Thailand eCommerce market growth
Thailand’s business-to-consumer e-commerce market has been growing steadily since 2017 and is now worth more than $27.7 billion, according to a 2020 e-commerce report by JP Morgan. Growth is expected to continue at a compound annual rate of 7.7 percent until 2023. Opportunity exists for U.S. business-to-consumer sellers to capture some of the e-commerce marketshare.
Increased internet and mobile phone use, as well as improved logistics and e-payment systems, are the driving factors behind this growth. The COVID pandemic situation in Thailand has contributed to e-commerce usage due to the heightened convenience e-commerce solutions provide and consumer confidence to shop online. Thailand’s growing e-commerce market is focused on mobile applications, with an estimated mobile e-commerce market of $15.8 billion in 2020.
The Thai government’s “Thailand 4.0” policy envisions creation of the next generation of digital application platforms to accommodate and promote online activities, including e-marketplace, e-payments, and e-government.
Cross-border e-commerce consumes almost 30 percent of the overall e-commerce market in Thailand. Almost 50 percent of online shoppers have already made a purchase from abroad. At present, the top five e-commerce sites are Shopee, Lazada, Kaidee, AliExpress, and Amazon, all seller platforms with advanced logistics and delivery infrastructure. Thailand’s mix of international and local e-commerce stores is indicative of Thai consumers’ desire for variety when it comes to online shopping. Global players such as Amazon, eBay, and Agoda continue to remain popular while WeLoveShopping and Pantipmarket, local C2C marketplaces and online communities, prove strong contenders that cater to local tastes.
Thailand’s online retail commerce is driven by several factors, including increased smartphone penetration and intense competition among e-commerce operators. The government’s PromptPay service, which falls under the national e-payment scheme, is the key driver stimulating e-commerce activities. The International Trade Administration has a variety of resources to help U.S. businesses learn more about building their online business presence to acquire new overseas consumers. To gain valuable insights to the Thai consumer, contact the U.S. Commercial Service Bangkok at Office.Bangkok@trade.gov.