Proceedings of ICLT 2013

Challenges in delivery fulfilment of online shopping

Veron Tai; Max Ee; Yan Weng Tan

Logistics and Supply Chain Management undergraduate, SIM University, Singapore; School of Business, SIM University, Singapore; Logistics and Supply Chain Management undergraduate, SIM University, Singapore

International Conference on Logistics & Transport 2013, Kyoto, Japan, pp. 100-106

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Abstract

Purpose: Online shopping has grown rapidly with the pervasive use of the Internet, advancements in Information and Communication Technologies and availability of online payment options. This paper investigates the importance of delivery fulfilment for online shopping and the challenges faced by online retailers as well as the effectiveness of delivery fulfilment models from the Singapore perspective. Design/methodology/approach: Qualitative and quantitative data were collected through selfcompletion questionnaires. A business survey was targeted at online retailers to provide insight into the delivery fulfilment processes offered, issues encountered and criteria considered important when choosing a delivery service provider. A consumer survey targeted at online shoppers was conducted to find out perceptions of online shoppers towards delivery fulfilment. Findings: Online retailers relied heavily on outsourcing for delivery fulfilment usually by means of registered mail and courier services. They had different perceptions of service performance towards different service providers. Online retailers and shoppers reported that they were most concerned with late delivery issues in delivery fulfilment. Online retailers considered lead time as the most important factor when choosing a delivery service provider. They attributed the reasons for late delivery to delivery service providers, expectations of shoppers and limited delivery options. Online shoppers felt that they could cope with longer delivery times if there was an online tracking system in place to provide up-to-date delivery information. Research limitations/implications: This study focuses on the perceptions of online retailers and shoppers in the fashion apparel industry. Originality/value: The study provides insight into opportunities for online retailers and delivery service providers to improve their service offerings and bring about a better online shopping experience.

Keywords

delivery fulfilment; online shopping; retailer perceptions; customer perceptions

Citation

Veron Tai; Max Ee; Yan Weng Tan (2013). Challenges in delivery fulfilment of online shopping. Proceedings of the International Conference on Logistics & Transport (ICLT 2013), Kyoto, Japan, pp. 100-106.