Whether you are a B2C or B2B business, taking the step to start selling online is essential and something you should definitely consider looking into given the global pandemic we are continuing to live in.
Looking at Thailand, In 2018, total GMV of the Food and Beverages market stood at US$95.7bn, and this is expected to reach US$126.4bn by 20231. Additionally, Thailand has a huge amount of internet users as well, reaching a high of 83.6% as of last year3. Hence, Thailand is a perfect breeding ground for the F&B market and its e-commerce is set to grow tremendously as well. Here are our recommendations on a few popular platforms which consumers are using profoundly, for you to get the sales you deserve.
In 2020, Shopee's number of monthly visitors amounted to approximately 51.24 million in Thailand4, and Lazada’s amounted to 38.54million5. Shopee and Lazada are two of the leading online selling and buying platforms in Thailand.
Let’s analyse the pros of selling on Shopee and Lazada.
- High Traffic Channels:
Being top marketplaces of online shopping, Shopee and Lazada have a constantly increasing scale of online presence. The millions of buyers would help your online business get noticed easily.
- Acquiring new customers easily:
When browsing, customers might not actually be searching for your specific store. However, they might be searching for certain products that you have listed in your store. Therefore, once you manage to get a customer with the help of these large online stores, it would be relatively easier to win the customer over in the form of a repeat buyer.
- Good Shipping Terms:
With a strong online presence, it is supported by powerful logistics. They provide a huge convenience with reliable shipping terms, and simple and easy to understand return policies.
However, there are some considerations to selling on Shopee and Lazada as well.
- Fees:
Commission structure may be a point of friction as it takes out a small portion of profit. The commission fees and fixed selling costs are a price to pay for using its huge user base, which is why you should amp up your sales in order to get past the point of breaking-even.
Shopee has transaction fees of 2%, optional service fees ranging from 2%-5%, while Lazada has transaction fees of 2%.
- Higher levels of competition:
Since there are so many products listed on these platforms, you might not have much product exclusivity and face difficulties of competing with lower priced products.
Now let’s shift our perspective away from these popular e-commerce giants, to rising platforms in the local scene.
A local e-marketplace slowly evolving to become an e-commerce
enabler more specifically for brands and smaller businesses which are transitioning to digital, and to promote Thai products through online cross border trade6.
Pros:
- Helps smaller businesses prevent relying on larger global e-commerce players, while battling against Chinese imports.
- SME’s with products totalling less than 35 SKUs can use the service for free, or pay a fee if they need more services in the ‘freemium’ model7.
Cons:
- Might not appeal to expats / sellers who are looking to sell globally
- Not as much visibility for F&B products
One of the leading e-commerce businesses in Thailand, with great credibility.
Pro’s:
- Sells 100% guaranteed authentic products - Allows your products to stand out
- Regularly adding new services e.g. door to door service, product installments, and special promotions with the lowest price in 30 days guarantee - Services make you stand out in the eyes of your customers.
Cons:
- Higher fees to list on JD central, due to the quality of products.
An e-commerce service, which grew to become one of Thailand’s leading online marketplaces within a short period of time.
Pros:
- Over 30 different categories of goods and services available for instant ordering.
Cons:
- Range of products in F&B section in particular is limited.
Ultimately, if you are willing to start with a small online business, or are from an SME, Lazada and Shopee are excellent options for you to step your feet into.
Interested to get started in Thailand but not sure what to sell? Trustana is entering Thailand very soon. Sign up to get notified!
We make wholesale purchasing exceptionally easy for retailers:
- Products are already imported, labelled and ready for shelves
- Low minimum order quantity (from 20 units)
- Pre-screened international brand
- Order online 24/7 with free delivery* within 7 working days (on orders above S$150)
With features specially tailored towards your business, you are definitely in good hands to launch your online business. Check out our new products and start sourcing wholesale with us to get the best picks to sell to your customers.
References:
1International Trade Administration: https://www.trade.gov/market-intelligence/thailand-ecommerce-market-growth
2Capridge → for infographic: https://capbridge.sg/whet-your-investment-appetite-with-thailands-fb-industry/#_ftnref3
3Statista: https://www.statista.com/statistics/281668/internet-penetration-in-southeast-asian-countries/
4Statista:
https://www.statista.com/statistics/1007161/thailand-number-monthly-web-visits-shopee-quarter/
5Statista:
6BangkokPost:
https://www.bangkokpost.com/tech/1652292/tarad-changes-tack-vying-to-be-e-commerce-enabler
7BangkokPost:
https://www.bangkokpost.com/tech/1652292/tarad-changes-tack-vying-to-be-e-commerce-enabler
Other references:
https://www.payrecon.my/what-is-the-benefits-selling-on-shopee/