Delivery continues to be a challenge for Southeast Asian E-commerce

Share on:

Table of Contents

Delivery continues to be a challenge for Southeast Asian E-commerce 1

Southeast Asia (SEA) is the fastest-growing E-commerce region with a Compound Annual Growth Rate (CAGR) of 62% in the last four years, but the logistics system has yet to keep up with this development rate. A survey conducted by Parcel Perform and iPrice Group, studied more than 80,000 E-commerce consumers and 600 carriers all across 5 countries in the SEA region reveals.

->> Read more: A to Z about Southeast Asia’s Internet Economy in 2019

With peculiar geographical conditions, last-mile delivery can be troublesome for some SEA countries. For example, Indonesia has more than 17,000 islands itself. A major proportion of these countries are rural areas with no paved roads or clear signage. Infrastructure fails to keep up with the growing pace of E-commerce demand, which calls for immediate solutions.

Key findings:

    • 34% of customers are not happy with the delivery service: Dissatisfied customer usually rate one to two stars. Low ratings are most common in Malaysia, followed by Vietnam and Indonesia.
    • Poor delivery service accounts for more than 90% of complaints: This further proves that products that E-commerce offers are not the problems, delivery is. Ranging from late delivery, disappointing customer service to damaged items, negative feedbacks are usually longer and more emotional than positive ones.
    • Delivery time is the key to customer satisfaction: There is a direct relationship between shipping time and customer satisfaction. The study shows that the percentage of happy customers with 4-5 stars rating decreases by 10-15% each time delivery time lengthens.
    • Estimated delivery time and proactive communication are necessary: Keeping customers in the unknown is never a good option as they would like to know the expected time of the delivery and the following updates. The majority of complaints come from the carrier’s lack of communication. 

Delivery continues to be a challenge for Southeast Asian E-commerce 2

Traits by country:

  • ?? Singapore: Citizens are overall happy with the shipping experience since Singapore is a small country with developed infrastructures. However, this factor also raises the bar of expectation as customer satisfaction will drop drastically if the order fails to be delivered in time.
  • ?? Malaysia: When the regional average time for delivery is 3.3 days, Malaysian carriers take up to 5.8 days. Therefore, the percentage of displeased customers is also higher with a figure of 43%.
  • ?? Thailand: Most Thai carriers regularly update the delivery status for their customers, which results in a consistent satisfactory rate even if the shipping time drags out. 
  • ?? Vietnam: Its customer satisfaction is one of the highest among the region, aligning with the country’s booming E-commerce market. 
  • ?? Indonesia: Due to its geographical challenges, more than one-third of the buyers are still not happy with the delivery service.

There are many customer touchpoints throughout the delivery process. Fast delivery is the best scenario in any case for winning customers’ opinions, but carriers can also increase the satisfaction rate by tapping into these touchpoints with exceptional service and providing post-purchase customer engagement, the report suggests.

->> You might be interested in: Southeast Asia’s taxing and regulations on E-commerce

Boxme is the premier cross-border e-Commerce fulfillment network in Southeast Asia, enabling world-wide merchants to sell online into this region without needing to establish a local presence. We deliver our services by aggregating and operating a one-stop value chain of logistic professions including: International shipping, customs clearance, warehousing, connection to local marketplaces, pick and pack, last-mile delivery, local payment collection and oversea remittance.

Don't forget to share this post!
Share on:
Share on:

Related Posts

Looking to Expand your Business to Southeast Asia​?
We have all the resources to help you right here