The ever-evolving landscape of e-commerce has witnessed unprecedented growth, especially accelerated by the COVID-19 pandemic. As online shopping becomes increasingly prevalent, consumers’ expectations are soaring, with delivery times and returns emerging as primary pain points, reveals a recent report by logistics company FedEx Express.

Survey Overview

The “What’s Next in E-Commerce” survey, conducted in July 2022, canvassed small and medium-sized enterprises (SMEs) and consumers across India and ten other markets in the Asia Pacific, Middle East, and Africa (AMEA) region. The findings shed light on the current e-commerce trends and emerging challenges faced by stakeholders.

Consumer Behavior and Market Dynamics

In India, 83% of consumers have escalated their online purchases over the past three years, indicating a sustained momentum in e-commerce adoption. With shopping preferences evolving, consumers are seeking personalized experiences, innovative payment options, and engaging shopping avenues.

Kawal Preet, President of FedEx Express AMEA, underscores the pivotal role of COVID-19 in normalizing online shopping across diverse demographics. This normalization, coupled with evolving consumer preferences, is poised to reshape the retail landscape, driving e-commerce’s share of total consumer spend.

SMEs: Engines of E-commerce Growth

SMEs constitute the backbone of India’s economy, and the e-commerce sector has served as a lifeline for many during the pandemic. As businesses recuperate and expand, cross-border trade emerges as a strategic imperative for SMEs, offering significant growth prospects.

Kami Viswanathan, Senior Vice President of FedEx Express, emphasizes the transformative impact of e-commerce on SMEs, enabling resilience and facilitating market expansion.

Growth Prospects in Asia Pacific

The Asia Pacific region, encompassing powerhouse e-commerce markets like India and China, is poised for exponential growth. E-commerce sales revenue in the region is projected to surge to $2.09 trillion this year, propelled by a burgeoning online shopper base.

Eight out of ten SMEs across Asia-Pacific anticipate the growing significance of e-commerce in their operations, with a vast majority feeling well-equipped to navigate this evolving landscape.

Addressing Pain Points and Challenges

While the e-commerce sector matures, challenges persist, notably in customer service and operational efficiency. Delays in deliveries (53%) and managing returns (42%) emerge as top consumer grievances, underscoring the imperative for streamlined logistics and enhanced service quality.

Moreover, a significant proportion of e-tailers report grappling with the surge in order volumes, reflecting the strain on operational capacities.

Talent Retention and Market Dynamics

SMEs across India, Thailand, and Vietnam grapple with talent retention challenges, exacerbated by high resignation rates over the past year. This underscores the importance of talent management strategies in sustaining business continuity and fostering growth.

Conclusion: Navigating the E-commerce Landscape

As e-commerce continues its upward trajectory, stakeholders must prioritize innovation, customer-centricity, and operational efficiency to thrive in this dynamic landscape. Addressing consumer pain points, investing in talent development, and harnessing cross-border trade opportunities are pivotal for sustained growth and competitiveness in the e-commerce arena.