E-Commerce Businesses Report Seven Years of Operating Losses

[snoop1130]

 

BANGKOK (NNT) - 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.

 

-- © Copyright NNT 2022-06-09

 

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[ThailandRyan]

How is that feasibly possible in light of the way people have been ordering through e-commerce for the past two pandemic years, I think the books are being fudged and money hidden.  However, if its not, will then it would be time to declare a re-organization, filing bankruptcy, or closing up shop.....Wonder how Amazon is making millions upon millions and staying very high up in the stock stratosphere.

Edited June 9, 2022 by ThailandRyan

[RanongCat]

15 minutes ago, ThailandRyan said:

How is that feasibly possible in light of the way people have been ordering through e-commerce for the past two pandemic years, I think the books are being fudged and money hidden.  However, if its not, will then it would be time to declare a re-organization, filing bankruptcy, or closing up shop.....Wonder how Amazon is making millions upon millions and staying very high up in the stock stratosphere.

Amazon no have to hide from no tax or very small token. Operating loss for Lazada Thai maybe from infrastructure upgrade .Yes, very big increase in trade expected out of pandemic but also competition  Shopee and other.

[hotchilli]

19 hours ago, ThailandRyan said:

How is that feasibly possible in light of the way people have been ordering through e-commerce for the past two pandemic years, I think the books are being fudged and money hidden.  However, if its not, will then it would be time to declare a re-organization, filing bankruptcy, or closing up shop.....Wonder how Amazon is making millions upon millions and staying very high up in the stock stratosphere.

The extra competition has spread the profits..

Lazada being the early one with a good operating system holds it's firm position.

The others are jostling to have some of the market share..