FOREIGN TRADE UNIVERSITY

FACULTY OF BUSINESS ADMINISTRATION

---------***--------

MID-COURSE INTERNSHIP REPORT

Major: International Business Administration

ANALYZING AMAZON GLOBAL SELLING’S

STRATEGY TO RECRUIT VIETNAMESE SELLERS FOR
AMAZON’S GLOBAL MARKETPLACES FROM 2020 TO 2023

Student Name: Tran Minh Thu

Student ID: 2013280035
Class: English 02, Advanced Program
Intake: 59
Instructor: Ph.D. Duong Thi Hoai Nhung

Hanoi, August 2023

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 TABLE OF CONTENT

TABLE OF CONTENT
ABBREVIATION LIST
LIST OF TABLES & FIGURES
INTRODUCTION
CHAP 01: OVERVIEW OF AMAZON GLOBAL SELLING IN VIETNAM
1.1 Establishment & Expansion
1.2 Organizational Structure
1.3 Business Activities
1.4 Business Results from 2020 to 2022
CHAP 02: ANALYSIS OF AMAZON’S GLOBAL SELLING’S STRATEGY TO
RECRUIT VIETNAMESE SELLERS FOR AMAZON’S GLOBAL
MARKETPLACES FROM 2020 TO 2023
2.1 The Seller Recruitment Strategy at Global Selling Vietnam from 2020 to 2021 -
Emphasizing Seller Quantity
2.1.1 Context
2.1.2 Strategy Objective
2.1.2.1 Growing Existing Sellers
2.1.2.2 Recruiting and Educating New Sellers
2.1.3 Strategy Implementation
2.1.4 Evaluation of The Strategy
2.1.4.1 Strengths
2.1.4.2 Limitations
2.2 The Seller Recruitment Strategy at Global Selling Vietnam from 2022 to 2023 -
Emphasizing Seller Quality
2.1.1 Context

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 2.1.2 Strategy Objective
2.1.2.1 Recruiting Manufacturers and Brand Owners
2.1.2.2 Connecting Sellers with Manufacturers
2.1.3 Strategy Implementation
2.1.4 Evaluation of The Strategy
2.1.4.1 Strengths
2.1.4.2 Limitations
CHAPTER 03: RECOMMENDATIONS FOR AMAZON GLOBAL SELLING
TO IMPROVE SELLER RECRUITMENT STRATEGY IN VIETNAM
3.1 Future Orientation of Amazon Global Selling Vietnam
3.2 Recommendations for Amazon Global Selling Vietnam to Improve Seller
Recruitment Strategy
3.2.1 Improving Current Initiative of Broadening Network with
Manufacturers
3.2.2 Implementing New Initiatives
CONCLUSION
REFERENCE
INTERNSHIP SUMMARY

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 ABBREVIATION LIST

Abbreviation Meaning

MSMEs Micro, small, and medium-sized

enterprises

B2C Business-to-customer

B2B Business-to-Business

FBA Fulfillment By Amazon

SMBs Small and medium businesses

GMS Gross Merchant Sales

GDP Gross Domestic Product

iDEA The Vietnam E-commerce and

Digital Economy Agency

SPN Service Provider Network

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 LIST OF TABLES & FIGURES

Figure 1.1 Organizational Structure of Amazon Global Selling 11

Figure 2.1 Traditional Supply Chain 25

Figure 2.2 Supply Chain Revolutionized by Amazon 25

Table 1.1 Description of Amazon’s Global Selling Departments 19

Table 3.1 New Initiatives Suggested for Amazon Amazon Global

Selling Vietnam to Improve Seller Recruitment Strategy 23

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 INTRODUCTION

Export plays a crucial role in Vietnam's economy and has been a driving force
behind the country's impressive economic growth over the past few decades. Vietnam
has evolved from an agrarian-based economy to a thriving export-oriented industrial
one. The export sector contributes significantly to the country's GDP, foreign exchange
earnings, and employment generation. Key export industries in Vietnam include
manufacturing (electronics, textiles, garments, footwear, machinery), agriculture (rice,
coffee, seafood), and services (tourism, software development, business process
outsourcing).

Meanwhile, from a different story, the e-commerce trend is transforming

businesses globally and in Vietnam. This transformation is fueled by increasing
consumer preference for online shopping, leading businesses to adapt by establishing a
strong online presence and leveraging digital marketing to attract customers. The trend
in Vietnam is specifically driven by high internet penetration and smartphone usage,
prompting businesses to invest in logistics and personalized customer experiences.
Despite intense competition, embracing e-commerce as a strategic focus enables
businesses to thrive in this dynamic digital landscape.

Combining these concepts leads to the rise of cross-border e-commerce,

revolutionizing how Vietnamese export businesses, especially micro, small, and
medium-sized enterprises (MSMEs), engage with the global market. This model allows
Vietnamese manufacturers and brands to directly reach international customers with a
business-to-customer (B2C) process. Embracing this digital transformation enhances
brand recognition, and credibility, and provides valuable market insights, empowering
Vietnamese exporters to make data-driven decisions and adapt to the dynamic global
landscape. In essence, cross-border e-commerce offers a cost-effective and accessible
pathway for Vietnamese export businesses to unlock new and sustainable growth
opportunities.

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 Drawing from my 3-month internship at Amazon Global Selling, I have
contributed to the growth of the cross-border e-commerce industry in Vietnam through
my role in the Business Development team. The knowledge gained from specialization
courses during my third year at Foreign Trade University greatly complemented my
hands-on experience, allowing me to quickly apply essential skills and knowledge. As
Amazon Global Selling is spreading the cross-border e-commerce model in Vietnam
by attracting more Vietnamese businesses to sell through Amazon's global
marketplaces, I've chosen to focus on the topic "Analyzing Amazon Global Selling’s
Strategy to Recruit Vietnamese Sellers for Amazon’s Global Marketplaces from 2020
to 2023."

