Thailand Post piloting e-commerce to allow locally-made products to be sold, bought and delivered
An announcement by Bangkok Post highlighted the new service that Thailand Post is adding to its logistics services. With e-commerce, locally-made products from across the country can be sold, bought and delivered.
E-commerce will be added to the logistics services of Thailand Post. The service will be offering locally-made products from across the country.
"The company spent 10 million baht to launch Thailandpostmart.com, helping local communities sell their products in a marketplace with special delivery costs," said Samorn Terdtampiboon, President of Thailand Post. Thailandpostmart.com was co-developed with BEC Tero. Through the website, a “digital community” of locally-made products nationwide is formed and will aim to be the largest distribution channel for agricultural products, crafts, and food and One Tambon One Product items.
The products available on the website are grouped into eight categories: halal products, health and beauty, mail products, best cuisine in Thailand, best provincial products, locally made products, home and garden, and automotive.
The next phase of the project would allow integration with at least 5,000 points of sale in the communities by year-end. Partnerships with the ministries of Commerce, Industry, Interior, Energy and Agriculture, as well as the Bank for Agriculture and Agricultural Cooperatives were made in order to bring more local products to the e-marketplace.
After the official launch, the website is expected to earn 200 million baht in sales revenue with an estimated 12,000 stock-keeping units of locally made products by April 2019.
Once paid, the products can be delivered within 1-2 days. IOS and Android mobile applications will be made available soon for easier transactions.
Thailand Post Senior Executive Vice-President for Marketing and Business Phitsanu Wanitchaphol said the enterprise will send staff and postmen to select qualified merchants who have quality products and might possibly be interested in selling online.
Collaboration with Japanese online marketplaces will allow for community-made products, such as crafts, jewellery and other local goods to be exported to Japan by the fourth quarter.
This will benefit from cross-border e-commerce which may provide competition with Chinese internet giants unloading their products in Thailand. Cross-border deliveries will take around seven days.
"We will create an exchange programme for local products from the two countries," Mr Phitsanu said.
Thailand Post will be launching an e-wallet next month, which they developed with 2C2P. An alternative mode of payment, e-wallet will allow Thailand Post to wire the money to the merchant. This will greatly improve the experience since merchants previously collect payments at Thailand Post counters.
An incentive will be given to merchants since the fee that they are supposed to pay when doing withdrawals is 50% cheaper than other global payment platforms.
Several payment options are given to consumers. They can opt to pay through e-wallet or payment services like the QR code at Thailand Post counters.
The enterprise is willing to spend up to 5 billion baht by 2022 in order to implement new sorting machines for parcels in mail centres countrywide.
In the next five years, Thailand Post expects to earn 60% of the revenue from logistic services in both domestic and international delivery; 10% from the e-marketplace and e-services; 5% from payment services; and 25% from retail and postal services.
Currently, their revenue comes from 40% express, parcel delivery and logistics; 40% from mail service; and 20% from retail.