E-commerce increases export turnover

VGP - E-commerce is considered an effective measure to help businesses, especially small and medium-sized enterprises (SMEs), to reduce direct transaction costs during times of economic downturn and boost their export turnover, said the Ministry of Industry and Trade (MIT).

January 30, 2012 7:31 PM GMT+7

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On a recent survey, MIT said that investment costs for e-commerce accounted for about 5% of a company's total investment capital, but could increase a firm's turnover by an average of 33%.

Surveyed companies said that turnovers gained through e-commerce transactions have risen significantly during recent years and helped them access foreign customers, build their image, cut costs and increase profits.

The MIT recommended that SMEs should invest in building websites or join international e-commerce floors such as Alibaba.com, eBay.vn or Amazon.com in stead of spending money on establishing direct distribution networks or showrooms.

It is often difficult for SME's to access foreign markets directly due to restricted capital sources and limited export experience, however it is easy for them to take part in online export channels, which are popular in the US and other countries.

Participating in e-commerce to boost exports is an indispensable trend as importers in large markets such as the US and EU often choose the e-commerce transaction floors of Alibaba.com, eBay.vn or Amazon.com to buy products.

According to the MIT, international businesses in Fortune 500 such as IKEA, Walmart, Toshiba, Delphi and Saferoad also use e-commerce floors to organize offline meetings and buy products from reliable suppliers./.