DHL eCommerce expands delivery service for small e-commerce merchants in Thailand

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DHL eCommerce, a division of Deutsche Post DHL Group (DPDHL Group), is extending its domestic delivery service in Thailand to small e-commerce merchants, offering next-day pick-up service even in remote areas.

Kiattichai Pitpreecha, Managing Director, DHL eCommerce Thailand, said its expanded delivery network across the country will enable merchants to reach out to the growing base of e-commerce consumers outside Bangkok.

“For the 2.7 million SMEs in Thailand, this means greater convenience and a quicker process to deliver to their consumers,” he said.

The company launched its nationwide delivery in the country in January 2016 and has since offered access to B2C international cross-border shipping and pay-per-use fulfillment solutions to local businesses.

According to Euromonitor, the Thai e-commerce market is expected to more than triple in size to EUR3.6 billion ($3.8 billion) between now and 2020. "The e-commerce market in Thailand is currently second largest in Southeast Asia and expected to grow 22 percent annually until 2020. As such, we are investing now to ensure we are the provider of choice for Thai consumers," noted Pitpreecha.

DHL eCommerce Thailand has invested significantly in people, service, facilities, vehicles and coverage over the past year. Its 3,222 square-meter central hub in Bangkok and its domestic delivery network across the country have the capacity to handle over 15 million shipments annually. It also offers access to Cash on Delivery (COD) with daily remittance as well as access to a multilingual call center and easy IT integration of online orders to allow shippers to easily prepare orders for delivery into the DHL network.

Malcolm Monteiro, CEO, DHL eCommerce Asia-Pacific, said the Thai government's 'Digital Thailand' initiative started in 2016 has brought about a wave of opportunities for businesses across different industries to digitize their operations and services, especially for SMEs to undergo a digital transformation.

"Thailand is ranked as one of our top priority markets in Southeast Asia, and we foresee growth to be largely driven by significant numbers of SMEs extending their business models into online marketplaces,” he said.

The DHL Express report, “The 21st-century spice trade: A guide to the cross-border e-commerce opportunity,” published recently also shows that the cross-border market opportunity offers growth rates (~25 percent) not found in most traditional retail markets. Cross-border retail volumes are predicted to increase at an annual average rate of 25 percent between 2015 and 2020 (from $300 billion to $900 billion) or twice the pace of domestic e-commerce growth. 

The report noted that online retailers are also boosting sales by 10-15 percent on average simply by extending their offering to international customers. An additional boost comes from including a premium service offering: retailers and manufacturers that incorporated a faster shipping option into their online stores grew 1.6 times faster on average than other players.

"DHL eCommerce Thailand has witnessed tremendous growth in the past year and we are enhancing our service to meet the growing consumer demands," said Charles Brewer, CEO, DHL eCommerce.