E-commerce insights
Re: "SMEs urge more oversight on e-commerce platforms" (Business, May 15) and "Online vendors object to fee hikes" (Business, May 8)
As a businessman who entered the e-commerce space and collaborated with major platforms, I wish to share some insights for the benefit of Thai vendors.
To summarise, vendors rarely make profits through third-party websites. Sales turnover grows only if you are the cheapest seller, as platforms unleash relentless price competition, pitting vendors against one another.
The more you sell, the more you may lose if costs are not covered. Competition extends beyond pricing to delivery offers, from free shipping to one-hour service. Net returns from transactions tend to decline over time as fees rise and dependency on platforms increases, eventually tightening cash flow. It can become a case of silent bleeding despite rising turnover.
Going it alone is not easy either. Businesses must continually increase spending on Google and social media advertising. Reducing ad spending after gaining traction may cause sales to fall sharply, as platforms push businesses lower in search results.
It may be worth examining how many retailers have made meaningful profits from e-commerce. Even Amazon, often cited as a success story, derives much of its profit from web services and data centres rather than online retail.
In summary, third-party platforms make sense only if you have unique pricing power -- a product competitors cannot easily replicate and one with strong margins.
For omni-channel retailers, the focus should remain on physical stores, developing distinctive products and building a presence across target markets. Long leases or property ownership may also provide protection through asset appreciation while customer bases are established.
A flagship store should represent a brand's reliability and after-sales service, while direct e-commerce can be used to scale operations. The only workable approach is a hybrid model.
US rethink
Re: "Iran war overshadows Trump's visit to China" (BP, May 15)
The report of an unusually humble Donald Trump visiting China pleased me immensely, particularly the treatment he received from President Xi Jinping, who appeared to welcome him as an equal partner rather than a rival.
The visit seemed carefully planned -- neither impolite nor overly deferential, but well balanced. Much could potentially come from such diplomacy.
The United States must hope Xi can help provide Trump, and America, with a dignified path back to the position of Feb 28, 2026, as though the Iran conflict had never begun. The war has been a nightmare for many, and Trump now appears to be seeking a respectful way out. Xi may prove part of the answer.
The visit has given me hope that America has not entirely lost the standards of decency and consideration it once showed the wider world after the Second World War. One can only hope this recent lapse proves temporary.
Only half the story
Re: "Netherlands tax binge hurts growth and jobs" (Opinion, May 13)
This commentary does not tell even half the story. Citizens are protesting against high immigration levels -- 100,000 arrivals in 2024 -- and the expansion of asylum-seeker centres. Those granted asylum are often given priority over citizens in housing.
Two-thirds of asylum seekers have never worked since arrival. Prime Minister Rob Jetten's minority coalition promised to curb what many see as an unsustainable influx, yet Senate members from his own coalition recently blocked tougher measures.
Immigration is placing increasing pressure on healthcare, social welfare, education and energy systems. Gas wells have been sealed and abandoned despite an energy crisis linked to the war in Iran.
At present, new houses and businesses cannot easily be connected to an already overburdened electricity grid. Meanwhile, strict nitrogen-emissions requirements have effectively stalled housing construction. To top it off, another 100,000 bureaucrats have been added to the already bloated public sector over the past five years, despite promises to reduce its size.
