Thailand’s e-commerce has grown significantly over the past ten years due to rising Internet usage and technological advancements. As one of the areas with the fastest rate of Internet accessibility development, Southeast Asia is at the forefront of e-commerce, with Thailand occupying the top spot.
At the beginning of 2024, Thailand had 63.21 million internet users, with an internet penetration rate of 88.0 percent. Kepios analysis shows that the number of internet users in Thailand grew by 84 thousand, an increase of 0.1 percent, from January 2023 to January 2024.
This article tries to talk about the future of e-commerce in Thailand, and the issues it faces, and it provides specific market projections for e-commerce in 2024.
Thailand E-commerce Size and Structure
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Thailand is now one of the main players in the Southeast Asian internet economy after shifting its growth to the e-commerce sector.
With a market share of 92 percent, this is especially robust. Its income was expected to reach USD 20.9 billion in 2023. From FY 2023 to FY 2027, the market is projected to expand at an annual rate of 11. 93%, with a market volume of USD 32. 81 billion.
The e-commerce market in Thailand has grown exponentially and is still growing:
#1. Market Projections
E-commerce Association in Thailand in 2023, the value of the e-commerce market is expected to reach USD 26.5 billion, up from $23.4 billion in 2022. Therefore by 2025, this market value is projected to hit USD 32 billion.
#2. Consumer Conduct
Approximately 61% of Thai customers make internet purchases. By reviewing the The Thai eCommerce market data, it is possible to strengthen the notion that 77% of people purchase online at least once a month.
76.4% of the 1001 Thai respondents surveyed for Standard Insights Consumer Report Thailand 2023 said they purchase online at least once a month.
#3. Digital Payments
Although consumers’ confidence in these methods of payment is still expanding, the number of users using them is also steadily rising. It can also attribute to the trend of increasing the security and convenience of online transactions.
Top Thai E-commerce Companies
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Several major companies dominate Thailand’s e-commerce business, each providing distinctive services and an extensive selection of goods. Here are leading e-commerce platforms in Thailand:
Lazada
One of Thailand’s largest and best-selling e-commerce sites, Lazada offers a wide range of products, including electronics, cosmetics, and more. Thai customers continue to like this e-commerce company since it offers regular specials and is well-known for its quick delivery services.
Shopee
Shopee’s reasonably priced merchandise and user-friendly website have helped it advance significantly in Thailand. Thai consumers find “Shopee Mall” much more alluring because it features the best and most authentically selling products.
Jib
An online marketplace for electronics and IT products, is well-known for offering a large selection of devices, PCs, and related peripherals. This may be explained by the low cost and superior after-sale support that it offers, features that are frequently favored by high-tech clients.
Strength Purchase
Power Buy is a company focused on electronics and household appliances, providing a range of high-quality brands at competitive costs. Thai customers frequently use this website to find high-quality electronic products.
JD Central
Key areas for JD Central, a relatively new Thai e-commerce platform linked to the Chinese-based JD. com, including Bangkok and Chonburi.
Kaidee
Kaidee is an online marketplace for second-hand goods where individuals and businesses can buy and sell items including used furniture, automobiles, and gadgets. It is regarded as one of the best marketplaces for used goods because of its user-friendly layout and steady clientele.
Compliance with Local Laws
In Thailand, running an online store requires abiding by several laws and rules:
– Product Liability: Customers count on the company to produce high-quality, safe-to-use items. Failure to comply may result in the law being eroded and other legal repercussions for a company or organization.
– Information Security: The safeguarding of such data is crucial given the growth in the use of cashless transactions. Compared to international protection statutes such as the GDPR, Thai laws mandate a high degree of protection for consumer data.
– Customer Protection: To stop unfair treatment of clients, client treatment policies have been implemented. Return guidelines, costs, and the presentation and description of the goods are a few of them.
– Payment Solutions and Foreign Exchange Regulations: Online retailers must keep an eye on the rules governing the usage of payment systems and international trade. This facilitates the company’s ability to follow monetary regulations and run efficient financial operations.
