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The Southeast Asian country comes right after China when it comes to average proportion of cross-border purchases made via smartphone or tablet, with 33 percent of Thai cross-border purchases made via smartphone and 13 percent via tablet
BANGKOK, Thailand, 16 February 2017 – PayPal, one of the global leaders in digital payments, and Ipsos, today released the 2016 Global Cross-Border Consumer Research Report. The report, which investigated the online shopping habits of more than 28,000 consumers in 32 countries, including 800 participants in Thailand, reveals new opportunities for Thai merchants to expand their international sales.
Online spending expected to increase
According to the report, Thai shoppers’ total online spend is predicted to increase by 16 percent from an estimated 325.6 billion baht in 2016 to 376.8 billion baht in 2017. Cross-border spend in Thailand, which is based on purchases made on websites in another country, is also expected to grow by 84 percent
[1] in 2017 from an estimated 60.3 billion baht spent in 2016.
55 percent of Thai online adults said they will be spending more online in 2017, with 82 percent of those who predict an increase citing the convenience of online shopping as a reason behind their expectation. Expectations of a faster shipping process (selected by 37 percent of those expecting an increase) and planning to save money (35 percent) round up the top three reasons for Thais believing they will spend more online in 2017.
Consumers turning to e-commerce to fulfill daily affairs
Fashion (clothing, footwear & accessories) has surfaced as the top category for cross-border shopping in Thailand, with 54 percent of Thai cross-border online shoppers having spent in that category on a website in another country in the past 12 months. Digital entertainment/education and consumer electronics followed closely behind purchased by 40 percent and 39 percent of cross-border shoppers respectively.
However, the study has revealed that consumers predict they will also turn to e-commerce to fulfill basic needs more in the next year. In Thailand, the top three forecasted categories of growth in 2017 are household goods (forecast to grow by 24 percent), groceries (forecast to grow by 21 percent) and baby/children supplies (growth of 16 percent).
Mobile spending by Thais cannot be ignored
Of the countries surveyed
[2], China and Thailand are leading the Asia Pacific region when it comes to making cross-border purchases on a mobile device, with China cross border shoppers on average making 47 percent of cross border purchases on smartphone or tablet and Thailand coming in second with an average of 46 percent made via mobile devices. Across all cross-border shoppers interviewed in Asia-Pacific combined, an average 37 percent of cross-border purchases were made on a mobile device, the majority of which (27 percent) on a smartphone.
Unsurprisingly, considering the increase in number of smartphone ownership in Thailand
[3], PayPal predicts an increase in Thailand’s mobile commerce from an estimated 141.7 billion baht in 2016 to 173.6 billion baht in 2017. This figure is likely to continue to grow with the proliferation of mobile devices and new mobile technologies that are emerging to create greater mobile-commerce opportunities for Thai consumers and merchants.
“The rise of Internet and usage of mobile devices is transforming the face and form of retail, resulting in an increase in online borderless shopping. This has presented a clear opportunity for Thai businesses to embrace their export potential. The data from the PayPal research underscores an opportunity for businesses in Thailand to extend their reach to the global market without the exorbitant cost from traditional geo-expansion,” said Somwang Luangphaiboonsri, Country Lead for PayPal Thailand.
Value for money is a priority for shoppers
Despite the popularity of international online shopping by Thai consumers, barriers to cross-border shopping exist. Shipping cost is the top barrier preventing cross-border shoppers from buying cross-border more often, cited by 45 percent of Thai online cross-border shoppers interviewed. Other key deterrents include having to pay custom duties or taxes (selected by 44 percent) and the lack of clarity on custom duties or taxes(42 percent).
Merchants would need to address these concerns proactively so as to entice customers to complete purchases. To address buyer concerns, PayPal brings a sense of security to online shoppers with the launch of
Refunded Returns[4]. This covers up to US$15
[5] on the cost of return shipping for eligible online purchases so that buyers can shop with more confidence online. In addition to Refunded Returns, PayPal also offers buyers an enhanced
Buyer Protection to help remove barriers for online shoppers. The expanded service covers eligible intangibles including goods like e-travel tickets, digital music, digital books, digital games and software downloads. Merchants are also protected against eligible fraudulent transactions with
Seller Protection.
[1] Estimated growth based on future intention of cross-border shoppers, and online shoppers who have not shopped cross-border.
[2]APAC countries surveyed in 2016: India, China, Japan, Thailand and Singapore
[3]https://www.statista.com/statistics/467191/forecast-of-smartphone-users-in-thailand/
[4]This service is available in China, Hong Kong, India, Indonesia, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam.