The Value of E-Commerce Survey in Thailand 2017

Subject Value of e-Commerce Survey in Thailand
2017
Published by Office of Policy and Strategic Affairs
Electronic Transactions Development Agency
(Public Organization) (ETDA))
Ministry of Digital Economy and Society
ISBN 978-616-7956-43-5
First Edition March 2018
Number of Copies 200 copies
Price 300 baht
Copyright ©2013 by ETDA. All Right Reserved.

1. จีราวรรณ บุญเพิ่ม
ประธานกรรมการ
2. อัจฉรินทร พัฒนพันธชัย
กรรมการโดยตำแหนง
4. ศรัณย สัมฤทธิ์เดชขจร
แทนผูอำนวยการสำนักงานพัฒนาวิทยาศาสตรและเทคโนโลยีแหงชาติ
3. จิราภรณ ตันติวงศ
แทนผูอำนวยการสำนักงบประมาณ
1 2
43
1. Mrs.Jirawan Boonperm
Chairman
2. Ms.Ajarin Pattanapanchai
Ex Officio Member
4. Mr.Sarun Sumriddetchkajorn
Ex Officio Member
in place of Director of the National Science and
Technology Development Agency
3. Ms.Jiraporn Tantiwong
Ex Officio Member
in place of Director of the Bureau of the Budget
1 2
43
The Electronic Transactions Development Agency
(Public Organization) or ETDA.
Public agency that develops, promotes and supports
the nation’s electronic transactions.
An Executive Board of Directors administers
and formulates policies for its operations.
(2015 – 2018)

5. ชาติศิริ โสภณพนิช
กรรมการผูทรงคุณวุฒิ
(ดานการเงินและพาณิชยอิเล็กทรอนิกส)
6. ธนวงษ อารีรัชชกุล
(ดานวิศวกรรมศาสตร
ดานสังคมศาสตรและการบริหารงานบุคคล)
7. ชวลิต อัตถศาสตร
(ดานนิติศาสตร)
8. วิริยะ อุปติศฤงค
(ดานวิทยาการคอมพิวเตอร)
9. สิบพร ถาวรฉันท
(ดานวิทยาการคอมพิวเตอรและการเงิน)
10. สุรางคณา วายุภาพ
กรรมการและเลขานุการ
หมายเหตุ: กรรมการผูทรงคุณวุฒิ (ดานการเงิน) อยูระหวางการสรรหา
5 6
7
10
8
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5. Mr.Chartsiri Sophonpanich
Expert Member
(Finance and e-Commerce)
6. Mr.Tanawong Areeratchakul
Expert Member
(Engineering, Social Science and
Personnel Management)
7. Mr.Chavalit Uttasart
Expert Member
(Law)
8. Mr.Viriya Upatising
Expert Member
(Computer Science)
9. Ms.Sibporn Thavornchan
Expert Member
(Computer Science and Finance)
10. Mrs.Surangkana Wayuparb
Member and Secretary
Remark: Member of the Senior Expert Committee (Finance) is under the recruitment and selection process.
5 6
7
10
8
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Value of e-Commerce Survey in Thailand 20174
Dr.Pichet Durongkaveroj
Minister of Digital Economy and Society
I am confident that e-Commerce can truly
match Thai people’s changing lifestyles.
Nowadays, we use smartphones more frequently
and, as a result,
e-Commerce has become a crucial trading channel
since it has been developed to increase
business opportunities and generate lucrative
incomes for Thai people.
Personally, I am glad that ETDA has conducted a survey
on this revolutionary online service as
we can notice and understand that
the total e-Commerce number has shifted significantly.
Judging from the surveys conducted on
a yearly basis, the increasing e-Commerce numbers
indicate that Thai people can always be
exposed to e-Commerce businesses in various ways

e-Commerce
eBiz Portal
e-Commerce
NET Pracharat
eBiz Portal
Digital CommunityDigital Community
NET Pracharat

Ajarin Pattanapanchai
Permanent Secretary
As Thailand has developed efficient
infrastructure and abrupt changes
in the ecosystem can still be seen,
the value of e-Commerce is expected
to increase dramatically.
However, we remain firm in making further
progress, particularly in building “trust”, to
maximize greater strengths and positive
attributes for e-Commerce businesses.

Jirawan Boonperm
Chairman of the Executive Board
Electronic Transactions Development Agency (Public Organization)
Electronic Commerce or e-Commerce can be
recognized as the world of new opportunities
for “everyone”. Admittedly, the Value of
e-Commerce Survey in Thailand 2017
is considered a great accomplishment of
extensive collaboration with e-Commerce experts
from various sectors as they come up with
efficient screening and verification process until
the required information is obtained.
This reflects a current market trend in a clearer view
and everyone can be exposed to e-Commerce
in all dimensions. Nowadays, I believe that
e-Commerce statistics will highly be beneficial
to the development of Thailand’s digital
economy as a whole.

We, Thailand, are proud to present the
value of e-Commerce survey recognized
by international forum such as UNCTAD.

Jack Ma
Founder and Chairman of Alibaba Group
Jeff Bezos
Founder and Chief Executive Officer of Amazon.com
Source: UNCTAD E-Commerce Week 2017; High Level titled
“Digital Transformation for All: Empowering Entrepreneurs
and Small Businesses” (April 25, 2017)
Source: ThaiPublica, Successful culture that drives Amazon
to “The Everything Store” (June 29, 2017)
Throughout the hard times and the breakthroughs,
obstacles occurred to e-Commerce, waiting to be
ready means you will never start to do anything.
There will always be obstacles, doubters, mistakes,
and setbacks along the way to success. Therefore,
the best thing is to try your best and seek
the most practical solutions to overcome
those obstacles.
Admittedly, e-Commerce is a revolutionary
business designed to encourage small enterprises,
particularly in various developing countries, to seek
greater opportunities to increasingly compete with
major business operators in powerful nations.
We need something that makes
the ordering system uninterrupted.
Customers can make an order
conveniently, where only a few
actions are required. Things can
be achieved by just one click.

Electronic Transactions Development Agency (Public Organization) 11

Preface
Starting with simple questions “Which
direction is Thailand’s e-Commerce going
to?” and “How can Thailand’s e-Commerce
achieve strong growth?”, it is significant
to obtain the information on the overall
e-Commerce market, particularly in adopting
policies for strategic planning processes and
business operations. This encourages the
Electronic Transactions Development Agency
(Public Organization) (ETDA) to collaborate
with a strategic alliance, namely, the National
Statistical Office (Thailand), to make
progresstowardsthe“Valueofe-Commercein
Thailand” for the third consecutive year, since
2015. The survey has been conducted based
on research methodology, aiming at the
accuracy and precision of the obtained
information on e-Commerce in Thailand.
This year, ETDA has unveiled the value of
e-Commerce as of 2016 as well as the forecast
on the value of e-Commerce in 2017 obtained
fromasurveyofThaie-Commerceentrepreneurs
across the country, totaling 592,996, thanks to
proactive supports provided by the Thai
e-Commerce Association, the Department of
BusinessDevelopment(DBD),andtheNational
StatisticalOffice(Thailand).Itisagreatpleasure
to see that the value of e-Commerce and the
numberofe-Commerceentrepreneursincrease
every year. According to the survey, the values
of e-Commerce in Thailand were estimated to
increasetoUSD62.60billionin2014,USD65.55
billion in 2015, and USD 72.53 billion in 2016,
respectively.In2014,ETDAhadforecastedthat
the value of e-Commerce would shift by 4%.
After conducting the survey, the values of
e-Commerce as of 2014-2015 actually rose to
10.48%andcontinuedtoshiftto14.03%during
2015-2016.
In addition, ETDA has supported other
industries, such as the National Federation of
Motion Pictures and Contents Association (MPC),
insurveyingthevalueofdigitalcontent(including
theconsumptionofelectroniccontentsonthe
Internet). This is considered another significant
survey, consisting of film, animation, music,
game, television, and the Internet. In 2015, the
value was estimated to remain at USD 7.41
billion1
. The survey was conducted to ensure
the existence of baseline, expected to provide
a complete coverage of online services for key
industries like hospitality and tourism.
Inconsequence, it is quite interesting to see
how the value of e-Commerce will exist in the
next year.
Atthismoment,ETDAwouldliketothank
all parties for making this survey achievable.
Webelievethatgoodcollaborationwillalways
be fostered among all of us, particularly since
it will lead to further development of
e-Commerce.
Surangkana Wayuparb
Executive Director
1
Database research report of the film and video industry, the motion picture and video industry, and the content
industry as of 2012-2015, the National Institute of Development Administration, Mahidol University, the National
Federation of Motion Pictures and Contents Association (MPC), the Ministry of Culture, the Electronic Transactions
Development Agency (Public Organization), and Digital Entertainment Expert Company Limited.

We focus on annual surveys, only ones
that can change the landscape of
Thailand’s electronic transactions. We
focus, we continue, and we persevere!!!
Why? So we know where we are and
know how to be better every year.

