Media Releases – 16th February 2017
Q. The E-commerce market of South East Asia is booming: this rich region to watch for 2017 contains over 620 million potential customers, and e-commerce owners are scrambling to penetrate these markets. How prepared is your company to tap the opportunity in the e-commerce space?
A. We recognize the huge e-commerce opportunities in South East Asia. The market is currently very fragmented with many small, local players, and we see a need as well as an increasing demand for a global, quality logistics company to serve the booming e-commerce industry across the region.
E-commerce is a key part of Deutsche Post DHL Group’s (DPDHL Group) Strategy 2020 where we aim to grow our e-commerce offering and expand into emerging markets such as South East Asia. As part of DPDHL Group, DHL eCommerce will leverage our successes in Europe and Germany, as well as our extensive network and expertise in over 220 countries and territories worldwide.
In South East Asia, we launched our first domestic delivery solution last year in Thailand. The success we’ve seen in the country is a good model for us and we have a wealth of knowledge from Thailand as an example for us to expand into other South East Asian countries accordingly.
Q. How is E-Com logistics different from other branches of logistics?
A. Consumers expect a lot more when they purchase online – and yet they are cost-sensitive and expect merchants to offer a low cost, or even, free shipping. The major difference lies in the last mile where consumers expect choice, convenience and control in their delivery experience. For instance, they want the flexibility to be able to choose their delivery timeslots, the option of delivering to alternative locations, or even the option to choose different payment solutions. In some markets, customers prefer cash-on-delivery. E-commerce logistics is hugely consumer-focused and therefore, it needs to adapt to offer innovative solutions to meet these increasing needs from the end consumers.
Q. What are the factors in terms of logistics that many E-Commerce companies overlook?
A. Many companies tend to overlook the importance of a seamless e-commerce solution for a smooth shopping experience. Consumers have ever increasing expectations, and can abandon a shopping cart due to any single tiny hiccup along the pipeline, such as limited delivery options, complex return policies, as well as unclear tax and duties. Studies have shown that over 60% of consumers abandon their cart before checking it out,and over 80% of the consumers value full visibility on the delivery process, a transparent track andtrace of their package, as well as the ability to receive their goods within an agreed time range.
The e-commerce industry brings forth a plethora of shopping options and one negative delivery experience will deter consumers from coming back. On the flipside, a positive delivery experience will be a key differentiator for e-commerce companies that will keep consumers coming back. Companies which fail to offer more convenience, more choice, more control and a great deal more visibility to consumers will find it difficult to retain their consumers in this highly competitive e-commerce industry.
Q. What are you doing to reach more e-retail companies to increase your business?
A. We’re always available for a chat to help e-tailers come up with solutions to grow their business. You can reach out to us through social media channels such as Twitter (@DHLeCommerce) or LinkedIn, or even directly to me (@BrewerDHL).
IPC – CROSS-BORDER E-COMMERCE SHOPPERSURVEY 2016