Thai e-commerce to hit $13bn by 2025
Surge rests on strong demand across globe
Thailand's e-commerce market value is expected to surge to US$13 billion by 2025 from last year's $3 billion on the back of strong global demand for Thai products.
The country's e-commerce sector has several product categories that are in global demand.
The top five exports sold through cross-border trade in Thailand's e-commerce comprise jewellery and watches, health and beauty products, auto parts, home and garden, and collectibles, said Jenny Hui, general manager of eBay, referring to the Google/Temasek e-Conomy 2018 report.
Thailand's e-commerce market is seeing vibrant growth and ranks third in terms of market size, following Indonesia and Vietnam, the report said.
Ms Hui said that as e-commerce continues to grow exponentially, Southeast Asia will account for 20% of worldwide e-commerce by 2022.
Moreover, Asia-Pacific is expected to become the largest cross-border trade (CBT) region in e-commerce for both imports and exports.
Ms Hui, who oversees Hong Kong, Taiwan and Southeast Asia's CBT, said the value of Southeast Asia's e-commerce market reached $23.3 billion last year and is expected to continue to grow to $103 billion by 2025.
Over the past few years, cross-border trade via e-commerce has changed from light and cheap products to high-quality and bulky items, she said.
Branded products and customisable items are also in demand as buyers seek flexible products. Moreover, sellers on eBay now consist of dedicated teams rather than individuals.
According to eMarketer Cross-Border Ecommerce 2017, cross-border e-commerce has been growing 29.3% a year since 2014 and global e-commerce has seen annual growth of 13.5%. The compound annual growth rate (CAGR) of cross-border e-commerce activities was higher than for the overall global e-commerce market.
A major factor is the increased flow of information, logistics and capital across borders.
There is more information flow with big data, social media and multi-screen devices compared with only simple item descriptions in the past.
Logistics has improved with track-and-trace, digitisation, returns and warehousing operations after only involving direct shipping in the past.
Additionally, capital flow of cross-border e-commerce today needs risk management, liquidity management, financing and insurance. In the past, only withdrawal, payment, remittance and exchange featured.
Ms Hui said eBay has consistently been recognised for presenting tremendous opportunities that are available through the wide variety of Thailand's products which meet the demands of the global market.
"Our platform connects small and medium-sized Thai businesses to 180 million active buyers in 190 markets around the world," she said.
The company continues to invest in technologies and platform features that deliver convenience for sellers to start their online business and become successful.
Last year, e-commerce transactions through eBay were worth $95 billion, with cross-border trade representing 60%.
EBay continues to improve the business potential of Thai sellers through several key initiatives. These include exclusive training programmes aimed at building online retail skills, such as the eBay Boot Camp, a three-month programme focused on incubating sellers with online retail skills and empowering them to grow their own online businesses.