E-commerce 2025: 'Owned Channels' rise, Reducing E-Marketplace dependence

Pawoot Pongvitayapanu, CEO of Pay Solutions Co., Ltd. and a leading figure in Thailand’s e-commerce industry, highlighted key e-commerce trends for this year. He stated that 2025 will mark another significant turning point in the industry. 

“E-Marketplaces” Intensifying Competition and Monopolizing Customer Data

In 2025, it is evident that e-marketplaces in Thailand are entirely dominated by a few foreign giants. This monopoly allows them to increase fees arbitrarily without government oversight. Moreover, these platforms control customer data, preventing merchants from accessing customers' names, phone numbers, or even addresses. This forces merchants into a position where they cannot use customer data for marketing or shift their customer base to other platforms.

Meanwhile, competition among e-marketplaces is expected to become fiercer. Many platforms are expanding beyond merely being sales channels, venturing into more integrated business models. For example, some platforms have developed their own payment systems and delivery services to support in-platform transactions. Shopee, for instance, has branched out into food delivery, insurance sales, and lending services. Similarly, Grab, which started with logistics and delivery services, has expanded into lending for merchants and riders on its platform.

The Next Trend: Developing Independent Sales Channels (Owned Channels)

Given the monopolization and control of customer data by major e-marketplaces, merchants should focus on building their own sales channels, known as "Owned Channels." Creating an Owned Channel is akin to "building your own house," while relying on an e-marketplace is like "renting a condo." By developing their own channels, merchants can access customer data, build relationships, and increase repeat purchase opportunities.

Currently, there are service providers that enable Owned Channels to directly integrate with payment and delivery systems. This facilitates smoother transactions and reduces reliance on e-marketplaces.

"High-Quality, Legal Chinese Products" Set to Enter Thailand

Over the past 1-2 years, substandard Chinese products have flooded into Thailand. However, 2025 is expected to bring two significant changes: stricter government crackdowns on illegal goods and intensified competition within China, prompting many quality Chinese brands to expand into international markets.

"3C Commerce" Drives Sustainability Through Content and Community

Online commerce is evolving beyond merely selling products to embrace the "3C Commerce" trend, which consists of:

Content: Creating engaging content to build awareness and interest in products.

Community: Strong content attracts followers, builds fan bases, and fosters brand-aligned communities.

Commerce: Robust content and communities lead to sales and strengthen relationships between merchants and customers.

"TikTok Commerce" – The Future of Commerce Expanding to Services

By 2025, TikTok is set to become a comprehensive digital service platform that seamlessly integrates content, community, and commerce. This transformation will establish TikTok as a key marketing and sales channel, intensifying competition in the e-commerce market.

"Video Commerce" Boosts Online Sales Through Video Platforms

Video platforms are increasingly integrating commerce into their content. Collaborations, such as YouTube and Shopee, allow users to embed store and product links directly into videos. Similarly, Facebook and Instagram now support adding products to videos, enabling viewers to make instant purchases.

"Vertical Commerce" Rises as Niche Markets Grow

Specialized commerce for niche markets, including baby products, pet supplies, senior care items, and electric vehicle accessories, is gaining traction. These products are increasingly found on platforms like Line and Facebook, catering to specific consumer needs.

"AI Commerce" Driving the Future of E-Commerce

AI will play a crucial role in e-commerce business processes, from strategy planning, analysis, design, to advertising. Every step will benefit from AI's ability to enhance efficiency and accuracy. Therefore, integrating AI into e-commerce businesses isn't just about improving convenience; it's about gaining a competitive advantage and elevating the shopping experience.

"E-Commerce Automation" Enhancing Online Business

Automation will become more prevalent, covering business management across platforms, such as handling orders, analyzing and managing customer data, customer relationship management, and online accounting systems, among others.

"E-Commerce Tax" Coming Soon – Sellers Prepare to Adjust Prices

The Revenue Department has announced that e-marketplaces with annual sales exceeding 1 billion baht, such as Lazada, Shopee, TikTok, Grab, Foodpanda, and Line Man, must report the revenue of the stores selling through their platforms. Starting in 2025, the department will begin tracking clear sales figures and collecting taxes from these sellers. This means that sellers who previously didn't account for taxes will need to adjust their pricing structures and manage taxes within their online businesses.

"Affiliate Marketing" A Growing Sales Channel

Affiliate marketing will become a more significant trend in online business. Platforms like Shopee, Lazada, and TikTok will allow product owners to list their products while setting commissions for those who promote and sell them.

"E-Commerce Listening" A Market Analysis Tool Beneficial for Business

E-commerce listening tools will provide valuable market insights, including pricing trends, product category comparisons, sales data, and competitors' strategies. These insights will help businesses better understand the market, set appropriate pricing, plan marketing strategies more accurately, and gain a competitive edge.