GSB platform to pool small shop purchasing
Expanded sales channels also enabled
State-owned Government Savings Bank (GSB) aims to attract 60,000 small shops and One Tambon One Product companies to participate in its sponsored online-to-offline (O2O) e-commerce platform to raise their bargaining power in purchasing goods from manufacturers.
O2O-Village Grocery, sponsored by GSB, enables participating merchants to offer both online and offline sales channels through smartphones, tablets and point-of-sale (POS), with the bank taking responsibility for payments and settlements via debit and credit cards, QR code mobile banking and e-wallets, said GSB president and chief executive Chatchai Payuhanaveechai.
The bank also offers standby credit worth up to 200,000 baht to each shop participating in the bank's e-marketplace platform at an interest rate of 0.75% per month.
GSB plans to approach other leading consumer products manufacturers including Sahapat Group, Charoen Pokphand and those under tycoon Charoen Sirivadhanabhakdi to form business alliances on the platform, in addition to Procter & Gamble, he said. These firms and the bank will be in charge of managing purchase orders, logistics and payment systems.
GSB hopes to attract 60,000 small shops and One Tambon One Product creators nationwide to participate in its online-to-offline e-commerce platform. PATIPAT JANTHONG
The bank will also negotiate with wholesalers to directly send products to end consumers to help participating merchants manage inventory, he said.
Pooling merchants in the e-platform can help them buy products directly from manufacturers at 10-20% lower prices, he said.
GSB charges 300 baht per month for the POS rental fee to participating shops and offers the service free for those with monthly sales starting from 100,000 baht.
O2O-Village Grocery sponsored by GSB comprises three main features: e-orders to connect with other online marketplaces and distribution channels including modern trade, supermarkets, manufacturers, hotel operators, restaurants and retailers; e-payments to link participating merchants with the banks' payment system and financial products; and e-logistics that link data of shipped products to logistics service providers for convenience and traceability.
Mr Chatchai said the bank supports community products through existing projects such as GSB SME Startup and People's University to standardise products and services in order to enter the global market.
The bank will next develop an escrow account for payment and e-logistics systems to cut down transport costs, he said.
Earlier this month, the bank was one of several state units that signed a memorandum of understanding with the Commerce Ministry to develop a business-to-business online platform for traditional small-scale retail shops to help them go online.
Under the scheme, the Digital Economy and Society Ministry, Thailand Post Plc, GSB, and the Bank for Agriculture and Agricultural Cooperatives develop the online platform that allows small retail shops to purchase goods from suppliers and sell to customers, manage their stock and warehousing, and offer easy access to logistic services and payments.