Contents
Preface .................................................................................................12
Lists of Illustrations..........................................................................16
Executive Summary.........................................................................20
Significant Survey Results.............................................................32
1. Value of e-Commerce in Thailand......................................33
2. Value of e-Commerce in Thailand Classified by
Type of Entrepreneur...............................................................46
Type of Industry.........................................................................52
Size of e-Commerce Business..............................................62
5. Payment Channels Preferred by SMEs
during the Digital Economy Era...........................................74
6. Distribution Channels of Products and Services
Preferred by Enterprises during
the Digital Economy Era.........................................................77
7. Impacts on Thai e-Commerce Entrepreneurs and
Suggestions...................................................................................79
7.1 Enterprises.............................................................................79
7.2 SMEs.......................................................................................81
Appendix..............................................................................................84
Staff of the Value of e-Commerce Survey
in Thailand 2017..........................................................................112

List of Illustrations
Figure 1 Value of e-Commerce in Thailand during
2014-2016 and Forecast for 2017.....................31
Figure 2 Value of B2C e-Commerce of Various Nations
during 2015-2016..........................................................35
Figure 3 Value of B2C e-Commerce Per Capita of Various
Nations during 2015-2016.......................................39
Figure 4 Percentage of the Value of e-Commerce during
2014-2016 Classified by Value of Domestic
and Overseas Sales.......................................................41
Figure 5 Percentage of the Value of regional e-Commerce
in 2016 Classified by Size of the e-Commerce
Business.............................................................................42
Figure 6 Percentage of e-Commerce Operators during
2014-2016 Classified by Sales of Products
and Services....................................................................44
Figure 7 Value of e-Commerce during 2014-2016 and
Forecast for 2017 Classified by Type of Operator
(Value of Government Procurement Included)......46
2014-2016 and Forecast for 2017 Classified
by Type of Operator (Value of Government
Procurement Included)................................................. 47

2014-2016 and Forecast for 2017 Classified
by Type of Operator (Value of Government
Procurement Excluded)................................................50
Figure 10 Value of e-Commerce during 2014-2016
and Forecast for 2017 Classified by Type of
Industry (Value of Government Procurement
Excluded)...........................................................................52
Figure 11 Percentage of the Value of Industrial
e-Commerce in 2016 Classified by Type of
Operator (Value of Government Procurement
Excluded)...........................................................................54
Forecast for 2017 of the Wholesale and Retail
Sector Classified by Type of Products and Services
(Value of Government Procurement Excluded) ...56
Figure 13 Percentage of the Value of e-Commerce in 2016
of the Wholesale and Retail Sector Referring to
Type of Products and Services Classified by Type of
Operator (Value of Government Procurement
Excluded)...........................................................................59
Forecast for 2017 of the Art, Entertainment, and
Recreation Sector Classified by Type of Products
and Services (Value of Government Procurement
Excluded)...........................................................................60

Forecast for 2017 Classified by Size of the
e-Commerce Business (Value of Government
Procurement Excluded)................................................62
Figure 16 Value of Industrial e-Commerce in 2016 Classified
by Size of the e-Commerce Business
(Value of Government Procurement Excluded)....63
Figure 17 Forecast for Industrial e-Commerce in 2017
Classified by Size of the e-Commerce Business
Figure 18 Percentage of the Value of e-Commerce in 2016
of the Wholesale and Retail Sector
Referring to Type of Products and Services
Classified by Size of the e-Commerce Business
Figure 19 Value of Industrial e-Commerce in 2016
Classified by Online Distribution Channel of SMEs
Figure 20 Percentage of the Value of Industrial e-Commerce
in 2016 Classified by Online Distribution Channel
of SMEs (Value of Government Procurement
Excluded)...........................................................................71

Figure 21 Percentage of Payment Channel Preferred
by SMEs in 2016..........................................................74
Figure 22 Percentage of Online Payment Channel Used
by SMEs in 2016..........................................................75
Figure 23 Percentage of e-Commerce Operators in 2016
Classified by Transportation Channel of Products
and Services....................................................................77

Executive Summary
We are stepping into the digital world full of advanced technology
and new innovation evolved to increasingly facilitate human beings’
everyday lives. This is considered a significant cause of people’s changing
behaviors and lifestyles. Various businesses are inevitably forced to change
their styles of operations and management as people tend to have a
greater preference for online shopping rather than traditional purchasing
of products and services. Obviously, e-Commerce is considered one of
the fastest-growing businesses over the past few years. According to the
information provided by the United Nations Conference on Trade and
Development (UNCTAD) in 2016, the global B2C e-Commerce value
shifted to USD 1,881.98 billion2
. The number reflects a tremendous
economic opportunity for various countries around the world.
For Thailand, digital economy has hugely been expected to drive the
country’s economy, where several information technologies and
communication systems will play their pivotal roles in propelling the reform
of manufacturing processes, business operations, trades and services,
education, public health management, state administration, and
economic and social activities. Such improvement will lead to progressive
development of the economy and people’s quality of life, conforming to
the government’s Thailand 4.0 policy. The government has also
promoted the evolution of the digital economy, for instance, digital
community, to encourage people in various communities across the
country to maximize their incomes via e-Commerce, focusing on the
2
UNCTAD B2C E-Commerce Index 2016

development of national economy, reduction of social inequality, and
improvement of people’s quality of life.
Therefore, to comply with policies, strategies, and projects launched
in the country, both public and private sectors have been urged to rely
on statistical information, particularly to keep pace with the digital world
where information is considered the most powerful weapon in
determining organizational policies, management standards, and business
directions of an organization and the country, as part of the intention to
foster effective management of investment budgets and resources related
to the development of e-Commerce in Thailand.
The Electronic Transactions Development Agency (Public Organization),
also known as ETDA, has conducted the Value of e-Commerce Survey in
Thailand 2017 to gather statistical information on e-Commerce in the
country with complete coverage approved by internationally accepted
standards. At the same time, the public and private sectors can use the
obtained information as guidelines for policy formulation, strategy
management, business planning, and operational implementation at both
corporate and national levels, as part of the effort to keep pace with
changing market trends. This increasingly helps e-Commerce businesses
in Thailand to become more competitive, being able to achieve a strong
growth efficiently and sustainably.
This survey unveils the value of e-Commerce as of 2016 and the
forecast for 2017. A total of 592,996 e-Commerce operators have been
targeted to conduct this survey and the list of e-Commerce operators is
provided by the Department of Business Development and the National
Statistical Office. After obtaining the targeted number of e-Commerce

entrepreneurs, it is required to enter into a statistical evaluation process
to determine types of e-Commerce operators. According to the evaluation,
there are e-Commerce operators with lower than USD 1.42 million of
revenue per year (referred to as “SMEs”). Contrastively, there will be those
achieving USD 1.42 million or above of revenue per year (referred to as
“Enterprises”). There are 2,810 and 100 e-Commerce business
entrepreneurs recognized as SMEs and enterprises, respectively. (Details
are shown in Appendix).
As this survey unveils the value of e-Commerce as of 2016 and the
forecast for 2017, it will be most appropriate to focus on three major
scopes described below :
Scope 1
The value of e-Commerce is classified by type of business, varying in
B2B3
, B2C4
, and B2G5
, with reference to the information provided by the
Comptroller General’s Department, the Ministry of Finance. For this survey,
government procurement is implemented by Electronic Market (e-Market)
and Electronic Bidding (e-Bidding) only6
.
3
B2B (Business to Business) is a type of commerce transaction existing between businesses in the private sector,
in which the private sector means e-Commerce operators registered as juristic persons and intending to do busi-
nesses between one another. This survey includes orders and reservations of products and services made via the
Electronic Data Interchange (EDI).
4
B2C (Business to Consumer) is a type of commerce transaction existing between businesses in the private/
public sector and the private sector, in which the private sector means e-Commerce operators registered as indi-
vidual or juristic persons and intending to do businesses between one another.
5
B2G (Business to Government) is a type of commerce transaction existing between the private and public sectors.
According to the survey conducted in 2016 and the forecast for 2017, the value of government procurement was
derived from Electronic Market (e-Market) and Electronic Bidding (e-Bidding), with reference to the information
provided by the Comptroller General’s Department, the Ministry of Finance.
6
For the survey conducted in 2014 and 2015, the value of government procurement was derived from two major
sources, varying in the information of e-Auction for government procurement provided by the Comptroller Gen-
eral’s Department, the Ministry of Finance, and the information of survey obtained from the Electronic Transactions
Development Agency (Public Organization).

Scope 2
The value of e-Commerce is classified by revenue, which can be
divided into two major groups consisting of e-Commerce operators with
revenue lower than USD 1.42 million per year (referred to as “SMEs”) and
those achieving USD 1.42 million or above of revenue per year (referred
to as “Enterprises”).
Scope 3
The value of e-Commerce is classified by type of the International
Standard Industrial Classification of All Economic Activities Rev. 4 (ISIC Rev.
4), which can be divided into eight major business categories including
Manufacturing, Wholesale and Retail, Transportation, Accommodation,
Information and Communication, Insurance, Art, Entertainment, and
Recreation, and Other Services. Nevertheless, the value of e-Commerce
of the hospitality industry is unveiled by the Department of Tourism, the
Ministry of Tourism and Sports, while the value of e-Commerce of the
insurance sector is obtained from the Office of Insurance Commission (OIC).
The Department of Tourism and the Office of Insurance Commission are
considered key organizations that have already obtained complete
information of the value of e-Commerce for the two industries.

The value of e-Commerce in Thailand for 2016 and
the forecast for the value of e-Commerce as of 2017
can be summarized below:
• The Value of e-Commerce in Thailand 2016
In 2016, the value of e-Commerce remained at a total of USD 72.53
billion. The value of e-Commerce in 2016 was derived from B2B
e-Commerce, achieving USD 43.69 billion or 60.24% of the total
e-Commerce value. Meanwhile, B2C e-Commerce posted USD 19.93 billion
or 27.47% and B2G e-Commerce was estimated at USD 8.91 billion or
12.29% of the total e-Commerce value in the same year. The value of
B2G e-Commerce was obtained from the Comptroller General’s
Department, the Ministry of Finance, saying the value of government
procurement was derived from Electronic Market (e-Market) and
Electronic Bidding (e-Bidding).
Comparing to 2015, the values of B2B e-Commerce and B2C
e-Commerce in 2016 rose 15.53% and 37.91%, respectively. However, the
value of B2G e-Commerce dropped 21.42%, resulted from the cancelation
of e-Auction for government procurement and the Comptroller’s General
Department issued the value of government procurement via Electronic
Market (e-Market) and Electronic Bidding (e-Bidding) for B2G e-Commerce7
.
As for the survey conducted in 2015, the value of government
procurement was derived from two major sources, consisting of the
information of e-Auction for government procurement provided by the
Comptroller General’s Department, the Ministry of Finance, and the
information of survey obtained from the Electronic Transactions
Development Agency (Public Organization).
7
Reference mentioned, Footnote 4 and 5

If the value of e-Commerce as of 2016 was categorized according
to the eight major businesses (government procurement excluded), the
wholesale and retail business achieved the highest e-Commerce value of
USD 20.22 billion or 31.78% of the total e-Commerce value, followed by
the hospitality business with USD 17.22 billion or 27.07%, the production
business with USD 12.13 billion or 19.06%, the information and
communication business with USD 10.89 billion or 17.12%, the
transportation business with USD 2.38 billion or 3.74%, the art,
entertainment, and recreation business with USD 0.44 billion or 0.69%,
the service business8
with USD 0.27 billion or 0.43%, and the insurance
business with USD 0.07 billion or 0.11 percent.
• The Forecast for the Value of e-Commerce in
Thailand 2017
According to the forecast, Thailand has been expected to
achieve USD 82.87 billion of the value of e-Commerce in 2017.
The forecast for 2017 has unveiled that B2B e-Commerce will be
ranked first with the highest value of USD 49.36 billion or 59.56% of the
total e-Commerce value, followed by B2C e-Commerce with USD 23.94
billion or 28.89%, and B2G e-Commerce with USD 9.57 billion or 11.55%.
The value of B2G e-Commerce was unveiled by Comptroller General’s
Department, the Ministry of Finance, as the government procurement was
implemented via Electronic Market (e-Market) and Electronic Bidding
(e-Bidding).
8
The service business includes online job recruitment and other types of businesses not being specified in the
other seven business sectors.