Challenges Faced by e-commerce in Thai
Even with this growth, e-commerce in Thailand is still challenged by the infrastructure needed to move items and deliver them to customers.
Enhancing timeliness and punctuality while also guaranteeing that fruits reach every corner of the nation, particularly the hardest-to-reach markets, will require continued effort and increased funding.
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Protection of Payment and Security for Customers
One of the most important responsibilities is to build consumer trust and manage payment risks. As previously shown, consumers are becoming more aware of and comfortable with digital payment methods; yet, the growing concerns about cybercrime and inadequate data protection may deter some customers from making online purchases.
To tackle the problem of consumer protection in e-commerce, e-commerce companies must guarantee appropriate security for public records and transactions.
Environment Regulation
Regarding the regulatory landscape, e-commerce companies have challenges. Local laws and rules about consumer rights and data protection are subject to frequent changes and ought to be complied with.
Future Prospects for Thai E-Commerce
E-commerce in Thailand has a bright future ahead of it, thanks to several important elements that have fueled its expansion:
a) Innovation in Technology
Several additional technological developments will be necessary to sustain e-commerce in Thailand in the future. Product design, supply chain, customer service, and product differentiation will all make use of AI, ML, and big data technology.
b) Growth of Online Payments
E-commerce industry will continue to grow as a result of the expansion in digital payment options. Offering safe and easy transaction to enhances customer trust will be main priority to all e-commerce players.
c) Combining Online and Offline Media
The combined usage of online and physical channels will rise as a result of omni-channel retailing. Customers’ buying experiences can happen across platforms, increasing their ease and contentment.
E-commerce in Thailand: 2024 and Beyond
Two aspects of modern technology that have grown significantly in the latter half of the century are the widespread use of digital payments and the internet.
According to Statista, 36.6 million people in Thailand, or more than a third of customers, say they make purchases online. This show an increase of 8. 7% over the previous year in. Thus, Thai customers are becoming more comfortable with making purchases online.
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Looking ahead to 2024 and beyond, several trends and changes are anticipated to mold Thailand’s e-commerce industry:
Growth of Mobile Commerce
Smartphone ownership is expected to increase along with mobile commerce, or”m-commerce.” Over 80 percent of online sales in Thailand are made through mobile devices, and mobile wallets are used for 23 percent of all transactions.
Businesses must adapt and find creative ways to showcase their presence on mobile-friendly online channels to ensure a seamless shopping experience for customers.
Customization and Client Experience
Individualization will become more and more important in the e-commerce business. Additionally, businesses will be able to provide relevant adverts and personalized product recommendations by utilizing data analytics and artificial intelligence, which will increase customer happiness.
Social Commerce
The use of social networks for business transactions—known as social commerce—will increase. Social media is becoming the preferred platform to shop for Thai consumers, which makes it important for e-commerce players.
Cross-Border Commerce
As a result, as more Thais seek unique products at competitive rates from throughout the world, cross-border e-commerce will grow. E-commerce platform companies should see increased prospects as a result of the present trend of e-commerce buying; nevertheless, to comply with international trade regulations, these platforms will need to arrange their supply and delivery channels.
Transition to Sustainability
Sustainability is becoming a more important topic for the Thai e-commerce business. In addition, Thailand market are now compel to incorporate sustainable practices due to the worldwide concern for sustainable development.
Summing Up
Together with growing Internet use, technology promotion, the problems and advancements of today will also be essential catalysts for the future of e-commerce in Thailand. Regarding the threat, concerns like consumer trust and logistics are still crucial. Essentially, future developments and market modifications to the current solutions will observe this issues.
Businesses that adjust to these developments and focus on the customer, streamlining the purchasing process, will prosper in Thailand’s erratic e-commerce sector. E-commerce businesses can therefore assess the state of the Thai market at the moment and make plans for potential future actions to improve their chances of success.
