Thailand marketplaces raise commissions, cut subsidies to boost profit

Online retail moves beyond discount competition as platforms expand monetisation tools.

Thailand’s e-commerce sector has shifted from a “growth at all costs” phase to a monetisation phase, with platforms prioritising profitability over expansion by raising commissions, cutting subsidies and expanding revenue from logistics, advertising, and value-added services.

UOB Kay Hian said that competition has shifted from price to delivery speed, with fulfilment now a key differentiator as platforms compete on logistics efficiency, with delivery times in some areas reduced to as little as four hours.

“Marketplaces have evolved beyond being simple transaction platforms into ecosystems that connect merchants, creators, payment systems, and logistics providers,” it said.

Consumer behaviour has become more fragmented across multiple touchpoints, including social media, search engines, reviews, influencers, and physical stores, before purchase decisions.

Sellers face rising costs beyond headline commissions, including advertising, payment processing, affiliate, and promotional fees.

Retailers with physical store networks retain an advantage in grocery and omnichannel segments. Store networks function as local fulfilment centres, supporting faster delivery and wider coverage.