Asia-Pacific has grown into the world's largest market for cashless transactions. Find out what are the top APMs here.
Learn how businesses can offer a better e-commerce experience and why it matters.
According to a 2020 study, consumers in Southeast Asia reported that they were dissatisfied with their e-commerce shopping experience. Complaints were largely focused around slow delivery times and a lack of communication from merchants.
Fun fact: Singapore and Thailand have the fastest shipping times of all countries across Southeast Asia while Malaysia and Indonesia had the slowest.
So, we ask the all important question, how can you:
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Deliver Value Through Faster Shipping
1. Plan for peak season sales
Many business owners make the mistake of failing to plan for peak season sales.
For example, the month of Ramadan is a hot season for shoppers in Malaysia and Singapore as shoppers prepare for month-end festivities. It’s also a time where delivery services reduce their operating hours which affects pickups and dropoffs.
Deliveries also slow down during this period, and customers find that their purchases end up being delayed. Thus leading to an outpouring of frustration which reflects negatively on you as the business owner.
So, instead of risking your reputation and business, consider the following solutions:
Work with an express courier: Instead of your regular service provider, consider switching to a dedicated express service who you can trust to get through.
Arrange for self pickup: If your customer lives close enough, self pickups can really take a load off your existing courier service and speed up deliveries.
Advise customers on delays: If all else fails, ensure that your customers are constantly updated. Studies show that providing clients with regular follow ups reduces the impact of the initial incident. Once the parcel has been successfully received, reach out once again to check in with them.
Remember: In a sea of faceless merchants, a personal touch can really help you stand out from everyone else and turn an unhappy customer into a loyal one.
2. Take a more active approach with the delivery process
E-commerce merchants often make the mistake of adopting a hands-off approach when it comes to dealing with delivery partners.
Many believe that customers will correctly attribute shipping delays to the courier service and not the merchant — this couldn’t be further from the truth.
What actually happens is that the customer will probably take out his/her frustration on your business. And these come in the form of negative reviews and comments which will undoubtedly hurt your reputation.
To prevent this from happening, actively monitor your courier’s deliveries and follow up with any delays. If you find that your courier has been slowing down, then it may be time to find a replacement.
For more information, read more on how XanPay can transform your eCommerce business.
3. Forecast sales
As an e-commerce merchant, chances are good that you don’t manufacture the goods you sell. More often than not, your products are likely purchased from a distributor or manufacturer.
If that sounds like you, then it’s especially important to learn how to forecast your sales. If your online store carries FMCG products, then keep a lookout for seasonal purchases or trends.
Also, it’s good to remember that e-commerce sales generally tend to pick up towards the end of the month during payday.
4. Implement last mile delivery options
From weather changes to a lack of staff, it’s not an understatement to say that last mile deliveries are plagued by inefficiencies. And this is doubled when you’re working with a third-party logistics provider.
When that happens, you’re going to end up with frustrated and impatient customers who will undoubtedly take out their frustrations on your business. Which is why it may be a good idea for you to consider investing in your own last mile infrastructure.
And if your business deals in temperature or time-sensitive products, a good last mile delivery system is essential. For example, some online fresh food retailers in Malaysia have their own dedicated team of logistics staff on hand to provide same-day or next-day deliveries.
Others make use of on-demand courier services such as Grab, LalaMove, or GoJek to get the job done.
Why A Smooth Delivery Process is Critical
1. Customer satisfaction
Having a great product just isn’t enough nowadays. On top of that, merchants need to ensure that orders are quickly and accurately delivered to customers. Doing so builds up customer satisfaction and loyalty which is essential for staying competitive in today’s fast moving world.
2. Expectations are shifting
The e-commerce sector is one of the world’s fastest growing industries. While there is a huge market for e-commerce, the vast number of competitors present means that merchants cannot afford to ignore customer sentiment.
For example, 90% of e-commerce shoppers expect their deliveries to arrive within 2 - 3 days, while another 30% feel that same-day deliveries are a must. Ignoring these demands will only lead to customers shifting their attention to other businesses.
3. To stay ahead of the competition
The e-commerce sector is known for its low entry barriers which makes it easy for anyone with an internet connection and some basic connections to set up shop. And this is one of the reasons why the market is so competitive.
It also provides merchants with the perfect opportunity to get ahead of the pack. By providing quick and efficient deliveries, a business owner can present themselves as a more attractive alternative to their competitors.
This is especially true in the Asia Pacific region where consumers regularly find themselves frustrated by long delivery times.
4. Low storage space
Faster deliveries equate to lower turnaround times and higher levels of efficiency. Using minimal storage space is an essential part of JIT management and can help reduce overheads such as storage costs This allows businesses to offer a wider selection of products to customers at a lower price.
5. Less purchase friction
Purchase friction slows down the customer purchase journey and can make the difference between closing a sale or losing it. Besides the lack of shipping transparency, long delivery times can cause a customer to abandon a sale halfway.
This occurs because customers believe that a competitor has better shipping options or they changed their mind about the purchase. Regardless, this is precious lost sales revenue for your business.
Process Payments Quickly and Efficiently With XanPay
Besides working with expert couriers and forecasting your sales figures, providing customers with a quick and easy way to make payment is another way to speed up the delivery process. The quicker transactions are completed, the faster you can get down to sending you orders.
Learn about the future of transactions for 2023.
Asia-Pacific has grown into the world's largest market for cashless transactions. Find out what are the top APMs here.
Asia-Pacific has grown into the world's largest market for cashless transactions. Find out what are the top APMs here.