Sector enters the next phase

by Lindsey Francy Mar 20, 2023 News
Sector enters the next phase
The application of artificial intelligence to enhance e-commerce platforms is an emerging trend.
The application of artificial intelligence to enhance e-commerce platforms is an emerging trend.

Thailand's e-commerce landscape is entering the next stage where major e-marketplace players are introducing innovative features to woo customers instead of focusing on price wars.

Analysts said that the growth of e- commerce will happen across a variety of channels.

According to analysts, live-streaming is gaining popularity because it encourages consumers to make a purchasing decision quickly.

Artificial intelligence is being used to boost e- commerce.

The sector's third-largest player, JD Central, withdrew from the market earlier this month.

As social commerce players TikTok Shop, Line Shopping and Facebook gained market share, the pair had little time to enjoy it.

In order to continue sustainable growth this year, the company plans to build a differentiated service for users, ensure a smooth shopping experience, and use innovation to drive its platform.

Different user experiences are needed to attract customers.

Virtual Try-On, which allows consumers to try products on virtually, is one of the new features of Lazada.

The online retail sector in Thailand is expected to grow to 600 billion baht this year, accounting for 16 percent of the retail market.

According to Ms Thanida, the number of local e- commerce users is expected to increase.

The first e-marketplace in Thailand to make a profit was Lazada Thailand.


With the price war era over, both Shopee and Lazada will focus on generating profits.

He said that e-marketplace operators would raise service fees.

The service fee is expected to increase from a flat rate of 2.14%, including VAT, to between 3% and 4%.

Depending on the product category, the variation will be different. He said that the new rate would be in effect on April 1.

In order to adapt, entrepreneurs will sell more of their products on social media, their own websites or other channels.

Many Chinese manufacturers and importers have set up warehouses in Thailand to sell their products online.

The warehouses allow Chinese distributors to shorten their delivery times and lower their prices.

Some of the products were imported into the country without being inspected.

He said that the authorities should look into the matter to make sure there is a level playing field.

Thailand's e- commerce market is growing thanks to digital financial services.


Digital financial services are a catalyst for the growth of Thailand's e- commerce.

Non-banks provide digital financial services. Online payment services, digital loans, online insurance services, online money transfers, and digital financing are included in the services.

He said that many business operators such as Grab, Shopee, Foodpanda and Lazada are providing these financial services to their own merchants.

According to Sawapop Tuamsang, the CEO of Zort, the e-commerce market is expected to grow by 15-20% this year.

Merchants are able to sell their products and buyers are able to pay for them on all of the social platforms.

Consumer purchasing decisions are influenced by short video commerce.


The landscape in Thailand is rapidly evolving, with both horizontal and vertical marketplaces competing for market share.

The incumbent marketplaces make up 51 percent of the total e- commerce market worth 770 billion baht.

Similar to global trends, Thailand's e- commerce is moving towards marketplaces that cater to specific consumer needs.

NocNoc for home goods, HDmall for healthcare, and Konvy for beauty products are examples of such marketplaces.

Mr Paul said that there should be more vertical business-to-consumer marketplaces in the near future.

Traditional retailers are trying to compete with bigger players with their own platforms and business models.

The marketplace model was used for social commerce. According to analysts, TikTok Shop in Southeast Asia will grow to an estimated $12 billion this year.

Market share is likely to be taken away from Shopee and Line Shopping by this growth.

Quick commerce focuses on delivering groceries and meals in less than an hour.

It was estimated that the quick commerce market was worth 85 billion baht, or 11 percent of the entire e- commerce market.

Both horizontal and vertical marketplaces are competing for market shares in Thailand according to Mr. Paul.


More than 70% of the country's population uses social media like Line, Tiktok Shop, Facebook andInstagram.

The channel is a significant driver of e- commerce sales.

He said that brands will use influential platforms to connect with customers and sell products directly to increase branding, engagement and loyalty.

The emergence of live-stream shopping is one of the most exciting developments in social commerce.

Live video, social media, and interactive features can be used to increase sales.

The trend of live-stream shopping is expected to continue over the next few years.


With global interest rates rising, creating a more challenging business environment, the large e-marketplaces have been pressured to prioritize profitability

They increased their commission fees in order to achieve this.

Entrepreneurs want to avoid marketplace fees and secure customer relationships.

He said that this led to a shift to direct-to-consumer platforms that allow brands to reduce their dependence on marketplaces.

D2C models can be used to gather feedback on price and product offerings.

Mr Paul said that the shift towards D2C models offered brands greater control, data, flexibility and agility.

Business-to-business (B2B) e-commerce is projected to grow this year as companies avoid face-to-face meetings with sales representatives due to the swine flu.

He said that companies would invest in B2B e- commerce to increase sales and distribution, create better digital customer experiences, improve and automate their internal processes, and get aholistic view of the customer.


Mr Paul said that rapid advances in artificial intelligence have encouraged companies to invest in and deploy the technology across all aspects of their retail and e- commerce operations.

According to Statista, 84% of e- commerce businesses are either actively working on adopting or having it as a top priority.

Targeted marketing through deep personalisation based on customer interactions can be achieved through the integration of artificial intelligence into e- commerce operations.

Customer retention rates and sales can be boosted through the analysis of big data, thanks to the use of artificial intelligence.

Customer support, discount options, invoicing, and email marketing are some of the repetitive tasks that can be automated with the help of artificial intelligence.

Customer data insights can be used to improve the sales process.

Mr Paul said that using artificial intelligence lowers operating costs and increases productivity.


E- commerce embraced the trend of sustainable practices.

He said that companies are expected to offer sustainable products. ACommerce provides packaging that is non-toxic.

According to Mr Paul, more brands and retailers will start to prioritize sustainable practices to decrease their impact on the environment, differentiate themselves from competitors, and establish a loyal customer base that values eco-friendly practices.

He said online grocery shopping among older generations, specifically Generation X and Baby Boomers, is expected to continue in Thailand this year.

Mr Paul said that this trend is growing and expanding in various product categories.

He said that the affluent groups are becoming aware of the benefits of online shopping.