This report is structured into three chapters:

Chapter 01: Overview of Amazon Global Selling in Vietnam

Chapter 02: Analysis of Amazon Global Selling’s Strategy to Recruit Vietnamese

Sellers for Amazon’s Global Marketplaces from 2020 to 2023

Chapter 03: Recommendations for Amazon Global Selling to Improve Seller

Recruitment Strategy in Vietnam

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 CHAP 01: OVERVIEW OF AMAZON GLOBAL SELLING IN VIETNAM

1.1 Establishment & Expansion

Amazon is the world’s largest e-commerce marketplace run by Amazon.com,

Inc., an American multinational technology company based in Seattle, Washington.
Amazon's success lies in its customer-centric approach and diverse product offerings.
As the "Earth's most customer-centric company," Amazon provides a wide range of
services based on customer needs. Its focus on diversity attracts sellers, leading to an
extensive selection of products. This selection serves as the core of Amazon's flywheel
effect, driving customer satisfaction and loyalty, attracting more sellers, and fueling
continuous growth.

In the early 2000s, Amazon recognized the potential for global expansion and
took its first step by launching its inaugural international marketplace in 2000 -
Amazon.co.uk - which served customers in the United Kingdom and Ireland. This
marked the beginning of Amazon's international presence and paved the way for its
expansion into other countries. Over the years, Amazon has successfully launched
additional marketplaces in various countries and regions, including Germany, France,
Canada, Japan, China, Italy, Spain, Australia, and many more.

As the number of international customers grew, Amazon identified an opportunity

to empower sellers from across the globe to access these new markets. To achieve this,
Amazon Global Selling was established as a dedicated business unit. Amazon Global
Selling assists businesses from anywhere in the world in launching global operations,
reaching Amazon customers worldwide, and building international brands. With
Amazon Global Selling, sellers of different types and sizes can directly reach over 300
million active customer accounts in more than 200 countries. This initiative also aligns
perfectly with Amazon's core principles of offering a wide selection and prioritizing
customer satisfaction.

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 In 2019, Amazon made its entry into Vietnam by establishing Amazon Global
Selling Vietnam and creating a dedicated team in Ho Chi Minh City. Mr. Tran Xuan
Thuy, the former Vietnam Country Director of Alibaba, was selected by Amazon to
lead the team in Vietnam. To further accelerate their business growth, Amazon also
brought in Mr. Gijae Seong, a Korean businessman with experience at Google and as
the Director of Amazon Global Singapore. In March 2021, Amazon Global Selling
Vietnam expanded its operations by establishing a specialized team in Hanoi and
appointing Mr. Trinh Khac Toan as the North Regional Director, Mr. Tran Xuan Thuy
as the Southern Regional Director, and Mr. Gijae Seong as the Country Director.

Website: https://sell.amazon.vn/

1.2 Organizational Structure

In Asia, Amazon Global Selling operates in four countries: Vietnam, Taiwan,

Korea, and China, forming a collective entity known as Asia Global Selling. Each team
in these countries follows a similar organizational structure that is specifically designed
to bolster the global selling business, a crucial factor for Amazon's overall growth and
success. The company places a strong emphasis on providing exceptional services to
sellers and their brands as a key strategy. To achieve this goal, Amazon dedicates
significant efforts to supporting sellers with efficient tools, resources, and logistics
through various team functions. This comprehensive support ensures that sellers can
seamlessly reach customers all around the world. The ultimate objective is to enhance
the shopping experience for customers in the target markets in the long term. Amazon
aims to achieve this by offering a vast selection of products, maintaining competitive
pricing, and providing unparalleled convenience, solidifying its position as the premier
global destination for online shopping.

Outlined below is a simplified version of the organizational structure of Amazon

Global Selling in Vietnam and Asia. Please note that this simplified version is provided
for a better understanding, as the original structure may be more complex in practice.

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 Figure 1.1 Organizational Structure of Amazon Global Selling

Source: Learning & Development Department, Amazon Global Selling

Illustrated below is a detailed description of each department’s core functions.

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 Table 1.1 Description of Amazon’s Global Selling Departments

Department Functions
The team is structured into two distinct functions: Self-service
Registration (SSR) and Direct Sales Recruitment (DSR). SSR
serves as a vast and automated channel, empowering sellers to
easily register for global selling on their terms. On the other
hand, DSR operates as an exclusive, invitation-only system,
New Seller wherein dedicated sales representatives extend invitations to
Recruitment (NSR) potential sellers, encouraging them to join the platform. For
new sellers, their main goal is to get familiar with the market
and its dynamics. As a result, the team's core responsibility is to
provide essential support, such as guiding them in selecting the
right products for their target audience and helping them
through the process of listing these products online.
The team focuses on nurturing and supporting sellers who have
been in the marketplace for over a year, and who are now more
inclined towards driving growth and achieving top rankings
Existing Seller
within their respective categories, often utilizing various tools
Management (ESM)
to aid them in this endeavor. To cater to the diverse needs of
existing sellers, the team is divided into two functions providing
two different account management services - free and paid.
The team’s main responsibilities are Branding (offline and
online), Strategic Partnership (including City Government
Marketing Development), Seller Education (including Live Broadcast,
Paid Education, and Seller University), and Employee
Education (Leaning & Development).

The team plays a crucial role in driving the company's success

by bridging the gap between business needs and new product
development, focusing on researching and developing new
products, both locally and in collaboration with the global
Product Management
product team to continuously update and enhance services and
tools for sellers, ensuring they have the best resources to thrive
in the marketplace. Logistics: We streamline and optimize
logistics operations to ensure efficient and timely product
delivery, enhancing the overall customer experience. The

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 current products managed are Logistic, Private Brand (PB) -
sourcing products from third-party manufacturers, providing
unique and high-quality offerings under the Amazon brand,
Brand Protection & Success (BPS) - safeguarding sellers’
intellectual property rights and fostering successful
international growth, and Seller Compliance - helping sellers
meet varying compliance requirements across countries
efficiently and cost-effectively.
The team is the core of Amazon Global Selling’s data division
AB3 which provides business intelligence, data analysis, and sales
operation support.

