Have you considered shipping to Thailand? It’s one of Southeast Asia’s “Tiger Cub” economies, so called because they are following in the footsteps of the original “Tigers” – Hong Kong, Singapore, Taiwan and South Korea. Like them, the Tiger Cubs are enjoying high growth, rapid industrialisation and thriving economies. And in Thailand, that includes the e-commerce market, too.
With the right local insights, customs knowledge, and – of course – an international shipping partner, your business can cash in. Read on for a complete guide to help your business export to Thailand.
THAILAND’S E-COMMERCE MARKET
The Tiger Cub Economies' one to watch
There are over 43 million consumers in Thailand’s e-commerce market(1). Revenue is forecast to reach US$19.28 billion in 2024(2).
A mobile commerce world leader
Mobile devices account for more than 80% of total online sales in Thailand, whilst mobile wallets are used in 23% of all transactions(3).
Cross-border shopping is big business
There’s good news for international sellers. Thai consumers are well versed with shopping from foreign brands – cross-border sales make up almost a third of the country’s total e-commerce market(4).
Where does Thailand import from the most?
Thailand’s major import sources5
(By market share, 2023)
Where do consumers in Thailand shop online?
Online marketplaces can be a helpful gateway for cross-border businesses wishing to export to Thailand for the first time.
Most visited marketplace websites in Thailand6 (May 2024)
1: shopee.co.th
2: lazada.co.th
3: amazon.com
4: kaidee.com
5. aliexpress.com
Tip: If you want to sell to customers via your own e-commerce website, be sure to translate all material into Thai, and display all prices in Thai baht. You can enlist AI tools to do this automatically.
Social commerce is also big business:
44% of Thai consumers use social media for brand research7
20% of Thai social media users follow a brand they have purchased from8
Social commerce tips
- Utilize social media platforms’ e-commerce tools – like Instagram Shop – to make it easy for followers to buy from your brand without leaving the app.
- Think TikTok! It’s hugely popular in Thailand – use it to discover trending “challenges” that your brand can join in with and get noticed. Just remember to keep content fun and engaging.
- Many brands livestream on channels like Instagram, TikTok and Facebook. This allows them to engage and interact with customers on a deeper level, leading to higher sales.
- Consider tapping into affiliate marketing. By using well-known Thai influencers to promote your products, you will build trust in your brand with local consumers.
What are they buying?
Leading B2C e-commerce categories in Thailand9
(Estimated annual spend, in US dollars, 2023)
Growing e-commerce categories to watch out for
Insights straight from our DHL Thailand team!
- Beauty and cosmetics
- Collectibles like art toys
- Snacks, especially dried foods
- Pre-cooked instant foods
- Food supplements
- Skincare, beauty and wellbeing
- Pet products
Selling these at competitive prices will help your business attract Thai consumers.
Think lucky!
Items or accessories that are believed to bring luck, wealth and prosperity are also highly valued by Thai shoppers. Examples include jewelry with special charms symbolizing good luck.
How do Thai consumers like to pay for their online purchases?
After all, e-commerce shoppers are more likely to abandon their carts if they cannot pay using their preferred payment method.
Leading payment methods for e-commerce in Thailand10 (by share of B2C transactions, 2022)
What matters to Thai online shoppers?
These insights, from DHL’s Global Shopper Survey 2023, will help you position your business to attract local buyers.
49% want to see prices in their own currency
Be sure to translate your e-commerce website into Thai, too. There are many great AI tools that can help.
60% would abandon a purchase if unhappy with the delivery options
With DHL Express’ flexible On-Demand Delivery service, your customers can choose exactly when and where their orders are delivered – with full tracking, too.
87% say sustainability is important when shopping online
Offering green delivery options at checkout could help you attract some new customers.
Leading shopping holidays in Thailand
Be sure to add these dates to your marketing and sales calendar so your business can cash in!
Double digit sales days, throughout the year
1.1 (1st Jan), 2.2 (2nd Feb), 3.3 (3rd March) … each month, many Thai retailers use the “double digit” day to lay on deals and discounts. Ensure you schedule your sales promotions for these dates if you want to cash in!
Lunar New Year, January/February
People celebrate by spending time with their families, exchanging gifts, and joining in cultural events.
Songkran (Thai New Year), April
Songkran marks the beginning of the traditional Thai New Year. The country’s leading marketplaces, Lazada and Shopee, use the holiday as an opportunity to offer promotions.
