Tuesday, May 28, 2024

‘Fantastic fulfillment’ key to e-commerce success, says LOCAD chief

Providing great customer service with localized fulfillment serves as two of the most crucial elements needed to capture the Southeast Asian e-commerce market.

LOCAD CEO and co-founder Constantin Robertz during the Amazon SEA Seller Summit

This is according to Constantin Robertz, chief executive and co-founder of LOCAD, a cloud logistics network that fulfills e-commerce orders for entrepreneurs and enterprises.

Robertz made the assertion during the Amazon SEA Seller Summit where he discussed how global sellers can grow their business in Asia-Pacific with localized fulfillment that delivers a great customer experience. The virtual event was held in Singapore, Malaysia, and the Philippines on January 14, 19, and 20 respectively.

Robertz called Southeast Asia “one of the world’s most dynamic and fast-growing e-commerce markets,” detailing that the pandemic accelerated the e-commerce adoption of the region, raking in more than 350 million Southeast Asian digital consumers since 2016.

The LOCAD official emphasized that the fast-growing consumer adoption of e-commerce in the Southeast Asian region will benefit global sellers who want to tap into greater markets outside their immediate boundaries. In fact, new e-commerce users in the region reached a record-high of 40 million in 2021.

PH is in the running towards becoming one of Southeast Asia’s frontrunners in e-commerce adoption, with a projected 116% increase from 2021-2025

Robertz highlighted that because the SEA region is “still in its very early stages,” e-commerce businesses face a massive opportunity to expand by capturing more of the Asia-Pacific and Southeast Asian countries. In 2021, eight out of ten new e-commerce platform users in SEA have made at least one purchase online, with four times more spending for existing users.

He also named several factors that can determine success for an online merchant in Southeast Asia: an up-to-date software, a distributed warehousing network in multiple locations across key metropolitan areas, and a reliable shipping provider. Customer-centric service influences consumer decisions as satisfied ones spend 1.2 times more than others.

In the same vein, Robertz emphasized that consumers in Southeast Asia highly value faster delivery times, better availability, and a pleasant customer delivery experience. Around 42% of customers will switch to a store that offers value for money products and services.

He attributed LOCAD’s success and high levels of customer satisfaction in the region to their real-time and data-driven service, advising global sellers to invest in an end-to-end platform with a fulfillment infrastructure that helps accelerate orders in a cost-efficient manner.

Studies show how customer experience and delivery fulfillment make a huge difference in e-commerce customer retention

Aside from LOCAD, more than 30 Amazon experts and successful online sellers shared their expertise on building a popular and profitable brand in the e-commerce space in more than 15 breakout sessions. The three-day summit also focused on advertising, brand building, shipping and fulfillment, as well as how to navigate selling and selling globally.


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