Logistics Prospects Bright For Thailand

Good news for Thais hoping for assurance when they hand over บริการเก็บเงินปลายทาง, as same-day delivery, quality 24-hour service, as well as a calm in the price war with China’s logistics firms are  resulting in improving prospects for the country’s logistics sector, according to local logistics aggregator Shippop.

According to the startup, e-logistics services are booming in Thailand, driven by increasing popularity, in spite of the economic downturn in the country and the global e-marketplace providers’ cutthroat competition. The country’s e-logistics services are expected to grow by 15% in 2019, from 31 billion baht in 2018.

Shippop CEO Sutthikead Chantarachairoj says that there are still new providers coming in, particularly from China, with competition being stiff regarding services like cash on delivery, which will force a shift in focus to service quality and delivery prices surging. He notes that the lower price of 10-19 baht for parcel leads to some questionable delivery services quality that customers are complaining about.

Sutthikead says that a few Chinese logistics provides might look to slash prices in order to draw customers in and offer additional services like loans, but other competitors on the market will instead turn their attention on delivery fees that’ll stop price war escalation and the situation will improve over time.

Same day delivery will help Thais that are willing to pay a bit of extra cash to acquire faster deliveries as surveys conducted by market entities noted that 47% of consumers were willing to pay extra, as reported by Boston Retail Partners. In 2018, same day delivery services managed to grow by 43%, accounting for 22% of total deliveries.

Thailand’s logistics market averaged 350,000-400,000 daily delivers via e-commerce channels, and the country’s e-commerce industry is forecasted to grow by 22% during 2018-22.

Shippop expects that logistics delivery services will go up between 5-15% in 2019 from the 31bn revenue it made in 2018, which itself is a 11.3% growth from 2017, borne from the demand of 11 million online shoppers and increasing activity in the social commerce market and heavy competition.

They’re also expecting logistics providers to offer บริการเก็บเงินปลายทาง in order to help themselves stand out from competitors.