Pandemic hastens e-commerce growth in Thailand

Fears over catching the virus drove the boom.

The pandemic has fast-tracked e-commerce growth in Thailand, with the value of transactions expected to rise 14.8% this year, according to a GlobalData report.

The sector posted a CAGR of 12.2% between 2016 and 2020 to reach $35.3b (THB1.1t) this year. A significant young population, a rise in Internet and smartphone penetration, and growing consumer confidence paved the way for the boom.

Fears over contracting COVID-19 and social distancing measures taken are expected to contribute to the uptick in online shopping. The pandemic has also resulted in a rise in the adoption of e-commerce by retailers, the report said, with Lazada adding 26,000 new merchants in March alone.

To promote e-commerce, Thailand is taking steps to bring offline local merchants to the online channel. In May, the commerce ministry collaborated with online platforms including Thailandpostmart, Lazada, JD Central and Cloudmall to enable farmers to sell fruits online.