Uncovering Thailand’s Hidden Assets Through E-commerce

Survey of 7,000 sellers on Shopee Thailand, the largest in-depth report on e-commerce in Thailand

New research from the Sea Insights team illustrates how e-commerce can be a pathway to inclusive growth for three underserved groups in Thailand: 1) the traditional SMEs with offline businesses, 2) sellers outside Bangkok, and 3) the hidden entrepreneurs with untapped potential such as homemakers and students.

We surveyed close to 7,000 merchants on Shopee Thailand — conducting one of the largest surveys of e-commerce sellers in Thailand, and analysing how household income, sales, employment and customer locations changed post e-commerce adoption.

See link here for the full report

We drew 3 key conclusions from our research:

1. E-commerce adoption lifts revenue, productivity, and employment

Traditional SMEs with existing offline business saw 130% increase in total revenue on average after adopting ecommerce. This increase can as much as 370% for the merchants who fully embrace e-commerce (ie. online sales >80% of total sales).

The improvement in sales was driven by a substantial boost in productivity, defined here as sales per worker. This is especially important in Thailand’s context given the prevalent talent shortages among SMEs. The sellers also saw 17% increase in employment on average, with those who re-invest profits into labor seeing up to 46% increase in headcount after going online.

2. E-commerce reduces geographical constraints, especially for upcountry regions

One channel through which e-commerce improves incomes is by reducing distance constraints. Through e-commerce, sellers are able to discover new markets, while buyers can find new products from faraway provinces more easily.

Our research shows that more than 80% of sellers now sell outside their own region, versus just 45% before e-commerce.

More importantly, the lift to household incomes and access to markets was most pronounced outside Bangkok, and in particular in regions with lower incomes such as the North, Northeast and South.

3. E-commerce helps generate alternative sources of income

Ecommerce also helps groups with full-time responsibilities such as homemakers, students, and employees generate alternative sources of income, greatly improving their livelihoods in the process.

These “hidden entrepreneurs” benefit from zero to little overhead costs from e-commerce, allowing them to experiment and try new business models, while at the same time fulfilling their duties such as caring for their families and paying for their education.