Deep Dive into Price Wars on Shopee & Lazada: How to Escape the Price Trap
- มหัศจรรย์ ไอเดีย
- 2 days ago
- 4 min read
Key Takeaways
With intense competition in Thailand’s E-commerce market, price wars on Shopee and Lazada are hard to avoid. However, the 'Price Trap' doesn't just cut your profits—it lowers your brand's value over time. To survive, businesses must move beyond selling basic goods and focus on delivering value and great experiences. By using differentiation strategies and CRM, you can build customer loyalty that lasts longer than a cheap price tag.
1. The Price War Phenomenon in Thailand’s E-commerce Market
If you are a seller in Thailand’s e-commerce market, you will notice that "price" is the first weapon shops use to fight each other. This is especially true on platforms like Shopee and Lazada, where the system is designed for buyers to compare prices in seconds. This phenomenon has intensified as products from foreign factories can now ship directly to Thai consumers, causing the average market price of many items to plummet.
Many business owners fall into the "Price Trap," believing that "if I lose money today to get sales and reviews, I can raise the price later." However, the reality is the opposite. Once the algorithm and consumers remember you as the "cheapest shop," raising your prices later becomes nearly impossible.
2. Why "The Cheapest Price" is Not the Answer for Modern Marketing
From the perspective of 2026 Marketing, Thai consumer behavior has become more complex. While price remains a major factor, it is no longer the only one. Being the cheapest shop often leads to three main problems:
Low Loyalty: Customers who come for the price will leave immediately when they find another shop that is even 1 Baht cheaper.
Resource Exhaustion: Cutting prices drains the budget needed to develop back-end systems or improve customer service.
Brand Erosion: The brand image will appear less valuable in the eyes of high-purchasing power consumers.
Understanding 5 Thai Consumer Behaviors to Know will help you see that Thai people are willing to pay more if they receive confidence (Trust) and Convenience. This is a gap that discount-focused shops often fail to fill.
3. How to Survive the Price Trap: Strategies for Creating Superior Value
To escape the price war in Thailand’s E-commerce market, you must have "anchors" other than just the numbers on a price tag. Here are 4 strategies that professional business owners choose to use:
3.1 Product Bundling & Exclusive Sets
Don’t just sell a single product that anyone can find; instead, create "Product Sets" that truly solve a problem. For example, instead of selling just a coffee machine, sell a "Home Cafe Starter Kit" that includes coffee beans and a special recipe guide. Bundling makes it harder for customers to compare your prices with other shops and increases your Average Order Value (AOV).
3.2 Exceptional Service as a Product
When products are identical, "Service" becomes the deciding factor. Replying to chats within one minute, offering free gift wrapping, or providing an immediate product replacement guarantee without waiting for a claim—these are the things that create a lasting impression and keep customers coming back, regardless of the price.
3.3 Branding Through Content
Use the power of short videos and live streaming to create Storytelling for your products. Products with a story have a much higher "emotional value" than generic items. A brand that can make customers feel like "I am a part of this lifestyle" will immediately break free from the cycle of price-cutting.
4. Smart Marketplace Management (Shopee/Lazada)
Avoiding the "Price Trap" doesn't mean you shouldn't participate in campaigns at all, but you must join them strategically:
Flash Sales for Stock Clearance: Use Flash Sales as a tool only for clearing old stock or outdated items, not for your main products.
Add-on Deals & Flexi Combos: Use platform features to drive cross-selling and upselling instead of cutting the price of a single main product.
Store Fans Membership: Use the Shopee/Lazada membership systems to offer exclusive coupons only to "Existing Customers." This method helps maintain your customer base without damaging the market price.
5. The Role of Data in Escaping Price Wars
Successful entrepreneurs in today’s e-commerce market are those who use data as a weapon. Data analysis will show you which groups are "High-Value Customers"—those who aren't just looking for cheap goods but demand quality and care. This information helps you design personalized promotions that avoid broad price cuts while achieving more precise results.
Frequently Asked Questions (FAQ)
Q1: What should I do if a competitor cuts prices so much that I can't make any sales?
A: Do not lower your prices immediately. Check the competitor's reviews for weaknesses (e.g., slow shipping, poor packaging) and turn those into your shop's strengths. Clearly communicate "why our price is higher," such as offering a 100% authenticity guarantee or same-day express delivery.
Q2: Does the "lose money to get reviews" strategy still work today?
A: it works in the very short term for launching new arrivals, but you must set a clear timeframe and quantity limit. If done for too long, the algorithm will categorize your shop as a budget store, and your sales will drop drastically when you try to raise prices.
Q3: To escape the marketplace price war, should I open my own website?
A: Having your own website (D2C) is the best long-term strategy for building your own customer base (First-party Data). However, you need a budget to drive traffic initially. It is recommended to do both simultaneously: use the marketplace to find new customers and use your own channel to retain existing ones.
Q4: How much longer will the Thai consumer's obsession with discounted goods last?
A: Thai people will always love discounts, but the definition of "worth it" is changing. Instead of looking only for the "cheapest price," they are shifting toward the "best value for money" compared to what they receive.ที่สุด" จะเปลี่ยนเป็น "ราคาที่คุ้มค่าที่สุดเมื่อเทียบกับสิ่งที่ได้รับ" (Value for Money)
If you are planning your E-commerce strategy and need advice
Contact the Mahasajan Strategic Team for a free consultation starting from your very first call. Let us help you choose the right strategy so you can launch your new products with confidence and an actionable plan.
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