Online sales in Thailand will continue account just one per cent of the total retail sales through 2018.

According to research firm Euromonitor International, online retailers in Thailand will experience stagnating sales over the next four years due to stiff competition from traditional retailers who are fast expanding across the country.

Many Thais prefer to touch products before buying them, a factor against online sales. Lack of confidence in online payment security and delivery services are also a barrier to online retail growth.

Euromonitor says Thailand’s Internet penetration, at 28 per cent, remains low compared to the global average of 35 per cent, making it difficult for online retailers to woo customers.

“Without more efforts by the Thai government to develop the country’s telecommunications network, Internet retailing in Thailand is unlikely to grow faster,” said Mylan Nguyen, retail analyst at Euromonitor International.

“For Internet retailing to take off, retailers will also need to develop more innovations and services to make it easy for consumers to buy and access products, such as quick deliveries or convenient click-and-collect locations.”