1.3 Business Activities

Amazon Global Selling has established a robust presence in Vietnam, enabling

local businesses to access international markets through its platform. Vietnamese
sellers can register on Amazon and list their products, accompanied by detailed
descriptions, images, and pricing information. Amazon offers fulfillment options,
allowing sellers to handle their order fulfillment or utilize Amazon's Fulfillment by
Amazon (FBA) service, in which Amazon handles product shipping, customer
services, and returns on the seller’s behalf. The process of FBA is illustrated below:

(1) Seller procures products → (2) Seller ships products to Amazon → (3) Amazon
stores products → (4) Customer orders online → (5) Amazon receives order →
(6) Customer receives an order confirmation → (7) Amazon ships the order →
(8) Customer receives the package

In this process, step (2) still requires some effort from the seller, as they are
responsible for delivering the products to Amazon's fulfillment centers internationally.
Once Amazon receives the products, they take charge of the fulfillment process.
Therefore, the Logistic team of the Product Management Department, mentioned in the
Organizational Structure above, plays a crucial role in designing an efficient delivery

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workflow to ensure efficiency and cost-effectiveness for the seller. This workflow may
include optimizing product stocking in containers for ocean shipping, consolidating
products of various sizes into a single container to maximize space utilization, or
grouping products from different sellers to share delivery costs.

To further support sellers, Amazon Global Selling partners with a network of

service providers in Vietnam. These providers include e-commerce consultants,
shipping and logistics companies, translation and localization services, tax and
compliance advisors, branding and marketing agencies, as well as product photography
and content creation specialists. Through this network, Vietnamese sellers can receive
guidance on expanding their businesses globally, ensuring compliance with
international regulations, optimizing their product listings, and creating compelling
marketing campaigns. By tapping into Amazon Global Selling's services and
leveraging the service provider network, businesses in Vietnam can effectively reach
and cater to a diverse international customer base, fostering growth and success in the
global marketplace.

Amazon Global Selling has also published more than 50 Seller University courses
in Vietnamese, attracting hundreds of thousands of views, and organized more than 70
events, webinars, and live streams to provide sellers with information and knowledge
about policies, products, inventory, pricing, branding, etc.

1.4 Business Results from 2020 to 2022

As previously mentioned, Amazon Global Selling in Vietnam operates with the

primary goal of expanding the marketplace's product offerings rather than generating
direct revenue for the Amazon platform. Its focus lies in recruiting and onboarding
more local sellers from Vietnam, thereby increasing the selection of products available
to customers. Consequently, the business outcomes primarily revolve around the
number of sellers and products listed by Vietnamese sellers on Amazon's marketplace.

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 There are many examples of SMBs Vietnamese Small and Medium Businesses
(SMBs) achieving great export success by selling on Amazon such as Minh Long
Ceramics, Royal Helmet, Longevity Sea Grapes, Lafooco, etc. The top categories of
Vietnam-based SMBs with top-selling in Amazon’s stores are Home, Kitchen, Home
Improvement, Apparel, and Health care & Personal Care.

From September 1, 2020, to August 31, 2021:

● Vietnamese sellers sold nearly 7.2 million products on Amazon stores,

averaging 14 products every minute.
● The number of products sold by Vietnamese SMBs on Amazon’s stores across
the world has increased by 34% year-over-year.
● The number of Vietnamese SMBs that surpassed $100,000 in sales on Amazon
stores grew by nearly 18% year-over-year.
● The number of Vietnamese SMBs that surpassed $500,000 in sales grew by
more than 53% year-over-year.
● The number of Vietnamese SMBs that surpassed $1 million in sales grew by
more than 40% year-over-year.
● Thousands of Vietnamese sellers took advantage of Fulfillment by Amazon, and
their FBA sales grew by nearly 50%.

In 2022:

● Vietnamese selling partners on Amazon increased by over 80% year-over-year,

with the majority being SMEs. They sold nearly 10 million products worldwide,
resulting in an increase of over 35% and their Amazon export sales value grew
by over 45% year-over-year.
● The number of selling partners in Vietnam who achieved sales of over $500,000
on Amazon rose by 60% year-to-year.

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 ● Vietnamese SMEs also significantly embraced Amazon's "Fulfillment by
Amazon" (FBA) service, with over a 90% increase, and their sales through FBA
grew by more than 50%.

Some successful Vietnamese brands on Amazon marketplaces namely:

● Sunhouse (Home & Kitchen Category)

● Minh Long Ceramics - Gom Su Minh Long (Home & Kitchen Category)
● LAFOOCO (Grocery & Gourmet Food Category)
● ChicnChill (Home & Kitchen Category)
● AnEco (Health & Household Category)
● HMG Popup Paper (Office Products Category)
● Royal Helmet (Automotive Category)
● Truong Tho Seagrapes - Rong Nho Truong Tho (Grocery & Gourmet Food
Category)

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CHAP 02: ANALYSIS OF AMAZON’S GLOBAL SELLING’S STRATEGY TO
RECRUIT VIETNAMESE SELLERS FOR AMAZON’S GLOBAL
MARKETPLACES FROM 2020 TO 2023

2.1 The Seller Recruitment Strategy at Global Selling Vietnam from 2020 to
2021 - Emphasizing Seller Quantity

2.1.1 Context

Despite Amazon Global Selling officially launching in Vietnam in 2019, even

before that, there were already a few thousand Vietnamese sellers operating on the
platform. These early adopters employed various business models, including
dropshipping, reselling, and print-on-demand.

