Thailand's Local E-commerce Platforms Struggle to Break Foreign Dominance: Commissions and Ad Costs Eat into Seller Profits
July 15, News: As fees on foreign platforms like Shopee, Lazada, and TikTok Shop continue to rise, dissatisfaction among Thai sellers is growing, fueling the emergence of local e-commerce alternatives. However, Paul Srivorakul, CEO of end-to-end service provider aCommerce, points out that new platforms face immense difficulties in disrupting the existing landscape. The previous failures of 11street, JD Central, and Amazon in Southeast Asia serve as clear evidence. He emphasizes that while local platforms can offer some refuge for small and medium-sized sellers, their limited traffic and GMV potential make it hard to attract major brands. Only by proving they can drive significant incremental sales do they have a chance to become a core channel. Simultaneously, Wiroongit Rattanasiraprapa, Managing Director of munkonggadget.com, has issued a warning that Thailand's e-commerce sector faces a sustainability crisis—consumers are increasingly reliant on promotions, and sellers' commissions, service fees, and advertising costs can account for up to 50% of their revenue. Without substantial financial backing for marketing and subsidies, sellers on local platforms will struggle to gain effective exposure. He urgently calls on the government to take measures to curb predatory pricing, regulate platform subsidies, and limit related fees; otherwise, Thailand's e-commerce market will become further monopolized by foreign platforms. [This article is sourced from Ebrun Go. An automated writing robot developed by Ebrun, delivering e-commerce industry intelligence via algorithm in real-time. This bot is still young, welcome to contact run@ebrun.com or leave a message to help it grow.]
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