ANN/THE STAR – While Amazon has been a success for many Vietnamese businesses, some struggle to sell profitably on the platform due to high operating expenses.
General Director of Meet More Vietnam Co Ltd Nguyen Ngoc Luan, which sells fruit coffee, shared that low profits have discouraged his company from continuing to sell on Amazon.
“Despite having relatively high revenues, expenses on shipping and storage are quite significant,” he told Tuoi Tre Newspaper. Businesses operating on Amazon can opt for either fulfilment by Amazon (FBA) or fulfilment by Merchant (FBM) services, he said.
They can have Amazon stock, pick, pack, and ship customer orders under FBA, while FBM requires sellers to handle their storage and order fulfilment themselves. “We use FBA since we do not have our own warehouse or links with distributors in the United States, but doing this results in low profit margins.”
A company in Ho Chi Minh City’s Cu Chi District that sells rice paper and dried rice noodles said it is still struggling despite having been on the platform for almost three years.
