According to the Electronic Transactions Development Agency (ETDA), in 2020, e-commerce in Thailand was ranked as the 26th largest market globally, with revenues of USD8 billion. In 2021 it is predicted that the sector will become a USD 120 billion industry with a growth of 6.1% compared to the previous year. It is estimated that eCommerce is set for further growth, thanks to wide acceptance of e-payment systems, improved internet connectivity, increased mobile usage and improved logistics services.
The government of Thailand is also aiming at facilitating the ease of doing business in the country. The objective of the Thailand 4.0 policy is to ensure broadband connection across all urban areas in the country, and that it is supportive of the usage of digital payments.
In parallel with growth in the B2C segment, B2B commerce is also growing rapidly, especially in the food and the service areas, followed by manufacturing and retail and wholesale. Interestingly, most of the e-commerce activities in Thailand are conducted by PromptPay, a service that enables customers to receive and transfer funds using Citizen ID or mobile phone number instead of a bank account number via electronic channels such as internet banking, mobile banking and ATMs.
As the e-commerce business grows in the country, logistics companies are on an upward trend too. However, competition between logistic companies has become so fierce that the price of the services that they are providing has declined sharply, creating more opportunities for e-commerce specialists.
(Sources: Chiang Rai Times; Electronic Transactions Development Agency)