Compared to 2016, the value of B2B e-Commerce of 2017 has been
anticipated to increase 8.63%, while B2C e-Commerce and B2G
e-Commerce will shift 15.54% and 3.24%, respectively.
Categorizing e-Commerce according to the eight major businesses
(government procurement excluded), the wholesale and retail business
is estimated to obtain the highest e-Commerce value of USD 25.62 billion
or 34.96% of the total e-Commerce value, followed by the hospitality
business with USD 19.39 billion or 26.45%, the production business with
USD 12.29 billion or 16.77%, the information and communication business
with USD 11.91 billion or 16.25%, the transportation business with USD
3.09 billion or 4.22%, the art, entertainment, and recreation business with
USD 0.58 billion or 0.79%, the service business with USD 0.33 billion or
0.45%, and the insurance business with USD 0.08 billion or 0.11%.
According to the aforementioned information, e-Commerce tends to
achieve a steady growth every year, which is supported by the following
four key factors.
First Factor: Government’s Support and Promotion
To drive the e-Commerce business in Thailand, it is required to
encourage local e-Commerce entrepreneurs, including farmers and
agriculturists, to have an ability to trade online, while urging regular
e-Commerce operators to increase efficiency and competitiveness for their
businesses. Consequently, there will be newcomers entering the
e-Commerce market. This will help maximize distribution channels to
generate lucrative revenues, particularly for government agencies
supporting e-Commerce as a primary mission, including the Electronic

Transactions Development Agency (Public Organization) (ETDA), the
Electronic Government Agency (Public Organization) (EGA), the Digital
Economy Promotion Agency (DEPA) under the Ministry of Digital Economy
and Society, the Office of SMEs Promotion (OSMEP), the Department of
Business Development (DBD), the Department of International Trade
Promotion (DITP), and the Department of Internal Trade (DIT) under the
Ministry of Commerce, the Department of Industrial Promotion (DIP) under
the Ministry of Industry, the Ministry of Agriculture and Cooperatives, the
Ministry of Finance, the Ministry of Interior, and Thailand Post Company
Limited. Those local organizations have utilized central budgets in
stimulating the integrated entrepreneurship preparation, starting from
traditional store-based trading to online marketing, as part of the goal to
expand distribution channels of products and services in foreign markets
leading to comprehensive e-Commerce. In addition, it is desirable to
promote other related activities launched to abide by the government’s
Thailand4.0developmentagenda,emphasizingmainlyonthedevelopment
of national economy, reduction of inequality, maximization of revenues,
and improvement of people’s quality of life, conforming to the Ministry
of Digital Economy and Society’s strategy to develop advanced digital
infrastructure as everyone can equally access the high-speed Internet
service anywhere at any time.
Second Factor: Increasing Number of e-Commerce Distribution
Channels
As online shopping has become increasingly popular, it is considered
another efficient way to create greater incomes. However, e-Commerce
operators are required to develop new distribution channels to expand
the customer base in both domestic and international markets. Nowadays,

e-Commerce entrepreneurs appear to focus more on online channels, for
instance, website, application, and other forms of social media. The more
those entrepreneurs can reach their target markets, the easier they will
gain an opportunity to generate increasing incomes. Using online channels
can be another productive way to boost brand recognition among
consumers. Admittedly, online marketing has become the hottest trend
in promoting products and services at affordable costs when comparing
to TV commercials and public billboards. Therefore, it will be ideal for
e-Commerce entrepreneurs to rely on more than one distribution channel.
Having both offline and online channels will be necessary for market
expansion and effective communication with targeted customers.
Third Factor: Continuing Growth and Enhanced Potential of
Thailand’s e-Commerce
The popularity of the Internet is gradually replacing traditional
sources of information. According to the report on Thailand’s Internet
usage in 20179
, the average numbers of hours spent on the Internet were
6.30 hours per day for normal working days and 6.48 hours per day for
holidays, which were higher than the figures shown in 2016. Online
shopping was ranked fifth among the most admired activities on the
Internet as e-Commerce provides greater efficiency and convenience for
shopping, allowing people to select and order their preferred products or
service anywhere at any time. In conclusion, e-Commerce in Thailand will
certainly be able to achieve a continuing growth in the future.
9
Thailand Internet User Profile 2017, Electronic Transactions Development Agency (Public Organization)

Besides, Artificial Intelligence (AI)10
is considered a remarkable example
of Disruptive Technology11
, referring to the technology that evolves a new
market and network and eventually disrupts an existing market and
network. AI can provide a highly effective analysis of huge data, for instance,
history of Products and Services orders as well as purchasing behaviors of
consumers. With the advancement of AI, the information on after-sales
services can be obtained automatically. AI has been expected to play a
more important role in further development of e-Commerce in the future.
Fourth Factor: Increase of Foreign Investors Wishing to
Establish e-Commerce Operations in Thailand
Currently, many investors from foreign nations, such as South Korea,
Japan, Taiwan, Singapore, and Malaysia, are preparing to increasingly invest
in e-Marketplace, e-Logistics, and e-Payment businesses in Thailand. This
helps stimulate a more competitive atmosphere for local e-Commerce
operators to keep developing themselves, particularly in boosting greater
confidence and trust for consumers as a whole.
InadditiontoProductsandServicesquality,e-Commerceentrepreneurs
must adhere to marketing development to maximize potential and
competitiveness of their businesses. Effective marketing strategies may
include a discount for transportation or advertising services, a promotional
campaign launched to increase sales, and a training program on how to
start an online business on the Internet. At the same time, e-Commerce
operators are suggested to be aware of operating an e-Commerce business
10
Artificial Intelligence (AI) means the ability to provide intelligence for a non-living thing to be able to think,
perform, and learn by itself, www.weforum.org, August 7, 2017
11
Disruptive Technology means the technology that evolves a new market and network and eventually disrupts
an existing market and network, for instance, the revolution of smartphones is lowering the demand for landline
phones, www.weforum.org, August 7, 2017.

based on consumers’ changing needs in line with different perspectives
of globalization. In doing that, e-Commerce business owners must be able
to convince consumers to have real confidence and trust in their products
and services traded on an online channel, considered the first and foremost
requirement of e-Commerce.
As mentioned above, the four factors have propelled e-Commerce
business in Thailand to greater achievement, supported by the
government’s regulatory policies on the development of digital economy
conforming to the Thailand 4.0 development agenda. Furthermore, SMEs
and e-Commerce businesses can ensure the reduction of inequality,
particularly in generating incomes from a new business channel. Local
entrepreneurs are also encouraged to promote their quality products and
services to emerging markets across the globe. This can empower local
business owners and individuals to use e-Commerce as a new channel to
generate greater incomes while keeping e-Commerce businesses moving
in the right direction to ensure sustainable growth in the future.

Significant Survey
Results

1. Value of e-Commerce in Thailand
2014-2015
2015-2016
Growth Rate
Unit: USD billion
90
75
60
45
30
15
0
10.41%
14.03%
2016-2017P
9.86%
82.87
72.53
65.55
62.60
2017P
2014 20162015
Figure 1: Value of e-Commerce in Thailand during
2014-2016 and Forecast for 201712
Referring to Figure 1, in 2016, the value of e-Commerce in Thailand
(the value of government procurement included)13
was maintained
at USD 72.53 billion, a rise of 14.03% compared to 2015.
The value of e-Commerce (the value of government procurement
included) in 2017 was forecasted to remain at USD 82.87 billion,
shifting 9.86% from 2016.
12
Value of e-Commerce in 2014-2017 calculated by Annual Reference Rate: US DOLLAR (USD),
1 USD = 32.4841 Baht in 2014, 1 USD = 34.2524 Baht in 2015, 1 USD = 35.2980 Baht in 2016, 1 USD = 33.9385 Baht
in 2017, Rates of Exchange of Commercial Banks in Bangkok Metropolis, Bank of Thailand, http://www2.bot.or.th/
statistics/ ReportPage.aspx?reportID=123&language=eng, Last Updated: 22 Feb 2019.
13
With reference to the survey in 2016, the value of government procurement was derived from Electronic Market
(e-Market) and Electronic Bidding (e-Bidding). The information was provided by the Comptroller’s General Department,
the Ministry of Finance.

The aforementioned information unveils that the value e-Commerce
in Thailand was likely to increase on a year basis, influenced by three key
factors described as follows:
First Factor: The Increasing Number of e-Commerce Operators
There were 527,324 e-Commerce operators existing in 2015. In 2016,
the number of e-Commerce operators was estimated to increase to 592,996,
shifting by 65,672 or 12.45%.
Second Factor: The Rising Popularity of Online Businesses
Business entrepreneurs were set to rely more on an online channel,
as part of the strategy to achieve increased revenues. Admittedly, online
businesses could provide consumers with a better opportunity to reach
out for their preferred products and services. Online shopping had become
a new trend for people in both domestic and foreign markets. With an
increasing number of e-Commerce operators, consumers could be exposed
to a better way of purchasing products and services at affordable prices.
Third Factor: The Expansion of Thai e-Commerce in Foreign Markets
Quality products and services of Thailand were available in Europe,
the US, the Middle East, and Asia. Several countries around the globe had
already agreed to lower trade barriers to facilitate cross-border trades in
the e-Commerce form. In addition, the Internet could genuinely connect
business entrepreneurs together with greater efficiency and convenience
of business communication and negotiation. Consequently, there would
be no more difficulty in trading between different regions.

