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E-Commerce in Thailand
Development of E-Commerce in Thailand
Overview
While the internet has existed in Thailand for over 20 years, electronic commerce has been slow to develop and does not yet play a key role in the economic marketplace. However, as a country that has been quickly developing in the last decade, Thailand has begun to lay the groundwork to fully integrate electronic commerce into the culture and their way of life.
Internet Origin and Growth
The internet was first used in Thailand in 1987, but not until 1995 did the first commercial Internet Service Provider begin operations. In 1998 only 2% of Thailand's population used the internet. Internet usage has steadily climbed to a 20% use in 2008 but most of the growth has been concentrated in Bangkok. 33% of all of Thailand's internet use is based out of Bangkok creating a large gap between the population on Bangkok and other provinces in terms of internet usage.
E-Commerce- Slow to Develop
Consumer Obstacles
Presently, E-Commerce has been slow to gain popularity in Thailand. In 2002 a national survey indicated that over 76% of the population had never used the internet to make a purchase. The survey noted intangibility of products, distrust of the merchandiser, unwillingness to disclose credit-card information, and the complication of the purchasing process as the most common reasons Thai consumers did not make internet purchases.
Thailand also lacks the legal framework governing electronic transactions which only add to the trust issues between the Thai people and E-commerce. Proper laws are not in place to ensure that the consumer is protected, and that seller/buyer contracts are enforced.
Business Obstacles
Many entrepreneurs are hesitant to enter the E-commerce business for many reasons. Like consumers, business owners also complain about lack of support from the government, in addition to a lack of tax and business practice laws. A lack of IT knowledge and adequate financial support for E-commerce businesses also hinders emerging online sellers. Large E-commerce businesses are scarce in Thailand, as a recent survey conducted by Thailand’s National Electronics and Computer Technology Center (NECTC) indicated that 75% of the E-commerce businesses are very small, many containing less than five employees. Although almost half of these small E-commerce businesses have only been in operations for less than a year, showing possible growth in the industry.
Current Developments
Thailand's government has placed a strong emphasis in developing the proper infrastructure to support E-Commerce. The Thai government plans to adopt the IT 2010 Policy drafted by the NECTEC,which will help Thailand support key electronic commerce platforms, including E-Industry, E-Commerce, E-education, and E-government. In addition, the Thai government also announced its intention to offer tax and other incentives for E-commerce businesses, which will help jump-start the development. For the first time Thailand is looking to gain competitive potential through the development of E-commerce.
Overall, E-Commerce in Thailand continues to experience growth today. The most popular goods purchased over the internet are books, software, and electronics.
Electronic Marketplaces in Thailand
In May of 2007, Ebay teamed up with Sanook!, the leading online brand in Thailand, to open up an Ebay marketplace in Thailand. In addition to Ebay, many other online retailers have begun to make a presence in Thailand. A link to many popular online retailers in Thailand can be foundhere.
