thailand e logistics painpoints 2015
TRANSCRIPT
Thailand eLogistics Pain Points
1999-2006 Scania, Engineering Marketing
2006-2007 New Era Interactive : Marketing Manager
2007-2014 7-Eleven, Head of eCommerce
2014-2015 DHL, eCommerce Director
2010… 2015 Thai Webmaster Association, Former General Secretary
2008-Present Thai eCommerce Association, Executive Committee, (Former VP,)
2015… Ministry of ICT Committee of eCommerce Development of Thailand,
PARIN SONGPRACHA
Multi Channel Retailer
Ex. Central.co.th
eTailer
Ex. CDiscount
Brand/ MLM
Ex. lamer.co.th
Marketplace Merchants
Ex. Weloveshopping
C2C Seller/ Buyer
Consumer
TypeEnormous multi channel retailer
Only online channel but really good at it
High trusted brand supported by massive customer groups
Middle man between buyers & registered sellers (only provide IT)
Middle man between buyers & anonymous sellers (only provide IT)
Online shopper
Facts from my interview (1/3)
eTailers 1. HAVE NO IDEA about the another level of e-logistics service. So it is the job of logistics
provider to lead them, otherwise they only compare cost, speed and performance. 2. Cost is more important than speed. But they open for better service or better cost. 3. Most of the eTailers have been Satisfied with the current delivery service. Too high
price seem to be the only problem for using this service. (They don’t really see the consumer’s problem)
eMarketplace Didn’t provide the logistics for the consumer yet. Merchant select the delivery option mostly with Thai post. eMarketplace are suffering from the transaction out of the system between buyer and seller to avoid fees. Which are around 20%-30% of the total transaction.
Merchants 1. Merchant seeking for the cost reduction, time saving service. These kind of service
could be charged in the premium price. 2. Looking for the sign of trust for their online store. For example, present the list of
previous customer tracking code in the homepage to gain trust from new customers. 3. Door to Door service is interesting in term of time saving.
Facts from my interview (2/3)
Consumers In term of delivery fee there are 2 groups of consumers (shoppers)
- The Cheap shopper, who tend to get a free shipment even they have to buy more. Most likely to be a fashion or cosmetics shopper.
- The Fast shopper, who willing to pay premium price to get product faster. Most likely to be personal IT, Gadgets shopper.
Last mile logistics could be the experience turning points of customers.
Multichannel Retailers All planning to built the complete e-infrastructure. Such as Web front, Payments channel and Delivery network. There are 3 reasons behind that
- To capture the customers in the online space. - To prepare for the Omni-channel strategy to integrate online space to the
existing channel. - To create customer database for the future benefits.
Facts from my interview (3/3)
Brand Brand are considering to have the presence in online space. Some brand want to create eCommerce space. Some brand still concern about channel.
Classified and C2C Seller, Buyer In Bangkok, face to face exchange at BTS, MRT is the most popular method for C2C delivery option. C2C Buyer -> Suffer from the Under qualified product or fake.
Classified platform provider want to promote trust between seller and buyer. Some of them offer the free QC services for the high value transaction.
Most of the C2C Seller use various social medias to expose to the consumers. In parallel, they also open the free shop in the eMarketplace in order to use the back office as the Order management system.
E-COMMERCE TRANSACTION CHANNELS
SIZE
Organized Informal/“Social Commerce”
via own web-shops
via marketplacesvia social media
via marketplaces via social media
1
3
2
4
Size B2C
Large
B2C Medium
B2C Small/C2C
150
20
14921
Order per Day
Order per Day
Order per Day
SIZE
Size to TypeMulti Channel Retailer
Ex. Central.co.th
eTailer
Ex. CDiscount
Brand/ MLM
Ex. lamer.co.th
Marketplace Merchants
Ex. Weloveshopping
C2C Seller/ Buyer
Consumer
B2C Large
B2C Medium
B2C Small/C2C
150
20
14921
Order per Day
Order per Day
Order per Day
SIZE
Size to Volume Contribution
Large Seller20%
of volume
Medium Seller Account for 30% of volume
Small Seller Account for 50% of Volume
B2C Large
B2C Medium
B2C Small/C2C
150
20
14921
Order per Day
Order per Day
Order per Day
SIZE
B2C Large
Top 15 merchants with
150+orders/day1)
B2C Medium
20-150 orders/day
B2C Small/C2C
<20 orders/day
Size to Volume Contribution
Want to manage various 3PL into their platformNeed better door step experiences, customer serviceCustomer is not at home
Want to use CoD Want to have IT integration, reportWant to have door pick upCustomer is not at home Small Seller
I need a trustworthy appearance
Services and Customer Demand MappingLate Cut off Time
Interactive Delivery Experiences
eFacilitationBest Practice Customer Service
Faster Shipment
Turn key solution
Seamless customer experiences
Faster ShipmentGreat customer Experience
Brand Images
Great customer Experience
Brand Images
Turn key solution
Seamless customer experiences
Great customer Experience
Brand Images
Time Saving Resolve Raining Problem (when go to Post)
Fast CoD Remittance
Liquidity
Security Convenient
Parcel Lockers 7-11
One App for all Tracking Code
Convenient
Time Convenient
Type B2C
Large Top 15
merchants with 150+
orders/day1)
B2C Medium
20-150 orders/day
B2C Small/C2C
<20 orders/day
Cancelled(Order((From(customer(
Order(my(mistake(From(customer(
Sugges6on(for(Delivery(
(80%(of(Cust.(Sat.(
How$to$order$
Special$request$
Ask$about$$Delivery$
Top$80%$of$Others$
Delay&Product&Delivery&
Missing&Part&
Defect&
Top&80%&of&Complaint&
10,160 Customer Service Call Summary
Cancelled(Order((From(customer(
Order(my(mistake(From(customer(
Sugges6on(for(Delivery(
(80%(of(Cust.(Sat.(
How$to$order$
Special$request$
Ask$about$$Delivery$
Top$80%$of$Others$
Delay&Product&Delivery&
Missing&Part&
Defect&
Top&80%&of&Complaint&
10,160 Customer Service Call Summary
Where is my product??