Electronic Transactions Development Agency (Public Organization) 35Figure2:ValueofB2Ce-CommerceofVariousNationsduring2015-2016
GrowthRate2015-2016
672.01
783.80
341.91
393.85
137.75
147.39
32.67
38.26
14.14
19.64
11.90
4.07
5.57
3.22
5.29
3.59
4.13
0.44
0.51
17.48
100.00200.00300.00400.00500.00600.00700.00800.00
2015Unit:USDbillion2016
China
TheUS
Japan
SouthKorea
Thailand
Malaysia
Vietnam
Indonesia
Singapore
Philippines
China16.64
TheUS15.19
Japan7.00
SouthKorea17.11
Thailand38.90
Malaysia46.92
Vietnam36.86
Indonesia64.29
Singapore15.04
Philippines15.91

Referring to the values of B2C e-Commerce of other countries,
including China, the US, Japan, South Korea, and other ASEAN nations,
shown in Figure 214
, the values of B2C e-Commerce in 2016 were
estimated to increase for every country, particularly those with massive
technological development, such as China, the US, Japan, and South
Korea.
In the same year, China, the US, Japan, and South Korea possessed
the B2C e-Commerce values of USD 783.80 billion, USD 393.85 billion,
USD 147.39 billion, and USD 38.26 billion, respectively. Compared to 2015,
the values were increased by 16.64%, 15.19%, 7.00%, and 17.11%,
respectively.
The B2C e-Commerce values of ASEAN countries, including Thailand,
Malaysia, Vietnam, Indonesia, Singapore, and the Philippines were USD
19.64 billion, USD 17.48 billion, USD 5.57 billion, USD 5.29 billion, USD 4.13
billion, and USD 0.51 billion, respectively.
14
References:
China: The Ministry of Commerce of People’s Republic of China, www.mofcom.gov.cn, August 6, 2017
The US: The United States Census Bureau, www.2census.gov, August 6, 2017
Japan: The Ministry of Economy Trade and Industry of Japan, www.meti.go.jp, August 6, 2017
South Korea: Korea Statistical Information Service, www.kosis.kr, August 6, 2017
Thailand: The Value of e-Commerce Survey in Thailand 2017, the Electronic Transactions Development Agency
(Public Organization)
Malaysia: The Ministry of International Trade and Industry of Malaysia, www.miti.gov.my, August 6, 2017
Vietnam: Vietnam e-Commerce and Technology Agency, www.vecita.gov.vn, August 6, 2017
Indonesia: EMarketer, www.emarketer.com, August 6, 2017 (no information provided by a government agency)
Singapore: International Enterprise Singapore, www.iesingapore.gov.sg, August 6, 2017
The Philippines: Euromonitor International, www.euromonitor.com, August 6, 2017 (no information provided by a
government agency)

Considering those ASEAN countries, Indonesia possessed the strongest
growth of B2C e-Commerce value, estimated to shift 64.29% compared
to 2015, followed by Malaysia, Thailand, and Vietnam, with the increasing
proportions of 46.92%, 38.90%, and 36.86%, respectively.
As for Thailand, the B2C e-Commerce value increased to USD 19.93
billion in 2016, considered the highest value among the ASEAN countries.
Currently, there are a few more crucial factors that influence the
expansion of Thailand’s e-Commerce businesses. Foreign e-Commerce
investors, for instance, Alibaba, Lazada, and 11Street are preparing to
generate larger investments in Thailand, while electronic service systems
like e-Logistics and e-Payment are developed to ensure greater convenience
and security.
Foreign e-Commerce giants, such as the China-based Alibaba and the
American Amazon, have expressed their keen interests in boosting
strategic investments in ASEAN’s e-Commerce markets, making all countries
in the region become more efficient and competitive in terms of
e-Commerce businesses.
Admittedly, e-Commerce has sparkled new business ideas for several
people across the world. Existing entrepreneurs and newcomers in Thailand
are ready to move forward with the development of digital economy
conforming to the current government’s Thailand 4.0 policy. In particular,
e-Commerce has become one of the most important engines to propel
the country towards the next level of development.

Nowadays, online shopping has become an obvious trend in
promoting the utilization of social media networks, varying on Facebook,
YouTube, Instagram, and Line. Those online social media can satisfy
consumers’ various demands, where business entrepreneurs can penetrate
their targeted customers accurately and quickly. Social media networks
also unveil the innovation of advertising, making an online business worth
investing in.

2015Unit:USD2016
1,065.48
1,218.88
1,083.41
1,160.59
640.49
746.67
205.90
285.13
44.38
4.33
60.09
20.26
12.47
4.94
387.33
560.58
648.60
736.54
490.08
568.52China
TheUS
Japan
SouthKorea
Thailand
Malaysia
Vietnam
Indonesia
Singapore
Philippines
Figure3:ValueofB2Ce-CommercePerCapitaofVariousNationsduring2015-2016

When considering Thailand’s value of B2C e-Commerce per capita
compared to those of China, the US, Japan, South Korea, and other
ASEAN countries, the values of B2C e-Commerce of all countries increased
significantly from 2015. In 2016, Thailand’s B2C e-Commerce value per
capita was maintained at USD 285.13 per capita per annum, increased
from USD 205.90 per capita per annum achieved in 2015, risen by USD
79.23 per capita per annum or 38.48% compared to 2015.
Comparing to other ASEAN countries, Thailand’s value of B2C
e-Commerce per capita was estimated to be higher than those of Vietnam,
Indonesia, and the Philippines, achieving USD 60.09 per capita per annum,
USD 20.26 per capita per annum, and USD 4.94 per capita per annum,
respectively. The three countries were larger in population than Thailand,
92.70 million for Vietnam, 261.15 million for Indonesia, and 103.32 million
for the Philippines. Meanwhile, as of 2016, Thailand’s population was
projected to be increased to 68.86 million only15
.
For Malaysia, despite a lower B2C e-Commerce value, the country
possessed a lower number of population compared to Thailand (Malaysia
and Thailand possessed 31.81 million and 68.86 million of population in
2016, respectively). As a consequence, the value of B2C e-Commerce per
capita (USD 560.58 per capita per annum) of Malaysia was estimated to
remain higher than Thailand’s B2C e-Commerce value (USD 285.13 per
capita per annum).
15
Population Index 2015 and 2016, www.data.worldbank.org, August 7, 2017

Figure 4: Percentage of the Value of e-Commerce
during 2014-2016 Classified by
Value of Domestic and Overseas Sales
2.33% 7.69%
Domestic
2014 2015 2016
Overseas
97.67%
13.47%
92.31% 86.53%
According to Figure 4, e-Commerce operators in Thailand still focused
on the online sales of products and services in the domestic market.
However, after having brief interviews with e-Commerce entrepreneurs,
86.53% of the total online sales were derived from the domestic market,
while 13.47% of products and services were traded online to the overseas
market.
However, there was a sign for Thai e-Commerce entrepreneurs to expand
their businesses to the overseas market. In 2014, Thailand achieved only
2.33% of the overseas sales, but they rose to 7.69% and 13.47%, in 2015
and 2016, respectively.

Figure 5: Percentage of the Value of regional e-Commerce in
2016 Classified by Size of the e-Commerce Business
SMEs
Bangkok and Metropolitan Central Region
Northern Region Northeastern Region Southern Region
49.52%
25.31%
11.21%
8.31%
5.65% 9.79%
11.81%
11.30%
61.85%
Enterprises
5.25%
The increasing sales of online products and services in the overseas
market were a consequence of the government’s policy to promote
Thailand’s e-Commerce businesses to become more strategic and
competitive in the ASEAN and global markets. At the same time, Thai
e-Commerce operators had been encouraged to emphasize more on
innovation, providing SMEs with an opportunity to move up to the next
level as Thailand was expected to become a hub of e-Commerce in the
ASEAN region by 2020. Also, it was highly necessary to proceed with
organizational reform for state agencies in Thailand, as part of the goal to
demonstrate the leadership of international trade promotion in the Digital
Economy era16
.
16
The Strategic Plan 2016-2020, the International Trade Promotion Fund, www.ditp.go.th/contents_attach
/151750/151750.pdf, August 28, 2017

17
Enterprises mean groups of e-Commerce entrepreneurs with revenues of USD 1.42 million per year or above.
18
SMEs mean group of e-Commerce entrepreneurs with revenues below USD 1.42 million per year.
Considering the value of regional e-Commerce in 2016, which was
classified by size of the e-Commerce business, Figure 5 unveiled that
49.52% of the total value of enterprises’ online products and services17
were traded mainly to consumers in Bangkok and Metropolitan, followed
by the central region (25.31%), northern region (11.21%), northeastern
region (8.31%), and southern region (5.65%).
The value of SMEs’ online products and services18
existed in a similar
direction compared to enterprises, reporting that 61.85% of the total
online products and services were distributed to consumers in Bangkok
and Metropolitan, followed by the central region (11.81%), northern region
(11.30%), northeastern region (9.79%), and southern region (5.25%).
Major factors that drove e-Commerce to its peak, particularly in
Bangkok and Metropolitan, could be explained here. Admittedly, Bangkok
and Metropolitan were considered Thailand’s most special economic zones
with a number of development projects, for instance, ICT infrastructure
and high-speed Internet, backed by the existence of advanced payment
technology, convenient sources of capitals, and efficient transportation.

Figure 6: Percentage of e-Commerce Operators during
2014-2016 Classified by Sales of Products and Services
21.64%
78.36%
23.54%
76.46%
22.32%
77.68%
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%
2014 2015 2016
Pure Internet Company
Click-and-Mortar Company
Referring to Figure 6, it unveiled that 77.68% of e-Commerce operators
were pure Internet companies, while 22.32% of them provided click-and-
mortar Internet services.
The percentage of e-Commerce entrepreneurs with pure Internet
services had increased from 76.46% in 2015 to 77.68% in 2016.
This was a consequence of newcomers entering the e-Commerce
market. These new entrepreneurs had managed to distribute their products
and services via e-Marketplace and social media as there was no
requirement on commercial rental cost.

