Ecommerce Industry gets Mature, it’s time for Logistic Industry to Counterbalance

Hello again everyone and thanks God its friday! This time we will discuss a new phenomena in local e-commerce industry which we encounter recently.

As consumers who often shop online, many of us feel disappointed with the delivery service of the goods rather than the quality of the goods itself. Oppositely, two years ago when ecommerce industry develops simultaneously with logistic industry, more people feel disappointed with the quality of online goods. Currently, ecommerce industry develop rapidly, while logistic industry cannot manage their service to counterbalance the development of ecommerce. Therefore, late delivery, wrong delivery and damage during delivery are common issues nowadays, especially in Indonesia.

Looking back to the time when ecommerce is initiated, the main premise that support its development is limited infrastructure in Indonesia causing people hardly travel from one place to another. Ecommerce industry become a hero for consumers since we do not need to go through all those crazy traffic in order to buy our needs. However, due to the logistic issues that we commonly encountered, that initial main premise of ecommerce diminishes.

Logistic companies realized that they must cope with the development of ecommerce industry, but none of them has special service for ecommerce that could ensure the quality of the goods until they arrive at consumer’s door. If we look out to logistic companies in foreign countries, they are all having product or service specifically for ecommerce. Actually this specific service is indifference with usual logistic service, however, this indicates that they are willing to help ecommerce industry starting from small medium enterprises until big companies and this specific service indirectly influence their logistic service.

In Indonesia, ecommerce player prefer to use local logistic service due to price factor which is cheaper compared to foreign logistic service such as FedEx. As a result, consumers feel disappointed with the online shops. This is not definitely online shop owner’s fault, but it is hard for online shop owner to increase their logistic service quality without paying more for the logistic service.

Ideally, logistic companies should counterbalance the development of ecommerce industry. Logistic is an extraordinarily important part in ecommerce process cycle and thus, is a business with a great prospect. Several ecommerce company such as Lazada even has replaced their external logistic service with in-house logistic service where they can control economic aspect of logistic service by themselves while maintaining user experience. If logistic companies is not starting to improve their service, each ecommerce business may develop in-house logistic service in the future.

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