The latest e-commerce
trends from research commissioned by FedEx Express, a
subsidiary of FedEx Corp. (NYSE: FDX), and one of the world's largest
express transportation companies, shows that both Small and Medium sized
Enterprises (SMEs)
and consumers predict future growth and are
positive about the next innovations in digital technology.
The What’s Next in E-Commerce survey polled small and medium
sized enterprises (SMEs) and consumers in 11 markets in the Asia Pacific,
Middle East and Africa region (AMEA) in July 2022 to explore the continuing
evolution of e-commerce in the region and identify the trends that could fuel their
future growth.
The survey reveals that consumers are
looking for innovations in personalization, “shoppertainment” and payment
options that enhance their experience and at the same time, make it easier to
discover new brands and make purchasing convenient. And with plenty of shopping
festivals already in the calendar, consumers are looking for even more seasonal
offers. Taken together, the research shows there is plenty of fertile ground
for e-tailers to experiment with new approaches that can help build their
customer base.
“COVID has accelerated our lifestyles to a pivot point where
shopping online has been normalized across all demographics, and there’s no
going back. With that, e-commerce is set to take a growing proportion of total
consumer spend.” said Kawal Preet,
president of the Asia Pacific, Middle East and Africa (AMEA) at FedEx Express.
“With more people shopping online consumer preferences are becoming
increasingly sophisticated. As SMEs and e-merchants evolve their online sales
platforms, our research uncovers opportunities for businesses to capitalize on
what consumers want. Customer experience is the driving force behind how
e-tailers engage with their customers and how we are innovating our shipping
solutions. With an expanded portfolio specially developed for e-commerce
businesses, FedEx is well positioned to support the changing expectations of
consumers and continuation of e-commerce growth.”
E-commerce sector matures but further growth ahead
Asia Pacific which includes
the world’s biggest e-commerce markets like India, Mainland China, Japan and
Korea, will see
revenue from e-commerce sales reach US$2.09 trillion this year as 57% of the
region’s population shops online.
Both SMEs and consumers are maturing in their
use of e-commerce and both groups agree that the pandemic-driven utilization of
e-commerce is here to stay. Eight in ten SMEs believe e-commerce will become
more important in their business in the next three years and nine in ten
believe they are well prepared for the challenge. 80% of consumers reported
that e-commerce had taken a greater share of their total purchases over the
past three years while 71% see further increases ahead.
SMEs in India, Malaysia, Philippines, and
Vietnam were among the most optimistic about their future e-commerce growth in
the next three years, a sentiment shared by consumers in these same markets.
E-commerce currently represents less than 6% of total retail sales in each of
these markets.
SMEs and consumers in Japan and South Korea see the least potential for
significant future growth.
Expectation
mismatch on service experience touchpoints
As more consumers participate in the
on-demand economy and increasing shipment volumes put pressure on e-tailers,
maintaining customer service quality is critical. The survey data reveals a
significant 10% gap between how SMEs rate their own e-commerce customer
experience and how consumers view it. The biggest gaps appeared in having an
efficient returns service (13%) and access to customer support (11%).
Deliveries taking too long is the number
one pain consumer point (53%) followed by handling returns (42%). Consumers
typically expect delivery within three days to one week, but clearly there is a
desire for delivery to be at least more reliable if not faster.
This trend is most pronounced in
Malaysia, the Philippines and Singapore signifying that SMEs in these three
markets need to up their game considerably to begin to live up to Consumer
expectations.
Too few
experienced people for too many jobs
While the future looks bright, 65% of
e-tailers reported they were struggling to handle the growing number of orders
they were receiving. Amid surging demand talent and recruitment has proven
challenging for SMEs. A further 73% had experienced extremely high levels of
resignations over the past 12 months as the global Great Resignation phenomenon
has impacted the region. 62% believed there were too few people for too many
jobs with e-commerce marketing and sales experience being most in demand. SMEs
are adopting a dual approach in response, recruiting talent from outside their
business and upskilling current staff through training to meet demand in a
tight employment market.
Logistics providers are here to support
“The research reveals the evolving needs
and expectations of consumers and FedEx is well positioned to support SMEs to
take advantage of new opportunities. We continue to bring new solutions that
empower entrepreneurs to focus on their businesses and cater to their customers
more efficiently, and recently launched day-definite e-commerce delivery
service in the Philippines, enabling e-commerce growth,"
said Maribeth Espinosa, acting managing director at FedEx Express
Philippines.
FedEx is integrating its services with
e-commerce marketplaces so e-tailers can generate FedEx shipping labels and
use additional FedEx features, such as Express Shipping Services and
International Shipping Documentation Service, without leaving the platforms.
Easy to use, friction free services like these make it easy to onboard new
staff and help improve the work experience. In addition, FedEx® International
Connect Plus (FICP), launched last year was recently expanded to benefit
e-tailers across fourteen markets in AMEA. This value-for-money international
shipping solution delivers most shipments between 1 to 3 business days within
the AMEA region, which meets consumer expectations for speed of delivery
according to our survey. And, delivery customization solutions like FedEx® Delivery Manager allows e-tailers to offer
their customers the personalized service, and freedom to manage and control
their shipping preferences, which today’s consumer demands.
About the What’s Next in E-Commerce Survey
The online survey was
conducted by Harris Interactive in July 2022 across 11 markets including
Australia, Hong Kong, India, Japan, Malaysia, Philippines, Singapore, South
Korea, Taiwan, Thailand and Vietnam. 300 small and medium businesses with less
than 250 employees engaged in e-commerce were polled in each market alongside
500 consumers (1,000 in India) over the age of 18. To access the full report
click here.
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