The two channels provided a greater opportunity for e-Commerce
operators to penetrate their targeted customers via a more efficient
approach. Some new entrepreneurs also focused on drop shipping19
,
a supply chain management method in which entrepreneurs were not
required to keep their products in stock.
19
Drop shipping means an action of being an intermediary in trading of products and services via an online
channel, for instance, being an intermediary to order products from a foreign manufacturer to supply domestic
customers. Drop shipping is a supply chain management method in which entrepreneurs are not required to keep
their products in stock.

2.Value of e-Commerce in Thailand
Classified by Type of Entrepreneur
Figure 7: Value of e-Commerce during 2014-2016 and Forecast
for 2017 Classified by Type of Operator (Value of Government
Procurement Included)
5
10
15
20
25
30
35
40
0
20172014 2015 2016
45
50
19.93
14.89
11.69
37.99
12.67
11.93
8.91
38.97
43.69
23.94
9.57
49.36
P
Business to Business Business to Customer Business to Government
Unit: USD billion
Growth Rate 2014-2015 2015-2016 2016-2017
B2B 8.15% 15.53% 8.63%
B2C 23.87% 37.91% 15.54%
B2G 3.30% -21.42% 3.24%
P

Figure 8: Percentage of the Value of e-Commerce during
2014-2016 and Forecast for 2017 Classified by Type of Operator
(Value of Government Procurement Included)
B2B B2C B2G
2017P
2016
2014 2015
60.70% 59.45%
60.24%
20.25% 22.72%
27.47%
19.06% 17.83%
12.29%
59.56%
28.89%
11.55%
72.53
USD billion
82.87
USD billion
62.60
USD billion
65.55
USD billion

As the e-Commerce value was classified by type of operator shown in
Figure 7 and Figure 8, B2B e-Commerce achieved the highest value of USD
43.69 billion or 60.24% of the total e-Commerce value in 2016 (the value
of government procurement included)20
, followed by B2C e-Commerce
with the value of USD 19.93 billion or 27.47% and B2G e-Commerce with
the value of USD 8.91 billion or 12.29%, derived from Electronic Market
(e-Market) and Electronic Bidding (e-Bidding).
Comparing to 2015, the growth rate of B2B e-Commerce in 2016 was
estimated to increase 15.53%. B2C e-Commerce achieved a continuing
growth of 37.91%, but, unfortunately, B2G e-Commerce faced a significant
drop of 21.42%.
When considering the forecast for the e-Commerce value of 2017, the
highest e-Commerce value (the value of government procurement
included) was B2B e-Commerce, generating USD 49.36 billion or 59.56%
of the total e-Commerce value in the year, followed by B2C e-Commerce
with USD 23.94 billion or 28.89% and B2G e-Commerce with USD 9.57
billion or 11.55%.
Comparing the growth rate of the forecast for the e-Commerce value
of 2017 to the value existing 2016, the value of B2B e-Commerce shifted
8.63%, while the values of B2C e-Commerce and B2G e-Commerce rose
15.54% and 3.24%, respectively.
20
With reference to the surveys conducted in 2014 and 2015, the value of government procurement was derived
from 1) the value obtained from e-Auction (provided by the Comptroller’s General Department) and 2) the value
occurred from the e-Commerce business cooperated by e-Commerce operators and government agencies regard-
less of e-Auction (according to ETDA’s surveys conducted in 2014 and 2015).

27.53%
72.47%
31.32%
68.68%
32.66%
67.34%
25.01%
74.99%
50.67
USD billion
63.62
USD billion
73.30
USD billion
54.09
USD billion
B2B B2C
2017P
2015
2016
2014
2014-2016 and Forecast for 2017 Classified by Type of Operator
(Value of Government Procurement Excluded)

According to Figure 9, the value of e-Commerce was classified by type
of operator (the value of government procurement excluded). The value
of B2B e-Commerce remained at 68.68%, while the value of B2C
e-Commerce was maintained at 31.32% compared to 2016, excluding the
value of government procurement of USD 63.62 billion. Meanwhile, the
forecast for 2017 unveiled that the value of B2B e-Commerce would stay
at 67.34% and the value of B2C e-Commerce was expected to remain at
32.66%, without including the value of government procurement of USD
73.30 billion.

3. Value of e-Commerce in Thailand
Classified by Type of Industry
for 2017 Classified by Type of Industry
Unit: USD billion
Accommodation
Information and
Communication
Retail and
Wholesale
Insurance
Art, Entertainment,
and Recreation
Other Services
Manufacturing
Transportation
25.62
20.22
15.67
7.78
3.09
2.38
1.87
1.53
12.29
12.13
12.52
13.56
19.39
17.22
16.34
19.40
11.91
10.89
6.79
8.15
0.08
0.07
0.06
0.08
0.55
0.44
0.28
0.29
0.33
0.27
0.56
0.11
2014
2016
2015
2017P

Growth Rate 2014-2015 2015-2016 2016-2017P
Manufacturing -2.70% -0.15% -2.54%
Retail and
Wholesale
112.46% 32.97% 21.85%
Transportation 29.06% 30.88% 24.99%
Accommodation 11.18% 8.61% 8.26%
Information and
Communication
12.14% 65.18% 5.15%
Insurance 15.00% 14.90% 13.89%
Art,
Entertainment, and
Recreation
1.66% 62.65% 27.50%
Other Services 419.21% -49.62% 17.23%
Figure 10 unveiled the value of e-Commerce of 2016 (the value of
government procurement excluded). The top-three industries with the
highest e-Commerce values were the retail and wholesale industry,
accommodation industry, and manufacturing industry, achieving the values
of USD 20.22 billion (31.78%), USD 17.22 billion (27.07%), and USD 12.13
billion (19.06%), respectively. Obviously, the insurance industry achieved
the lowest e-Commerce value of USD 0.07 billion (0.11%).
Significant factors that influenced the expansion of the retail and
wholesale industry varied in 1) competition of existing retailers of similar
businesses, 2) competition of foreign-based retailers with similar target
markets, and 3) competition of newcomers hunting for increasing market
shares. Reportedly, business entrepreneurs and brand owners without
intermediaries were considered the most influential competitors.

B2B B2C
Art, Entertainment,
and Recreation
Retail and Wholesale
Information
and Communication
Transportation
Manufacturing
25.54%
49.33%
37.22% 62.78%
74.46%
28.08%
49.53%
71.92%
50.67%
8.48%
50.47%Other Services
91.52%
Figure 11: Percentage of the Value of Industrial E-Commerce in
2016 Classified by Type of Operator
According to the forecast for the value of e-Commerce of 2017
(the value of government procurement excluded), retail and wholesale,
accommodation, and manufacturing were the three largest industries
similar to 2015. The retail and wholesale industry achieved a remarkable
e-Commerce value of USD 25.62 billion, increased by 21.85%.
The accommodation industry posted USD 19.39 billion or a rise of 8.26%,
while the manufacturing industry generated USD 12.29 billion, dropped by
2.54%. Once again, the insurance industry was estimated with the lowest
e-Commerce value of USD 0.08 billion.

Considering the percentage of the e-Commerce values of 2016
(the value of government procurement excluded) classified by type of
entrepreneur, there were six key industries21
altogether, consisting of
Manufacturing, Retail and Wholesale, Transportation, Information and
Communication, Art, Entertainment, and Recreation, and Other Services
as shown in Figure 11.
It unveiled that the top-three industries with the highest B2B
e-Commerce percentage were manufacturing, other services, retail, and
wholesale. The manufacturing industry achieved 91.52%. The other services
industry marked 50.47%, while the retail and wholesale industry secured
49.33%.
The top-three industries with the highest B2C e-Commerce percentage
included information and communication, art, entertainment, and
recreation, and transportation. The three industries achieved 74.46%,
71.92%, and 62.78%, respectively.
21
According to the survey of the e-Commerce value conducted in 2016, there were six key industries classified by
type of business operator. However, the information of the other two industries, accommodation, and insurance,
was provided by the Department of Tourism under the Ministry of Tourism and Sports and the Office of Insurance
Commission (OIC), respectively.

0.44
4.89
7.30
9.21
1.34
1.01
1.26
1.60
1.90
3.38
3.82
4.64
0.03
0.30
0.37
0.48
0.44
0.73
0.84
1.07
2.00
1.41
1.44
2.09
0.20
2.98
4.29
5.37
0.19
0.75
0.90
1.15
Unit:USDbillion
ShoppingCenter
Cosmetics,
SupplementaryFood,Perfume,
andBeautyEquipments
Food,ProcessedFood,Beverage,
andAgriculturalandFisheriesProducts
Computer,Communication,
andElectronicDevices
Fashion,Clothing,
Gem,andJewelry
SportsEquipment,
Toy,andSouvenir
Furniture
andHomeFurnishings
AutomotiveProducts
andParts
2014201520162017P
Figure12:Valueofe-Commerceduring2014-2016
andForecastfor2017oftheRetailandWholesaleIndustryClassifiedby
TypeofProductsandServices(ValueofGovernmentProcurementExcluded)

Growth Rate 2014-2015 2015-2016 2016-2017P
Shopping Center 1,081.32% 53.95% 21.26%
Fashion, Clothing, Gem, and Jewelry -20.71% 28.88% 22.15%
Cosmetics, Supplementary Food, Perfume, and
Beauty Equipments
87.79% 16.36% 16.84%
Automotive Products and Parts 1,008.08% 25.02% 26.30%
Furniture and Home Furnishings 74.48% 18.47% 23.32%
Computer, Communication, and Electronic
Devices
-25.70% 5.78% 39.54%
Food, Processed Food, Beverage, and Agricultural
and Fisheries Products
1,494.72% 48.06% 20.44%
Sports Equipment, Toy, and Souvenir 311.18% 23.85% 22.63%
Figure 12 unveiled the top-three businesses of the retail and wholesale
industry in 2016 (the value of government procurement excluded), which
were shopping center, food, processed food, beverage, and agricultural
and fisheries products, and cosmetics, supplementary food, perfume, and
beauty equipment, achieving remarkable e-Commerce values of USD 7.30
billion, USD 4.29 billion, and USD 3.82 billion, respectively.
Considering the growth rate of the retail and wholesale industry, the
business that possessed the highest e-Commerce value during 2015-2016
was shopping center, generating 53.95% of growth rate, followed by food,
processed food, beverage, and agricultural and fisheries products with
48.06% and fashion, clothing, gem, and jewelry with 28.88%. In the retail
and wholesale industry during the same period, the business with the

lowest growth rate was computer, communication, and electronic devices,
with a tiny growth rate of 5.78% only.
Referring to the forecast for the e-Commerce value of the retail and
wholesale industry in 2017 (the value of government procurement
excluded), the top-tree businesses with the highest e-Commerce value
were shopping center, food, processed food, beverage, and agricultural
and fisheries products, and cosmetics, supplementary food, perfume, and
beauty equipments, achieving USD 9.21 billion, USD 5.37 billion, and USD
4.64 billion, respectively.
For the growth rate of the retail and wholesale industry, the business
with the highest e-Commerce value during 2016-2017 was computer,
communication, and electronic devices, increased to 39.54%, followed by
automotive products and parts with 26.30% and sports equipment, toy,
and souvenir with 22.63%. However, cosmetics, supplementary food,
perfume, and beauty equipments achieved the lowest growth rate of
16.84%.