Dropshipping involves sellers not keeping inventory, instead, they purchase

products from third-party suppliers upon receiving customer orders, which are then
shipped directly to customers. Reselling, on the other hand, entails sellers buying
products at wholesale prices and selling them to customers at retail prices to make a
profit. Resellers handle inventory, packaging, and shipping. Print-on-demand sellers
collaborate with printing companies to produce products like apparel, accessories, and
home decor only when a customer places an order. This enables easy customization
and a wide array of unique designs.

Remarkably, print-on-demand sellers contributed to nearly 50% of the total Gross

Merchant Sales (GMS) of Vietnamese sellers on Amazon in 2018, proving to be the
most effective model during then. In summary, these sellers are mainly individuals
with no or limited manufacturing capability, but are young and tech-savvy, exploring a
new approach to Making Money Online (MMO).

Prior to Amazon's launch in Vietnam, the most significant challenge faced by

these sellers was the lack of local support from the Amazon team. When encountering
issues, they had to rely on the general support contact, which sometimes redirected

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them to the support team even on the other side of the globe. This resulted in long
response times and answers that often did not directly address their questions. One of
the main reasons for this was the support team's limited understanding of the local
context in Vietnam, hindering their ability to provide high-quality and relevant
responses to the sellers' inquiries.

2.1.2 Strategy Objective

During the early days of Amazon Global Selling in Vietnam, the primary goal
was to establish the brand's presence and foster trust among the target audience -
Vietnamese sellers. The focus was on recruiting sellers who were highly prepared to
sell on Amazon or those who quickly adapted to the platform, enabling swift launches
and the rapid expansion of the seller base.

To achieve this, the Amazon team primarily concentrated on consulting sellers to

offer products in categories like print-on-demand, handicrafts, home decor, and home
accessories. These product categories were easier for sellers to source, allowing them
to swiftly launch their businesses on Amazon.

2.1.2.1 Growing Existing Sellers

Upon Amazon Global Selling's entry into Vietnam, they prioritized providing
dedicated support to the early adopters, or existing sellers, to aid in their business
growth and increase their GMS on the Amazon platform. These experienced sellers
already understood the platform's mechanics and revenue potential, enabling them to
quickly expand their businesses and achieve success. Their success stories served as
powerful examples, inspiring new adopters to feel encouraged and motivated to begin
selling on Amazon as well.

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 2.1.2.2 Recruiting and Educating New Sellers

Apart from the early adopters mentioned earlier, many sellers in Vietnam were
not aware of the opportunities available to sell on the international Amazon platform.
Additionally, the idea of "cross-border e-commerce" seemed unfamiliar to them, as
they were more accustomed to the concepts of export or e-commerce individually.
Therefore, Amazon Global Selling played a crucial role during this period in educating
the market about this promising business model. Their second focus was on building
trust with sellers by showcasing the benefits and potential of cross-border e-commerce.
Ultimately, their efforts aimed to recruit these sellers to join the platform and tap into
the global marketplace.

2.1.3 Strategy Implementation

Table 2.1 Activity Implementation of Amazon Global Selling’s 2020-2021 Seller

Recruitment Strategy

Type Activity

One Village One Product Exhibition: Displaying high-quality

"Made in Vietnam" products, including coffee, tea, textiles,
handicrafts, healthcare services, beauty products, and traditional
cultural items like "ao dai," conical hats, and ethnic musical
Exhibition and instruments.
Conference
Virtual Cross-border e-Commerce Conference: Showcasing
Amazon's efforts to connect local brands with global customers,
providing knowledge, tools, services, and support to boost the
success of Vietnamese sales partners.

Amazon Advertising
Introduction of Amazon Advertising: Offering self-service

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 solutions like Sponsored Products, Sponsored Brands,
and Promotion Sponsored Display (beta), and Stores to help sellers find,
attract, and engage customers.

MoU with Ministry of Industry and Trade (MoIT).

MoU with the Vietnam E-commerce and Digital Economy

Agency (iDEA).
Strategic
Partnerships and Cooperation with T&T Group: Supporting Vietnamese

Cooperations enterprises in online exports.

Partnerships with local SPNs: Covering payment, training,

international shipping, branding, storage, account management,
taxes, and compliance.

50 Seller University courses in Vietnamese: Training on import

regulations, product quality requirements, and foreign industrial
Training and standards.
Education
Conducting 70+ events, webinars, and live broadcast training
programs.

Specialized account manager teams in Ho Chi Minh City and

Hanoi to provide free 1:1 consulting.

Local Support and

Sales Information Center and Seller Support department in
Services
Vietnamese.

Dedicated logistic support team for FBA sellers.

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 Among the various initiatives introduced by Amazon Global Selling Vietnam,
Local Support and Services stand out as the most valuable for sellers. In the past,
Vietnamese sellers encountered various challenges as the support team at Amazon's
headquarters in Seattle, USA, had difficulty understanding Vietnamese culture, and
vice versa. Despite sellers translating their documents into English, they were still
required to provide numerous different documents. Consequently, many Vietnamese
sellers who were eager to register and export on Amazon faced frustration and
eventually gave up.

However, the situation has significantly improved. Amazon Global Selling

Vietnam now has a dedicated Vietnamese support team, along with a convenient video
call service, available to answer users' questions anytime, anywhere. Moreover, many
documents have been translated into Vietnamese, making the account registration
process faster and less complex than before. As a result, the participation rate of cross-
border sales through the Amazon platform has substantially increased.

2.1.4 Evaluation of The Strategy

2.1.4.1 Strengths

This strategy is carefully tailored to the Vietnamese market, taking into account
the specific needs and challenges of sellers in the region. It displays a customer-centric
approach by understanding and meeting the needs of sellers in Vietnam, including
language and cultural differences, thereby enhancing the overall seller experience. By
addressing clear objectives of growing existing sellers and recruiting and educating
new sellers, the strategy demonstrates a profound understanding of the market
dynamics and the needs of potential sellers in Vietnam.

