In recent years, with the popularity of the Internet and changes in consumption habits, Thailand’s e-commerce market has risen rapidly. The Thai government is also further strengthening investment in the e-commerce market and is committed to creating a more competitive and dynamic market environment. In the development of the e-commerce market, logistics issues are also one of the key factors. So, let’s take a look at the analysis of Thailand’s e-commerce logistics paths.
1. Overview of Thailand’s e-commerce market.
According to the 2020 Thailand e-commerce market report, the size of Thailand’s e-commerce market has reached 180 billion baht, approximately US$56 billion, and the annual growth rate of Thailand’s e-commerce market has reached 30%. At the same time, the Thai government has also used domestic and foreign investment to provide good support for the development of the e-commerce market.
2. Logistics paths in Thailand’s e-commerce market.
Due to the complexity of Thailand’s logistics environment, Thailand’s e-commerce logistics paths are somewhat different from those in other countries. On domestic logistics routes, the following models are common.
1. Sales through offline stores.
Due to the diversity of the Thai market, some e-commerce platforms choose to cooperate with local stores to sell products through offline channels and provide fast online ordering and a pleasant offline experience. The expansion of offline stores can better ensure the satisfaction and experience of Thai consumers, effectively improve brand reputation and increase sales.
2. Self-operated warehouse sales model.
For some larger e-commerce companies, they usually store goods through their own warehousing facilities, and then choose more convenient and efficient logistics methods to handle order execution. The self-operated warehouse sales model can better control logistics links and inventory control, and can also adjust prices and sales strategies at the appropriate time.
3. Purchase in local markets.
Many companies in Thailand usually adopt this model, which is to purchase items in the local market and then choose slightly cheaper and more convenient logistics methods to ship them to buyers. This model is relatively low-cost, but because it takes a long time to deliver goods, it also reduces the logistics efficiency of express delivery companies while meeting consumers’ shopping needs.
4. Cross-border e-commerce import.
As Thailand further opens its market, more and more cross-border e-commerce platforms have entered the Thai market, transporting foreign goods to Thailand through direct mail. The logistics path of cross-border e-commerce imports is relatively complex and requires coordination among multiple parties to ensure the smooth transportation and safety of goods.
3. Challenges and solutions of Thailand’s e-commerce logistics path.
1. Logistics cost issues.
As a country with backward logistics, Thailand’s logistics costs have always been relatively high. At present, Thailand’s logistics costs are mainly affected by the following factors: traffic congestion, lack of transportation, outdated equipment, chaotic management systems, etc. How to control logistics costs is an urgent problem that needs to be solved.
Solution: In order to reduce logistics costs, companies can optimize logistics routes, choose cheaper logistics companies, and negotiate with logistics companies to reduce logistics costs. At the same time, they must also actively cooperate with local governments to provide logistics companies with Provide better policy support.
2. Last mile delivery.
In the logistics path, the last mile is one of the most challenging links. There is a big gap between the traffic conditions in Thailand’s urban and rural areas compared with developed countries. Problems such as road congestion, limited number of delivery vehicles, and difficulties in recruiting delivery personnel have also brought great challenges to last-mile delivery.
Solution: Improve delivery technology and design optimization, and adopt more flexible methods, such as the personnel certification method used by companies such as UberEats to solve the problem of difficult recruitment of delivery personnel.
3. Storage problem.
Thailand’s climate characteristics determine that more energy is required to store goods. The storage environment is particularly important for certain items, and storage issues are exacerbated for items that require cooling or advanced environments.
Solution: Optimize warehouse design and equipment to ensure the quality of goods while achieving efficient management of the warehouse. At the same time, it is also a good choice to adopt modern intelligent technology equipment, such as using intelligent automation equipment to complete intelligent warehouse management.
4. Security.
The safety of goods along the logistics path is an issue that is often overlooked. Many companies do not have efficient logistics risk management systems and standard processes, which will not only lead to theft of goods, but also leave hidden dangers to the safety of goods.
Solution: Establish a complete logistics management system and logistics risk management system, and use technologically advanced equipment and technology to ensure the safety of goods. At the same time, we will strengthen cooperation with local police and security agencies to improve our ability to ensure cargo security.
Thailand’s e-commerce market is booming, and while the e-commerce market is developing, logistics problems have always been urgent to be solved. Through the analysis of Thailand’s e-commerce logistics path, we found that the complexity of Thailand’s logistics environment and high logistics costs are existing problems. The interaction between different logistics models and various related policies and actual conditions determines the logistics path