“Cross-border e-commerce”: Why do Thai sellers fail more than they succeed? Soaring fees create barriers that drain profits from small vendors, pushing them toward collapse rather than growth. Tags: [cross-border e-commerce, Thai sellers, platform fees, small businesses, economic challenges]
In an era when online shopping is a vital economic artery, major international e-commerce platforms have quietly become a "battleground" that quietly devours Thai small and medium enterprises (SMEs). What once was seen as a lucrative channel now causes many Thai vendors to shed tears and ultimately surrender by closing their shops.Tags: [online shopping, international platforms, Thai SMEs, business closures, economic impact]
What lies behind the "selling well but going bankrupt" cycle, and how can Thailand find solutions to this economic national drain crisis?Tags: [economic crisis, business failure, Thailand, market challenges]
A survey of Thai entrepreneurs reveals they face three relentless waves they cannot overcome.Tags: [entrepreneur challenges, market pressures, survey findings]
1. Unstoppable surge in Gross Profit (GP) walls and feesTags: [fees, gross profit, business costs]
These platforms used the "fish in a barrel" strategy, initially accepting losses to hook Thai sellers. But once monopolizing the market, fees have marched upward, including:Tags: [market monopoly, platform fees, business strategy]
Commission feesTags: [commission fees]
Payment processing feesTags: [payment fees]
Marketing program fees such as free shipping or discountsTags: [marketing fees, promotional costs]
The painful truth: After all deductions, stores may lose as much as 20-30% per order, leaving almost no margin for profit.Tags: [profit margin, business losses, fees impact]
2. Algorithm "reduces visibility" if you don’t pay for adsTags: [algorithms, advertising, visibility]
"Opening a shop but no one sees it" has become normal. To make sales, sellers must buy paid ads within the app. The platform frequently adjusts algorithms to pressure sellers to spend more on ads, increasing costs without increasing—or even reducing—sales.Tags: [paid ads, algorithm changes, sales challenges]
3. Price war from direct "Chinese factories"Tags: [price war, Chinese factories, competition]
This is the strongest blow. Platforms allow foreign factories or suppliers (especially from China) to open shops and ship products directly to Thai consumers without intermediaries. Lower production costs plus some tax benefits make Thai products unable to compete on price.Tags: [foreign suppliers, direct shipping, price competition]
FactorsTags: [business factors] | Golden era (Past)Tags: [business history, past era] | Current era (Crisis)Tags: [current challenges, economic crisis] |
FeesTags: [fees] | Free or below 5%Tags: [low fees] | Soaring to 15%-30%Tags: [high fees] |
Visibility (Reach)Tags: [visibility, reach] | Organic—just posting attractive photos was enough to sellTags: [organic reach, marketing] | Blocked—must pay for ads (Pay to Play) onlyTags: [paid reach, advertising] |
CompetitorsTags: [competition] | Thai sellers competing among themselvesTags: [local competition] | Large foreign factories shipping directlyTags: [foreign competition] |
OutcomeTags: [business results] | Profitable and able to expandTags: [profit, growth] | Selling well but checking accounts shows "loss"Tags: [losses, sales] |
The government, related agencies, and entrepreneurs themselves can no longer let the situation continue unchecked. Here are urgent solutions that must be implemented.Tags: [government role, urgent action, entrepreneurship]
Regulate and supervise fees (GP): The Trade Competition Commission of Thailand (TCCT) must investigate whether fee increases by platforms constitute "abuse of market dominance" and set upper limits.Tags: [regulation, competition, fees]
Close tax and customs loopholes: Strictly enforce taxes (such as VAT and import duties) on cross-border goods 100% from the first item to ensure fair competition (Fair Play).Tags: [tax enforcement, customs, fair competition]
Create a National Platform or new alternatives: Support Thailand’s own e-commerce ecosystem or promote offline and online trade channels that are not monopolized by foreign capital.Tags: [national platform, e-commerce ecosystem, trade alternatives]
Adapt to survive: Strategies for Thai entrepreneursTags: [adaptation, business strategy]
Escape the price war with “Storytelling & Brand”: Stop selling generic products easily sourced from China; instead, focus on building brands, enhancing value through quality, guarantees, and fast after-sales service (which foreign shops cannot provide).Tags: [branding, product value, customer service]
Diversify risk (Multi-channel): Don’t rely on a single platform. Move customers to your own owned media such as websites, Line Official Accounts, or content commerce via social media channels that still offer better visibility support.Tags: [diversification, owned media, social commerce]
Today’s e-commerce battleground is no longer a "fast fish eats slow fish" arena, but a "big fish eats small fish" one. If cross-border platforms continue to drain funds and squeeze Thai entrepreneurs until they cannot survive, the country’s grassroots economy will collapse.Tags: [e-commerce competition, economic impact, business survival]
It is time for the government to "enact serious legislation" and for Thai entrepreneurs to "stop relying on a single source" to transition from being pawns in others’ games to masters of their own destinies.Tags: [legislation, entrepreneurship, economic sovereignty]