The strategy's emphasis on education, support, and partnerships sets a strong

foundation for sustainable growth in Vietnam. It showcases Amazon's dedication to
long-term success in the region, making it a comprehensive approach for penetrating
and thriving in the Vietnamese market.

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 2.1.4.2 Limitations

During this period, the primary products offered by Vietnamese sellers on

Amazon were still print-on-demand items, resulting in a lack of product diversification
and an increased risk of market saturation. As customers' interest in print-on-demand
products declined, the number of sellers in this category also decreased. Additionally, a
significant portion of sellers were resellers without manufacturing capabilities, leading
to difficulties in maintaining sufficient stock levels to fulfill customer orders. These
factors collectively contradicted Amazon's customer-centric and sustainability
principles.

Despite significant efforts to develop seller services, the revenue generated from
the Amazon channel remained relatively small compared to the substantial figure of
US$ 202.86 billion in total export turnover during the first nine months of 2020,
indicating room for growth and improvement. Although the seller base expanded, most
businesses remained small-scale, resulting in low GMS.

2.2 The Seller Recruitment Strategy at Global Selling Vietnam from 2022 to
2023 - Emphasizing Seller Quality

2.1.1 Context

In these days, international e-commerce was still in its early stages for
Vietnamese businesses, and Amazon's seller base in Vietnam was still moderate. The
Facebook group of Vietnamese Amazon sellers had increased to 100,000 participants,
but it mostly comprised individuals. The Amazon team found it challenging to make
strategic launches with these individual sellers, which was crucial for creating and
spreading successful selling stories. These individuals were generally young, agile, and
tech-savvy, but they often faced limitations in making significant investments to
establish sustainable businesses on Amazon. Instead, their approach was centered

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around testing the waters with smaller investments and waiting for success before
scaling up.

Despite these challenges, the team recognized that Vietnam also had a strong
capability for manufacturing with diverse types of products, huge capacity, and high
creativity. However, the owners of the manufacturers, who were mostly older people,
were not quick to embrace the concept of selling on Amazon or leveraging e-commerce
for exporting. They tended to prefer sticking to the traditional method of exporting to
businesses, keeping a business-to-business (B2B) model rather than transitioning to the
business-to-customer (B2C) model required to make their brand and products available
on the Amazon marketplace.

2.1.2 Strategy Objective

Looking ahead, Amazon Global Selling has shifted its focus towards launching a
substantial number of successful sellers, prioritizing quality over quantity. This
strategic approach serves two key purposes. Firstly, it contributes to an increase in the
total GMS, which stands as a crucial Key Performance Indicator (KPI) for the Vietnam
team. Secondly, it serves as a powerful tool for corporate branding, effectively
showcasing the opportunities available for sellers on the Amazon platform, thus
creating a ripple effect that attracts more sellers to join the Amazon marketplace
independently, rather than the Amazon team having to reach out to every prospective
seller, aligning with Amazon's principle of ensuring frugality.

To achieve this objective, the Amazon team is dedicating efforts to converting

large-scale sellers who demonstrate high readiness and a willingness to make
significant investments in establishing their businesses on Amazon. Simultaneously,
the team is committed to re-educating the market about the importance of sustainable
business practices and making prudent investments right from the start of their selling
journey.

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 Furthermore, Amazon places a paramount emphasis on promoting the immense
value of branded products. The company firmly believes that branded products hold the
key to crafting successful stories about "Made-in-Vietnam products in the global
marketplace." This conviction stems from the understanding that an essential
competitive advantage when entering the international market lies in capturing the
preferences and tastes of international customers. Businesses can achieve this by
creating compelling brand stories for their products.

2.1.2.1 Recruiting Manufacturers and Brand Owners

Amazon Global Selling identifies potential large-scale sellers as two main groups:
brand owners and manufacturers willing to engage in B2C transactions. Brand owners
are companies with legal ownership and control over a specific brand or trademark.
Their well-structured business approach allows them to consistently offer products to
Amazon's buyers, ensuring sustainability and a steady supply. Manufacturers, on the
other hand, must be willing to shift from their traditional B2B model to the B2C model
required for selling on Amazon. This transition involves investing in creating dedicated
e-commerce or export teams to conduct research and find ways to adapt their operation
to the B2C model.

When recruiting these sellers, the Amazon team takes on the responsibility of
educating them about the importance of investing in product research and development
(R&D) to align with the international market's standards. This includes improvements
in packaging, product photos, product descriptions, and other aspects that contribute to
enhancing the success rate of their offerings.

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 Figure 2.1 Traditional Supply Chain

Figure 2.2 Supply Chain Revolutionized by Amazon

2.1.2.2 Connecting Sellers with Manufacturers

Moreover, the Amazon team has uncovered an additional potential for

manufacturers beyond selling their products directly on the platform - the opportunity
to become suppliers as well. For those manufacturers who are open to both selling and
supplying their products, as well as for those who initially prefer to maintain their B2B
operations, Amazon has devised a strategy to connect them with both existing and new
sellers.

Existing sellers who have been on the marketplace for approximately two years
often express interest in expanding their business further. In this regard, Amazon's
consultants are well-prepared to propose various other verticals and offerings to these
customers. Amazon provides them with a carefully curated list of selected
manufacturers for sourcing their products, facilitating their growth and diversification.

For new sellers, although they may have the financial resources and recognize the
potential of selling on Amazon, they may face challenges in determining the ideal
products and identifying suitable sourcing options. To address this, Amazon ensures

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that a comprehensive list of manufacturers is readily available to assist these sellers in
kickstarting their ventures successfully.

2.1.3 Strategy Implementation

Overall, in the 2022-2023 period, Amazon Global Selling has continued its
strategic initiatives from the previous years while incorporating more creativity and
better market responsiveness.

