Thailand Post piloting e-commerce

Thailand Post piloting e-commerce

New services to offer local products starting in fourth quarter

Models promote the new e-marketplace, Thailandpostmart.com, co-developed by Thailand Post and BEC Tero.
Models promote the new e-marketplace, Thailandpostmart.com, co-developed by Thailand Post and BEC Tero.

Thailand Post will add e-commerce to its logistics services, offering locally made products from across the country.

From the fourth quarter, the enterprise will pilot exports of community-made products to Japan by collaborating with Japanese online marketplaces.

The move aims to capitalise on cross-border e-commerce to compete with Chinese internet giants dumping their products in Thailand.

"The company spent 10 million baht to launch Thailandpostmart.com, helping local communities sell their products in a marketplace with special delivery costs," said Samorn Terdtampiboon, president of Thailand Post.

The website, co-developed with BEC Tero, gathers locally made products nationwide into a "digital community", aiming to be the largest distribution channel for agricultural products, crafts, food and One Tambon One Product items.

The site's eight categories are halal products, health and beauty, mail products, best cuisine in Thailand, best provincial products, locally made products, home and garden, and automotive.

In the next phase, the site will integrate with at least 5,000 points of sale in communities by year-end through collaboration with the ministries of Commerce, Industry, Interior, Energy and Agriculture, as well as the Bank for Agriculture and Agricultural Cooperatives, to bring more local products to the e-marketplace.

After the official launch, there will be an estimated 12,000 stock-keeping units of locally made products by April 2019, with 200 million baht in sales revenue through the website.

Products can be delivered to buyers within 1-2 days after order and payment, and mobile apps for both iOS and Android will be available soon to ease transactions.

Phitsanu Wanitchaphol, senior executive vice-president for marketing and business at Thailand Post, said the enterprise will send staff and postmen to select qualified merchants who have quality products and are interested in online sales.

By the fourth quarter, Thailand Post will pilot cross-border products to Japan's largest e-marketplace for items like crafts, jewellery and locally made goods.

Cross-border deliveries require seven days.

"We will create an exchange programme for local products from the two countries," Mr Phitsanu said.

Next month, Thailand Post will launch an e-wallet developed with partner 2C2P.

The e-wallet will be an alternative for local merchants. When products are delivered to customers, Thailand Post will transfer money to the merchants' e-wallet.

Previously, merchants would have to collect their payments at Thailand Post counters.

Merchants can pay a fee for withdrawing money at a cost 50% cheaper than those of global payment platforms.

Consumers can also pay for products at home by using e-wallet or through other payment services such as QR code at Thailand Post counters.

To pave the way for e-logistic services, the enterprise plans to spend up to 5 billion baht by 2022 to implement new sorting machines for parcels in mail centres countrywide.

In the next five years, Thailand Post expects to earn 60% of revenue from logistic services in domestic and international delivery, or 12 billion baht out of 20 billion this year.

The remaining revenue will come from e-marketplace and e-commerce services (10%), payment services (5%) and retail and postal services (25%).

Express, parcel delivery and logistics currently make up 40% of revenue, with 40% from mail service and 20% from retail.

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