Black Friday/Cyber Monday weekend, November
Thailand joins many other countries in partaking in this global sales bonanza. Competition is fierce, so you’ll need to offer some big deals to entice Thai shoppers through your online doors.
Singles’ Day, November 11
Originating in China, this is now the largest shopping sales event in the world (beating even Black Friday!) Prepare to offer big discounts to help your business stand out.
Christmas/New Year, December
December is peak season for many e-commerce businesses, as consumers head online to buy food, gifts and decorations. A top tip: offering fast shipping will help you win some extra sales from the last-minute shoppers.
SHIPPING TO THAILAND: CUSTOMS INSIGHTS
Exporting to Thailand: required documentation
When shipping to Thailand, there are several pieces of documentation commonly required to clear your goods through customs smoothly, and help authorities determine what import taxes and duties are due:
- Commercial Invoice
- Bill of Lading
- Air Waybill
- Certificate of Origin
- Export and Import Licenses
- Export Packing List
- Insurance Certificate
This dedicated guide goes into detail on each document, including what information you’ll need to complete it.
FDA requirements
Shippers importing cosmetics, medicines, supplements, personal medical equipment, and/or foodstuff must acquire licenses and approval from the Thai FDA (Food and Drug Administration.)
These shipments should proceed through the formal customs clearance channel only. Prior to any customs formalities, consignees must register with the Thai Customs Department and nominate DHL Express (Thailand) Ltd. as their customs clearance broker.
If the commodities are for personal use, the shipper must receive FDA exemption approval to import. (Full details of the FDA’s definitions of personal use can be found on its website.)
Shipments without an FDA license or exemption may be delayed or rejected at customs, so check all requirements before shipping.
Thailand import regulations: prohibited & restricted commodities
Several commodities are not permitted for shipment by DHL under any circumstances, following full consideration by the operational, legal and risk management teams. They include animals, hazardous or combustible materials, and illegal narcotics. Further information can be found here.
Details on goods which are restricted or prohibited for import or export by Thai authorities – and therefore require a permit from related government agencies – can be found here.
Thailand regulatory change on VAT de minimis
Effective July 5 until December 31, 2024, imported goods with a value ranging from 1-1,500 baht (CIF - Cost, Insurance, and Freight) will be subject to Value Added Tax (VAT), which was not previously imposed.
The Thai Customs Department has requested cooperation from logistics service providers, including DHL Express, to collect VAT and deliver it to the Revenue Department.
For more details, and to discover what this means for your business, please follow this link.
Shipping costs
Unless exempt, all imported commercial goods are subject to customs duties and taxes based on their Harmonized System (HS) Code tariff classification. Generally speaking, it is the Importer of Record (i.e. either your business or your chosen logistics carrier) who will pay the import duties and taxes.
You can find the correct HS Code for your shipment easily via DHL’s MyGTS (My Global Trade Services) – a free, user-friendly platform that will help you navigate all aspects of international shipping. This includes calculation of Landed Cost for goods in any country – i.e. your product cost, duties & taxes, and freight charges – enabling you to enhance your pricing strategy and give your customers transparency over shipping fees.
DHL’s expert tips for shipping to Thailand
- Consider shipping your goods with DHL’s DTP (Duties & Taxes Paid) service. Whilst the payment of duties and taxes on international shipments is typically the responsibility of the receiver – i.e., your customer – DTP will invoice your business to cover the costs. This means your customer will not receive additional fees when their package arrives – which may damage their opinion of your brand.
- You can find the correct HS code for your shipment easily via DHL’s MyGTS (My Global Trade Services) – a free, user-friendly platform that will help you navigate all aspects of international shipping. This includes calculation of Landed Cost for goods in any country – i.e. your product cost, duties & taxes, and freight charges – enabling you to enhance your pricing strategy and give your customers transparency over shipping fees.
- Give your customers the most convenient delivery experience with DHL’s On-Demand Delivery. Your business will increase its first-time delivery rate, too. Win win!
Thinking of shipping to Thailand?
You’re in the right place! We know that the above guidelines may seem a little overwhelming, but that’s where partnering with DHL Express will pay off. As international shipping experts, we’ll support you through all customs procedures so that your shipment avoids delays. Sell to the world with DHL!
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