Notably, the partnership between Amazon Global Selling and iDEA has
strengthened, leading to the organization of the CBEC Conference 2023 in Vietnam.
This conference aimed to raise awareness about cross-border e-commerce among local
enterprises and provided valuable insights from industry experts and service providers,
empowering businesses to accelerate their international growth. The event was a
significant milestone, attracting government representatives, industry associations, 14
service providers, and successful sellers from Asia, making it the first large-scale
independent CBEC Conference in Vietnam.

The Amazon team has recently undergone a restructuring process, forming

specialized teams for each product category, equipped with niche expertise. This
strategic move ensures that Vietnamese sellers receive effective and personalized
support, tailored to their specific product verticals. With these resources, Amazon
Global Selling Vietnam has introduced the launch pad program, aimed at supporting
domestic businesses in their journey to start selling on Amazon or venture into cross-
border e-commerce. Through this program, sellers receive comprehensive guidance
and suggestions, enabling them to make the most of the critical initial 90 days. The
launch plan offers a step-by-step approach, covering four key stages of selling on
Amazon:

● Stage 1: Learning the cross-border e-commerce business model and

understanding how to effectively sell on Amazon.

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 ● Stage 2: Conducting research to select the right product industry and target
market groups, while also learning about logistics and payment solutions.
Sellers can start registering accounts and establishing brands if necessary.
● Stage 3: Initiating sales, fulfilling orders, and building customer awareness for
their products and brands. This involves leveraging promotions, advertising, and
branding strategies to boost visibility and reach.
● Stage 4: Optimizing business performance through effective inventory
management, maintaining good account health, and making strategic use of
promotions and advertising campaigns. Sellers are encouraged to focus on
building international brands for long-term success.

Leveraging Fulfillment by Amazon (FBA) remains a crucial strategy for global

expansion. With Amazon's extensive logistics network and world-class customer
service, FBA enables partners to conduct cost-effective cross-border e-commerce
operations, ensuring sufficient stock and reaching out to Prime customers to expand
their customer base. Additionally, the Amazon Seller Export and Delivery (Amazon
SEND) solution has been introduced in Vietnam to enhance cross-border logistics and
supply chain operations, offering a comprehensive inbound logistics solution in
collaboration with third-party carrier partners.

The xConnect initiative has played a vital role in addressing Vietnamese seller
communities' pain points by facilitating connections with manufacturers. By fostering
an environment for sellers to enhance their readiness and capabilities to sell on
Amazon, xConnect has encouraged learning from other Key Opinion Leaders (KOLs)
sellers, securing quality product supply from suppliers, and accessing trusted support in
logistics, payment, and advertising solutions from service provider networks. The
xConnect events held in collaboration with FBA Freedom (the Seller community) and
Payoneer (the SPN in Payment) saw impressive results, with over 400 attendees,
extracting 140 leads, 28 supplier exhibition booths, and 423 product quotations

26
exchanged during the events. This resulted in 12 successful matches in both regions
and 5 new launches from the connections.

2.1.4 Evaluation of The Strategy

2.1.4.1 Strengths

During the implementation of Amazon's 2022-2023 strategy, a significant number

of Vietnamese businesses enthusiastically embraced FBA, leading to an impressive
increase of over 90% in FBA usage compared to the previous period. This surge in
FBA adoption also resulted in a substantial boost in sales revenue, with an impressive
year-over-year increase of over 50%. These remarkable figures are a clear testament to
the profound impact of Amazon Global Selling Vietnam's strategic initiatives, which
have effectively transformed the mindset of Vietnamese sellers and propelled their
success in the international e-commerce market. Sellers now recognize that selling
through Amazon is not just about listing products online like they usually did on local
e-commerce platforms (Shopee, Lazada, Tiki, etc.) but involves adopting a completely
new business model that requires proper investment and commitment.

As part of the strategy, Amazon recognized and addressed the pain points of both
existing and new sellers in the cross-border e-commerce business. Sellers required
comprehensive consulting activities from Amazon consultants, such as product
offering recommendations and logistic optimization, going beyond basic account
support. This approach ensured that sellers received the necessary guidance and
expertise to navigate the complexities of the new business model successfully.

The success of these initiatives has laid a strong foundation for the introduction of
many new ideas and successful pilot programs. It has set the stage for continued
growth and success in the years to come, showcasing Amazon Global Selling
Vietnam's commitment to driving positive outcomes for Vietnamese businesses and
solidifying their presence in the global marketplace.

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 2.1.4.2 Limitations

The limitations faced in the connecting sellers with manufacturers initiative,

particularly during the xConnect event, highlight some challenges in its execution. The
event focused primarily on handicraft and furniture categories, limiting the diversity of
product offerings and potentially excluding sellers from other industries. Additionally,
the lack of sufficient follow-up actions after the events, such as comprehensive
coverage to capture sellers' and suppliers' awareness and the absence of a well-
maintained database for frequent connections, hindered the potential for continued
success and partnerships.

The poor tracking method to measure successful business matches also poses a
challenge in evaluating the effectiveness of the initiative. Without an efficient tracking
system, it becomes difficult to assess the true impact and outcomes of the connections
made during the events, making it challenging to refine and optimize future strategies.

Furthermore, approaching suppliers proved to be challenging due to the lack of a

comprehensive database or connections. Some suppliers remained hesitant to
participate in the events, mainly because of their limited awareness of the cross-border
e-commerce working model, indicating the need for improved communication and
education efforts.

Moreover, the issue of high Minimum Order Quantity (MOQ) requirements from
traditional manufacturers presented significant difficulties for sellers who were new to
selling in these product verticals. Sellers in the initial stages of their ventures often
preferred to avoid sourcing high volumes of products initially, creating potential
barriers to establishing mutually beneficial connections with manufacturers.

