Thai SMEs eye US e-commerce payday after major Amazon deal

 Puntid TantivangphaisalPublished: 16:24, 23 August 2024| Updated: 16:24, 23 August 2024

Thailand’s small and medium-sized enterprises (SMEs) are set to cash in on the lucrative US e-commerce market following a groundbreaking deal inked between the Department of International Trade Promotion (DITP) and Amazon Global Selling (AGS).

The partnership, formalised during the TOPTHAI Cross-Border e-Commerce Day 2024, aims to turbocharge the e-commerce export capabilities of Thai businesses, opening doors to the US$1.1 trillion (approximately 37 trillion baht) US market.

This collaboration is more than just a handshake—it’s a strategic move to deepen the understanding of e-commerce exports to the US, which ranks second globally in revenue. With over 65% of Thailand’s micro, small, and medium-sized enterprises (MSMEs) eyeing the US as their top e-commerce destination, the timing couldn’t be better.

DITP’s director-general, Phusit Ratanakul Sereroengrit, expressed optimism about the alliance.

“We strongly believe that this will help accelerate Thai businesses’ pace in exporting and reaching global markets such as the US, while also enhancing the international reputation of Thai products.”

Echoing this sentiment, Anand Palit, head of Amazon Global Selling for Southeast Asia, underscored the significance of government-industry collaboration.

“According to research commissioned by Amazon, 95% of the Thai businesses surveyed agreed that government-industry collaboration in staging educational conferences and seminars would enhance their e-commerce export capabilities. This is exactly what we are going to do with this MoU with DITP.”

The MoU promises to be more than just words on paper. AGS will hit the road with DITP, participating in roadshows across Thailand to educate local brands about selling on Amazon’s US platform and navigating American consumer preferences. Top Thai brands, including Tuff Sport and Wel-B, are already seeing success, with the collaboration set to spotlight these and other brands at the TOPTHAI Pavilion in Times Square, New York, this September.

As cross-border e-commerce surges, a study by Access Partnership reveals that Thai e-commerce exports could skyrocket from 29.5 billion baht to 313.8 billion baht in the next five years, with MSMEs poised to grab a bigger slice of the pie. However, challenges remain, particularly around logistics, regulatory compliance, and digital marketing expertise. Thai businesses are calling for stronger public-private partnerships to navigate these hurdles.

With the DITP-Amazon partnership, Thai SMEs are ready to seize the moment and take their products to the world stage, reported The Nation.