E-commerce logistics providers and operators have urged the government not to regulate price control on delivery charges for online shopping, saying that the logistics service industry is competitive.
The move comes after the government last week added delivery charges for online shopping and counter services on to the list of expenditures that need special supervision by state officials
The Commerce Ministry is due to propose adding the two items to the state price control list to cabinet soon. It should become effective by Jan 24.
Companies on the list will need to seek permission from the commission on prices of goods and services before adjusting their pricing.
"The delivery charges for online shopping services are quite competitive and service fees decline every year as volume increases, thanks to the popularity of online shopping," said Pawoot Pongvitayapanu, president of Thai E-Commerce Association.
"Consumers have many options when choosing delivery service providers. If a service provider charges a higher fee, consumers will switch to others, " said Mr Pawoot.
The need to ask for government permission create a barrier for logistics providers.
"Thailand's logistics service for online shopping should not be regulated yet as the industry is still growing," Warawut Natpradith, assistant to general manager of Kerry Express (Thailand), a Hong Kong-based logistics firm.
Mr Warawut said in countries like Malaysia, the government needs to set a minimum price as there are too many logistics players who can floor prices and drive out rivals. In Thailand there are fewer than 10 logistics providers that highly focus in e-commerce delivery. Each logistics provider has a different price structure and business model.
Chanon Klahan, managing director of Lalamove Thailand, the Hong Kong-based on-demand delivery service, said the company does not see this impacting its services as there has been no price mandates from the government yet.
"We are an on-demand delivery service so there may be some customers who are willing to pay more for delivery charges to get their goods delivered faster. Whatever decision the government makes on this will be in the best interest for all parties involved -- customers, merchants and logistics providers," said Mr Chanon.