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 CHAPTER 03: RECOMMENDATIONS FOR AMAZON GLOBAL SELLING
TO IMPROVE SELLER RECRUITMENT STRATEGY IN VIETNAM

3.1 Future Orientation of Amazon Global Selling Vietnam

Amazon Global Selling has revealed their five key strategic focuses for the
coming years, aiming to foster Vietnam's e-commerce market and boost online exports
for the nation.

Firstly, they plan to raise awareness and preparedness for cross-border e-

commerce in Vietnam by fostering stronger collaboration with government agencies.
They will also provide increased training opportunities for domestic businesses to
thrive in the realm of cross-border trade.

Secondly, Amazon aims to build a global brand for "Made-in-Vietnam" products,

encouraging local manufacturers and startup entrepreneurs to collaborate with them in
crafting a global identity for Vietnamese products. They emphasize the importance of
safeguarding brands through the Amazon Brand Registry and using advertising and
branding tools effectively.

The third strategic focus is to support sales partners in going global through
advanced logistics solutions. FBA will continue to play a crucial role, offering a hassle-
free international logistics network for sales partners. Additionally, Amazon's
Warehousing & Distribution service will help minimize storage and distribution costs
for sellers. They also plan to expand partnerships with reputable shipping companies,
providing more logistics options by both sea and air.

In the fourth aspect, Amazon is committed to enhancing the sales partner's

experience at every stage. They will streamline the registration process, optimize the
account verification procedure, and offer more training content in Vietnamese.
Moreover, they aim to improve communication channels in the local language to
ensure better engagement with sellers.

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 Lastly, Amazon Global Selling Vietnam will actively contribute to the sustainable
development of the Vietnamese entrepreneurial community. They plan to introduce
more activities and programs that connect sellers with manufacturers, fostering
collaborative efforts to promote business activities and local business success.

With these strategic focuses, Amazon is poised to make a significant impact on

Vietnam's e-commerce landscape, facilitating the growth of Vietnamese businesses in
the international market.

3.2 Recommendations for Amazon Global Selling Vietnam to Improve Seller

Recruitment Strategy

3.2.1 Improving Current Initiative of Broadening Network with

Manufacturers

Throughout Amazon Global Selling's key strategic initiatives, I strongly believe

that expanding the network with manufacturers, both local and foreign direct
investment (FDI), should remain the top priority, requiring continuous review and
innovation. A broad and close network of manufacturers holds immense long-term
value for Amazon, serving as crucial resources for product selection, seller quality and
quantity, product sourcing, and Amazon's branding objectives.

In addition to the ongoing activities, I recommend focusing on the following areas

to address the current challenges and broaden the outreach to a larger scale of
manufacturers:

● Supplier Education Program: Launch a dedicated supplier education program

offering comprehensive information about cross-border e-commerce working
models, the benefits of selling on Amazon, and best practices for successful
collaborations with sellers. This program can include webinars, video tutorials,
and informative guides, empowering manufacturers with knowledge and
confidence for effective engagement on the platform.

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 ● MOQ Negotiation Support: Provide dedicated support to new sellers in
negotiating Minimum Order Quantity (MOQ) with manufacturers. Amazon
Global Selling Vietnam can act as an intermediary, facilitating discussions and
establishing flexible arrangements that encourage manufacturers to collaborate
with new sellers. This approach eases MOQ restrictions, fostering successful
partnerships.

● Incentives for Manufacturer Participation: Introduce enticing incentives for

manufacturers to participate in networking events like xConnect and collaborate
with new sellers. Offer benefits such as priority access to Amazon's advertising
tools, promotional support, and enhanced visibility on the platform. Incentives
will motivate manufacturers to actively engage with sellers and cultivate fruitful
partnerships.

● Feedback Mechanism: Implement a robust feedback mechanism after each

manufacturer networking event, gathering input from both sellers and
manufacturers. This valuable feedback will enable continuous improvement of
future event structures, content, and overall experiences, catering to the needs
and expectations of all participants.

3.2.2 Implementing New Initiatives

In addition to Amazon’s ongoing efforts to improve existing initiatives, it is

equally crucial to explore new opportunities and ideas. At Amazon, their unique
culture encourages a spirit of openness to new initiatives, regardless of their perceived
success rate, and provides a budget for their implementation. These initiatives are
treated as pilots, and Amazonians actively encourage out-of-the-box thinking. If a pilot
does not yield the desired results within 3-5 years, it is gracefully removed without any
negative impact on the team.

Building on this culture of innovation, I propose the following activities:

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Table 3.1 New Initiatives Suggested for Amazon Amazon Global Selling Vietnam
to Improve Seller Recruitment Strategy

Priority Objective Activity

Partnerships with Universities and Entrepreneurship Hubs

E-commerce Workshops: Organize

interactive workshops in collaboration with
universities and entrepreneurship hubs to
educate students and aspiring entrepreneurs
about the fundamentals of e-commerce,
online marketplaces, and the benefits of
selling on Amazon Global Selling. These
workshops can cover topics such as product
selection, logistics, marketing, and
Allowing Amazon to tap into
customer service.
a pool of young, ambitious
talent and aspiring Innovation Competitions: Host innovation
High entrepreneurs who may be competitions that challenge students to
eager to explore develop innovative products or business
opportunities in e-commerce models suitable for global selling on
and global selling Amazon. Provide mentoring and guidance
from Amazon experts throughout the
competition.

Amazon Hackathons: Organize hackathons

with specific challenges related to e-
commerce and global selling. Encourage
participants to come up with creative
solutions to enhance the selling experience
on Amazon's platform.

Amazon Seller Ambassador Program

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 Ambassador Selection: Identify successful
Vietnamese sellers who have achieved
significant milestones on Amazon and
demonstrate a commitment to supporting
the seller community. Invite them to
become official Amazon Seller
Ambassadors.
Leveraging the expertise and
success of established sellers Ambassador Training: Conduct training
to support and mentor new sessions for selected ambassadors to equip
Medium
sellers, fostering a sense of them with communication skills,
community and knowledge- mentorship techniques, and knowledge
sharing within the platform about Amazon's policies and procedures.

