Margin squeeze drives Thai e-commerce to rethink marketplace dependence

Marketplaces, once the growth engine, are now costlier as commissions have surged over the past two years.

Thailand’s e-commerce sector is entering a phase where rising platform costs, content-heavy selling, and tighter control over customer data are forcing brands and retailers to rethink how they grow online.

Speaking at the Retail Asia Summit—Thailand 2026, industry representatives said the shift away from gross merchandise value (GMV)-led growth towards profitability is already underway—and, in some cases, prompting sellers to scale back their presence on major marketplaces.

“Platform costs are increasing across the board,” said JC Chen, chief commercial officer at Konvy International Co. Ltd. “We’re seeing brands diversify channels and even deprioritise lower-margin products on marketplaces.”

That change reflects a broader recalibration in Southeast Asia’s digital retail model.

Marketplaces, once the dominant growth engine, are becoming more expensive to operate in, with commission rates rising sharply in the past two years.

Kittipong Ruangchakrpet, head of e-commerce at Central Food Retail Company Limited, said commissions in some cases have increased four- to five-fold over 24 months.

The result is a growing tension between visibility and profitability. “You’re not paying to sell a product—you’re paying for the possibility to access traffic,” Kittipong said, noting that marketplaces still deliver scale that individual brand channels cannot match.

Representatives said there are already signs of a tipping point.

Chen pointed to retailers exiting marketplaces or pulling selected SKUs as costs rise. “The ‘cheap and fast’ era of e-commerce may not hold anymore,” he said, adding that price competitiveness online is likely to erode as logistics, commissions, and global cost pressures increase.

Instead, brands are investing in direct-to-consumer (D2C) channels—not just to avoid fees, but to secure customer data and build loyalty. However, panellists warned against rushing the transition.

“Go to your own platform when you’re ready,” said Teeraphol Ambhai from the University of the Thai Chamber of Commerce. “Many brands move too fast to keep data and margins, but if the experience isn’t ready—from content to checkout—it's hard to retain customers.”

To offset rising costs, retailers are doubling down on differentiation strategies.

One approach is content. Chen said some brands now employ “hundreds” of in-house creators to produce marketing material and drive engagement, particularly on social commerce platforms such as TikTok.

Another is the assortment strategy. Retailers are expanding exclusive product ranges or pushing private-label brands to improve margins and stand out in crowded marketplaces.

“Excitement for consumers now comes from what’s unique to your channel,” Chen said.

Social commerce is also evolving from pure discovery to experience-led selling. Livestreaming and short-form video are increasingly used not just to promote products but to simulate in-store interactions.

Panellists pointed to China as a leading indicator of where Southeast Asia may be heading.

Kittipong described a retail environment where online and offline are deeply integrated, with consumers ordering via mobile even inside physical stores.

Livestreaming has also reached new levels of sophistication, with immersive formats such as mall walkthroughs or purpose-built product demonstrations.

“Consumers feel like they’re part of the experience, which makes it more engaging,” Chen added.

However, replicating China’s model will take time due to differences in infrastructure and order density, particularly for rapid delivery and “quick commerce.”