Major e-commerce operators running their businesses in Thailand have reported combined operating losses of 39 billion baht during the past seven years.
According to data analytic service provider Creden Data, three major e-commerce operators, namely Lazada, Shopee, and JD Central, had a combined revenue of around 85 billion baht between 2015 and 2021. Lazada, however, is the only company to have ever reported a profit during this time period, which is 226 million baht for 2021. Shopee reported a 4.9 billion baht loss in that same year while JD Central reported a 1.93 billion baht loss.
During the seven-year period, Lazada was the biggest earner with 51 billion baht in revenue, followed by Shopee with revenue of 21 billion and JD Central with 12 billion. At the same time, Shopee saw the biggest losses among the trio at 20 billion baht, followed by Lazada with a loss of 13 billion and JD Central with a loss of 5.5 billion.
Creden Data said that these losses were due to these companies spending money to gain users. To run an e-commerce business, companies must have a large capital reserve and be patient, as this is a long-term and intense competition.
Lazada’s profit stems from its position as one of the market’s first operators following its acquisition by Alibaba in 2016. Meanwhile, Shopee is expanding its mobile application service to attract and retain more customers, while JD Central is planning additional projects for the third quarter of 2022. (NNT)
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