B2B B2C
43.71% 56.29%
2.12%
97.88%
93.21%
6.79%
87.21%12.79%
21.19%
1.86%
2.77%
78.81%
92.65%
7.35%
98.14%
97.23%
Shopping Center
Cosmetics,
Supplementary Food, Perfume,
and Beauty Equipments
Food, Processed Food, Beverage,
and Agricultural and Fisheries Products
Computer, Communication,
and Electronic Devices
Fashion, Clothing,
Gem, and Jewelry
Sports Equipment,
Toy, and Souvenir
Furniture
and Home Furnishings
Automotive Products
and Parts
Figure 13: Percentage of the Value of e-Commerce in 2016 of
the Retail and Wholesale Industry Referring to Type of Products
and Services Classified by Type of Operator
As explained in Figure 13, considering the percentage of the
e-Commerce value of the retail and wholesale industry classified by type
of operator in 2016 (the value of government procurement excluded), the
top-three businesses in the retail and wholesale industry with the highest
B2B e-Commerce values were computer, communication, and electronic
devices, shopping center, and furniture and home furnishings, generating
up to 92.65%, 43.71%, and 21.19%, respectively.
The top-three Products and Services groups with the highest B2C
e-Commerce values were also mentioned here. The food, processed food,
beverage, and agricultural and fisheries products category was ranked first

for 2017 of the Art, Entertainment, and Recreation Industry
Classified by Type of Products and Services
Music, Cinema,
and e-Movies
0.33
0.23
0.09
0.08
0.14
0.11
0.10
0.11
0.12
0.09
0.03
0.03
0.0005
0.0006
0.05
0.06
Unit: USD billion2014 2015 2016 2017P
Online Games
Education and Related Services
and Application
Art, Entertainment, and
Recreation
with 98.14%. The fashion, clothing, gem, and jewelry business was ranked
second with 97.88%. The sports equipment and souvenir posted 97.23%,
ranked third among the groups.
Growth Rate 2014-2015 2015-2016 2016-2017P
Music, Cinema, and
e-Movies 13.20% 168.14% 33.83%
Online Games -2.83% 13.44% 16.50%
Education and
Related Services
and Application
-3.08% 215.07% 25.33%
Art, Entertainment,
and Recreation -3.61% -98.89% -25.77%

AccordingtoFigure14,thee-Commercevalueoftheart,entertainment,
and recreation industry in 2016 (the value of government procurement
excluded) could be summarized into four main categories. Reportedly, the
music,cinema,ande-Movies22
businesswasrankedfirstwiththee-Commerce
value of USD 0.23 billion. Online gaming was considered the second largest
business with the e-Commerce value of USD 0.11 billion. The education and
related services and application business was ranked third, generating up to
USD 0.09 billion, while the art, entertainment, and recreation business was
ranked fourth with USD 0.0006 billion of the e-Commerce value.
During2015-2016,theart,entertainment,andrecreationindustryachieved
the highest growth rate of e-Commerce value, where the education and
related services and application business was ranked first with the highest
growth rate of 215.07%. The music, cinema, and e-Movies and onlinegames
businesses shifted 168.14% and 13.44%, respectively.
As for 2017, the forecast for the e-Commerce value of the art,
entertainment,andrecreationindustry(thevalueofgovernmentprocurement
excluded) could be summarized into four major groups. Reportedly,
the music, cinema, and e-Movies business secured the highest e-Commerce
value of USD 0.33 billion. The online games business could generate up to
USD 0.14 billion, ranked second in the industry. The education and related
services and application business and the art, entertainment, and recreation
sector were predicted to be ranked third and fourth, with USD 0.12 billion
and USD 0.0005 billion, respectively.
During2016-2017,theart,entertainment,andrecreationbusinessachieved
the highest growth rate, in which the music, cinema, and e-Movies business,
the education and related services and application business, and the online
games business were the three most successful businesses. The music,
cinema,ande-Moviesbusinessachievedaremarkablegrowthrateof33.83%.
The education and related services and application business and the online
games business were able to shift 25.33% and 16.50%, respectively.
22
e-Movies mean the trading, downloading, and viewing of movies via the Internet.

4.Value of e-Commerce in Thailand
Classified by Size of e-Commerce Business
201620152014 2017P
21.52
10.00
27.02
10.66
52.96
10.65
60.19
13.11
Unit: USD billion
Enterprises SMEs
for 2017 Classified by Size of the e-Commerce Business
Growth Rate 2014-2015 2015-2016 2016-2017P
Enterprises 32.43 101.96 9.27
SMEs 12.45 2.96 18.35
In 2016, as the e-Commerce value was classified by size of the
e-Commerce business shown in Figure 15, the value was generated by
enterprises, achieving USD 52.96 billion or 83.47%, while SMEs posted the
value of USD 10.65 billion or 16.53%23
in the same year.
23
The e-Commerce values generated by the accommodation and insurance industries, provided by the Department
of Tourism under the Ministry of Tourism and Sports and the Office of Insurance Commission (OIC), were excluded.

Figure 16: Value of Industrial e-Commerce in 2016 Classified by
Size of the e-Commerce Business
0.02
0.26
0.34
10.79
0.10
0.10
10.43
11.73
9.79
0.40
Unit: USD billion
Enterprises SMEs
Art, Entertainment,
and Recreation
Retail
and Wholesale
Information
and Communication
Manufacturing
Other Services
For the growth rates of the e-Commerce values during 2015-2016,
which were classified by size of e-Commerce operator, enterprises were
estimated to grow 101.96%, while SMEs increased 2.96% only.
As for 2017, the e-Commerce value generated by enterprises was
forecasted to remain at USD 60.19 billion or 82.10% of the forecast for
the e-Commerce value of the year, increased by 9.27% compared to 2016.
Meanwhile, the SMEs’ e-Commerce value had been anticipated to remain
at USD 13.11 billion or 17.90%, shifted by 18.35% compared to the
previous year.

As shown in Figure 16, the top-three e-Commerce values24
of
enterprises (the value of government procurement excluded) as of 2016
were generated by the manufacturing, information and communication,
and retail and wholesale industries. The manufacturing industry possessed
USD 11.73 billion, while the information and communication and retail
and wholesale industries were able to achieve USD 10.79 billion and USD
In the same year, for SMEs, the retail and wholesale industry produced
the highest e-Commerce value (the value of government procurement
excluded) of USD 9.79 billion.
24
The e-Commerce values generated by the accommodation and insurance industries, provided by the Department
of Tourism under the Ministry of Tourism and Sports and the Office of Insurance Commission (OIC), were excluded.

Figure 17: Forecast for Industrial e-Commerce in 2017
Classified by Size of e-Commerce Business
0.02
0.31
0.47
11.80
0.11
0.11
13.53
11.80
12.09
0.49
Unit: USD billion
Enterprises SMEs
Art, Entertainment,
and Recreation
Retail
and Wholesale
Information
and Communication
Manufacturing
Other Services
Figure 17 unveiled the forecast for the e-Commerce values of 2017
classified by size of e-commerce business (the value of government
procurement excluded). For enterprises, the top-three industries with the
highest e-Commerce values were the retail and wholesale industry,
generating up to USD 13.53 billion, the information and communication
industry, achieving USD 11.80 billion, and the manufacturing industry,
posting USD 11.80 billion.
Meanwhile, for SMEs, the three industries with the highest e-Commerce
values were the retail and wholesale industry achieving USD 12.09 billion,
the manufacturing industry posting USD 0.49 billion, and the other services
industry generating USD 0.31 billion.

Figure18:PercentageoftheValueofe-Commercein2016of
theWholesaleandRetailIndustryReferringtoTypeofProducts
andServicesClassifiedbySizeofe-CommerceBusiness
(ValueofGovernmentProcurementExcluded)
ShoppingCenter
Cosmetics,
andBeautyEquipments
Fashion,Clothing,
|Gem,andJewelry
SportsEquipment,
Toy,andSouvenir
Furniture
andHomeFurnishings
AutomotiveProducts
andParts
14.67%
EnterprisesSMEs
3.96%
1.06%
73.02%
0.03%
7.09%
0.17%

49.63%
12.40%
12.03%
6.24%
4.80%
4.53%
8.74%
1.63%
ShoppingCenter
Cosmetics,
andBeautyEquipments
Fashion,Clothing,
|Gem,andJewelry
SportsEquipment,
Toy,andSouvenir
Furniture
andHomeFurnishings
AutomotiveProducts
andParts

As shown in Figure 18, the percentage of the e-Commerce value of
2016 of the retail and wholesale industry classified by type of Products
and Services referring mainly to size of e-Commerce operator (the value
of government procurement excluded) could be explained by unveiling
the top-three businesses, comprising of computer, communication, and
electronic devices, shopping center, and food, processed food, beverage,
and agricultural and fisheries products, achieving 73.02%, 14.67%, and
7.09%, respectively.
In the same year, for SMEs, the e-Commerce values of the retail and
wholesale industry classified by type of Products and Services with
reference to the size of e-Commerce operator (the value of government
procurement excluded) were summarized with the top-three businesses.
The shopping center business achieved 49.63%, considered the highest
percentage of all businesses, followed by the fashion, clothing, gem, and
jewelry business and the cosmetics, supplementary food, perfume, and
beauty equipments business, generating 12.40% and 12.03%, respectively.

