Amazon Global Selling (AGS) has shared the findings of a report on the opportunities and challenges encountered 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 rapidly expanding global e-commerce landscape.
According to the report, conducted by Access Partnership and commissioned by AGS, the ASEAN-6 B2C e-commerce export revenue was estimated at USD 18.9 billion in 2023, with MSMEs contributing 38% of this total.
Assuming the current rate of e-commerce adoption and export growth, this figure could reach USD 30.4 billion by 2028, with MSMEs potentially increasing their share to 48%. Additionally, 90% of ASEAN-6 MSMEs indicated that they would be unable to export without e-commerce. The report highlights that the U.S. is among the top priority export destinations for ASEAN-6 MSMEs over the next five years.
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.”
AGS, which supports businesses from around the world to launch globally on Amazon, has dedicated teams in Southeast Asia to assist both prospective and current Amazon sellers, enabling local entrepreneurs to tap into this growing export opportunity.
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 on Amazon.com has risen by 50% in 2024 compared to last year.”
Challenges Faced by ASEAN MSMEs
However, the report identifies notable challenges. Nine out of ten MSMEs cited limited understanding of foreign export regulations and high logistics costs as primary obstacles.
Moreover, 90% agreed that a lack of knowledge of import regulations in destination countries hampers their ability to export via e-commerce. The U.S. was identified as the top destination where MSMEs need more support in understanding export regulations.
Amazon provides its selling partners with a range of tools, services, and programmes—including resources on destination country regulations and international shipping—that simplify key aspects of global selling.
Southeast Asian selling partners can benefit from Amazon’s advanced international logistics capabilities, which facilitate more efficient and cost-effective product movement across borders.
Amazon’s end-to-end “Supply Chain by Amazon” service streamlines operations and optimises inventory placement, enhancing delivery speeds from factory to customer. Additionally, businesses selling on Amazon in the U.S. can offer fast, premium shipping through Fulfilment by Amazon (FBA), where Amazon handles pick, pack, and shipping operations on behalf of sellers at 70% less cost per unit than comparable premium options in the U.S.
Alisha Tan, Marketing Director of Malaysia-based Galano Furniture, which sells in North America with Amazon, remarked: “We have adopted Fulfilment by Amazon (FBA), which has provided peace of mind in terms of customer service and last-mile delivery. We have witnessed remarkable business growth in 2023 and are eager to expand to Amazon Canada, the UK, and Germany in 2024.”
Amazon’s tools also support product listing across countries, providing automated translation and currency conversion for managing pricing and receiving disbursements. Altogether, Amazon simplifies the process for small businesses to sell globally.
SUNHOUSE, a Vietnamese home and kitchen appliances brand, chose Amazon as its first platform for global e-commerce expansion. “Expanding into international markets is a strategic move for Sunhouse to establish the standing of Vietnamese enterprises on the global stage. This path, while essential, is fraught with anticipated challenges.
However, Amazon has been a key partner, supporting us in overcoming the hurdles of global market entry. Listing and promoting our products on Amazon has allowed us to reach consumers globally, especially in the U.S., and refine our strategies. With Amazon’s support, we’ve optimised our cost structure, boosted revenue, and set the foundation for growth over the next three years,” said Le Tung, Chief Marketing Officer of Sunhouse.
Joseph Zapanta, Chief Operating Officer of Argon40, a Philippine-based distributor and manufacturer of consumer electronics, shared a similar experience: “The main benefit of selling on Amazon is reaching customers in the U.S. directly without the necessity of a physical store. As an emerging brand and a start-up, selling on Amazon has enabled us to compete on the same stage as established brands.”
Government-Industry Partnerships
According to the report, over 90% of MSMEs surveyed believe that government-industry partnerships could help them better navigate foreign markets, while 92% emphasised the importance of online resources to enhance their e-commerce capabilities.
The report underscores the need for coordinated efforts to empower MSMEs, enabling them to engage fully in and benefit from the global digital economy.
AGS actively collaborates with government agencies across ASEAN to support local sellers in reaching global customers. In Singapore, AGS partnered with Enterprise Singapore and the Singapore Business Federation to launch the Cross-Border Brand Launchpad Programme, equipping over 100 local MSMEs with the skills to launch and scale their brands globally.
As a result, Singapore-based Everiday Foods has successfully expanded its reach beyond Singapore. Founder Riyana Rupani credits the programme with helping the brand break into the competitive U.S. market, where demand for their healthy products has surged. “Without Amazon Global Selling,” she noted, “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 wellness message with a global audience.”
In Malaysia, AGS recently signed a Memorandum of Understanding (MoU) with the Malaysia External Trade Development Corporation (MATRADE) to bolster MSME export capabilities. In Thailand, AGS is strengthening its collaboration with the Department of International Trade Promotion (DITP) to help more Thai brands sell in Amazon’s U.S. store.
Read the full report here.
