ASEAN E-commerce: Empowering E-commerce with Integrated Logistics Solution

The diversity of markets across ASEAN requires deep local understanding and good networks to maintain efficient services, especially in last-mile delivery. For example, local delivery firms might be strong in certain districts or regions in the country that are out of reach to other companies. It is necessary to work locally to access all corners of the region. To ensure their services are up to standard, Janio uses proprietary software to collect and analyse information on its partners’ performance. Janio allocates shipping volume based on historical performance.

Challenges Faced by E-commerce Sellers in ASEAN

While ASEAN is a market with good potential, doing business in ASEAN can be challenging in many ways. For example, the differences in customs regulations and tariffs between ASEAN countries must be carefully studied before doing business in the region and shipping goods. The great variety of languages and cultural traditions affects consumer preferences, which also suggests there is no single formula for success in ASEAN countries. “It is important for e-commerce sellers, especially the MSMEs, to understand the characteristics of different ASEAN markets, and so we have compiled a series of e-books and case studies to provide market information and things to note when shipping to the ASEAN countries”

Another hurdle when selling to ASEAN consumers is the issue of payment. According to estimates by Fitch Solutions, about 290 million consumers in the region do not have access to banking facilities and cannot pay online with credit cards, debit cards or bank transfers. This is common in the less developed regions of Indonesia, the Philippines and Thailand. In many cases, face-to-face service is an important element to build up trust. That’s why providing COD is an essential service to consumers when accessing these markets. However, receiving cash payments in multiple currencies can be time consuming and difficult to manage for small e-commerce sellers. Janio provides COD management services as a value-added service to its e-commerce sellers. Under Janio’s management, local courier partners can help with the collection of cash payments, and Janio offers e-commerce sellers the option to receive payments in local or other currencies. Janio can also allow for customised COD remittance schedules, allowing e-commerce sellers to hedge the exchange rates and other risks associated. “This is a key benefit of Janio’s services which many international courier companies do not offer”.

 Covid-19 Pandemic Calls for Agile Logistics Solutions  

The Covid-19 pandemic caused large delays in shipping and delivery in the ASEAN regions, especially in the early months in 2020 when the pandemic began to spread across Southeast Asia and widespread lockdown measures were imposed. Janio responded promptly by providing alternative routes and other logistics solutions to help keep e-commerce moving. Nathaniel Yim explained: “Many flights between Singapore and Malaysia were cancelled at the time. We managed to provide truckers for cross-border transits of the goods. So although the pandemic caused disruption to our business, it also showcased our capabilities to respond to new challenges.”

At present, logistics in the ASEAN region are gradually returning to normal as economic activities resume. However, stresses on logistics services may continue as consumer demand grows alongside economic recovery.

Looking into the future, Janio is planning an expansion deep into the Greater Bay Area (GBA). “Covid has delayed our plan to open offices in Hong Kong. Currently we have an office in Shenzhen, but we are planning to open offices in Guangzhou and Hong Kong to enhance our presence and visibility among merchants in the region.” Janio’s services are expected to be extended to include shipping to the US and Australia for their e-commerce sellers in the next few years.