With various factors catalyzing the growth of Thailand E-commerce market, it is now a bustling scene that continues to grow by leaps and bounds. As such, any business that has not penetrated e-commerce yet is one step behind competitors.
But fret not, we are here to help you better understand Thailand’s e-commerce landscape and kickstart your e-commerce endeavor.
Factors fuelling the growth of Thailand E-commerce
1.Thailand 4.0: The much-touted government policy named Thailand 4.0 lays out the blueprint for the country’s future developments, which includes an unprecedented digital transformation that is bringing direct benefits to e-commerce. Under this scheme, a payment gateway called PromptPay was launched in 2017, facilitating greater convenience in C2B and B2B digital transactions.
2. Thai internet usage: This statistic reveals an interesting trend- the number of communication devices connected to the internet in Thailand is up to 93.39 million, which is significantly higher than the country’s total population of 67.98 million people. Furthermore, Thai people are avid internet users, with the average amount of daily time spent on the internet up to 9 hours, and this means abundant opportunities for e-commerce stores to engage with customers online.
3. COVID-19 outbreak: With regions locked down due to the pandemic and uncertainty over when countries can fully reopen, the retail industry across the world is inevitably severely impacted with a dip in revenue. However, this pandemic also serves as an invaluable opportunity for businesses to embark on any long-overdue digital transformation, to open up online sales channels to tide through this challenging period and to be ready to fly when the world emerges from COVID-19.
Recent E-commerce statistics in Thailand
The following statistics are based on the Thailand 2020 insights report from datareportal.
- Over 90% of Thai internet users search for new products and services online.
- More than 85% of Thai internet users have visited an e-commerce store and 82% have purchased products through online sales channels.
- There are over 39.8 million Thais who are using digital payment methods, with E-wallet, Prompt Pay, direct credit card payments, and more.
- The value of B2C (Business-to-Customer) e-commerce is approximately 5.5 billion USD and seeing an annual growth rate of 14%.
- The total value of e-commerce in Thailand is 10.709 billion USD with the following breakdown by industry:
- Travel (including accommodation): The total value is 6.12 billion dollars and has an annual growth rate of 10%.
- Electronics & Physical media: The total value is 1.15 billion dollars and has an annual growth rate of 7.7%.
- Fashion & Beauty: The total value is 1.03 billion dollars and has an annual growth rate of 14%.
- Furniture & Appliances: The total value is 755 million dollars and has an annual growth rate of 15%.
- Food & Personal care: The total value is 697 million dollars and has an annual growth rate of 22%.
- Toys, DIY, and Hobbies: The total value is 682 million dollars and has an annual growth rate of 19%.
Thailand E-commerce platforms
Here are some common e-commerce platforms in Thailand that you must know:
A new e-commerce platform launched by LINE, the #1 communication application in Thailand. With a low barrier to entry and fuss-free set-up for any business that owns a LINE Official Account, LINE MyShop allows companies to close sales natively within the app itself while engaging in conversation with prospects, hence eliminating the chance of drop-out which typically occurs when users are asked to switch platforms. LINE MyShop is one of the best ways to start e-commerce in Thailand.
This famous e-commerce platform under Alibaba Group is currently the #1 platform in Thailand, focusing on providing highly reliable B2C products in LazMall and offers a wide array of business-friendly features to ease e-commerce marketing, inventory management and order fulfillment, such as the Lazada Sponsored Affiliate ad, the LazMall digital shopping center and Fulfilled by Lazada (FBL) delivery scheme.
Another e-commerce giant that is a household name in Thailand. This platform focuses on facilitating the Consumer-to-Consumer (C2C) mode of selling, enabling easy, fast, and convenient transactions. Shopee is also characterized by fun activities, often inviting users to participate in games to collect attractive prizes.
Another e-commerce platform with a notable presence in Thailand is JD Central – a joint-venture between CENTRAL Group, a retail conglomerate that owns several department stores across the country, and JD.com, China’s top e-commerce company.
Businesses can also consider setting up a fully owned-and-controlled e-commerce website, which gives business owners free rein in customizing their online store and shields the online business from any volatility that could be initiated by third-party e-commerce platforms.
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Opening an E-commerce store in Thailand
At IH Digital, we have a team of experts specialized in social marketing and e-commerce. Let us help you plan and manage your e-commerce needs end-to-end, be it on LINE MyShop, Lazada, Shopee, JD, or your very own Website. Contact us today for a quotation.
IH Digital is a digital marketing agency in Thailand that offers 360° e-commerce services from LazMall store management to advertising. Spanning Southeast Asia, we also have offices in Singapore, Malaysia, Philippines, and Vietnam.
If you’re interested in how each e-commerce platform in Thailand can can boost your e-commerce strategy, click below to schedule a consultation soon.
IH Digital, IH Singapore Pte. Ltd. and Digital 38 are members of the IH Digital Group.