commissioned by Amazon and conducted by Access Partnership found that over 65% of Thailand’s MSMEs view the US as their top e-commerce destination for the next five years. Now, that’s a market worth tapping into!
Mr. Phusit Ratanakul Sereroengrit, DITP’s Director General, shared his excitement, “The Department of International Trade Promotion is thrilled to sign this MoU with Amazon Global Selling. We are confident this partnership will expedite Thai businesses’ entry into global markets like the US, elevating the international reputation of Thai products. Exports are a crucial driver for Thailand’s economic growth.”
Echoing this sentiment, Mr. Anand Palit, Head of Amazon Global Selling for Southeast Asia, said, “We are incredibly grateful for DITP’s ongoing collaboration. This MoU will undoubtedly deepen our partnership. According to Amazon’s research, 95% of Thai businesses surveyed believe that joint educational initiatives between government and industry would significantly boost their e-commerce export capabilities. And that’s precisely our game plan.”
In line with the MoU, Amazon Global Selling will be touring Thailand alongside DITP to raise awareness about e-commerce opportunities in the US. These roadshows will offer invaluable insights into US consumer preferences and trends, demystifying how to thrive in the Amazon US store. Between July 1, 2023, and June 30, 2024, Thai sellers in categories such as Home, Apparel, Grocery, Health & Personal Care, and Sport dominated the Amazon US market.
But that’s not all; Amazon Global Selling plans to host regular workshops to help Thai businesses launch successfully on Amazon.com. Topics will cover everything from account setup and product listings to international shipping and digital advertising. Talk about a masterclass in e-commerce!
Moreover, the DITP and Amazon Global Selling will continue to buoy the TOPTHAI project on Amazon.com. Launched by DITP, this initiative aims to boost the global visibility of Thai products via online platforms. The TOPTHAI project aims to build confidence in Thai products and catalyze their export potential. DITP will support Thai MSMEs already rooted in the Amazon ecosystem, inviting them to join the TOPTHAI program, which will provide a blend of online and offline promotional campaigns. These efforts aim to bolster sales and elevate the stature of Thai products in the global marketplace.
Take, for instance, Tuff Sport, a TOPTHAI-supported brand based in Bangkok that specializes in Muay Thai shorts. Owner Mr. Wootinun Sungong mentioned, “Cracking the US market through traditional offline channels was challenging. However, Amazon’s Fulfillment By Amazon (FBA) services allowed us to seamlessly penetrate US locations. With DITP’s marketing support on Amazon.com, we’ve seen substantial growth since joining the TOPTHAI program.”
Similarly, Ms. Parichat Srimontree, Head of Online Channels at Wel-B healthy snacks, shared her enthusiasm, “Participating in this project with DITP and Amazon Global Selling has been incredibly rewarding. The knowledge and insights gained have been invaluable for our online business’s sustainable growth.”
Anand Palit summed it up perfectly: “Amazon Global Selling has empowered thousands of Thai sellers to bring millions of Thai product units to global customers. The average sales for Thai businesses in the Amazon US store experienced double-digit growth in the first half of this year compared to last year. With Amazon’s innovative tools and our strengthened partnership with DITP, we can help more local brands seize global e-commerce opportunities, not just in the US, but worldwide.”
Phusit Ratanakul Sereroengrit emphasized that the MoU would deepen the synergy between DITP and AGS, thereby fostering a robust backbone for Thai MSMEs to thrive in e-commerce markets worldwide. As a highlight, the TOPTHAIxAmazon Pavilion will showcase select Thai products and promotional campaigns on Amazon.com at an upcoming event on September 3rd at Times Square, New York City.
For more information about TOPTHAI, visit TOPTHAI Facebook Page.
For inquiries, contact the DITP Hotline at 1169.
Learn more about Amazon Global Selling by visiting Amazon Global Selling.
Businesses interested in the Amazon-DITP’s 5-course incubation program can register at Amazon-DITP Program.
This is great news for Thai SMEs! It can open up so many new opportunities.
I don’t know. It’s going to be tough for small businesses to navigate the complexities of the American market.
That’s why the educational workshops and advisory services from Amazon are so important. They’ll have guidance every step of the way.
Exactly, Mia. Plus, DITP’s support will be crucial in helping these businesses succeed.
I hope this partnership includes some kind of financial support. Small businesses often struggle with upfront costs when expanding internationally.
Yeah, costs are definitely a hurdle. Perhaps they could offer some kind of grants or subsidies.
Doesn’t Amazon exploit small businesses with their fees and policies? This might turn out to be more harmful.
I disagree, Susan. While Amazon’s fees can be high, the exposure and reach are unparalleled. It’s a trade-off that could be worth it.
Exactly, Michael. Reaching the US market can transform these businesses. Amazon offers access to millions of potential customers.
I suppose, but it’s important for these SMEs to be aware of the full costs and potential risks before diving in.
Super interesting! Will the focus be on specific types of products or all SMEs in general?
It seems like there’s an emphasis on categories like Home, Apparel, Grocery, Health & Personal Care, and Sport.
Thanks, Joe! Makes sense since those categories can have a broad appeal in the US market.
How will the local Thai market be affected if more SMEs start focusing on exports?
Good point, David. Hopefully, there will be a balance so local availability doesn’t suffer.
The TOPTHAI project sounds promising. I think visibility on platforms like Amazon can really boost sales.
Agreed, @Grower134. The testimonials from Tuff Sport and Wel-B healthy snacks are inspiring.
It’s always great to hear real-world success stories. Proves that these initiatives can have a real impact.
Will there be any language barriers? Many Thai SMEs might struggle with English.
Good question, Liv. Amazon’s workshops might need to include language support or translation services.
I hope so, Marko. Effective communication is key in such international endeavors.
Thai SMEs should take full advantage of Amazon’s Fulfillment By Amazon (FBA) services to reduce logistics hassles.
But isn’t FBA expensive? Smaller businesses might find those costs prohibitive.
True, it’s not cheap, but the operational ease and customer trust it provides might outweigh the costs.
I’m curious about how DITP and Amazon will manage the quality control of products entering the US market. Difference in standards might be a challenge.
Good point, Samantha. Ensuring that products meet US standards will be critical for long-term success.
DITP and Amazon should provide clear guidelines and maybe even offer quality certification workshops.
That would be really helpful, James. Proper certifications can avoid many potential issues.
This is a fantastic initiative! I hope more countries can create similar partnerships to empower their SMEs.
Totally, John! This kind of public-private collaboration is the way forward for global trade.
I wonder how much of this is purely PR for Amazon to gain a positive image in Southeast Asia.
There’s always a PR angle, Hannah, but if it benefits Thai SMEs, does it really matter?
Fair point, Peter. As long as the businesses gain, the motivations behind it are secondary.