According to the 2021 Online Marketplaces Report, the global value of sales through eMarketplaces in 2020 was $2.67 trillion, representing 62.51% of all online sales and an increase of 291% compared to the previous year.
In 2022, leading global online marketplaces sold over $3.25 trillion worth of goods, a 2.9% increase from the previous year. The majority of these sales came from eMarketplaces such as Alibaba, Amazon, eBay, and others.
This figure reflects the attractiveness of eMarketplaces as online shopping platforms, because nowadays consumers are increasingly interested in buying products online, and from a business perspective, brand sales are increasing rapidly as well.
What are eMarketplaces and why are they important?
An eMarketplace is an online marketplace where buyers and sellers connect to trade goods and services. Whether you want to buy or sell something, you can find it all in one place. An eMarketplace is like a giant marketplace, providing opportunities to meet customers 24/7, resulting in more convenient, faster, and more efficient buying and selling.
However, because eMarketplaces are large marketplaces, there are many competitors selling similar products. Therefore, sellers need strategies to make their store visible to customers before other similar stores. This might involve creating ads or content to attract more customers.
The top-rated e-marketplaces in Thailand are as follows:
- Shopee is a platform with a LiveChat system that allows buyers to chat directly with sellers. Shopee also provides marketing support for sellers on the platform, offering various promotions and frequent discount coupons, which is a competitive advantage for brands in attracting customers.
- Lazada is a platform primarily targeting the Southeast Asian region. Currently, Lazada is experiencing significant growth, with over 100,000 online sellers. It also offers Lazada University, a platform training program to help sellers effectively expand their customer base.
- JD Central is one of the fastest growing e-commerce companies, distinguished by its 100% authenticity guarantee, enabling brands to easily maintain their budget size and increase customer engagement on the platform.
All three platforms have different attractive features. For brands looking for help managing their eCommerce business in an eMarketplace, we recommend the service. eCommerce With HelloAds, we guarantee that managing your online business will become much easier.
The growth of the eCommerce market after the Covid-19 period.
The eCommerce market experienced exponential growth during Covid-19. Consumers increasingly turned to online shopping, resulting in growth of over 80% compared to the pre-Covid period. And even after Covid-19, the eCommerce market in Thailand continues to grow due to...The rate of internet access is continuously increasing. Statistics show that Thailand has the highest mobile banking usage in the world and ranks second in mobile payment usage. This has led to predictions that the eCommerce market will grow at a rate of 20% per year over the next five years, with online retail accounting for 16% of the total retail market by 2025.
Therefore, it can be said that eCommerce in Thailand has become a business with very high growth potential. According to the summary of the Southeast Asia Digital Economy Report (Google) from last year, digital platforms in Thailand are likely to be used more for eCommerce purposes (23%), and this will be a major driving force for Thailand's digital economy going forward.
Currently, eCommerce businesses can be divided into four groups:
- Social Commerce Group – Many social media platforms have added functions for selling products, making it easier for brands and giving them an advantage in terms of a large user base, easy accessibility, and integration into daily life. Examples include Facebook Marketplace, Instagram Shop, or LINE Shopping.
- eMarketplace group – Platforms that bring together many shops in one place, have a large user base, are easy to use, and offer continuous promotional support, such as Shopee, Lazada, or Kaidee.
- eTailer group – Online stores created by businesses themselves, bypassing eMarketplace intermediaries, thus eliminating commission fees for sales. Suitable for large businesses that want to manage their own system, such as Central, Tesco, or Power Buy.
- The Quick Commerce group – platforms for fast, on-demand sales, whether it's ordering food online or buying goods from convenience stores online, such as True Food, LINEMAN, or All-Online (7-Eleven).
According to data from ETDA's Thailand Internet User Behavior 2022 report, the largest number of internet users in Thailand currently choose to purchase goods online through e-Marketplaces (75.99%), followed by Facebook (61.51%), eTailer websites (39.7%), LINE (31.04%), Instagram (12.95%), and Twitter (3.81%).
On the sellers' side, social commerce platforms like Facebook (66.76%) were more popular, due to the perception that selling on eMarketplaces involves high price, product, and promotion competition, as well as fees payable to the platform. This was followed by eMarketplace (55.18%), LINE (32.05%), Website (26.67%), Instagram (19.91%), and Twitter (9.90%).
Let's get to know 12 eCommerce trends to watch in 2023.
