Thailand E-Commerce and Rising Fees
April 23, 2025
E-commerce has transformed the retail landscape in Thailand, with platforms like Lazada and Shopee offering businesses access to millions of potential customers. However, as these platforms continue to raise their fees, many small to medium businesses (SMBs) are questioning whether selling online remains a viable option. With rising commissions, transaction fees, advertising costs, and logistics charges, is the convenience and reach of these platforms still worth the Thailand E-Commerce Fees?
Initially, e-commerce platforms attracted sellers with low commission fees, positioning themselves as cost-effective alternatives to traditional brick-and-mortar stores. However, as these platforms gained dominance, they gradually introduced higher fees in various forms, including:
Depending on the product category, commission rates range from 1% to 10%, significantly affecting profit margins.
Paid promotions are often necessary to gain visibility in a highly competitive marketplace, adding to operational expenses.
Shipping fees, fulfillment services, and payment processing charges further eat into profits.
Platforms encourage sellers to offer discounts, making it harder to maintain sustainable pricing.
For SMBs, these escalating fees create several challenges:
Many small businesses operate with limited financial resources, and higher platform fees reduce their ability to reinvest in growth, product development, or marketing.
With rising competition, sellers must invest more in sponsored ads to maintain visibility.
Unlike independent websites, selling on these platforms means adhering to strict pricing structures and frequent discount-driven campaigns.
With tighter margins, businesses may be forced to cut costs in areas such as packaging, product quality, or customer service, ultimately affecting the buyer experience.
Despite the increasing fees, e-commerce platforms still offer undeniable benefits:
✅ Massive Customer Base – These platforms attract millions of shoppers daily, providing businesses with instant visibility and sales opportunities.
✅ Logistics & Payment Solutions – Sellers benefit from built-in payment processing and nationwide logistics services, reducing operational complexity.
✅ Marketing & Promotions – With platform-driven campaigns like flash sales and vouchers, businesses can leverage existing customer traffic to drive sales.
✅ Trust & Credibility – Consumers tend to trust established platforms over standalone websites, which helps sellers convert more customers.
However, not all businesses benefit equally.
Who Benefits the Most?
Who Might Struggle?
As fees continue to climb, many SMBs are exploring alternative solutions:
While it’s understandable that e-commerce platforms need to generate revenue, there is growing frustration among SMBs about the increasing burden of fees. To maintain a balanced ecosystem, platforms should consider:
The convenience and exposure offered by Lazada and Shopee remain unmatched, but the rising costs of selling on these platforms are putting immense pressure on small to medium businesses. While e-commerce marketplaces still provide valuable opportunities, SMBs must carefully evaluate whether the benefits outweigh the increasing expenses. Exploring alternative sales channels and diversifying strategies may be the key to long-term sustainability.
Ultimately, e-commerce platforms remain a powerful tool—but only if sellers can navigate their increasing costs effectively.
Discover how SILKEN Asia can help your brand thrive in the Thai market.
E-commerce has transformed the retail landscape in Thailand, with platforms like Lazada and Shopee offering businesses access to millions of potential customers. However, as these platforms continue to raise their fees, many small to medium businesses (SMBs) are questioning whether selling online remains a viable option. With rising commissions, transaction fees, advertising costs, and logistics charges, is the convenience and reach of these platforms still worth the expense?
Thailand’s e-commerce market is on an exciting growth trajectory, expected to hit 750 billion THB by 2025. With digital adoption soaring and platforms like Shopee and Lazada driving massive sales, brands are doubling down on ads, KOLs, and personalized strategies to stay ahead. Ready to tap into this booming digital economy?
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