Monthly Webinars: Organize monthly

webinars led by Amazon Seller
Ambassadors, where they share their
success stories, best practices, and valuable
tips for selling on Amazon. These webinars
can be open to the entire seller community.

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 CONCLUSION

In the dynamic landscape of cross-border e-commerce, Amazon Global Selling

has emerged as a strategic player, poised to unlock immense opportunities for
Vietnamese businesses on the global stage. Over the years, from 2020 to 2023,
Amazon Global Selling has showcased a robust and innovative strategy to recruit
Vietnamese sellers for Amazon's global marketplaces. Throughout this period, Amazon
Global Selling has successfully implemented various measures to raise awareness and
readiness for cross-border e-commerce, encourage international branding for Made-in-
Vietnam goods, support sales partners to go global with advanced logistics solutions,
enhance the sales partner's experience, and contribute to the sustainable development
of the Vietnamese business community. Despite the success, there have been
challenges in certain areas, particularly in the execution of the xConnect events and
connecting with manufacturers. However, Amazon Global Selling has shown a
willingness to innovate and address these challenges, which holds the potential to
further enhance the effectiveness of the manufacturer networking initiatives.

I would like to express my heartfelt gratitude to Mrs. Duong Thi Hoai Nhung for
her unwavering guidance and support throughout my journey of completing the mid-
term internship report. Additionally, I extend my thanks to Mr. Toan Trinh, Regional
Manager of Amazon Global Selling Vietnam, Ms. Natalie Ngo, Manager of the
Business Development Department and my supervisor, Ms. Amber Tran, my buddy,
and Ms. Ngoc Anh Nguyen, my mentor, for providing me with an enriching and
nurturing environment at Amazon Global Selling. During my 3-month internship there,
I had the opportunity to expand my knowledge in the cross-border e-commerce
industry and develop expertise in Sales and Business Development. The valuable
lessons and experiences I gained have greatly contributed to my personal and
professional growth, paving the way for my future career path.

34
 REFERENCE

(No date) A guide to international expansion for e-commerce businesses. Available at:
https://www.ogoship.com/guide-to-international-expansion-for-e-commerce-
businesses (Accessed: 25 July 2023).

Ngoc Lan (2023) Cross-border e-commerce a key export opportunity, Nhịp sống kinh
tế Việt Nam & Thế giới. Available at: https://vneconomy.vn/cross-border-e-
commerce-a-key-export-opportunity.htm (Accessed: 05 July 2023).

Rajagopal, A. (2022) 7 tips to recruit power sellers to your marketplace, Cluster.

Available at: https://datacluster.com/7-tips-to-recruit-power-sellers-to-your-
marketplace (Accessed: 15 July 2023).

Amazon Staff (2022) What do each of Amazon’s leadership principles really mean?,
UK About Amazon. Available at:
https://www.aboutamazon.co.uk/news/working-at-amazon/what-do-each-of-
amazons-leadership-principles-really-mean (Accessed: 10 July 2023).

VNA (2023) Vietnam fosters cross-border e-commerce in ASEAN: Business:

Vietnam+ (vietnamplus), VietnamPlus. Available at:
https://en.vietnamplus.vn/vietnam-fosters-crossborder-ecommerce-in-asean/
255041.vnp (Accessed: 05 July 2023).

INTERNSHIP SUMMARY

1. Responsibilities

35
 I joined Amazon Global Selling in June 2023 as a Business Developer Intern for a
three-month term. Being the only intern on the team, I've had the privilege of accessing
a wealth of resources for learning and personal development. Working in the Business
Development department has provided me with the opportunity to focus on long-term
strategies and initiate implementations that can shape future plans.

To execute these strategies effectively, I collaborate closely with members from

various departments to ensure alignment and a shared vision. Throughout my
internship, my main project has been to expand Amazon's service provider network,
supporting sellers' businesses and establishing partnerships with both local and FDI
manufacturers to enhance product selection on the Amazon marketplace.

The key tasks I've been working on include conducting market research on
different product categories, building prospect lists of potential manufacturers through
networking and outbound research, reaching out to these manufacturers to initiate
partnerships and build trust, organizing external events with service provider networks
(SPNs) and sellers, and coordinating business trips to welcome strategic partners from
China.

Additionally, I feel honored to be chosen as a Campus Ambassador of Amazon,

where I assist aspiring Amazonian-wannabes in their journey to apply for Amazon's
internship program by providing them with essential information and insights. Giving
back to the community through this role has been a rewarding experience alongside my
professional work at Amazon.

2. Lessons Learned

During my time at Amazon, I have been exposed to a wealth of new and

fascinating knowledge that I had never encountered before. One of the most significant
areas of learning has been in the realms of e-commerce and export, particularly the
concept of cross-border e-commerce. This new approach allows businesses, regardless
of their size and scale, to export products through e-commerce, presenting a game-

36
changing opportunity for the future economy of the country. Working on such a
strategic initiative has been truly inspiring, and it has sparked my interest in potentially
establishing my own business to tap into the immense potential of cross-border e-
commerce.

Additionally, my professional skills in Business Development have experienced

significant growth during my tenure at Amazon. While I had a few years of hands-on
experience in this field before joining the company, Amazon provided me with a fresh
perspective and allowed me to adopt a more strategic mindset. Instead of focusing
solely on the intricate details, I was able to take a step back and consider the bigger
picture. This shift in approach has been invaluable in fostering comprehensive growth
in my expertise.

Overall, my journey at Amazon has been a transformative experience, both in

terms of knowledge and professional development. The exposure to cutting-edge
concepts and the opportunity to work on strategic initiatives have left a lasting impact,
and I look forward to applying these newfound skills and insights in my future
endeavors.

37