Currently, eCommerce in Thailand has fully entered the online sales era due to the COVID-19 pandemic, which completely changed everything. This year, the trends in Thai eCommerce are changing in terms of both service platforms and various technologies that marketers need to be prepared for.
Trend 1: Online sales value is increasing again due to the recovery of the tourism industry.
According to a report by ETDA on eCommerce value in 2020, the figure decreased by approximately 6.68%, due to the impact on tourism, travel, airlines, and various manufacturing sectors. However, after Thailand reopened its borders, eCommerce figures experienced a significant growth.
Trend number two: The eMarketplace war is coming to an end.
Because various platforms in the eMarketplace, such as Lazada or Shopee, are beginning to shift their focus from investing in growth to becoming more profitable businesses. For example, Lazada successfully generated profits during 2022-2023 and reduced its marketing spending, instead focusing more on revenue generation.
The third trend is Chinese products fully penetrating the Thai market.
In recent years, Thailand has seen a significant influx of service providers importing goods from China. The continuous expansion of Chinese infrastructure into Thailand has facilitated transportation, leading many Chinese manufacturers and importers to establish warehouses in Thailand and utilize online platforms for direct sales, selling goods directly from their Thai warehouses to consumers.
Trend 4: On-Demand Commerce. A new form of online trade war is brewing.
On-demand commerce, particularly food delivery services, requires businesses to transform themselves into offering services beyond just food. Currently, many service providers are competing more intensely than ever before. Beyond food delivery and ride-hailing, other services like Grab Mart and Grab Home have emerged.
Trend 5: The invasion of Digital Financial Services.
Digital financial services refer to online financial services, which are becoming increasingly diverse. These service providers are not banks and include payment services, online lending services, and online money transfer services. The trend of using these digital financing services is growing steadily, becoming a key driver of e-commerce growth in Thailand.
Trend #6: The Short Video Commerce War
Currently, the short video commerce market is fiercely competitive. Platforms like TikTok, YouTube, Facebook, Instagram, and even Line have all entered the short video market. Therefore, strategies are no longer limited to offering only short videos; they also include other eCommerce services, such as opening online stores, to complement the service.
Trend 7: Online advertising with more options.
In recent years, Facebook was a top choice for online advertising, but advertisers are increasingly turning to other options. This is because Facebook's advertising is experiencing declining results, while competitors like TikTok have developed more effective advertising methods, leading brands to increasingly advertise on TikTok.
Trend 8: Word-of-mouth marketing. Affiliate Marketing
Affiliate marketing, or word-of-mouth marketing, is a growing trend because influencers across various channels have larger customer bases and social media platforms make it much easier for them to promote products to wider audiences.
Trend #9: MarErce MarTech Integrate with eCommerce
MarErce is a digital business model that integrates eCommerce with MarTech. Previously, marketers focused on marketing, and eCommerce businesses focused on sales. However, this is no longer the same approach. Today, marketing and eCommerce are seamlessly integrated. As a result, MarTech providers are offering platforms that go beyond marketing, generating orders and sales. Once a sale is achieved, MarTech companies leverage technology for CRM (Customer Relationship Management) or retention, encouraging repeat purchases.
Trend 10: ECommerce competition among giant platforms.
Major social media platforms are increasingly competing fiercely in eCommerce. Platforms like Facebook, Line, and TikTok are all developing more platforms to support and promote eCommerce, a strategy aimed at preventing customers from switching to competitors.
Trend 11: Thailand's Digital Deficit
The Revenue Department enacted a law to collect Value Added Tax (VAT) from foreign service platforms on September 1, 2021. According to the latest data, there are 127 registered foreign service providers. Cumulative VAT collected over six months (October 2021 – March 2022) totaled over 4.2 billion baht. It is projected that collection could reach almost 10 billion baht by the end of the year. This could push the value of e-commerce services transactions in Thailand to nearly 200 billion baht, a figure higher than rice exports in 2021 and refined oil imports in the same year.
Trend number 12, D2C (Direct to Consumer), will kill off intermediaries in the trade process.
Over the past year and this year, Direct to Customer (DTC) sales, eliminating intermediaries from the supply chain, have been a trend among manufacturers. In recent years, factories have increasingly sold online and directly to consumers, impacting local retail businesses. This is because younger generations are buying less from local shops and more online, meaning local businesses are losing the opportunity to reach customers due to changing consumer behavior.
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