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In this week’s State of E-commerce we continue our infographic series on e-commerce in Southeast Asia with a look at Thailand’s expanding e-commerce market.
The e-commerce market in Thailand is said to be worth $26.2 billion. Thailand is known to be a shopping paradise by tourists – from traditional flea markets to large shopping malls.
On the e-commerce front, there’s much to look forward to. “Thai eCommerce grew the most in ASEAN; from 2.7 trillion baht in 2017 to 3.2 trillion baht in 2018. Much of this growth can be attributed to changes in consumer behavior in 2018,” reported the Electronic Transactions Development Agency (ETDA) of Thailand in February 2019.
Some insights that stood out for us:
- Bangkok receives 48% of all shipment deliveries, even though it has a population of only 23% of the total population in Thailand.
- 19% of deliveries are dropped off at collection points. As with the other countries we examined, Thai consumers can make arrangements with merchants to have their parcels dropped off at a collection point at their convenience.
- 22% of the international shipments come from China. According to iPrice’s Map of E-commerce, the top used apps in Indonesia are Lazada and Shopee. The merchants on these apps are known to be mainly from China, which may explain this statistic .
E-commerce activity in Thailand is also expected to scale up in 2020, especially in cross-border transactions. To facilitate this, the government is set to upgrade their Internet network to use 5G technology to boost online selling – particularly through live streaming and real-time interaction with shoppers. These initiatives look to cement Thailand’s position as a leading front of conversational commerce.
To boost transparency in the e-payment space, Thailand is also introducing new regulations on e-payment for sellers. To prevent any tax loopholes and to ensure that every seller pays their full income tax, sellers will need to report all transactions to the authorities. How this legislation affects the e-commerce community in Thailand remains to be seen.
We’re seeing increased measures to ensure a better online shopping experience in Thailand in the last five years and look forward to future developments!
Enjoyed this infographic series analyzing e-commerce markets around the world? Check out our previous infographics analyzing the state of e-commerce in Indonesia, Singapore and Australia and stay tuned for more of such insights!