Call for National E-Marketplace Gains Momentum
E-commerce leaders propose government-backed platform to reduce reliance on foreign marketplaces and promote local SMEs
E-commerce leaders are proposing the establishment of a national e-marketplace as an alternative for local small and medium-sized enterprises (SMEs) to promote their products and services.
This move aims to reduce reliance on large foreign e-marketplaces that dominate the e-commerce space and continue to raise commission fees.
In Southeast Asia, only Vietnam and Indonesia have successful local e-marketplaces.
The Thai e-commerce market was valued at 1 trillion baht in 2024, with a 50% share claimed by e-marketplaces, 20% by video commerce, 18% by social commerce, 8% by quick commerce and grocery, and 4% by brand-owned websites.
Over the past 25 years, the government has attempted to support 20-30 local e-marketplaces, but they all failed due to lack of massive marketing investments and promotional efforts.
Foreign players have made large investments, offered free services, and heavily discounted prices, even absorbing losses to control the market.
From 2015 to 2023, Shopee accumulated losses of 15.6 billion baht, while Lazada recorded losses of 13.7 billion baht between 2017 and 2024. Meanwhile, they gradually raised their commission fees from zero to 20-30%.
A national e-marketplace would be independent from the government and have shareholders that include strategic investors and key state agencies.
It would focus on implementing government policies to support SMEs and link with trusted standard organisations to bring local products to its platform.
With the direction of US reciprocal tariffs uncertain, Chinese manufacturers will continue to flood Southeast Asian markets through foreign e-marketplaces.
Roughly 70% of Thailand's e-commerce market value last year was shared by foreign players Shopee, Lazada, and TikTok.
The retail sector is a fundamental pillar of the economy, and in the digital age, e-commerce is not just a sales channel but deeply embedded in people's daily lives.
Marketplaces such as Shopee and Lazada have reached nearly the same annual sales volume as CP Axtra Plc, the operator of popular wholesale and retail brands Makro and Lotus's, at 500 billion baht.
Social commerce is growing faster than expected, with TikTok Shop generating 200 billion baht in sales last year, up from around 100 billion in 2023. To achieve digital commerce independence, Thailand must take a three-pronged approach: supporting the growth of existing Thai-owned marketplaces, encouraging brands and retailers to establish direct-to-consumer e-commerce websites, and developing a national digital marketing ecosystem.
The country can leverage its vast network of content creators to create affiliate or digital marketing for local products.
This move aims to reduce reliance on large foreign e-marketplaces that dominate the e-commerce space and continue to raise commission fees.
In Southeast Asia, only Vietnam and Indonesia have successful local e-marketplaces.
The Thai e-commerce market was valued at 1 trillion baht in 2024, with a 50% share claimed by e-marketplaces, 20% by video commerce, 18% by social commerce, 8% by quick commerce and grocery, and 4% by brand-owned websites.
Over the past 25 years, the government has attempted to support 20-30 local e-marketplaces, but they all failed due to lack of massive marketing investments and promotional efforts.
Foreign players have made large investments, offered free services, and heavily discounted prices, even absorbing losses to control the market.
From 2015 to 2023, Shopee accumulated losses of 15.6 billion baht, while Lazada recorded losses of 13.7 billion baht between 2017 and 2024. Meanwhile, they gradually raised their commission fees from zero to 20-30%.
A national e-marketplace would be independent from the government and have shareholders that include strategic investors and key state agencies.
It would focus on implementing government policies to support SMEs and link with trusted standard organisations to bring local products to its platform.
With the direction of US reciprocal tariffs uncertain, Chinese manufacturers will continue to flood Southeast Asian markets through foreign e-marketplaces.
Roughly 70% of Thailand's e-commerce market value last year was shared by foreign players Shopee, Lazada, and TikTok.
The retail sector is a fundamental pillar of the economy, and in the digital age, e-commerce is not just a sales channel but deeply embedded in people's daily lives.
Marketplaces such as Shopee and Lazada have reached nearly the same annual sales volume as CP Axtra Plc, the operator of popular wholesale and retail brands Makro and Lotus's, at 500 billion baht.
Social commerce is growing faster than expected, with TikTok Shop generating 200 billion baht in sales last year, up from around 100 billion in 2023. To achieve digital commerce independence, Thailand must take a three-pronged approach: supporting the growth of existing Thai-owned marketplaces, encouraging brands and retailers to establish direct-to-consumer e-commerce websites, and developing a national digital marketing ecosystem.
The country can leverage its vast network of content creators to create affiliate or digital marketing for local products.
