Thai eCommerce rivalry set to surge
Thailand has recently plunged into the eCommerce market, spurring job creation and economic fortification. The country has a predicted eCommerce growth rate of between 5 and 7% between 2025 and 2027.
What does the Thai eCommerce surge mean for US businesses?
The eCommerce world is changing, and US businesses must adopt the latest tools and technologies to stay ahead of the curve and fortify themselves against Thai competition.
Why Are Eastern eCommerce Companies So Successful?
China is one of the world’s manufacturing giants. 40% of eCommerce manufacturers selling in the US are based in China. The Chinese eCommerce market has a global foothold due to their unparalleled skill in mass production and manufacturing.
Countries like Thailand, due to their proximity to China, have the advantage of more streamlined supply chains. When Thai eCommerce companies source Chinese manufactured products, the logistic fees are significantly lower than in Western countries.
Eastern eCommerce is one to watch, and Thailand is entering eCommerce territory, preparing to make some noise.
The Thai eCommerce Surge: What To Expect
What are the emerging trends and success points we can expect to see in Thai eCommerce in the coming years?
Quick eCommerce
In Thailand, the average eCommerce company is focused on providing goods and groceries within a matter of hours. Quick eCommerce is something the US is yet to successfully conquer, with the exception of groceries from platforms like Amazon Fresh.
It will be educational and interesting to observe the Thai approach to quick eCommerce, noting how companies are able to provide same-day delivery.
AI Adoption
AI adoption is one of the pivotal success points for Thai eCommerce. By removing the potential for human error and cutting information processing fees, companies are thriving by adopting AI. The technology can handle order processing and inventory management with precision and agility, allowing human resources to be used more effectively.
AI also enables the observation of trends and improved insight with data analysis, giving Thai companies the ability to innovate and make more informed business decisions.
Automated Customer Support
To scale their businesses effectively without concerns over new hires and employee growth, Thai companies are automating services such as customer support.
By using AI-powered chatbots and equipping them to handle almost any customer query, Thai companies can provide the responsive and comprehensive support of a human customer service representative without manual intervention. Bypassing manual intervention means that companies can grow without hiring additional customer support staff, seamlessly assuring positive consumer experiences.
More Online Transactions
Thailand’s online transactions are expected to grow by more than 20% in the upcoming years. Online transfer charges are also set to provide improved cash flow and spur even more expedient growth.
How Can US Businesses Keep Up With Thailand’s eCommerce Rivalry?
To compete with the ferocious growth of Thai eCommerce, US businesses can adopt AI-powered eCommerce tools. eCommerce companies thrive when the potential for human error is ruled out, and inventory management software provides the following assurances:
- Preventing stockouts: An inventory management platform automates the re-order process, preventing stockouts that harm an eCommerce company’s reputation.
- Streamlining stock counts: New RFID scanning technologies allow eCommerce companies to ensure no errors in stock counts. This allows for quick inventory shrinkage identification and reduces the manual labour required to count items.
- Data management: With inventory management software, eCommerce companies can easily review item popularity and dead stock, making more data-driven decisions relating to business growth.
The potential provided by inventory management software makes strategy elevation straightforward, allowing companies to remain competitive despite cutting-edge competition.
Final Thoughts
Thailand has Chinese proximity and the adoption of AI in its favour regarding eCommerce growth. We can expect to see much-needed job creation and a thriving eCommerce industry take hold in Thailand over the next few years, which means US companies should take every precaution to remain competitive. Consider which technologies and tools are best equipped to drive competitiveness for your eCommerce business in the years ahead.
