With social isolation, work from home (WFH), and online purchasing – e-commerce, the coronavirus epidemic has created a new normal for communities.
Consumers have turned to e-commerce for everyday critical purchases such as groceries and computer equipment as more people stay home due to virus fears.
According to the CIMB ASEAN Research Institute (CARI), global digital revenue increased by 20% quarter over quarter in Q1 2020, compared to a 12% increase in Q1 2019.
The analysis indicated a 16 percent rise in global digital traffic during the same period, based on data from one billion global shoppers in more than 34 nations.
Southeast Asia is also experiencing an e-commerce boom as a result of the pandemic.
According to CARI, the region’s e-commerce boom is building on the previous emergence of online marketplaces where small and medium-sized businesses (SMEs) offered their products directly to consumers.
“Prior to the outbreak of COVID-19, top players in the industry such as Lazada, Shopee, and Tokopedia spearheaded this growth by providing scalable, easily-accessible platforms where smaller retail players could transact online and reach new consumers within and beyond Southeast Asia,” according to CARI’s report, “E-Commerce In The New Normal.”
The logistics and delivery sector has benefited from the e-commerce industry’s huge expansion despite social distancing efforts.
However, observers are asking if delivery businesses can keep up with the present e-commerce boom, given the rise in demand for medical supplies and online shopping.
One of the top priorities for delivery firms is ensuring that things requested by customers arrive on time. Nonetheless, with the coronavirus epidemic disrupting logistics, this has proven to be a significant difficulty.
The biggest effects of social distancing on e-commerce deliveries were noticed in Malaysia, according to a recent joint analysis by e-commerce aggregator iPrice Group and package tracking software Parcel Monitor.
The country’s delivery time climbed from 2.1 days (pre-social distancing) to 4.6 days during the country’s partial lockdown, also known as the mobility control order (MCO).
During the established social distancing tactics, numerous customers complained online about late deliveries or damaged products, according to Malaysian media.
SMEs have also expressed dissatisfaction with some delivery companies’ delayed service, as they rely on deliveries to keep their operations afloat.
“As part of the COVID-19 precautionary measures, we have warned our customers of anticipated delays, including deliveries from foreign locations and to East Malaysia. We are working nonstop to increase our capacity so that deliveries may be made as quickly as possible,” said a representative for Pos Malaysia, the country’s largest logistics company.
Likewise, in Indonesia, parcels took around three days to reach destinations, slower than the previous average of 2.3 days.
Although the situation was better in ASEAN member states Thailand and Singapore, the average delivery time there still increased by 0.2 days during the months when social distancing measures were implemented.
According to the joint research, “How ASEAN’s delivery industry is reinventing itself to offset COVID-19 pressure,” some shippers are working fewer hours as a precaution to ensure the safety and well-being of their employees.
In addition, Timothy M. Kairuz, Business Development Manager at Filipino logistics company Transglobe Logistics International Inc., explained that restricted flights and sails within the region resulted in delays and raised logistics costs.
SOLUTIONS
In order to cope with the present epidemic and high demand, certain delivery and logistics organizations have introduced new technologies and methods in response to the aforementioned issues.
The use of parcel locker networks in Southeast Asia is one of the options advocated by Parcel Monitor.
These lockers aid in the delivery of quick and flexible services while reducing direct contact between delivery employees and customers.
Singapore’s government recently announced the construction of 1,000 parcel locker facilities across the country, with completion expected by the end of 2021.
In addition, courtesy of courier business Ninja Van and Prasarana Malaysia, a government-owned public transportation operator, Malaysia has constructed parcel locker stations in a number of public transportation stations across the country.
Enhancing visibility and transparency on the delivery path, according to Arne Jeroschewski, CEO of Parcel Monitor, will become a critical solution to improve the customer experience for both recipients and merchants.
Ninja Van has implemented this solution by providing live tracking and a live chat tool that allows parcel recipients to connect with shippers more effectively while keeping a complete view of their packages.
“This will be a delivery trend that will continue to grow in ASEAN as e-commerce logistics in the region continues to mature,” explained Jeroschewski.
Source: theaseanpost.com
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