Figure19:ValueofIndustriale-Commercein2016Classifiedby
OnlineDistributionChannelofSMEs
(ValueofGovernmentProcurementExcluded)
Unit:USDbillion
0.20
0.02
0.07
0.11
0.01
0.03
0.03
0.03
0.01
0.03
0.04
0.03
0.01
0.09
0.06
0.10
e-Commerceoperators
usedforeign-basedwebsites
e-Commerceoperatorsownedwebsites
orapplications
e-Marketplace
SocialMedia
0.45
3.89
2.66
2.80
Art,Entertainment,
andRecreation
Retail
andWholesale
Information
andCommunication
Manufacturing
OtherServices

Considering the e-Commerce values in 2016, classified by industry
referring to online distribution channel of SMEs (the value of government
procurement excluded) shown in Figure 19, the manufacturing industry
generated the highest value via social media25
, followed by its own web-
site or application and e-Marketplace, worth USD 0.20 billion, USD 0.11
billion, and USD 0.07 billion, respectively.
The retail and wholesale industry sold a majority of its products and
services via social media, followed by e-Marketplace and website or
application, with the values of USD 3,89 billion, USD 2.80 billion, and USD
The information and communication industry generated sales of
products and services mainly via e-Marketplace, followed by social media
and website or application. The e-Marketplace channel achieved USD
0.0333 billion in total. Meanwhile, the social media and website or
application channels hit USD 0.0295 billion and USD 0.0290 billion,
respectively.
Reportedly, the art, entertainment, and recreation industry achieved
lucrative sales of products and services via website or application, followed
by social media and e-Marketplace, with the values of USD 0.0369 billion,
USD 0.0303 billion, and USD 0.0292 billion, respectively.
25
Social media includes Facebook, LINE, Instagram, YouTube, and others.

Figure 20: Percentage of the Value of Industrial e-Commerce in
2016 Classified by Online Distribution Channel of SMEs
Looking at the percentage of the e-Commerce values as of 2016,
classified by industry referring to online distribution channel of SMEs
(the value of government procurement excluded) shown in Figure 20, the
manufacturing industry generated up to 49.27% via social media,
considered the highest percentage of the total channel, followed by
website or application of 27.63% and e-Marketplace of 17.19%,
respectively.
The retail and wholesale industry distributed its products and services
mostly via social media of 39.71%, followed by e-Marketplace of 28.59%
and website or application of 27.16%. Contrastively, the information and
communication industry generated the highest percentage via
e-Marketplace of 32.68%, followed by social media of 28.95% and website
or application of 28.52%.
B2B B2C
Art, Entertainment,
and Recreation
Information
and Communication
Transportation
Manufacturing
25.54%
49.33%
37.22% 62.78%
74.46%
28.08%
49.53%
71.92%
50.67%
8.48%
50.47%Other Services
91.52%

The art, entertainment, and recreation industry achieved the highest
distribution rate of 36.09% via website or application, followed by social
media of 29.62% and e-Marketplace of 28.54%.

5. Payment Channels Preferred by
SMEs during the Digital Economy Era
Figure 21: Percentage of Payment Channel Preferred by
SMEs in 2016
Online Offline
81.22%
90.09%
72.73% 27.27%
18.78%
76.69% 23.31%
11.04%
9.91%
88.96%
Art, Entertainment,
and Recreation
Information
and Communication
Manufacturing
Other Services
Online Payment
• Payment Gateway: credit or debit cards, for instance, 2C2P,
Paysbuy, Omise, and other payment gateways provided
by commercial banks.
• Payment via an international payment system, for instance,
PayPal and AliPay.
• Payment via e-Banking, for instance, Internet banking
and mobile banking.
• Payment via a mobile payment system or the third party,
for instance, m-Pay, True Money, AirPay, and LinePay.
Offline Payment
• Payment via ATM.
• Payment via bank counter and CDM.
• Payment via Cash on Delivery (COD).
• Payment via payment service providers, for instance,
7-Eleven, Family Mart, Tesco Lotus, and Big C.
• Payment transferred via a postal system.

ภาพที่ 22 Percentage of Online Payment Channel used by
SMEs in 2016
Foreign payment system, for instance, PayPal and AirPay
Mobile payment system or third-party, for instance m-Pay, True Money, AirPay, and LinePay
e-Banking (Internet banking and mobile banking)
Credit or debit cards and other payment gateways provided by commercial banks
23.00%
59.86%
13.33%
3.81%
Considering the percentage of online payment used by e-Commerce
operators in 2016 classified by type of industry as shown in Figure 21, the
top-three industries with the highest online payment rates were the retail
and wholesale, manufacturing, and art, entertainment, and recreation
industries, with 90.09%, 88.96%, and 81.22% of the total online payment
value. However, the information and communication industry was
reported to achieve the highest value of offline payment compared to
other industries.

When considering the online payment channel only, as shown in
Figure 22, a majority of consumers preferred to make payments via
credit and debit cards as well as payment gateways provided by
commercial banks.
The payment value was considered 59.86% of the total online payment
value. Meanwhile, e-Banking, for instance, Internet banking and mobile
banking, achieved 23.00%, mobile payment system, for instance, m-Pay,
True Money, Airpay, LINEPay posted 13.33%, and foreign payment system,
for instance, PayPal and Alipay owned 3.81%.

6. Distribution Channels of Products
and Services Preferred by Operators
during the Digital Economy Era
Figure 23: Percentage of e-Commerce Operators in 2016
Classified by Transportation Channel of Products and Services
39.13%
34.78%
26.09%
Use outsourcing logistics providers
(third party)
Use services provided
by Thailand Post
Own transportation company
Enterprises
SMEs
84.38%
47.76%
8.40%
by Thailand Post
by a transportation provider
Use an intermediary to transport products
8.15%
6.23%
5.37%
1.89%
Own transportation
Submit the information
via an electronic system
Identify a delivery point agreed
by an operator and a customer
Remark: An operator was exposed to more than one transportation channel.
Others

The percentage of e-Commerce operators in 2016 classified by
transportation channel of products and services could be explained
according to Figure 23. For enterprises, the most preferred transportation
channel was the outsourcing logistics operator or third party, considered
39.13% of the total transportation channel. Meanwhile, 34.78% preferred
to use transportation services provided by Thailand Post and 26.09%
owned transportation companies.
In contrast, 84.38% of SMEs preferred to use transportation services
provided by Thailand Post, while 47.76% had been exposed to services
provided by a transportation provider and 8.40% used an intermediary for
the transport of products.

7. Impacts on Thai e-Commerce
Entrepreneurs and Suggestions
Tax measures, legal measures, and e-Commerce promotion measures
have become the three most important development factors for both
enterprises and SMEs.
7.1 Enterprises
Tax Measures
According to in-depth interviews with Thai enterprises, a majority of
e-Commerce operators agree with the government’s tax collection
measure when revenue exceeds USD 0.05 million per year. Both online
and offline operators are compulsorily required to be responsible for tax
payment to generate greater national development in various aspects, for
instance, education, infrastructure, and security of online systems.
However, it will be better if the government can revise its tax collection
measure, agreeing that tax should be collected from the minimum
revenue of USD 0.06-0.09 million per year instead of USD 0.05 million per
year.
However, business operators involved in tax evasion and remained
unregistered cause a big problem to all players in the industry. Such
problem causes unfair business competition as those smuggling goods
from foreign countries can ruin their businesses with lower costs compared
to legally registered entrepreneurs. Those illegal operators can even evade
taxes. Besides, it will be more efficient and appropriate to provide business
taxpayers with attractive tax measures, for instance, tax incentive. Desirable

tax measures can be the delay in collection of taxes or the approval of
tax reduction during the beginning stage of business. This helps reduce an
impact caused by online tax collection for local operators.
Furthermore, there are productive suggestions on the reduction of tax
payment procedures, for instance, the establishment of a one-stop service
center can help facilitate taxpayers with advanced technology ensuring
greater efficiency and convenience in making transactions.
Legal Measures
After seriously interviewing local enterprises, they all want the
government to enforce strict laws to be pursued by all business operators
fairly and thoroughly. A serious control over the purchase of alcoholic
beverages, medicines, and illegal products available online can be a good
example.
e-Commerce Promotion Measures
Referring to in-depth interviews with local business owners, the
government has been urged to provide them with efficient sources of
finance to support a greater liquidity of e-Commerce businesses. Local
entrepreneurs have remained firm in supporting the development of the
National Payment Gateway, which has been expected to reduce excessive
costs of electronic financial transactions.
The development of Internet infrastructure, expected to cover all
areas across the country, will inspire a better alternative channel for
accessing products and services available online, particularly for those
living in geographically distant areas.

The government has also been encouraged to generate further
expansion of the Thai e-Commerce market aiming for a larger customer
base while providing local entrepreneurs with sufficient knowledge on
e-Commerce and online businesses. This helps boost consumer confidence
in purchasing products and services via an online channel. Meanwhile, the
government’s policies must be clarified in accordance with targeted goals
and implemented in a consistent and transparent manner.
However, there is an unsolved problem occurred to e-Commerce
operators. The Thai e-Commerce industry is still facing the lack of
specialized personnel in various fields, for instance, online marketing and
development, information technology, and computer graphics. Several
business giants are hunting for workforces with specialized skills and
excellent abilities. As a consequence, small enterprises have been set
aside as they are unable to join the competition.
7.2 Small and Medium Enterprises (SMEs)
Tax Measures
After having in-depth interviews with SMEs, many of them have
expected that the government should offer its firm support to the
establishment and expansion of e-Commerce businesses by determining
effective tax measures, for instance, the approval on tax delay or tax
reduction for a period of three to five years.
In addition, there should be clear policies on tax collection to avoid
conflict or misunderstanding among business entrepreneurs.

