How Logistics is Empowering Thai Businesses

The Thai e-commerce market was worth US$900 million in 2015 and is forecasted to grow to US$11 billion by 2025. Gina Galvin, Managing Director of FedEx Express Thailand, explains all the new opportunities that will be available for Thai SMEs.

The fast growing world of e-commerce has changed the way we shop and revolutionized the way people do business. With more interconnected economies, customers and companies – large and small – are now able to access markets that were previously unattainable, creating opportunities and growing economies.

This year, the Thai e-commerce market is expected to grow by 20%,

and by 2025 this figure is expected to soar 16 times[1].

E-commerce growth opens many new opportunities for Thai businesses, particularly for small and medium-sized businesses (SMEs). This is largely due to the digital influence, which has changed consumers’ behavior in terms of the online purchasing. According to the latest report from the Office of SMEs Promotion (OSMEP), from January – June 2017, Thailand’s total SME export value was THB 991,075 billion, accounting for 25.2% of total exports.

While plenty of Thai SMEs are interested in expanding their business into new markets, many business owners hesitate because of concerns over the time and the cost of moving goods across borders. At FedEx, we understand these challenges and leverage our expertise to help Thai SMEs overcome the complexities of global trade through time saving solutions. For example, SMEs can access a dedicated website for small businesses called the FedEx Small Business Center, which offers practical tips on doing international business, e-commerce and shipping. In addition, SMEs can use tools such as FedEx Quick Form, which is a fast and efficient way to prepare online electronic air waybills.

Custom clearance is a common obstacle faced by Thai SMEs when shipping to new markets. Understanding each market’s own unique customs clearance procedures including the process, paperwork requirements and accuracy can be time-consuming and complex. FedEx assists exporters with the paperwork requirements so they can focus on growing their business. For example, FedEx Electronic Trade Documents (ETD) is a tool that automates documents for customs clearance so that paperwork can be processed while a flight is in progress, which results in operational efficiencies and saves customers time.

An essential part of e-commerce is the ability to order a product online and have it reliably delivered to customers’ doorsteps. After all, a virtual buying and selling network must be rooted in the physical. Thai SMEs can access the FedEx global logistics model and transportation network that seamlessly connects 220 countries and territories and affordably delivers purchased items to nearly any person or business quickly and efficiently. That physical network is an important component in the overall e-commerce customer experience, which makes a reliable shipping provider a crucial factor in the customer decision-making process.

Online shoppers show deep-rooted loyalty to brands that offer speedy shipments, easy returns, positive customer service experiences and flexible delivery options. FedEx International Priority® facilitates a positive e-commerce customer experience for exporting SMEs through efficient and customs-cleared global delivery, typically within three business days. In addition, FedEx® Global Returns helps e-tailers handle product returns in easy, cost-effective ways. This solution not only simplifies the return process for customers, but also enables businesses to track and manage their inventory through clear visibility of what products are being returned.

There is little doubt that opportunities abound for Thai SMEs interested in international e-commerce business. Given the critical role logistics plays in the success of e-commerce business, Thai SMEs need to consider not only the product, but the quality of the delivery.

[1] http://www.nationmultimedia.com/news/business/EconomyAndTourism/30305036

   E-Commerce, SME