Milieu Insight: Shopee Dominates Thailand Market with 89% Penetration, Fulfillment Experience Remains Key Competitive Focus

Ebrun Original, December 15 - According to the latest research released by global market research firm Milieu Insight, Thailand's e-commerce penetration rate and consumers' online shopping frequency continue to rise, ranking among the top in Southeast Asia. The survey indicates that 87% of Thai consumers shop online at least once a week or month, with online retail deeply embedded in their daily purchasing decisions.

In terms of platform landscape, Thailand's e-commerce market is currently dominated by three major platforms. Shopee leads with a usage rate of 89%, maintaining a clear advantage. TikTok Shop and Lazada follow with usage rates of 71% and 66%, respectively, also wielding significant influence in user acquisition and shaping consumer pathways. Overall, the concentration of user reach and transaction conversion among top platforms continues to increase.

However, market expansion has not fully translated into a corresponding rise in consumer satisfaction. While price remains a key factor in purchasing decisions, Thai consumers are increasingly prioritizing trust, delivery reliability, and overall shopping experience when choosing platforms and deciding on repeat purchases.

Discounts and free or low shipping costs are still the most critical drivers for orders, both accounting for 73%, reflecting Thai consumers' strong focus on value for money. Amid rising logistics costs, free shipping or shipping subsidies effectively alleviate price sensitivity and boost purchase intent.

Meanwhile, a wide product selection (45%) and credible user reviews (39%) are playing increasingly important roles, signaling a shift from pure price-driven behavior to value-driven decisions. Consumers are no longer willing to sacrifice trust and reliability solely for lower prices.

Logistics fulfillment remains a core pain point in the e-commerce experience. The study reveals that 79% of Thai consumers encountered various delivery issues in the past year, with slow delivery, delays beyond promised timelines, damaged or missing items, and incorrect shipments being the most common.

Fluctuations in fulfillment directly impact repeat purchases: 46% of consumers avoid the same seller after a poor delivery experience, while 15% switch to other platforms. Another 44% continue shopping but with significantly reduced trust in the platform and sellers.

Notably, most consumers do not focus on which specific courier company handles delivery: 70% of respondents are indifferent to the logistics provider, caring more about whether the actual delivery meets expectations. Only 15% consider the courier brand important.

At the same time, 93% of consumers expect platforms to establish and enforce unified standards for delivery speed, consistency, and cost, and hold logistics providers accountable for underperformance. Positive incentives for improved experiences are also evident, with 47% of consumers stating they would increase spending if deliveries are consistently fast and reliable.

Beyond fulfillment, feature innovations that reduce uncertainty and enhance peace of mind are becoming key competitive tools for platforms. Buy Now, Pay Later (BNPL) is used by 41% of consumers, with 44% reporting it encourages higher spending and repeat purchases. The "one-click checkout" feature, used by 35%, effectively reduces user churn by minimizing friction in the transaction process.

Self-service return and exchange systems have gained 34% acceptance, significantly improving perceptions of platform reliability by simplifying after-sales processes and lowering issue resolution costs. Live commerce is used by 27%, with real-time displays and interactions seen as mitigating information asymmetry and compensating for the trust-building shortcomings of traditional product pages.

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