As Southeast Asia's e-commerce map evolves in the digital wave, Thailand is undergoing a profound transformation driven by short-video platforms. If Thailand's e-commerce market were a massive ship, Shopee and Lazada have long served as its twin engines. However, with the rise of TikTok Shop as a new force, the vessel's course is quietly changing, signaling the emergence of a new competitive landscape.
Thailand's E-Commerce Market Expands at Double-Digit Pace
With nearly 70 million people, Thailand's e-commerce market holds tremendous potential. In 2024, the country's online retail sales reached 1.1 trillion baht ($31 billion), marking 14% year-over-year growth. According to Priceza.com's latest research, this figure is projected to climb to 1.6 trillion baht ($46 billion) by 2027, positioning Thailand as ASEAN's second-largest online retail market after Indonesia. This growth trajectory reflects both Thai consumers' increasing reliance on online shopping and the market's vast future prospects.
TikTok Shop Challenges Established Duopoly
Shopee and Lazada have long dominated Thailand's e-commerce scene, with Shopee maintaining 75% user penetration and Lazada following at 67%. Yet TikTok Shop's innovative "watch-and-shop" model has rapidly gained ground, achieving 51% user adoption in under two years since entering the market. The platform's Thai operation, established just over a year ago, has already surpassed 12 billion baht ($340 million) in annual revenue, with particularly strong influence among younger consumers. Market analysts suggest TikTok Shop could reshape Thailand's e-commerce ecosystem within 24 months if current growth rates persist.
Brands Diversify Marketing Beyond Platforms
As e-commerce platform commissions continue rising, 2025 has become a pivotal year for marketing strategy shifts among Thai brands. Many are reducing reliance on single platforms, instead embracing KOL collaborations and affiliate marketing to improve ROI and expand customer reach. This diversified approach helps brands mitigate platform dependency while enhancing marketing efficiency and competitive positioning.
Debate Over TikTok Shop's Closed Ecosystem
While consumers welcome TikTok Shop's immersive shopping experience, its closed ecosystem has sparked controversy. Proponents highlight the platform's convenience and entertainment value, while critics warn that restricted external links may limit market openness and fair competition. For small and midsize businesses, the platform presents both traffic opportunities and challenges including high promotion costs, strict rules, and ecosystem dependence.
Logistics Challenges Persist
Logistics remains a critical weakness in Thailand's e-commerce development. Despite TikTok's 2024 partnership with Thailand Post to improve delivery services, persistent issues around timeliness and service transparency continue affecting user experience. Enhanced logistics efficiency and service quality remain urgent priorities for the industry.
Southeast Asia's Digital Economy Seeks New Equilibrium
Thailand's rapid e-commerce evolution mirrors broader Southeast Asian digital economy trends. Under converging pressures from technology, competition and regulation, markets are seeking new balance points. While consumers benefit from expanded choices and better pricing, businesses must navigate how to maintain both competitiveness and compliance during this ongoing transformation.