Thai e-commerce hits 1 trillion baht milestone amid TikTok shopping boom

Thailand's e-commerce sector expanded by 14% in 2024, reaching a total market value of 1.1 trillion baht, up from 980 billion baht in 2023, according to the latest report from Priceza.com. The study forecasts the market will continue its rapid growth to hit 1.6 trillion baht by 2027.

Thailand now ranks as the second-largest e-commerce market in ASEAN, trailing only Indonesia, despite having the fourth-largest population in the region. This growth has been driven by Thai consumers’ high engagement with online shopping platforms, as well as the strategic pivot of brands towards digital marketplaces.

Among platforms, Shopee retained its top position with a 75% usage rate among Thai consumers, followed by Lazada at 67% and TikTok at 51%. The rise of TikTok underscores the growing power of social commerce. 

Industry observers believe TikTok could become the most dominant platform in Thailand within the next one to two years.

According to data from the Department of Business Development, TikTok Shop (Thailand) Co., Ltd. recorded revenue of over 12 billion baht. The company, registered in Thailand on November 8, 2023, with 200 million baht in capital, is led by Chawanrath Poochaiwatnanon, who also serves as Head of Fashion E-Commerce at TikTok Shop Thailand.

The year 2025 is expected to mark a shift toward affiliate marketing, as more brands seek cost-effective strategies to boost sales. With leading platforms raising seller fees, many businesses are turning to influencers and direct consumer engagement to drive performance, optimise budgets, and gain measurable results.

TikTok's seamless integration of short-form video content and e-commerce is revolutionising how Thais shop online — but experts warn this innovation could come at a cost.

The platform’s algorithm and engaging content allow consumers to make instant in-app purchases while watching videos, removing the need to switch platforms. This model, hailed as a breakthrough in social commerce, is driving an unprecedented surge in orders and changing online shopping behaviour. However, its very strengths are also raising concerns over fair competition.

Industry analysts have pointed out that TikTok’s strategy of combining social media and online retail into a single ecosystem may disadvantage competitors. For instance, it has been accused of limiting visibility for content linking to rival platforms and pressuring merchants to use TikTok’s in-house sales systems to maintain audience reach.

For small retailers, this creates a dilemma. While TikTok can drive high sales volumes, businesses must accept strict platform rules. Hidden costs — such as rising transaction fees or logistics charges tied to monopolised delivery networks — are becoming an increasing source of frustration.

Despite its dominance in social commerce, TikTok’s logistics infrastructure remains a weak point. Parcel delivery continues to draw criticism and requires urgent improvement.

Danan Suphatthaphan, President of Thailand Post, revealed that the company began partnering with TikTok for parcel deliveries in mid-2024. However, assessing revenue impact has proven difficult due to the platform’s limited data transparency.

“We don’t have full access to order or sales data, so we have to rely on estimates based on the performance of other logistics providers,” Danan said. “By comparison, our share of deliveries from TikTok remains minimal.”

Based on broader e-commerce market estimates, Thailand Post’s share of TikTok parcel delivery is likely around 1–2%, he added — a small slice compared to larger private firms.

“In the early stages, Thailand Post was one of TikTok’s main delivery providers,” Danan explained. “But now, TikTok seems to favour other companies — particularly J&T Express, which appears to have become its key logistics partner.”

Still, J&T has yet to release detailed financial data, leaving its actual market share from TikTok operations unclear.

Small sellers squeezed as TikTok tightens grip on Thai social commerce

While TikTok continues to revolutionise Thailand’s social commerce (S-Commerce) landscape, small-scale sellers are beginning to voice growing concerns about the shrinking space left for them in an increasingly platform-controlled market.

“Sales have gone up, yes, but so have commissions — and we’re forced to use delivery services chosen by the platform,” one vendor said. Another added, “If you don’t pay for ads or join TikTok’s campaigns, your product barely gets seen.”

This imbalance is not only squeezing individual sellers but may also diminish the diversity of the online market. Smaller vendors who struggle to adapt to the platform’s evolving rules risk being pushed out altogether.

Global lessons in regulating S-Commerce

Assoc Prof Pornthep Benyaapikul from the Faculty of Economics, Thammasat University, noted that TikTok, now a major S-Commerce player, is attracting regulatory attention globally. Once seen primarily as an entertainment platform, TikTok’s expansion into e-commerce is raising alarms about fair competition, including in Thailand.

Leveraging an average user screen time of 95 minutes per day and its highly refined algorithm, TikTok connects users with products in real time. However, this tight integration of social media and e-commerce opens the door to "self-preferencing" — the practice of favouring its own ecosystem. Examples include downranking content linking to competitors and coercing sellers and influencers to use TikTok’s internal sales tools to maintain visibility.

Indonesia recently offered a cautionary tale. Its government temporarily banned TikTok Shop after reports of anti-competitive behaviour, including monopolising user data to promote its own products and engaging in predatory pricing — selling below cost — which hurt small businesses.

Calls grow for Thailand to step up oversight

In Thailand, TikTok's role in S-Commerce is growing rapidly, but regulatory oversight has yet to catch up. There are no clear rules to ensure a separation between its roles as a media platform and a marketplace, nor are there measures to scrutinise the opacity of its recommendation algorithms.

Even logistics providers like Thailand Post have begun to question TikTok’s deepening partnerships with certain delivery companies, notably J&T Express, warning of possible distortion in logistics competition.

Which path will Thailand take?

As other regions — notably the European Union — move to categorise TikTok as a “gatekeeper” under the Digital Markets Act (DMA) to curb anti-competitive practices, Thailand stands at a crossroads. The key question now is whether and how the country will design regulatory frameworks to ensure fair competition in S-Commerce, protect consumer interests, and prevent market power from being used to marginalise small sellers and rival platforms.