E-commerce sector set to heat up next year

Intensifying competition between dominant e-marketplaces Shopee, Lazada and new market entrant Temu, a continuation of commission fee hikes, and the video commerce war are expected to be among Thailand’s e-commerce trends in 2025.
According to e-commerce pioneers, the trends include a rise of affiliate marketing and recommerce, the latter referring to sales of previously owned new or used products to buyers who repair, reuse, recycle or resell the products.
Thanawat Malabuppha, honorary president of the Thai e-Commerce Association, said Thailand is expected to see a greater influx of Chinese products in 2025 as Shopee and Lazada are offering new features, namely Shopee Choice and Lazada Choice, respectively.
These choices refer to consignment products or goods that both players procure directly from sellers in order to bargain for the best price possible. After that, Lazada and Shopee set their own prices on the items and carry out their own marketing.
Paul Srivorakul, group chief executive of aCommerce, a Southeast Asian e-commerce enabler, said the consignment model reflects a strategic move by both Lazada and Shopee to counter Temu in the Thai market.
Mr Paul added that it is challenging to execute the model effectively. While Temu excels at integrating marketing with merchandising, supply chains and logistics, Lazada and Shopee may struggle to replicate this level of operational precision quickly.
The consignment model demands tight inventory control, real-time data management, and efficient supplier coordination — areas in which Temu has a head start, Mr Paul added.
He said that for Lazada and Shopee to achieve similar success, they will require significant investment in infrastructure and operational enhancements.
The value of Thai e-commerce is expected to reach 1.1 trillion baht in 2024, up 14% year on year, and is expected to continue to grow to 1.6 trillion baht in 2027, Mr Thanawat said.
The 14% rate represents a lower growth rate than that recorded in 2021 (18% year-on-year) and in 2022 (19% year-on-year). One factor causing the slow growth rate is the e-marketplaces’ decision to continue to hike commission fees.
Mr Thanawat said affiliate marketing is driving buying decisions.
According to a joint survey conducted by Cube Asia and impact.com of consumers in Southeast Asia, 83% of the 400 Thai respondents chose to purchase products promoted by influencers, mainly in the beauty and fashion categories.
The survey, conducted in August 2024, reached 2,121 respondents.
LIVE COMMERCE MAKES GAINS
The survey also found that commercial live streaming has reached mass adoption in Southeast Asia.
Around 90% of Thai respondents said that in the last 12 months they had watched at least one live commerce platform, of which 86% viewed TikTok, 57% viewed Shopee, 52% viewed Facebook, 47% viewed Lazada, and 18% viewed Instagram.
“We see those platforms have increased the period of live streaming to attract a greater audience,” said Mr Thanawat.
Mr Paul added that social and video commerce are reshaping e-commerce in Southeast Asia, with platforms like TikTok Shop and live-streaming on Lazada and Shopee leading the way.
YouTube and Meta are also entering the space of video commerce through partnerships with Shopee.
In the region, video commerce is boosting Southeast Asia’s e-commerce, gaining 20% of the sector’s total gross merchandise value in 2024, compared to less than 5% in 2022, according to a report jointly produced by Google, Temasek and Bain & Company titled “e-Conomy SEA 2024 – Profits on the Rise, Harnessing SEA’s Advantage”.
Mr Paul also sees omnichannel retailers expanding into e-marketplaces, retail media, and recommerce.
“Traditional omnichannel retailers are diversifying by adopting their own marketplace platforms, retail media and omnichannel advertising, and recommerce models to compete with established e-commerce marketplace platforms,” he added.
Cross-border e-commerce is expanding as Southeast Asian consumers increasingly seek international products or purchase from overseas sellers on regional marketplaces, Mr Paul said.
Mr Paul also sees the use of e-commerce analytics as providing deeper consumer insights.