SMEs have also urged the government to maximize contact channels,
ensuring that all tax-related transactions can be implemented in a more
efficient manner. Submitting required documents via an electronic channel
can guarantee greater effectiveness and convenience of tax payment and
other related implementation processes.
Legal Measures
According to in-depth interviews with SMEs, many of them have agreed
that the government should revise the laws related to e-Commerce
businesses, expected to be more up-to-date and efficient. Meanwhile, it
is compulsory for the government to impose harsher punishments and
disciplinary actions for those operating businesses against the e-Commerce
laws. Violation may involve fraud and deception, particularly in promoting
products or services available online. The government must keep
monitoring exaggerated commercial ads and deceitful promotional
campaigns.
Prior to enforcing any e-Commerce law, the government is required
to study the impacts that may take the pace and affect the Thai economy
and society, as part of the goal to make the enforcement of laws efficient
and achievable.
e-Commerce Promotion Measures
As an online survey unveils, the government has been expected to
consistently provide SMEs with sufficient knowledge on e-Commerce
conforming to the Thailand 4.0 development agenda. SMEs also demand
the government to boost greater confidence and trust among e-Commerce

operators as well as online traders, leading to further achievement of
e-Commerce.
Additionally, the government should promote the updated information
related to e-Commerce, for instance, making payment via Prompt Pay, a
state-sponsored financial system launched to ensure the enhanced
security of financial transactions.
SMEs have also urged the government to seriously solve problems
occurred to trading via social media. Such problems include deceitful
online trading, credit or debit card fraud, and identity theft. Training
programs on e-Commerce should regularly be offered to SMEs from all
regions across Thailand, where e-Commerce entrepreneurs must be able
to acknowledge the lists of relevant state organizations directly
responsible for providing opinions and suggestions on whatever related
to e-Commerce. This can ensure the highest benefit for local e-Commerce
entrepreneurs.

Appendix

Terminology
e-Commerce is the act of purchasing or selling of products and services
via the Internet, in which a customer is allowed to make a reservation or
an order of their preferred products or services online (via website or
e-mail). For e-Commerce, the payment and delivery of products and
services can be made via several channels, including all orders made via
Internet applications, for instance, website, extranet, and other programs
operated on the Internet like Electronic Data Interchange (EDI), Minitel,
and other websites regardless of how to access such websites
(via smartphone or television). This excludes reservations and orders of
products and services made via telephone, facsimile, or correspondence
via email, with reference to the terminology of e-Commerce defined by
the Organization for Economic Co-operation and Development (OECD).
Electronic Data Interchange (EDI) ) is the standardized exchange of
business documents between business partners from one computer to
another. EDI can be implemented by two key requirements; using
electronic documents instead of paper documents and ensuring that
electronic documents are developed in accordance with internationally
accepted standards. This advanced technology can connect business
people from all over the world. Besides, EDI is developed to ensure the
highest accuracy and speediness in transmitting the required information,
helping reduce redundancy in document submission processes with time
efficiency. EDI also fosters a good relationship between business operators
and customers, particularly when there are higher competitions in the
world of business.

B2G (Business to Government) means a situation where a business
company makes a commercial transaction with a public organization. For
this survey, the value of government procurement is derived from
Electronic Market (e-Market) and Electronic Bidding (e-Bidding) only, with
reference to the Comptroller’s General Department, the Ministry of Finance.
B2B (Business to Business) refers to a situation where one business
company makes a commercial transaction with another business firm,
where the business, in this context, means an e-Commerce operator who
is a juristic person26
and intends to trade goods or services between each
other. This survey includes orders made via Electronic Data Interchange
(EDI).
e-Commerce operator who is a juristic person26 and intends to trade goods or services between
each other. This survey includes orders made via Electronic Data Interchange (EDI).
B2C (Business to Consumer) refers to a situation where one business company makes a
commercial transaction with an individual or another business firm, which can be an e-Commerce
operator who is either a juristic person or an individual aiming to trade goods or services between
each other.
C2C (Consumer to Consumer) means a situation where an individual makes a
commercial transaction with another individual. Both of them intend to trade goods or services
between each other and are not considered juristic persons. Trading of a second-hand product can
be a good example of C2C e-Commerce.
26 A juristic person means a company or partnership registered under the Civil and Commercial Code, for instance, 1)
limited company, 2) limited public company, 3) limited partnership, and 4) registered partnership.

B2C (Business to Consumer) refers to a situation where one business
company makes a commercial transaction with an individual or another
business firm, which can be an e-Commerce operator who is either a
juristic person or an individual aiming to trade goods or services between
each other.
C2C (Consumer to Consumer) means a situation where an
individual makes a commercial transaction with another individual. Both
of them intend to trade goods or services between each other and are
not considered juristic persons. Trading of a second-hand product can be
a good example of C2C e-Commerce.

Survey Framework and
Methodology
The Value of e-Commerce Survey in Thailand 2017 has been
conducted by the Electronic Transactions Development Agency
(Public Organization) (ETDA) for the third consecutive year, where survey
framework and methodology are developed to obtain accurate statistical
results. The survey on the e-Commerce value in Thailand relies on both
qualitative and quantitative research.
The term ‘e-Commerce’ used in this survey is defined by the
Organization for Economic Co-operation and Development (OECD), stating
that “e-Commerce is the act of purchasing or selling of products and
services via the Internet, in which a customer is allowed to make a
reservation or an order online (via website or e-mail). For e-Commerce,
the payment and delivery of goods and services can be made via
several channels, including all orders made via Internet applications,
for instance, website, extranet, and other programs operated by the
Internet like Electronic Data Interchange (EDI), Minitel, and other
websites regardless of how to access such websites (via smartphone
or television). This excludes orders of products and services made via
telephone, facsimile, or correspondence via email”.

Survey Framework and Methodology of 2017
1. Classifying Business Industries
This survey has classified groups of e-Commerce operators by type of
industry with reference to the ISIC and TSIC standards. Reportedly, for
e-Commerce, there are eight major business categories, varying in
Manufacturing, Retail and Wholesale, Transportation, Accommodation,
Information and Communication, Insurance, Art, Entertainment, and
Recreation, and Other Services. The 8 groups of businesses have also been
divided into 21 subgroups aiming to cover the entire e-Commerce market
in Thailand as much as possible.
2. Determining Aspects of Information Analysis
For this survey, the e-Commerce value of 2016 and the forecast of
e-Commerce value of 2017 can be summarized according to 3 major
aspects explained below:
2.1 The e-Commerce value is classified by type of e-Commerce,
varying in B2B, B2C, and B2G, in which the information on B2G e-Commerce
is provided by the Comptroller’s General Department, the Ministry of
Finance. The value of government procurement has been derived from
Electronic Market (e-Market) and Electronic Bidding (e-Bidding).
2.2 The e-Commerce value is classified by revenue of e-Commerce
operators, ranging from lower than USD 1.42 million per year (SMEs) or
equal to USD 1.42 million per year or higher (Enterprises).

2.3 The e-Commerce value is classified by type of business industry
according to ISIC Rev. 4 (International Standard Industrial Classification of
All Economic Activities Rev. 4), which can be divided into eight major
categories, varying in Manufacturing, Retail and Wholesale, Transportation,
Accommodation, Information and Communication, Insurance, Art,
Entertainment, and Recreation, and Other Services.
The e-Commerce value of the accommodation industry has been
provided by the Department of Tourism under the Ministry of Tourism and
Sports, while the e-Commerce value of the insurance business is reported
by the Office of Insurance Commission (OIC). Previously, those two public
organizations have completely obtained the information on e-Commerce
values of both industries.
3. Specifying Research Tools
This survey also refers to two significant e-Commerce groups,
consisting of SMEs and Enterprises. Interviewing SMEs can be accomplished
by online questionnaires, while enterprises have been arranged to
participate in face-to-face interviews. The results will be evaluated by
using statistical research tools detailed below:
3.1 Quantitative Survey aims to gather the information of SMEs
obtained earlier from online questionnaires. The online questionnaire’s
main idea will cover 7 major aspects.

3.2 Qualitative Survey focuses on the in-depth information on
e-Commerce market situations from the past until the present time as
well as future insights. The qualitative survey is supported by in-depth
interviews with senior executives of certain enterprises. The main idea of
the qualitative survey emphasizes on specific businesses, which is totally
different compared to the quantitative survey’s online questionnaire.
4. Stipulating Marginalized People and Target Groups
This survey unveils the value of e-Commerce as of 2016 and the
forecast for 2017. A total of 592,996 e-Commerce operators have been
targeted to conduct this survey and the lists of e-Commerce operators
are provided by three key public organizations, including the Electronic
Transactions Development Agency (Public Organization) (ETDA), the
Department of Business Development (DBD), and the National Statistical
Office. Admittedly, there are contradictions found in the information
provided by the three organizations. To avoid complication, researchers
of this survey have determined to get rid of duplicated names of
e-Commerce operators and select only one from the lists. This helps
ensure the accuracy of information, particularly when the duplicated
information has been eliminated. However, screening duplicated names
can cause errors as some of the targeted e-Commerce operators are
limited by their details of business operations, making duplicated names
difficult to be screened out.

Determining Size of Target Groups
To determine the size of the target groups for the Value of e-Commerce
Survey in Thailand 2017, it is suggested to rely on the Yamane (1973: 1088)
formula specifying below:
When N = number of target groups
N = number of population
e = the highest acceptable deviation rate
The size of the target group can be considered from the
population in the eight business industries depending on how the infor-
mation is obtained. With the confidence level of 90%, there are 2,810
e-Commerce operators generating revenues of lower than USD 1.42 million
per year. In contrast, with the confidence level of 100%, there are only
100 e-Commerce entrepreneurs achieving USD 1.42 million per year or
higher.
5. Limitations of Research
Comparing to previous research conducted in Thailand and other
foreign countries, this survey faces various obstacles to implementation,
which can be explained below:
N =
N
1 + Ne2

The Value of E-Commerce Survey in Thailand 2017

The Value of E-Commerce Survey in Thailand 2017

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