Intensifying competition among leading e-marketplaces Shopee, Lazada, and new entrant Temu, alongside ongoing hikes in commission fees and a growing focus on video commerce, are expected to characterize Thailand’s e-commerce landscape in 2025.
E-commerce experts highlight trends such as the rise of affiliate marketing and recommerce, which involves selling previously owned new or used products to consumers interested in repairing, reusing, recycling, or reselling these items.
Thanawat Malabuppha, honorary president of the Thai e-Commerce Association, indicated that Thailand will likely see an increased influx of Chinese products in 2025, as Shopee and Lazada introduce new features—namely Shopee Choice and Lazada Choice. These features refer to consignment products, where both platforms procure goods directly from sellers to negotiate the best possible prices, after which they set their own pricing and manage marketing efforts.
Paul Srivorakul, group chief executive of aCommerce, a Southeast Asian e-commerce enabler, noted that the consignment model represents a strategic response by Lazada and Shopee to compete with Temu in the Thai market. He added that executing this model effectively is challenging, as Temu has excelled at integrating marketing with merchandising, supply chains, and logistics. Lazada and Shopee may find it difficult to quickly match this level of operational precision.
Implementing the consignment model requires stringent inventory control, real-time data management, and efficient supplier coordination—areas where Temu currently holds an advantage. Mr. Paul emphasized that for Lazada and Shopee to replicate this success, they would need to invest significantly in infrastructure and operational improvements.
The value of Thailand’s e-commerce market is projected to reach 1.1 trillion baht in 2024, reflecting a 14% year-on-year growth. This figure is expected to increase to 1.6 trillion baht by 2027. However, the 14% growth rate is lower than the 18% and 19% increases observed in 2021 and 2022, respectively, partly due to the e-marketplaces’ persistent commission fee hikes.
Mr. Thanawat also noted that affiliate marketing is influencing consumers’ purchasing decisions. A joint survey by Cube Asia and impact.com revealed that 83% of 400 Thai respondents opted to buy products promoted by influencers, primarily in beauty and fashion categories. Conducted in August 2024, this survey involved a total of 2,121 participants.
LIVE COMMERCE GAINS TRACTION
The survey indicated that commercial live streaming has reached widespread acceptance in Southeast Asia, with approximately 90% of Thai respondents reporting they had watched at least one live commerce platform in the past 12 months. Among these viewers, 86% tuned into TikTok, 57% on Shopee, 52% on Facebook, 47% on Lazada, and 18% on Instagram.
“We’ve noticed that these platforms are extending their live streaming durations to attract larger audiences,” Mr. Thanawat commented.
Mr. Paul pointed out that social and video commerce are transforming the e-commerce landscape in Southeast Asia, with platforms like TikTok Shop and live streaming on Lazada and Shopee taking the lead. YouTube and Meta are also entering the video commerce arena through partnerships with Shopee.
According to a report titled “e-Conomy SEA 2024 – Profits on the Rise, Harnessing SEA’s Advantage,” produced by Google, Temasek, and Bain & Company, video commerce is anticipated to contribute 20% of the sector’s total gross merchandise value in 2024, compared to under 5% in 2022.
Mr. Paul also sees traditional omnichannel retailers expanding their presence in e-marketplaces, retail media, and recommerce. “These retailers are diversifying by launching their own marketplace platforms and adopting retail media and omnichannel advertising strategies to compete with established e-commerce giant platforms,” he stated.
Furthermore, cross-border e-commerce is growing as Southeast Asian consumers increasingly seek international products or purchase from overseas sellers on regional marketplaces. Mr. Paul highlighted that leveraging e-commerce analytics is providing deeper insights into consumer behavior.
